Leading UK supplier of problem-gambling support, free information, and guidance GamCare has expressed its concern regarding high-risk stock trading. Acknowledging the growing risks associated with these activities, the charity recommends the introduction of a self-exclusion scheme for high-risk traders.
GamCare Noticed Similarities Between High-Risk Trading & Compulsive Gambling
While the majority of people usually trade and invest in stocks and cryptocurrencies problem-free, GamCare’s National Gambling Helpline has signaled a concerning increase in the number of callers experiencing high-risk trading harms. According to GamCare, more and more callers report money and mental health problems similar to the harms usually tied to problem gambling. Many of these people report spending dozens of hours a day trading on their smartphones, putting their money in, and chasing losses while keeping their activities hidden from their families.
To get a deeper understanding of the problem and find the best solutions for it, GamCare organized a series of workshops asking for the advice of a number of different sectors, including support services for gamblers and financial institutions. At the end of the consultations, GamCare learned that government authorities, the Financial Conduct Authority, gambling operators, the debt advice sector, and support services for gamblers might take a self-exclusion scheme into consideration. In an attempt to put an end to this problem, GamCare’s proposed self-exclusion scheme would be embraced by all platforms that currently provide high-risk day trading and other risk investments including cryptocurrency trading.
This particular area has experienced fast growth in recent years, while also bringing along higher potential harm for traders. GamCare’s workshop attendees spoke about the best protective strategies and tools that could be added to these high-risk crypto trading platforms in order to keep vulnerable people away from harm. A solid self-exclusion scheme could help prevent harm associated with these activities before they would become a reality.
GamCare also partnered with LAB, Ignition House, and City University for the launch of new research that would observe the vulnerabilities of online gambling.
At the beginning of February, GamStop and GamCare reported higher numbers of women gamblers at high risk of gambling harm, along with a higher incidence of gambling addicts who use the self-exclusion option but fail to actively seek help from the charity’s national helpline.
The Self-Exclusion Scheme Could Attract Help From The Gambling Commission
Jack Symons, CEO of Gamban commented that lots of high-risk trading options such as cryptocurrencies, binary, and contracts for differences are similar to standard gambling platforms. Symons argued these options do not impose any entrance barriers or limitations and that their features are similar to those of games.
Plus, they also tend to actively encourage people to over-trade. Gamban combined its own research on the matter with official consultations with the professional advisors part of GamCare’s National Gambling Helpline and concluded these trading products should be added to Gamban’s block list.
GamCare’s proposed self-exclusion scheme could attract additional assistance from the Gambling Commission. The effectiveness recorded by the GAMSTOP tool over the last few years is further encouraging GamCare to lobby for a self-exclusion tool. The charity’s Helpline Advisors claim they would find much use in a palpable self-exclusion tool they could provide to desperate callers struggling with trading services that resemble gambling.