Students Are Borrowing Money to Gamble, Charities Warn

20

January 2022
Students Are Borrowing Money to Gamble, Charities Warn (1)

Students Are Borrowing Money to Gamble, Charities Warn

80% of UK university students have engaged in gambling, with many reporting negative effects and getting into debt to make bets, according to a new survey from the Young Gamers and Gamblers Education Trust (YGAM).

That’s the takeaway from a survey of 2,000 students from across the UK, conducted by Censuswide and jointly commissioned by YGAM, a charity educating and safeguarding young and vulnerable people about and from the consequences of gambling, and GamStop, a free online self-exclusion scheme, allowing people to put controls in place to restrict their digital gambling. 

The survey revealed that eight in 10 UK university students have gambled. Of this group, more than four in 10 (41%) say that gambling has negatively impacted their university experience, including causing them to miss lectures, assignment deadlines, and social activities.

More than one in three (35%) of student gamblers are borrowing money to make wagers. Using credit cards and e-wallets like PayPal has been prohibited for all on- and offline bets since April 2020. But students are using forms of borrowing, including their current account overdrafts, payday loans, their student loan, and money from friends, to fund their gambling. Nearly one in five (19%) student gamblers admits to using money from their student loan to make bets.

Students are spending a mean of £31.52 per week on gambling, the survey found. That’s more than £1,600 per year.

But nearly one in five (18%) admit to spending more than £50 per week on betting, the equivalent of more than £2,600 per year. Fewer than half (45%) of gamblers are spending less than £10 per week.

The most popular gambling products during the pandemic are the National Lottery (32% of student gamblers), online sports betting (25%), and online bingo (18%). Although lockdown restrictions removed some opportunities for gambling, suspending sports matches and closing betting shops, it didn’t decrease gambling among students. More than one in four (28%) say they gamble as often, or more often, as before the coronavirus crisis.

Why are students gambling? Around half (46%) want to make money, but a quarter (25%) enjoy the risk. 52% say gambling makes them excited, and 33% say it makes them happy. But 21% report that gambling makes them feel anxious.

Peer pressure, social media, and advertising are other factors pushing students to gamble, the research found. 34% report that their friends are the biggest influence on their gambling, while 32% are most influenced by social media. 14% of respondents named gambling advertising as a key influence on their gambling.

The Committees of Advertising Practice (CAP), which is responsible for the UK’s code on advertising, has proposed banning the use of celebrities in gambling advertisements, after research from GambleAware found that ads with sports personalities, reality TV stars, and social media influencers could negatively impact minors. Under current regulations, gambling advertisements cannot ‘particularly” appeal to under 18s. While the CAP has consulted on the measures, they haven't yet come in to force. 

YGAM's research, conducted in December, also revealed students’ susceptibility to crypto investments, which some believe is a glorified form of gambling. Students who gamble are more likely to make risky crypto investments, some of which are advertised just like gambling products. Among student gamblers, more than one in three (36%) have invested in crypto in the last 12 months, compared to just 17% of non-gamblers.

Crypto advertisements may also be subject to tougher regulations, under proposals made this week by the Treasury. The Treasury says that in the future crypto advertising will be regulated like other financial products, with the stipulation that promotions must be “fair, clear and not misleading.” Research from the Financial Conduct Authority (FCA) published last June found that people persuaded by ads to buy cryptocurrencies were more likely to regret their purchases.

But pending advertising restrictions won’t be enough for students who are already accustomed to gambling and who have made gambling a key part of their social lives. Those students need to be better educated about the risks of gambling and given tools to manage their gambling, campaigners said.

Daniel Bliss, director of external affairs at YGAM, said: “[These] findings reiterate the importance of educating our young people on the risks and harms associated with gambling. Education is a powerful tool to ensure students are equipped with the knowledge and understanding to help prevent harm.”

Fiona Palmer, chief executive of GamStop, said that self-exclusion is a tool students can use to manage their gambling. “Gambling-related harm on our campuses is a subject that is rarely addressed, but for any students experiencing problems with their gambling, self-exclusion can give them valuable breathing space while they seek additional help,” she said.

The Gambling and Betting Council said that problem gambling among young people is down. “According to the Gambling Commission, the rate of problem gambling for 16 to 24-year-olds halved from 0.8 per cent to 0.4 per cent in the 12 months to last September,” a spokesperson said.

“But one problem gambler is one too many, which is why we have taken a number of steps to promote safer gambling. For example, our members introduced new rules on advertising on social media and search platforms, restricting betting ads to those aged 25 and over for most sites.”