—
The problem of gambling addiction is actual in all the world, from the third-world regions to highly developed European countries. There are almost no patterns or risk groups to detect and prevent gambling addiction predisposition. The significant impact of gambling on the economy is another matter of concern. Problems appear on the local level – household income and opportunities influence the overall country’s economy as well. See how gambling and the world economy are connected.
Self-exclusion with AAMS Cannot Solve the Issue: See Why
To solve the problem of gambling addiction, countries regularly introduce self-excluding programs and other supporting measures. For example, today self-exclusion revocation of AAMS helps Italian gamblers to self-exclude from online casinos, registered in the country. Such programs exist all over the world – for instance, GamStop in the UK works completely the same. But why don’t they work?
- The exclusion is voluntary. Italy, as well as other regions, have no official reasons to exclude a person from online and land-based casinos. Such programs are voluntary, and the person should apply to participate. This requires a high level of self-awareness and knowledge about addiction signs. Not everyone is capable of that.
- Programs only block local online casinos. AAMS and others can block gambling platforms with a local IP. Meanwhile, players can still visit foreign or international online casinos.
- They rarely work for land-based casinos. Despite strict rules, some offline casinos still allow self-excluded customers to gamble.
However, self-exclusion and educational information on gambling is a positive tendency. Governments introduce them to support the local population and decrease the impact of irresponsible gambling on the local economy. And the impact is indeed significant.
Gambling Addiction and Economy: Mutual Influence
The problem of problematic behavior doesn’t lie in gambling itself. Primarily, the issue is connected with mental and psychological problems, as well as income level. According to the NCPG report, people from households with an income of $25,000 or less show more signs of problematic gambling behavior than those with an income of $25,000-$49,000. The number of people who feel stressed and irritated during gambling sessions or those who hide their gambling addiction increases inversely to the increase in income level.
It shows that the influence is mutual. Countries with poor economies have more addicted citizens. People with low income are also likely to gamble. And this is not only about earning money – gambling works as a distraction from the real world and its problems.
The NCPG also analyzed the so-called “positive play” – gambling with high awareness and no risks of problematic behavior. The results show better tendencies among white European people, who statistically have more resources to obtain higher education than other nationalities.
Does Economy Suffer from Gambling Addiction: the Scale and Real Risks
Imagining that problematic gambling can influence the world economy seems absurd. With addicted people mostly coming from poor households, they simply cannot spend large sums. However, statistics show the opposite. Only in 2016, the world loss on gambling reached $400 billion. The sum is rising along with inflation.
Workforce Decrease
Problem gambling also leads to a workforce crisis. Studies show that gamblers with severe addiction are likely to miss work due to gambling-related issues – as a result, most of them lose their job sooner or later. As a result, countries face decreased tax revenue and a lack of workforce. People with higher education are less likely to be addicted, they can also lose jobs due to problematic behaviour. As a result – countries lack narrow specialists and people with experience.
The Debt Cycle
Impulsive gamblers often try to overcome their losses by borrowing money from banks and family members. Short-term loans with a high interest are especially risky in these terms. This debt can be personal or affect all family members. Moreover, it impacts the credit score and the ability to manage debts wisely. The unpaid debt also burdens creditors and financial institutions, leading to the overall crisis.
Crime Rise
Problematic gambling can also cause criminal activities. Desperate to cover losses, some people may try theft or fraud. Research shows a direct connection between addiction and crime levels.
Tax Revenue Losses
For the local economy, losing employees means losing taxes. It is not only about the workforce – people spend less money on activities, food, entertainment, and recreation. As a result, local economies suffer and lack budget revenue. Addicted people bring no positive impact on the economy, yet spending money on online casinos. Studies showed that for each $1 tax earned from national casinos, the country loses from $2,8 to $5,3 – thus, even a regulated casino market doesn’t help.
Gambling addiction is a complex issue – it harms individuals, families, and countries. By recognizing the cost of such problems, countries try to introduce protective measures. Currently, these are self-excluding programs like AAMS and campaigns that educate people on budgeting and gambling behaviour. Developed countries with regulated gambling markets and excluding programs indeed suffer from addicted gamblers less. However, despite showing a positive influence, such initiatives are not enough. Currently, the goal is to provide people with psychological assistance as well. Since depressed people and individuals with psychological problems are more likely to gamble, it can help in a long perspective.
—
This content is brought to you by Lia Capizzi
Photo provided by the author.