New Research Pegs the Cost of Problem Gambling in the UK to £1.40B Each Year

The research focused on the fiscal costs associated with problem gambling, contrasting previous work in that field. NIESR’s findings questioned the long-term financial benefits of gambling as opposed to its substantial societal burdens. The Institute recommended further research to elaborate on these early findings and develop a comprehensive picture of the UK’s gambling ecosystem.

Hundreds of Thousands Suffer from Gambling Harm

The National Institute of Economic and Social Research published its newest findings on problem gambling, funded by the UK Gambling Commission. Such initiatives coincide with the country’s recent focus on mitigating gambling harm, which is becoming an increasingly pressing matter. The NIESR paper primarily focuses on the financial burdens associated with gambling and the industry’s monetary impact.

A previous study by Public Health England (PHE) revealed that 0.5% of adults suffered from problem gambling, estimating a direct financial cost to the government and society between £1.05 billion ($1.28 billion) and £1.77 billion ($2.16 billion). People living in deprived areas suffering from unemployment, poor health, and low life satisfaction were especially at risk, concentrating potential harms among several vulnerable groups.

NIESR’s updated results show an even bleaker picture, raising estimated problem gamblers to 0.7% of the adult population, corresponding to approximately 380,000 people. The report calculates the approximate yearly financial burden to roughly £1.40 billion ($1.73 billion) but acknowledges that the actual costs are likely much more significant.

Offshore Operators Offer Fewer Economic Benefits

Most of the fiscal impact associated with problem gaming was due to increased welfare support, healthcare expenses, homelessness, and criminal justice costs. The report also aimed to compare these burdens with the direct financial benefits of gambling and draw informed conclusions regarding the industry’s net contribution to the Exchequer.

According to NIESR, offshore gambling operators were increasingly problematic, avoiding much of the costs and taxes of land-based establishments and reducing the overall tax benefits for the country. Such companies were equally responsible for the rising cases of gambling harm and possibly didn’t contribute enough to the industry’s net economic benefits.

More Research Is Sorely Needed

The report’s worrying implications caused NIESR to recommend three imminent reforms, with potential further action after a more detailed analysis. The Institute proposed a wider recognition of the fiscal costs of problem gambling and their inclusion in the upcoming Gambling Act review. Large-scale data collection was also imperative to determine the broader impact of gambling harm and its relation to suicide.

NIESR also recommended better screening for suffering individuals and updates to the relevant statistics reflecting their recent findings. Given the research’s limited scope, the actual burdens of problem gambling are likely significantly direr. With the UK’s planned reforms long overdue, further delays will only cause additional harm to vulnerable groups. New research pegs the cost of problem gambling in the UK to £1.40 billion each.