The effectiveness and integrity of the gambling industry’s vetting procedures have been questioned following a report from the CISI on gambling habits of UK’s 18-24 year olds
As part of the CISI’s, now annual, research on young people and financial literacy, the CISI YouGov survey asked what age individuals were when they first personally placed any kind of financial bet. Of those who had gambled, 44% did so for the first time when they were under 18 years of age.
The YouGov survey for CISI, conducted in May 2015, polled 1,016 18-24 year olds on their behaviour and attitudes towards gambling.
Key findings include:
- The rise of technology has been a key facilitator for young people as 73% of young males who placed a bet in the last 12 months said they had done so using a betting app.
- Football is the most popular sport on which to bet, with 58% of young people who have bet in the last 12 months saying they had placed a wager on a football game via a laptop/PC, while 40% had done so for horse racing.
- Smartphones are also particularly popular for football betting, with 43% of respondents saying they use this means.
- Of those who bet, 28% recognise they have been influenced to have a flutter as a direct result of seeing an advertisement, with advertisements seen on TV and social media being the most influential.
- Almost half (45%) of young people said they gambled “because it’s exciting”. A further 13% said they bet because they “needed the money”.
- Betting is seen as more of a social activity for men than for women, with 18% of men saying they enjoy betting with friends and others as opposed to 8% of women.
Responding to the survey, CISI Chief Executive Simon Culhane, Chartered FCSI, said: “These findings suggest that gambling is now mainstream, is seen as exciting and far more accessible – which is why 44% of young people who bet did so for the first time illegally. The results show the liberalisation of the UK gambling laws (2005) have changed the image of gambling, particularly in the eyes of the young who see this as normal, mainstream activity.
“As part of existing financial literacy education, children need to be taught more about the risks associated with gambling and the concept of probability. Although probability is on the National Curriculum, students are struggling to apply this learning in real life to gambling.
“This lack of financial literacy education means the gambling industry is exploiting the lack of understanding among young people. The Gambling Commission should take note of these findings, particularly regarding the normalisation of gambling in society and the lack of financial education.”
The survey showed that a quarter of 18-24 year olds believe they have a high-risk attitude towards money and financial situations. Young women are more likely than young men to regard themselves as having a very low risk approach (25% compared to 19%).
On average the typical male spends under £5 on each gamble but overall, when the larger spenders are taken into account, the average amount is a relatively modest £7.50 per bet*. However, the frequency is a concern, with 26% of males having placed more than ten bets in the last year, compared with 4% of females.
Half of females (50%) but just under a quarter (22%) of males admitted to finding betting odds confusing.
However, when tested on their understanding of a particular question** on betting odds only 24% correctly answered whilst 22% said they did not know (18% males vs 27% females).
The latter could indicate that women are more honest in assessing their ability to understand betting odds, whereas men tend to overestimate their betting knowledge and expertise.
Of respondents, 57% said they had never been informed of the risks associated with betting whilst at school with a further 19% saying they could not recall whether they had received such a warning.
*This figure is calculated by CISI showing that, although values are small, collectively they are significant. The relevant CISI stats in this respect are:
| Base: GB adults aged 18 to 24 that have ever placed a bet |
Football
|
Count
|
Count x £value
|
| Up to £5 | £ 2.5 | 131 | 328 |
| Over £5, up to £10 | £ 7.5 | 63 | 473 |
| Over £10, up to £15 | £ 12.5 | 14 | 175 |
| Over £15, up to £30 | £ 22.5 | 15 | 338 |
| Over £30, up to £50 | £ 40.0 | - | |
| Over £50 | £ 51.0 | 8 | 408 |
| | Totals | 231 | 1721 |
| | Arithmetic average | | £ 7.45 |
**Please imagine that you placed a £10 bet on an event with odds at 3-1 against winning…
Which ONE of the following do you think this means? |
| Unweighted base |
| Base: GB adults aged 18 to 24 |
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a. If I win, I will receive a total of £30 back from the bookmakers (£20 winnings and my £10 original stake)
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b. If I win, I will receive a total of £15 back from the bookmakers (£5 winnings and my £10 original stake)
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c. There is a 75% chance I will not win
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d. There is a 75% chance I will win
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e. Don’t know
The correct answer is c) |