The Risks of Online Gambling

Online Gambling is a form of gambling in which individuals place bets and wagers on a variety of events, games and sports using digital devices. It is a popular pastime for many, with the potential to win big sums of money. For some, however, gambling can become problematic and cause harm to personal relationships and work performance.

Financial motivations drive gambling addiction, with individuals often hoping to win large amounts of money quickly, especially in times of economic hardship or stress. A 2017 meta-analysis of twin studies also found that genetic predisposition is moderately heritable, and that a person’s risk for developing an online gambling disorder increases with age.

Environmental influences are also significant. Easy access to high-intensity gambling products like EGMs and fast betting platforms increases the likelihood of uptake, as do advertising, promotions and sponsorship, which can entice people to gamble. Additionally, a lack of clear messaging on harms associated with gambling and the prevalence of so-called ‘dark nudges’ can contribute to the normalization of online gambling.

Regulatory authorities have a role to play in reducing the risks of online gambling, including through licensing and enforcement of consumer protection measures, as well as ensuring that financial transactions are securely processed and reported. In the United States, for example, FIs who process illegal gambling transactions can face civil and criminal penalties, with fines reaching up to $1 million dollars. In addition, the US government imposes statutory penalties for violating state-specific laws, such as New Jersey’s Casino Control Act.