The Cost-of-Living Crisis and Gambling: a Ticking Timebomb?

The cost of living is increasing. Wages remain stagnant while the cost of everything from housing to groceries rises. For many of us, this means working longer hours or taking on extra jobs to meet ends. But for others, the pressure of the cost-of-living crisis can lead to more dangerous behaviours, like problematic gambling. Increasingly, the signs indicate that gambling addiction is a ticking timebomb.

Gambling has become a popular pastime for many people in the UK. Still, the consequences of excessive gambling can be severe. As the cost of living continues to rise, the temptation to gamble in the hope of winning big has become too much for some people.

The result is a lifetime of debt and addiction, with individuals and families suffering devastating consequences.

The Cost-of-Living Crisis

First, let’s talk about what we mean by the cost-of-living crisis. Simply put, it’s the rising costs of necessities like food, housing, and healthcare, coupled with stagnant wages and high unemployment. This creates a situation where many people struggle to make ends meet and may be forced to make difficult choices between paying bills and putting food on the table.

The United Kingdom is currently facing a crisis, with a growing number of people needing help to keep up with increasing expenses. Inflation, stagnant wages, and the lingering effects of Brexit have exacerbated this crisis.

This had a ripple effect on imports, exports, and investment. It also worsened Britain’s inflation problem, which has been challenging for workers and businesses. The chairman of the Office for Budget Responsibility has said that leaving the EU could mean a potential GDP reduction of about 4% in the long term.

The impact of this crisis on individuals and families cannot be overstated. Financial stress is a leading cause of mental health issues like anxiety and depression. It can strain relationships and even lead to divorce. It can also lead to heightened substance abuse issues.

Gambling Addiction in the UK

One common addiction associated with financial strain is gambling. It often seems like an easy way to make money quickly. Unfortunately, it’s also a dangerous behaviour that can lead to addiction.

Gambling addiction is defined as a compulsive behaviour that continues despite adverse consequences. People with a gambling addiction may continue to bet even when they’re in debt, have lost their job, or have strained relationships with family and friends.

According to a report by the Gambling Commission, more than 2 million people in the UK are at risk of becoming addicted to gambling or already are. Around 7% of UK adults have been negatively affected by someone else’s gambling problem.

Also, the latest statistics on gambling behaviour in 2022 show that the most popular forms of gambling are National Lottery draws (37%) and other lotteries (11%). Betting on sports events, such as football matches and horse racing, is the third most popular type of gambling, with 9% of respondents saying they participated in this activity in the past four weeks.

Connection Between the Cost-of-Living Crisis and Gambling Addiction

So, how are the cost-of-living crisis and gambling addiction connected? For many people, the pressure of financial stress can lead to risky behaviours like gambling.

When it seems like there are no other options for relief, gambling can offer a sense of hope and excitement, even if it’s ultimately destructive. Unfortunately, this can create a vicious cycle where struggling people turn to gamble to make up for their losses, only to find themselves in an even worse situation.

According to recent statistics, gambling remains popular in the UK, with the National Lottery being the most popular form. Over 27% of people played the National Lottery in 2022.  It was followed by scratch cards at 10% and sport betting at 5%.

In 2022, the UK gambling industry generated £14.3 billion in gross gambling yield, an increase of 10% from the previous year. And over 44% of adults were reported to be gambling in 2022. The dangers of gambling addiction are genuine, and many people have shared their stories of how gambling has ruined their lives.

For example, in March 2023, ITV News reported the story of a man who lost everything due to his gambling addiction. He lost his home, car, and children because of his addiction to online slots.

Another story, reported by the Mirror, tells the story of a hairdresser, Christine, who lost £70,000 in just four hours due to her addiction to online casino games. In a roller coaster of a week, Christine Tolaini won tens of thousands from online gambling, only to lose a staggering £70,000 in a mere four hours.

This devastating loss made her realise she had ‘hit rock bottom.’ Faced with the harsh reality of her situation, Christine decided it was time to seek help for her gambling addiction. According to her, “I hit rock bottom. I was hopeless and completely lost. I didn’t know how I was going to get out of it. I went to the doctors, and they didn’t know what to do with me. I wasn’t eating, and I wasn’t sleeping. I wasn’t concerned about looking after myself.”

These stories illustrate how destructive gambling addiction can be and how it can ruin an individual’s finances, relationships, and mental health. In some cases, gambling addiction can even lead to criminal behaviour. In March 2023, Metro reported the story of a man who went to prison after stealing £1.7 million from his bosses to feed his gambling addiction.

Elisabeth Dantendorfer, clinic manager at CATCH Recovery believes these stories are more common than many realise.

“Prevention is more important than mitigation due to the nature of addiction, as individuals with a gambling problem will always find loopholes to exploit. Having better access to early interventions and campaigns to reduce stigma will help individuals before a problem ends in financial ruin”.

She believes gambling-related disorders are on the rise due to the cost of living crisis, and has noticed a significant uptick in enquiries relating to gambling.

“People are struggling and looking for ways to make money to cover their bills, gambling provides a false sense of security for vulnerable people, and sadly it’s the most vulnerable in our society who are impacted the most”.

How to mitigate the problem

Gambling addiction is a ticking timebomb in the UK, but the good news is that there are solutions to both the cost-of-living crisis and gambling addiction. On a policy level, we need to prioritise policies that address the root causes of both issues. At an individual level, it’s essential to recognise the signs of a problem and seek help when needed.

The good news is that help is available for those struggling with gambling addiction. Therapy can be a very effective way to address the underlying issues contributing to addiction and develop healthy coping mechanisms.

Even if someone only has one instance of problematic gambling, seeking help to prevent future incidents is still essential. This can include getting help from organisations such as Gamblers Anonymous or professional counselling from a therapist or psychologist.

Providing education and awareness about the risks associated with gambling can also help individuals make informed decisions. This includes understanding the odds of winning and losing, the addictive nature of gambling, and the potential consequences of uncontrolled gambling.

Final Thoughts

The cost-of-living crisis and gambling addiction are two issues that are closely linked. Financial stress can lead to risky behaviours like gambling, creating a vicious cycle of addiction and financial ruin.

However, help is available in therapy, and seeking help can be a life-changing decision to help individuals regain control of their lives. With the right policies and individual interventions, we can break this cycle and create a brighter future for ourselves and our communities. Let’s start by recognising the problem and taking action today in order to avert the ticking timebomb of gambling addiction.