The association between gambling and financial, social and health outcomes in big financial data
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muggleton2021 - p. 319
The relationship of gambling with financial outcomes (for example, savings and debt) and non-financial outcomes (for example, spending on hobbies, social activities and night-time online spending), can all be inferred objectively and analysed alongside information on gambling behaviour. We also measure longer-term outcomes, including transitions into unemployment, disability and mortality. This view of individual outcomes is rivalled only by what a state monopolist could see—it cannot be seen in the data of gambling firms, self-reported survey data or the aggregated data reported by firms, industry groups and regulators.
muggleton2021 - p. 320
We used a random sample (sample 1) of 102,195 customers active in each month of 2018. The unit of analysis in this panel data sample is an account calendar month. To identify gambling transactions, we relied on the pre-existing gambling category in the bank’s typography of transactions, which includes various forms of gambling such as offline and online bookmakers, casinos, lotteries and other providers.
muggleton2021 - p. 320
The measures of financial distress are: using an unplanned overdraft, missing a credit card payment, taking a payday loan, missing a loan repayment and missing a mortgage repayment.
muggleton2021 - p. 320
Financial inclusion measures are: having a credit card, loan or mortgage, credit card use and making a payment to a debt recovery agency.
muggleton2021 - p. 320
Financial planning measures are: holding insurance, paying down a mortgage, saving money, saving money in a tax-preferred savings account (known as an individual savings account (ISA) in the United Kingdom) and paying into a self-invested pension.
muggleton2021 - p. 324
We used LBG’s definition of an active customer as an individual whose account(s) process at least 12 transactions per month. This definition was constructed independently of the authors and before the analysis commencing. It avoids including cases where individuals hold dormant bank accounts.
muggleton2021 - p. 324
Gambling behaviour was measured 1 month back to avoid a mechanical relationship between higher gambling spend and lower spend on other items, for a fixed monthly budget.
muggleton2021 - p. 324
6,515,557
muggleton2021 - p. 324
Gambling is measured by electronic transactions to gambling licensed firms identified by the bank in its typology of transactions. A transaction is defined as any spending behaviour that occurs using a debit card or credit card. This includes electronic transfers to gambling platforms, online gambling transactions, and chip and pin or contactless in-store transactions but neither cash transactions nor cheques.
muggleton2021 - p. 328
The research samples consisted of LBG customers. Samples 1 and 3 consisted of a randomly selected, representative sample of 100,000 customers. Sample 2 consisted of all LBG customers who had an active personal current account and / or credit card in 2013 (~6.5 million individuals).