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State of Play’s TL;DR
- An new study says gamblers scored higher than non-gamblers on financial literacy.
- Researchers emphasize the results show association, not causation.
A new study commissioned by the American Gaming Association found gamblers scored higher than non-gamblers on financial literacy, a result the researchers said runs counter to conventional wisdom.
According to the study, gamblers scored 3.93 on a five-question financial literacy index, compared with 3.72 for non-gamblers. The index covered inflation, interest rates, risk diversification, bonds, and mortgages.
What the study found on literacy and numeracy
The study, Playing the Numbers: Financial Literacy and Numeracy in Gamblers and Non-Gamblers, was conducted by Colin López of IN Research & Analytics and Jackson Sears of Matrix Consulting Group.
The study also found higher subjective numeracy among gamblers, with gamblers scoring 4.61 versus 4.36 for non-gamblers. At the same time, it said there was no practical difference between gamblers and non-gamblers in objective numeracy.
Among gambling segments, sports bettors posted some of the strongest results. The study said sports bettors scored significantly higher than all other segments on objective numeracy and outperformed non-gamblers, online casino gamers, and casino gamblers on subjective numeracy.
Prediction market users, meanwhile, scored roughly in line with non-gamblers on objective numeracy, but had subjective numeracy scores comparable to sports bettors, according to the study.
Study does not show causation
The research is cross-sectional, meaning it shows association rather than causation. In other words, the findings do not establish that gambling causes higher financial literacy or numeracy.
That limitation matters as regulators, operators, and responsible gambling advocates weigh how player behavior is studied and discussed. The study also found a correlation between financial literacy and “positive play,” which it measured through personal responsibility, gambling literacy, honesty and control, and pre-commitment.
Dave Forman, the AGA’s vice president of research, said the results suggest gamblers are “financially savvy entertainment consumers,” with sports bettors standing out for financial literacy and mathematical capability.
Based on reporting by Dustin Gouker for The Closing Line.
