The global gambling industry is rapidly growing due to liberal deregulation and digital transformation. Estimates are that the net losses of consumers will be US$700 billion by 2028 (Wardle et al., 2024). Also in Finland, the gambling system is transitioning from a monopoly to a liberated multi-license model in 2027. This change is expected to increase the availability and advertising of high-risk online gambling, raising concerns about increasing gambling-related harms. In 2023, over 1.2 million people experienced various degrees of harm due to their own gambling or of a close one.
Previous research indicates that the risk of developing harmful gambling behaviour is increased by factors such as sociodemographic characteristics (male gender, younger age, low SES) or psychological traits (e.g., impulsivity). The association between financial literacy and financial wellbeing with gambling and gambling-related harms has not been extensively studied, despite money being a central aspect of gambling (Swanton et al., 2019). With less possibilities to regulate companies, individuals need financial skills to resist the luring of gambling companies. Young people at the verge of financial independence are particularly vulnerable and at risk of developing gambling problems as young gamers are attracted by gaming-like gambling products which involve digital or gaming formats (Delfabbro et al., 2020; Oksanen et al., 2024).
In this study, we examine how young people's financial literacy is related to their regular gambling and gambling problems, and conversely, how gambling predicts financial well-being. We utilize survey data of Finnish 15-29-year-olds (N = 1,578) (Wilska et al., 2024). Results suggest that financial knowledge protects young people against gambling. Additionally, gambling may lead to indebtedness and thus impair financial well-being. The results emphasize the importance of financial education in preventing gambling-related harms in a novel gambling context.