- March 09, 2023
Who Is More Likely to Gamble, the Rich or the Poor?
In this article, the TC-GAMING editor will explore the impact of gambling on social groups and the economy from various perspectives and conduct a market analysis. First, we will explore the relationship between poverty and gambling and the differences in gambling behavior between low-income and high-income groups. Next, we will use data analysis to explore the impact of GDP per capita on gambling behavior. Finally, we will continue to pay attention to the development trends of the online gambling market and discuss the impact of factors such as GDP per capita, income inequality, and technology on this market. This article's analysis is based on reliable data sources, including statistical data from government agencies, TC-GAMING big data databases, and public written research reports. It aims to comprehensively consider various factors from multiple perspectives to understand the market's development trends and related factors in a more comprehensive and objective way.
Psychology of Gambling Behavior
When people talk about gambling, they usually focus on the probability and economic aspects of gambling itself. However, behind gambling behavior, there are many psychological factors. Below are several psychological angles that can help people understand gambling behavior more deeply.
Anxiety and stress
Gambling behavior may be a way for people to deal with anxiety and stress in life. People in an emotionally unstable or negative emotional state may look for a way to shift their focus and temporarily eliminate negative emotions temporarily. For some people, gambling can provide a way to distract their attention and temporarily forget about stress, thereby reducing anxiety and stress.
Risk and reward
Gambling is a high-risk and high-reward behavior, which is also one reason that attracts people to gamble. When people face risks, they usually have a sense of excitement, which also exists in gambling. When people place bets on gambling, they feel a sense of anticipation and excitement and hope to get higher rewards. This psychological response to risk and reward may lead people to participate in gambling behavior frequently and become a bad habit.
Vanity and self-esteem
Gambling behavior is also related to vanity and self-esteem. Winning money or other rewards in gambling may make people feel more confident and have a sense of achievement. People may regard gambling as a way to show their skills or luck and enhance their self-esteem.
Bias and misjudgment
In gambling, people may be influenced by bias and misjudgment, leading them to make irrational decisions. For example, when people win, they may think they have higher skills and luck, and this arrogance may lead them to continue to take risks, eventually leading to failure. In addition, when people lose in gambling, they may blame mistakes on external factors such as bad luck or other people's cheating behavior rather than their own wrong judgment. This kind of faulty cognition also affects their future decisions.
Addictive behavior
There is a risk of addiction to gambling behavior for many people. This addictive behavior not only affects personal mental health and social relationships but also seriously impacts family and financial conditions. Addicts usually spend a lot of time and money on gambling, and they may try to escape problems in real life or seek excitement. As addicts' demand for gambling increases, they often need more resources to meet their needs, which may lead them to commit crimes or carry debt.
Are Rich People or Poor People More Likely to Be Tempted to Gamble?
According to research, gambling behavior is closely related to personal financial status. Among low-income groups, they are more vulnerable to gambling temptation because they are eager to improve their financial status. In contrast, high-income groups have more self-control and are more concerned about the risks of gambling.
According to a 2012 study in the United States, people with higher incomes are better able to control themselves, and this trend is particularly evident in gambling behavior. Researchers believe that this may be because high-income groups usually have more resources to control their behavior.
Another study found that high-income groups seem to have a stronger risk awareness in gambling. It may be because high-income groups are more focused on long-term financial stability and can compare the risks of gambling with their financial goals.
However, other studies have pointed out that income does not necessarily determine a person's gambling behavior. For example, a 2020 study found no significant differences in gambling frequency and behavior between low-income and high-income groups.
Are Low-Income Groups More Willing to Take Risks?
For low-income groups, gambling is a way to change their destiny, win large sums of money through luck, and improve their financial situation. However, in fact, the risk of gambling is very high, and most gamblers will lose their funds, thereby losing their jobs and families and falling further into poverty. This behavior will continue to cycle unless these people can change their behavior in their lives. Therefore, gambling behavior is more closely related to low-income groups.
Do High-Income Groups Understand Risk Management Better?
High-income groups seem to have a stronger risk awareness of gambling behavior. It may be because high-income groups are more focused on long-term financial stability and can compare the risks of gambling with their financial goals. Although income may affect a person's attitude and behavior toward gambling, it is not the only factor. Some wealthy people may regard gambling as entertainment and have enough resources to bear the risks of gambling, but this does not mean that high-income groups will always be more cautious when facing gambling.
Conclusion
According to TC-GAMING's big data analysis based on GDP per capita, the online lottery market in Southeast Asia is expected to reach USD 2 billion by 2023. Vietnam, the Philippines, Indonesia, and Thailand will be the main growth drivers of the market. Although the economies of these countries are growing rapidly, the increase in gambling behavior among low-income groups also reflects the widening income gap.
On the other hand, as the economy prospers and the wealth of high-income groups increases, they may spend more money on various entertainment activities, including gambling, for social purposes. Therefore, the growth of GDP per capita, the widening income gap, the advancement of gambling platform technology, and the increase in Internet penetration have created fertile soil for the online gambling market.
Taking Vietnam as an example, the country's economy has been growing rapidly in recent years, and people's living standards are gradually improving. At the same time, income inequality is also widening. According to the January 2022 Vietnam Internet Index report, the country's Internet penetration rate is 71%, of which smartphone users account for about 53% of the total population. Especially during the epidemic, people have become more accustomed to adapting to online gambling. Therefore, under these conditions, Vietnam's online gambling market has become a battleground for various gambling platforms to enter Southeast Asia since 2019.