The international charitable organisation The Salvation Army revealed a certain trend showing that people who are much more likely to go bankrupt spend more money on gambling activities. The paradox has been linked by the charity to the rapid increase in the popularity of online gambling operators.
As reported by The Guardian, new data obtained from MoneyCare, which is the charitable organisation’s support service, was revealed by The Salvation Army. Currently, MoneyCare offers thorough counselling service to more than 7,000 people who are experiencing financial difficulties on an yearly basis.
Poorer People Spend More on Gambling
According to the data released by The Salvation Army, people in financial crisis who sought help and revealed their spending on gambling activities in 2016/2017, were spending over 8% of their income on betting. This represented a mind-blowing 363.4% increase in spending on gambling in comparison to a decade ago.
Tony Devlin, the head of the MoneyCare service, commented on the increase, saying that the trend seemed to be associated with the constantly increasing popularity of web-based sports betting operators and their enhanced marketing strategies. Mr. Devlin further explained that it actually turned out that the advertising strategies of a large number of online companies were deliberately aimed at socio-economic groups with limited financial resources.
According to the MoneyCare’s boss, it has become easier for gambling operators to target customers, with the online betting advertisements literally surrounding people in everyday lives. Mr. Devlin further shared that this strategy seemed to be working, especially considering the fact that the client base of the charitable organisation’s support service marking a massive increase.
In addition, according to information revealed by The Salvation Army, vulnerable Australian residents were more likely to find themselves stuck in much larger debts than others. The data rolled-out by the charitable organisation showed that customers of online gambling operators averagely had a debt amounting to AU$2.55 for every Australian dollar earned by them, which makes a 255% debt-to-income ratio. In comparison, the community average ratio amounts to 190%.
As revealed by The Salvation Army, such debts were acquired through personal loans, credit cards, welfare, fines, mortgages, car loans, electricity bills, phones, etc. MoneyCare’s boss also explained that many people sought help from the charitable organisation as they had accumulated a debt they were unable to repay.
More People Suffering from Gambling Addictions
For some time now, the rising popularity of online betting services has been blamed as one of the main reasons for the increased number of gambling addictions and people suffering from problem gambling behaviour.
The data gathered by The Salvation Army also shows there has been a 140% increase in the number of casual and part-time employees who seek financial help from the charity, as well as a 93.3% increase in the number of carers and a 71.8% rise in the number of pensioners calling for help.
Problem gambling has been pointed as one of the main reasons for increased debts. In addition, gambling addictions have been reported to affect every aspect of people’s lives, including their physical and mental help, jobs, relationships and families.
- Author
Daniel Williams
