The role of financial institutions in gambling

ABSTRACT

Financial institutions have corporate social responsibility to assist customers in enhancing their financial well-being, and to make a positive contribution to society given the considerable role that they play in customers’ everyday lives. Financial institutions are involved in gambling through facilitating gambling transactions, including provision of credit to customers potentially experiencing gambling-related harms. As financial institutions have an overview of customers’ income, spending and debt, this potentially allows for the identification of excessive expenditure on specific activities. This article reviewed the role of financial institutions in gambling with the aim of considering ways in which policies and practices could enhance customer well-being. The Australian-focused 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 the development of policies to assist customers in limiting their gambling to affordable levels. Financial institutions could implement products and resources for customers to enhance management of gambling expenditure. Government and community scrutiny over the role of financial institutions in gambling will likely increase given growing recognition of harms. A proactive effort to enhance customer well-being could have broad positive outcomes for financial institutions’ social licence to operate.

KEYWORDS:

• Gambling
• banking
• corporate social responsibility
• business ethics
• consumer protection

Conflicts of interest

 

Competing interests

Thomas Swanton owns shares in National Australia Bank Limited.

Since 2015, 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. She owns shares in Commonwealth Bank of Australia.

For the period 2015–2018, 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 Behavioral 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.

Alex Blaszczynski is the editor-in-chief and Sally Gainsbury is the editor of International Gambling Studies. The review process was blinded from both editors.

Constraints on publishing

The authors declare no constraints on publishing.

Additional information

Funding

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

Notes on contributors

Thomas B. Swanton

Mr. Thomas B. Swanton is a student at the University of Sydney, Australia, and works as a Research Assistant at the University’s Gambling Treatment and Research Clinic.

Sally M. Gainsbury

Dr. Sally M. 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.

Alex Blaszczynski

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