News & Views » City Forum

Cultural and economic factors that contribute to high gambling rates in leading countries

By

comment



Gambling is a game that brings about mixed feelings in players – excitement when winning, and sadness when losing. Whichever the case, the number of gamblers around the world continues to experience a massive increase. It's no wonder researchers have been trying to look at the motivating factors that keep attracting people into this industry.


The two keywords that keep appearing in studies on the constant increase in gamblers are “cultural” and “economic”. So, in this article, along with other aspects, we will discuss the cultural and economic factors that contribute to high gambling rates in leading countries. This will also expose the psychology behind betting and help us conclude whether the surge in interest and participation in the sector will continue.

Understanding why people gamble


Generalization should be our first point of contact when investigating factors contributing to the increase in gambling rates around the world¹. Gambling can be a form of escape for people experiencing a stressful change in life, or for those looking to forget about life's worries, such as money troubles or relationship issues. But, arguably, the biggest reason is to win and cash out big! I mean, who wouldn't want that?


However, we've narrowed down the main reasons why people gamble into four categories. These might help you better understand² the motivation behind gambling:

1. Social reasons


While it may sound odd, gambling is one of the best social activities. People gather to attend sporting events where they place bets, argue and talk about how their favorite team will win (sometimes even as strangers). It is also an activity that brings friends together for poker nights, or slot games. It can be a fun thing to do, watching a game you placed a bet on, hoping the player(s) you staked on will win, and celebrating together when they do. This can be a way for people to escape stress, forget about their sorrows or simply cool off.

2. Financial reasons


This is one of the obvious reasons why people gamble. The thought of winning a jackpot and how it could change their lives for good will motivate people to bet. In essence, the desperation to make more money can be a motivating factor, with the belief that gambling could be the solution to end financial troubles.

3. The desire to take risks


Most people are prone to taking risks – they tend to enjoy the excitement and anticipation of it. And even though gambling is one of the riskiest investments in the world, they wouldn't mind being involved ³. Betting is not only about losing – there's also the potential to win – which is on most bettors' minds. Some are even willing to risk the majority of what they have because they believe they can win. Remember, the more money wagered, the higher the risk, and the higher the potential of winning big. All these factors increase the excitement of gambling.

4. Entertainment reasons


From the discussions so far, you can already tell that gambling can be exciting. Therefore, it may not be surprising to know that one of the reasons people gamble is to be entertained. Most love that feeling, the rush or “high” that comes with anticipating and watching the games with great hopes. Some gamblers also see it as a way to pass time – to kill boredom During the Covid-19 pandemic, for instance, many people turned to gambling⁴ to cope with the idleness that stemmed from the lockdown.


Although these four reasons are the general factors that contribute to why people gamble, the motivation can also differ based on region. So, in the next section, we will take a look at some of the top countries in the world and ascertain the reasons for the high prevalence of gambling based on cultural and economic reasons.

Factors contributing to high gambling rates in the United States


Today, gambling has become one of the most popular activities in the US. Over there, there are two types of gamblers – those who do it on a regular basis and others doing it on a professional level. Whichever way, people in the United States gamble for a number of reasons.


One of the main contributing factors to gambling being enjoyed in the US is that it's a major social activity. Playing at a local casino allows Americans to hang with friends, meet new people and create wider networks. Besides, spending time with friends doing something as fun as playing a game of poker can be inspiring.


Gambling in the United States has also gained traction over the years as a result of the legal policies surrounding the industry. Most states have legalized betting, giving punters the go-ahead to engage in the activity. Consequently, sportsbooks have been on the rise, promoting online gambling and the like.


Furthermore, you can attribute the surge of gambling in the United States to the ease of participation. The introduction of casinos and online gambling sites makes it easily accessible and convenient. People can gamble whenever and wherever.


You could also consider the side attractions and excitement gambling presents as a reason why gambling is considered one of the best activities to do in the US. Looking at some of the most famous casino cities in the world, such as Vegas, you may be tempted to adopt the practice in your hometown. It draws people's attention and fancy, keeping them glued to the game.


