Gambling motivation and involvement: A review of social

Gambling and the macro-economy
There are apparently no specific theories on how gambling in society is influenced
by macro-economic factors and trends, and there is little research on the subject. In
the public debate, it is sometimes claimed that recession and high unemployment
rates stimulate gambling. This claim rests on an assumption that in such bad times,
people tend to put their faith in gambling and hitting the jackpot. It could, however,
be argued that when people have less money to spend, they cut back on expenses
for entertainment, such as gambling. According to this view, people would gamble
more in times of prosperity, when they have more money to spend on entertainment.
The “recession” theory has some academic adherents [209, 210], but there does not
seem to be any solid evidence to support it. The “prosperity” theory, on the other
hand, appears to be supported by a few studies [211, 212]. However, other scholars
have come to the conclusion that the state of the market has little influence on the
consumption of gambling [213]. On the stock market, the common view is that the
revenues of gambling companies (except those running resort casino business) are
relatively independent of business cycles and the macro-economy.
Some other thoughts have been formulated on the extent of gambling and macroeconomic
conditions. From a political science perspective, an interest group model
of gambling regulation has been proposed [214]. The model is an application of
Gary Becker’s theory of competition among pressure groups for political influence
[215]. Economic and political variables relating to gambling, such as the state’s
income from gambling taxes and the cost of regulating gambling, are included in
a model that assumes two opposing political standpoints: one demanding strict
regulation and the other favoring a liberal gambling market. The values of the variables
predict the political support that the opposing standpoints are likely to get.
For instance, if the cost of gambling regulation is very high, support for regulation is
likely to be weak, and if, through strict regulation, the state can make a lot of money
from gambling taxes, support is likely to be strong. When applied to the modern
history of gambling regulation in the USA, the model fits well [214].
RELEvancE tO pRObLEm GambLinG StudiES
There is little research on macro-economic impact on the extent to which a population
is involved in gambling. This is unfortunate. Politicians, regulators and legislators
wish to know the facts about the determinants of gambling participation and
how these relate to problem gambling prevalence. It is unclear how gambling participation,
under various macro-economic conditions and models of gaming regulation,
might best be studied – whether economics, history, political science, or some
other discipline would be the most successful.
40 G A M B L I N G M O T I VAT I O N A N D I N V O LV E M E N T