Association between gambling and financial trading: A systemic review.

Abstract

Background: Financial trading is often categorized separately from traditional forms of gambling (e.g., blackjack, poker, lottery, slot machines), as it is often viewed from an investing lens. However, the arbitrary line separating investing from gambling has become increasingly questioned, especially as it relates to high-risk trading behaviors (e.g., day trading, trading on margin) and riskier financial assets (e.g., options, cryptocurrencies). Further, the risk of gambling-related harms among financial traders appears to be amplified by new financial technologies, which have increased access to riskier financial assets and have encouraged riskier trading behaviors. Thus, the aim of the present study is to systematically review the literature assessing problem gambling among financial traders as well as the association between financial trading frequency and problem gambling. Methods: Twelve articles from three databases (SCOPUS, PsycINFO, and Web of Science) met the inclusion criteria, and were reviewed. Results: The prevalence of problem gambling was generally higher among individuals who engage in trading financial products, but rates varied substantially (1.4% to 47.2%) due in large part to differences in the study population, the problem gambling measures used, and the cutoff scores employed. Similarly, financial trading frequency was consistently associated with more severe problem gambling, but the strength of these associations ranged across studies. Conclusion: Collectively, while findings from these studies suggest that financial traders are at greater risk for problem gambling, it is evident that trading riskier assets and engaging in riskier trading behaviors place individuals at a substantially greater risk for problem gambling. Recommendations for future research include focusing on at-risk populations, practical implications for the intervention and policy, and emerging issues of digital technologies.

Cryptocurrency Trading, Day Trading, and Gambling Behavior: Examining the Moderating Effects of Financially Focused Self-Concept and Gambling Motives

“…Gambling studies have included investigations of traditional investing. Researchers have noted in a recent review (Lee et al, 2023), for example, that gambling frequency and rates of problem gambling are higher among some people who invest when compared to those who do not, and that people who traded stocks specifically were more likely to favor sports betting and table games when gambling. A small body of literature across disciplines has examined risks related to day trading specifically, which is a subcategory of investing that involves frequently buying and selling investment instruments (e.g., stocks, bonds, mutual funds), with a goal of seeking short-term gains (Davis & Royal, 2022).…”