Does Sports Betting Affect Investment Behaviour? Evidence from Ghanaian Sports Betting Participants

Abstract

The study sought to assess the impact of sports betting on the investment behaviour of Ghanaians, focusing on sports betting centers within the Accra Metropolis, Ghana. The objectives of this observational study were to determine how individuals perceive the risk of sports lotteries as opposed to investment, to determine if sports lottery was viewed as an alternative to investments and savings, and to understand how participation in sports lotteries affects individuals’ ability to save and invest. In adopting a survey approach, 99 sports betting participants across selected betting centers were examined using questionnaires and the data subsequently analyzed through cross-tabulations. The study found that sports betting behaviour had a complementary rather than a substitutionary effect on investment behaviour. The participants were both risk-aware and risk-averse, but engaged nevertheless in betting for a chance of winning a high payoff. Thus, the findings demonstrated that sports betting participants viewed betting as a means to an end, a chance to improve their financial circumstances, rather than as a substitute for investing, and exhibited understanding of a clear distinction, with regards to behaviour, towards investing and sports betting. In return for a substantive payoff, the respondents were willing to stop sports betting, thereby indicating that the financial payoffs were the main motivation for sports betting. The findings also provided evidence that individual sports betting behaviour can be moderated by influencing one’s financial circumstances.RésuméL’étude cherche à évaluer l’incidence des paris sportifs sur le comportement d’investissement des Ghanéens, en mettant l’accent sur les centres de paris sportifs au sein de la métropole d’Accra, au Ghana. Cette étude observationnelle vise à déterminer comment les personnes perçoivent le risque lié à la loterie sportive par rapport à l’investissement, à déterminer si la loterie sportive est considérée comme une solution de rechange aux investissements et à l’épargne et à comprendre comment la participation à la loterie sportive affecte la capacité des personnes à épargner et à investir. En adoptant une approche d’enquête et à l’aide de questionnaires et de données analysées dans des tableaux croisés, on a analysé 99 participants aux paris sportifs dans les centres de paris sélectionnés. L’étude a révélé que les paris sportifs avaient un effet complémentaire plutôt qu’un effet de substitution en matière de comportement d’investissement. Les participants étaient conscients du risque et démontraient une aversion au risque, mais pariaient pour avoir la chance de remporter un gain élevé. Ainsi, les résultats ont montré que les participants aux paris sportifs considéraient ces paris comme un moyen d’atteindre une fin, une chance d’améliorer leur situation financière plutôt que comme un substitut à l’investissement. Et en ce qui concerne le comportement, ils savaient clairement faire la différence entre l’investissement et les paris sportifs. Les données ont montré qu’en échange d’un gain substantiel, les répondants étaient disposés à cesser de participer à ces paris, ce qui a permis de démontrer que les gains financiers étaient la principale motivation de ces jeux. Les résultats fournissent également des preuves étayant l’idée selon laquelle le comportement individuel lié aux paris sportifs peut être modéré en influençant la situation financière de chacun.

Sports Betting Among Students of Colleges of Education in the Ashanti Region of Ghana

“…In recent times sports betting has become a serious problem, [14]- [17] which calls for research and understanding. Koross [18] indicates that the youth have resorted to betting and at times do so at the expense of their studies.…”

“…It is worrying because instead of the students using their precious time to work on their projects, assignments, and have some rest to enable them to regain enough strength for the following week, they resort to sports betting. Some studies on sports betting by Latvala, Castr´en, Alho and Salonen [20], and Ofosu and Kotey [17], revealed that students who engage in sports betting experience work and educational disruption.…”

“…The National Lottery Authority (NLA) after its establishment in 1958, under the Department of National Lotteries, was authorized to oversee the regulation of lottery activities for the public for the purpose of entertainment and awarding of prizes. Sometime in 1960, the Lotteries Betting Act (Act 94) was enacted to begin the lottery business, having the objective for the promotion of economic development and generate revenue in support of the country's development [30], [17].…”

“…According to Ofosu and Kotey [17], the NLA in Ghana has been able to regulate the operation of lottery in the country by providing an enabling environment where both the companies and customers are protected. Before the advent of technological advancement that allows subscribers to patronize lottery through online platforms, the mode of operation for operators was the traditional lottery kiosk.…”

The nexus between the increasing involvement of youth in betting games and unemployment: the Nigerian perspective

“…The study discovered that habitual betting among Christian youth were caused majorly by unemployment, peer pressure, early exposure to betting games, advertisements and desire to escape from reality. Ofosu and Kotey's (2020) research investigated sports betting and investment behaviour among Ghanaians with the intention of establishing betting as investments to bettors. The study revealed that participants saw it as an opportunity to improve their finances, but did not see it as substitute for investments.…”