Finally, another contributing factor to the high rate of gambling in the United States is the effect it has on the economy. According to research by the industry’s national trade association, the casino gambling sector in the US generates over $329 billion yearly⁵ in economic activity. Similarly, the industry is responsible for creating over 1.8 million jobs⁶ across the country, with over $74.0 billion of labor income including wages, salaries, bonuses and other income. As a result, it's no wonder that policymakers and business owners are encouraging the activity.

Factors contributing to high gambling rates in the UK


As of the time of publishing this, the UK holds the record of being the world's largest gambling market as well as the globe's biggest online casino industry. With over £14.1 billion in gross yield (profit before expenses and taxes) in the last financial year, many people in this region are active gamblers. As a matter of fact, the Gambling Commission revealed that over 44% of adults in the United Kingdom gamble yearly⁷.


The explosion of gambling in the UK can be traced back to the Gambling Act of 2005, which was created to promote legal, adequately regulated gambling. It allows gambling to be advertised even on public channels, with the industry spending over £1.5 billion annually on adverts. Taking a look at the act critically, it's designed for the digital age to allow betting firms to aggressively promote games and gain more customers.


Basically, we can conclude that exposure to betting through the media contributes to the proliferation of gambling in the UK. Then, there are the usual psychological reasons for how citizens enjoy the game, the financial rewards and social benefits, among others. In addition, with the exclusion of the National Lottery, online gambling accounts for over 60% of industry revenues. Research shows that the majority of gamblers register with multiple online bookies and are constantly searching to find the latest betting opportunities.

Factors contributing to high gambling rates in China


Unlike the two countries previously discussed, gambling in China is still largely considered illegal. Nonetheless, the activity is still socially acceptable among the people, and the industry growth rate, though slow, has been increasing yearly. The natives in this country are fond of playing games like Mahjong, which, in a way, is similar to how North Americans play poker.


Cities such as Hong Kong and Macau are hubs of gambling, with citizens from various locations traveling just to play. Besides, sports betting is legal in these locations in China. Culturally, the Chinese are more inclined to gamble, with the reason being that luckiness is considered a blessing, or being chosen by the gods. As such, they're much more likely to rely on superstitions such as 'lucky numbers'.


On the other hand, in regions like North America, gambling is culturally considered taboo in several ways. For one, games of chance are biblically forbidden, and therefore are considered by many to be morally wrong. Notwithstanding, gambling is still an important activity practiced in some countries in the continent.


Gambling for Asians is also considered a great social event. Asians prefer to visit a casino as a large group rather than a small number of people. Betting also transcends language barriers, and Asians, particularly immigrants, will frequently hang out around gambling establishments.

Conclusion


Research has consistently proved that people often gamble for reasons other than broad cultural and economic reasons. Other motivations may vary according to the individual characteristics of the gambler and the nature of gambling activity. In any event, the gambling industry is in no danger of declining any time soon. It's predicted that most countries may have to bow to the pressure to allow their citizens to legally participate in this profitable venture.


  1. Countries That Gamble The Most, written by James Hall, published by CasinoTopsOnline.com


  1. Things You Need To Know Before Placing A Bet On Online Betting Sites, written by Alan Watts, published on clclt.com


  1. States Where Sports Betting Is Legal, written by Brian Pempus, published by Forbes.com


  1. The Impact of COVID-19 on gambling and gambling disorder, written by Marc N. Potenza, journals.lww.com


  1. Gaming Industry Delivers $329 Billion Annual Economic Impact on U.S. Economy, New AGA Study Finds, written by American Gaming Association, published by americangaming.org


  1. Economic Impact of the U.S. Gaming Industry, written by American Gaming Association, published by americangaming.org


  1. Health Survey for England 2021 Part 2: Gambling, written by National Health Service (NHS), published by digital.nhs.uk


Tags