Problem gambling costs UK £1.4bn per year, new research finds
Data from the National Institute of Economic and Social Research shows problem gambling rate at 0.7% compared to UKGC figure of 0.2%
New research has suggested people experiencing problem gambling is corresponding to £1.4bn of cost per year to the UK exchequer.
Data from the National Institute of Economic and Social Research (NIESR) revealed the soaring costs associated with those dealing with gambling-related harms.
These costs are predominantly related to higher welfare payments, with those suffering from gambling-related harm requiring increased healthcare costs, criminal justice costs and the cost of homelessness.
The study found that people who experience problem gambling are “significantly more likely” to require public services than those who experience at-risk gambling.
The research established that there are around 380,000 people experiencing problem gambling in the UK, which amounts to 0.7% of the population.
This new figure estimates the problem gambling rate to be well above that used by the Betting and Gaming Council and UK Gambling Commission (UKGC) of 0.2%.
Per person experiencing problem gambling, the fiscal cost is at least £3,700.
However, NIESR said that the £1.4bn figure was likely to be underestimated as it did not include a number of elements.
The figure did not take into account the costs to affected others, of those experiencing gambling-related harm, or wider social costs.
Following the disclosure of the findings, NIESR laid out three recommendations for the industry and stakeholders.
The first is for the government to recognise the fiscal costs associated with problem gambling in the upcoming white paper into the Gambling Act 2005 review.
Additionally, that the UKGC should add large-scale data collection to its remit with a focus on online gambling and the link between problem gambling and affected others.
Finally, the body suggested the inclusion of measurement instruments for people experiencing gambling-related harm in the next round of the Wealth and Assets Survey.
Professor Adrian Pabst, the National Institute of Economic and Social Research’s deputy director for public policy, said: “Gambling has many benefits to the UK economy and society, but these have to be weighed against the costs of gambling-related harms.
“Our research provides an independent and impartial assessment of the burden to the exchequer that is associated with problem gambling – around 380,000 people suffering severe gambling-related harm at a minimum cost of £1.4bn per year. Behind these numbers are the lives of many more people who are affected by problem gambling, including families and communities, especially those who are most economically and socially deprived.
“NIESR’s mission is to improve the public understanding of complex phenomena such as gambling and to help design better policy to improve people’s lives. We hope that this report will contribute to the policy debate now that the publication of the white paper on gambling reform is imminent,” he added.