Study Calls Into Question the Stereotype of Financial Illiteracy Among Gamblers

^{Researchers Jackson Sears (left) and Colin Lopez (right)}

Research published by the American Gaming Association (AGA) found that gamblers, on average, scored higher on a basic financial literacy test than non-gamblers.

The study surveyed 3,149 US adults, including 2,163 people who gamble and 986 who do not.

Participants were asked five questions on basic financial concepts, including inflation, interest rates, diversification, bonds and mortgages. The average scores were:

• gamblers — 3.93 out of 5;
• non-gamblers — 3.72 out of 5.

Overall, 41% of gamblers demonstrated a high level of financial literacy, compared with 27% of non-gamblers.

However, there was almost no difference when participants were tested on numeracy. In a separate 11-question test, both groups achieved almost identical scores of around 9.3 out of 11.

Sports bettors performed best on the numeracy test. Prediction market users were nearly as confident as sports bettors in their maths skills, but their actual scores were lower and closer to those of non-gamblers.

The researchers suggested that prediction market users may overestimate their numerical skills, potentially leading them to underestimate the risks.

The study also found an association between higher financial literacy and a more responsible attitude towards gambling.

Still, the findings do not show that gambling itself improves financial literacy.

The research was commissioned by the AGA and conducted by Colin Lopez and Jackson Sears, gambling behaviour specialists and co-founders of the BETS Research Center.

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