GamCare Issues Warning: Crypto Investments Can Lead to Gambling Harm

GamCare Issues Warning: Crypto Investments Can Lead to Gambling Harm

GamCare has sounded a critical alarm, revealing that crypto investments have the potential to inflict gambling harm.

Brace yourself for an eye-opening exploration into this concerning issue.

Unveiling the Alarming Link Between Crypto Investments and Gambling Harm

GamCare, a prominent charity dedicated to addressing problem gambling, has issued a stark warning, shedding light on a disconcerting correlation: crypto investments can lead to gambling harm. This cautionary message comes after GamCare unveiled the results of a comprehensive YouGov study into investment behaviors and their impact.

The study, commissioned by GamCare, unearthed a troubling pattern. It revealed that individuals experiencing gambling harm were disproportionately involved in cryptocurrency investments. Specifically, 51% of problem gamblers had ventured into the world of cryptocurrency investments, a stark contrast to the 11% in the general public. Equally concerning was the fact that 40% of these individuals had incurred losses, while only 34% reported making a profit.

Raminta Diliso, GamCare’s Financial Harm Manager, emphasized the critical nature of this issue, stating, “Cryptocurrency purchases serve as a means to diversify investment portfolios for many consumers. However, our observations from the National Gambling Helpline over the past few years indicate that serious harm can ensue when these investments spiral out of control. It’s essential to recognize that cryptocurrencies aren’t always the get-rich-quick opportunity some perceive them to be.”

Diliso further highlighted the volatility and unpredictability inherent in cryptocurrencies, likening their dynamics to those of traditional gambling. She explained that individuals sometimes get caught in a cycle of chasing excitement, akin to the rush experienced in gambling, rather than viewing cryptocurrency investments as a strictly financial endeavor.

The data revealed a concerning trend where gambling harm extended beyond traditional forms of betting and into the relatively new realm of online financial markets, including cryptocurrencies. Over two years, GamCare’s National Gambling Helpline documented over 200 calls related to problems stemming from these markets, with cases involving losses exceeding £50,000.

Harriett Baldwin MP, Chair of the UK government’s Treasury Committee, drew parallels between cryptocurrency trading and gambling. She warned that the fluctuations in cryptocurrency values posed significant risks to consumers, likening trading cryptocurrencies to gambling. Consumers, she asserted, should be fully aware that they could potentially lose all their invested funds.

GamCare’s vigilance in highlighting this issue extends to its efforts regarding proposed changes in regulations for electronic gambling machines (EGMs). The charity firmly contends that relaxing limits on these machines, as proposed in the government’s Gambling White Paper, increases the potential for harm. The government’s proposal would permit larger land-based casinos to expand their EGM capacity to 80 machines, with smaller venues allowed up to 20 machines. It also seeks to revise the ratio of high-stakes to low-stakes gaming machines.

As GamCare continues to shed light on the intersection of crypto investments and gambling harm, the call for caution grows stronger. Stay tuned for further developments in this vital conversation.