A study that included more than 700,000 gamblers from Canada and the US found that 96% of all study participants lose money when gambling and that lower-income gamblers take more risks and tend to be more irresponsible with wagering than those in higher-income classes.
The study, titled “Online Gambling Policy Effects on Tax Revenue and Irresponsible Gambling”, was conducted by the UC-San Diego’s Rady School of Management and took a look at the gambling habits of individuals across North America. It focused on jurisdictions where traditional and online gambling are legalised.
A legal market can help curb illegal gambling dens and the jurisdictions in which gambling has been legalised also enjoy increased revenue from gambling activities.
However, the consumers stand to lose money, which is why any trusted gambling site offers tools to help players gamble responsibly. In Canada, more and more players are choosing to play at Instadebit casino sites because, according to Khadija Bilal, these allow Canadian players to safely and securely deposit and withdraw funds from their online gambling accounts. Transactions with Instadebit are instant and don’t carry fees, and transaction data is transmitted securely using 128-bit encryption technology, so players can gamble safely when using this payment method.
Additionally, many gamblers access online casino apps on their smartphones because of the convenience of these platforms. With the latest technology, players can access all their favourite casino games right on their phones, without ever having to leave home. However, this also means it is easier for those with “risky” gambling tendencies to lose money quickly, hence the importance of implementing responsible gambling tools such as deposit limits and the option to take a break from gambling through self-exclusion.
As part of the study, the researchers focused on 250,000 Canadian gamblers. It was revealed that 43% of the participants spent more than 1% of their salary on casino games. The study found that 5.3% of Canadian gamblers spend more than 10% of their income, and 3.2% spend more than 15% of their total income at casinos.
The study data was gathered between 2019 and 2023, and participants were identified by looking at credit-card transactions. 41 gambling sites were included in the study, and researchers looked at users who transferred funds into or out of gambling accounts, and who also deposited funds into these accounts.
The tracking methods used by the researchers allowed them to see how much was being spent by individuals in a month, however, it was not possible to see the exact details of what the money was being spent on (e.g. sports betting, slots, or table games). The researchers were also not able to track the intensity of the bets or the frequency at which bets were placed.
Study participants appeared to earn more than the average North American, as they had disposable income and a mean annual income of $130,096. In Canada, the mean annual salary is $106,300.
Other findings of the study included:
- Deposits averaged $1,375 and withdrawals averaged $742.
- The total wager value grew 14-fold between 2019 and 2023.
- Taxable revenue grew 18-fold between 2019 and 2023.
- After gambling is legalised, low-income gamblers tend to play more irresponsibly than higher-income gamblers.
Although the study touches on the risks of online gambling, particularly for lower-income individuals, it also highlights the growth of the sector. As gambling continues to be legalised in North American markets, players need to remain mindful of their spending habits, and operators need to encourage “cooling off” periods and deposit caps.