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Crypto trading and gambling problems: are they connected?

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This article explores the relationship between cryptocurrency trading and gambling harms.

As more people become interested in cryptocurrency investment, crypto casinos and crypto-driven games are becoming more popular daily.

As the interest in cryptocurrency and gambling continues to increase, many are curious about the correlation between gambling addiction and crypto.

Join us as we explore the relationship between cryptocurrency and gambling addiction based on research and statistics.

Crypto and gambling addiction

According to the data gathered by the UK Gambling Commission, there is a connection between risky investments and problem gambling.

The data shows that problem gamblers are much more likely to own cryptocurrencies than non-problem gamblers (38% vs. 6%). They are also less likely to invest in bonds or ISAs.

Of those who own cryptocurrency, around 32% check it daily, while another 12% make daily transactions.

The data suggests that those who check on their investments more regularly and often make transactions have a higher score in problem gambling.

Over half (51%) of the investors say they started with cryptocurrency because it is a thrilling and fun trading activity. Around 43% of them also agreed that investment products have the potential to be addictive.

Can trading lead to gambling problems?

There is speculation that trading shares some similarities with gambling, as traders tend to make decisions based on limited information to gain something. Both are considered highly volatile, with uncertain outcomes.

The statistics indicate that those who gamble or are pulled towards gambling are more likely to engage in crypto trading and betting.

The research results of a study by Science Direct show that gambling and problem gambling rates are higher among those who take part in cryptocurrency trading and betting.

According to GamCare, the number of people asking for help with day trading has risen, which has led to the consideration of opening a self-exclusion scheme for high-risk trading consumers.

Gamcare’s latest research also indicates that those who have been in severe trouble with problem gambling tend to be more negatively impacted by trading.

Tips from Gamcare

Some recommendations and tips arose in the recent Gamcare Gambling Related Financial Harm Workshop.

  • To raise awareness, gambling support services should be pulled in to help educate consumers on the high risks of harmful trading.
  • Money guidance and financial education organisations can assist in raising awareness of the harms linked to high-risk trading.
  • Financial bodies and organisations should do their part to raise awareness of trading harms and support consumers.
  • In terms of prevention, trading/investment platforms and cryptocurrency exchanges should incorporate tools and strategies that can assist in responsible trading and protecting vulnerable customers.

It is recommended that the government and financial conduct authority implement a sector-wide self-exclusion scheme for all high-risk investment and day trading platforms. In this case, the FCA can work with regulators like the Gambling Commission.

Final thoughts

When it comes to the relationship between cryptocurrency and gambling problems, there is a definite connection. While it does not apply to all crypto investors and gamblers, it should not be ignored.

Many adults are participating in crypto investments and betting despite FCA warnings regarding the potential gambling harms connected to it. As with more traditional gaming forms, the focus should be prevention tools that may assist those seeking assistance.

A complete ban or exclusion should be avoided. This would encourage people to turn to unregulated options, which can be even more dangerous than regulated trading and gaming markets.

Published: May 29, 2024

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Article by Polly

CasinoWow Contributor

Hey guys, my name is Polina but my friends and colleagues call me Polly. I am truly passionate about online casino gaming and exploring the different online gambling experiences. I'm really into diving deep into topics and researching all the details. My aim is to gather the best information and write interesting articles for all the readers at CasinoWow.

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