In October 2022, the Gambling Commission released its latest gambling participation and prevalence survey, reporting a problem gambling rate of 0.3%, the same as in September 2021.
However, new research from the National Institute of Economic and Social Research, funded by the Gambling Commission, indicates that the actual problem gambling rate may be higher.
A study titled “Fiscal Costs and Benefits of Problem Gambling: Towards Better Estimates” focused on the fiscal burden associated with the harms caused by problem gambling.
The study estimated that approximately 0.7% of the total population of 16 years and older living in private accommodation, or around 380,000 people, experience problem gambling.
Based on this estimate, the report states that the total fiscal cost associated with problem gambling harms is approximately £1.40bn (€1.58bn/$1.74bn) per year.
The study also calculated that the fiscal cost per person experiencing problem gambling is around £3,700 per year, compared to those experiencing “at-risk” gambling.
The majority of the fiscal cost is attributed to higher welfare support, increased healthcare expenses, criminal justice costs, and the costs of homelessness.
However, the report acknowledges that these calculations are likely underestimations and that the actual fiscal burden could be higher.
The study explains that due to a lack of publicly available data, it was not possible to include the costs to “affected others” arising from the connections between gambling, debt, family breakdown, or the costs of suicide associated with problem gambling.
In response to these findings, the research team recommends several potential reforms:
- Recognition of the fiscal costs of problem gambling in the government’s proposed regulatory changes as part of the delayed review of the 2005 Gambling Act in the white paper.
- Inclusion of clear screening diagnostics for individuals experiencing problem gambling in the next rounds of the Wealth and Assets Survey (WAS).
- An update of fiscal estimates based on data from the 2022 Adult Psychiatric Morbidity Survey (APMS) once available.
- Implementation of large-scale data collection by the Gambling Commission, particularly regarding the association between problem gambling and affected others, as well as the relationship between problem gambling and suicide.
