Submission Type

Presentation

Submission Title

Banks: What role do they play in gambling?

Session Title

Session 2-1-C: Gambling Innovation in Policy

Location

Caesars Palace, Las Vegas, Nevada

Start Date

29-5-2019 9:00 AM

End Date

29-5-2019 10:25 AM

Disciplines

Behavioral Economics | Clinical Psychology | Other Public Health

Abstract

Banks have a social responsibility to assist customers in enhancing their financial wellbeing, and to make positive contributions to society given their considerable role in customers’ everyday lives. Banks are involved in gambling through facilitating gambling transactions, including providing credit to customers potentially experiencing gambling-related harms. As banks have an overview of customers’ income, spending, and debt, this potentially allows for identification of excessive expenditure on specific activities. This presentation reviews banks’ role in gambling with the aim of considering ways in which policies and practices could enhance customer wellbeing. The review found limited evidence of gambling-specific bank policies despite increasing recognition of the impact of gambling-related harms. Behavioral economics and psychological approaches may be promising frameworks to guide policy development to assist customers in limiting their gambling to affordable levels. Banks could implement products and resources for customers to enhance management of gambling expenditure. Processes could be established to respond to disclosure of gambling problems and proactive strategies developed to detect potentially risky gambling patterns. Public scrutiny over banks’ role in gambling will likely increase given growing recognition of harms. A proactive effort to enhance customer wellbeing could have broad positive outcomes for banks’ social license to operate.

Implications: This presentation exposes a gap in academic and public discourse to date regarding the fundamental role of banks in gambling transactions. Potential targets are identified for policy and interventions that enhance customer wellbeing, particularly for those who are financially vulnerable and experiencing gambling-related harms.

Keywords

gambling, corporate social responsibility, consumer protection, finance, business ethics

Author Bio

Mr. Thomas Swanton is currently completing a Graduate Diploma in Psychology at the University of Sydney, Australia, and works as a Research Assistant at the University’s Gambling Treatment and Research Clinic.

Dr. Sally Gainsbury is an Early Career Research Fellow at the University of Sydney, Deputy Director of the Gambling Treatment and Research Clinic, and Senior Lecturer within the School of Psychology. She is Editor of International Gambling Studies. Her research focuses on the impact of emerging technologies on gambling, harms, and other behavioral addictions and developing interventions to enhance well-being and minimize harms.

Alexander Blaszczynski is a professorial research fellow and director of the Gambling Treatment and Research Clinic. He is also Editor-in-Chief of International Gambling Studies, and he has conducted research into the psychology of gambling behavior, conducted randomized treatment outcome studies for gambling disorders, and evaluation of responsible gambling strategies.

Funding Sources

This work was supported by an Australian Research Council Discovery Early Career Research Award [DE1060100459] awarded to Dr Sally Gainsbury.

Competing Interests

Thomas Swanton owns shares in National Australia Bank Limited. Since 2015, Dr Sally Gainsbury has received research funding from the Australian Research Council, Commonwealth Bank of Australia, Responsible Wagering Australia, the Australian Communication and Media Authority, the University of Sydney, Star Entertainment, Manitoba Gambling Research Program. She has had travel costs paid and/or honorariums related to conference presentations by Generation Next, Office of Liquor & Gaming Regulation QLD, Responsible Gambling Council (Canada), Alberta Gambling Research Institute, GambleAware, National Council for Problem Gambling Singapore, Community Clubs Victoria, Financial and Consumer Rights Council, Credit Suisse, SNSUS, British Columbia Lottery Corporation, Australian Psychological Society. Honorariums for research consulting services have been received from Gambling Research Exchange Ontario, Communio Australia, MinterEllison, Greenslade Legal, KPMG, Clayton Utz. Dr Sally Gainsbury owns shares in Commonwealth Bank of Australia. For the period 2015 – 2018, Professor Alex Blaszczynski has conducted research funded directly by Australian or international government, or government-related funding agencies, and industry operators. These include Gambling Research Exchange Ontario, ClubsNSW, Dooleys Club Lidcombe, Aristocrat Leisure Industries, Australian Communications Media Authority, Gaming Technologies Association, Gambling Research Australia, Responsible Wagering Australia, Commonwealth Bank, NSW Department of Trade and Investment (NSW Office of Liquor, Gaming and Racing), La Loterie Romande (Switzerland), Camelot (United Kingdom), La Française des Jeux (France), Loto-Quebec (Canada), and National Lottery (Belgium), and the National Association for Gambling Studies. He has received honorariums from Manitoba Gambling Research Program and GambleAware (formerly UK Responsible Gambling Trust) for grant reviews, and royalties from several publishers for books and book chapters. He has also received travel and accommodation expenses from Leagues Clubs, Gambling Research Exchange Ontario, USA National Council on Problem Gambling, Japan Medical Society for Behavioural Addiction, Le Comité d'organisation Congrès international sur les troubles addictifs, Victorian Responsible Gambling Foundation, North American Association of State and Provincial Lotteries, and New Horizons (British Columbia Lottery Corporation) to attend conferences and meetings.

Share

COinS
 
May 29th, 9:00 AM May 29th, 10:25 AM

Banks: What role do they play in gambling?

Caesars Palace, Las Vegas, Nevada

Banks have a social responsibility to assist customers in enhancing their financial wellbeing, and to make positive contributions to society given their considerable role in customers’ everyday lives. Banks are involved in gambling through facilitating gambling transactions, including providing credit to customers potentially experiencing gambling-related harms. As banks have an overview of customers’ income, spending, and debt, this potentially allows for identification of excessive expenditure on specific activities. This presentation reviews banks’ role in gambling with the aim of considering ways in which policies and practices could enhance customer wellbeing. The review found limited evidence of gambling-specific bank policies despite increasing recognition of the impact of gambling-related harms. Behavioral economics and psychological approaches may be promising frameworks to guide policy development to assist customers in limiting their gambling to affordable levels. Banks could implement products and resources for customers to enhance management of gambling expenditure. Processes could be established to respond to disclosure of gambling problems and proactive strategies developed to detect potentially risky gambling patterns. Public scrutiny over banks’ role in gambling will likely increase given growing recognition of harms. A proactive effort to enhance customer wellbeing could have broad positive outcomes for banks’ social license to operate.

Implications: This presentation exposes a gap in academic and public discourse to date regarding the fundamental role of banks in gambling transactions. Potential targets are identified for policy and interventions that enhance customer wellbeing, particularly for those who are financially vulnerable and experiencing gambling-related harms.