Our new research paper: Shining a light on how banks and building societies can help people prevent harm from gambling

Today we’re excited to be officially launching the Gambling Harms Action Lab, our initiative working with current account providers to innovate gambling support for customers. In this blog, we share findings from our new policy note, Shining a light: Exploring the role of financial services in tackling gambling harms. 

We share findings from the Gambling Survey from Great Britain (GSGB) 2023, discussing the scale and depth of harm experienced in Great Britain. Alongside this, we discuss what our Research Community of people with mental health problems told us about their experiences of gambling. We then explore the unique role financial services play in supporting customers.

Gambling is unrecognisable to 20 years ago. Increasingly sophisticated technology,24/7 access to gambling via smartphones and high-intensity play and targeted advertising, all present new challenges in tackling gambling harm. The delayed gambling reforms acknowledged we need focused effort from the government to address these challenges, with collaboration across sectors and industries.

While financial loss and debt can be the focus of gambling harms, what is often left out of the picture is how it destroys relationships, families, and mental and physical health. The 2023 GSGB reported that one in five people who had gambled in the past 12 months and who had experienced problem gambling reported losing their home, job, business, car or had been declared bankrupt because of their own gambling. 

Rates of problem gambling were the highest among 18-24 year olds. This is devastating for young people at the start of their financial lives. The impact of this cannot be underestimated. 

Among 18-34 year olds who gambled in the past year, 17.6% reported thoughts about taking their own life or attempts during that period. Of this group, one in ten (9.9%) reported that this was related to their gambling.

Even at low and moderate levels of problem gambling, we still see potential adverse consequences. More than one in six (17.3%) people surveyed who were at moderate risk of problem gambling and who had gambled in the past 12 months, had used savings or borrowed money to gamble.

Seven in ten Research Community members surveyed reported gambling during a period of poor mental health. This is a concern, as when mental health declines, decision-making can be impaired, which can lead to risky behaviours and difficulty sticking to financial limits.

Against a backdrop of sophisticated gambling products which make us play over and over, we heard that gambling worsened people’s financial and mental health, pushing them into vulnerable financial situations. This led to losses they couldn’t afford which meant using funds from household budgets to account for debt. People went without food, heating, hot water, clothes, and personal care items and even experienced homelessness as a result of gambling.

Problems with gambling are far too often kept to ourselves, but when we gamble online, our current account providers have a unique window to our gambling spending through transaction data. We know tackling gambling harms is not an easy task but with the FCA Consumer Duty 2022, there is a regulatory imperative for financial services to identify and address foreseeable harm. 

Helping people get support at crucial times can improve and even save lives. Positively, financial services already recognise they are essential in this work. Our mapping found that most banks provide Bank Gambling Blocks (BGBs) and all but one bank we reviewed linked to the National Gambling Helpline. This is a great start, but there’s more to be done. 

Our policy note outlines nine recommendations that financial services should adopt with the aim of protecting all customers from harm. Here are our top four:

1. Utilise transaction data to identify customers experiencing or at risk of gambling harm – develop spending and behavioural indicators of gambling harms to engage earlier before they experience problem gambling. 
2. Advance and refine existing tools; such as Bank Gambling Blocks, spending limits, and budgeting tools. 
3. Proactively communicate with customers identified as at risk of or experiencing gambling harms, developing targeted messaging to high-risk groups, testing interventions, tools and messages with people with lived experience of gambling.
4. Integrate gambling harm awareness into customer journeys, encouraging customers to take up gambling management tools.

At the Gambling Harms Action Lab. We want to work with current account providers to find innovative solutions to support customers with gambling. You can read our new report here.

If you work in financial services and want to hear more about how you can be a part of the Gambling Harms Action Lab please email Jason.

If you or someone you know needs help or advice with gambling, please visit the Get Help page.