Gambling-Like Day Trading During the COVID-19 Pandemic - Need for Research on a Pandemic-Related Risk of Indebtedness and Mental Health Impact

Cryptocurrency Trading, Day Trading, and Gambling Behavior: Examining the Moderating Effects of Financially Focused Self-Concept and Gambling Motives

Cryptocurrency and day trading have grown in popularity over the past decade following the creation of the first cryptocurrency, Bitcoin, in 2009. These activities share important features with gambling, including risking money on an uncertain outcome, a chance of monetary rewards, and the potential to experience harm (e.g., financial or relationship problems). However, little is known about cryptocurrency and day trading engagement in the adult population, including associations with gambling behavior, harm, and psychological factors that might moderate these relationships. We analyzed cross-sectional data for n = 822 adults from an online panel in the U.S. to examine: (1) the extent to which cryptocurrency trading, day trading, and gambling are associated, (2) relationships between cryptocurrency trading, day trading, and higher risk gambling behavior, and (3) whether financially focused self-concept and four types of gambling motives moderate these relationships. We found moderate to strong positive intercorrelations between cryptocurrency and day trading, and gambling behavior, including engagement and risk. We identified significant moderating effects of financially focused self-concept, and coping motives for gambling, on the relationship between cryptocurrency trading and gambling frequency, and between day trading and gambling frequency. For the models predicting higher risk gambling status, the only significant moderators were financially focused self-concept for the day trading model, and the enhancement motive for the cryptocurrency and day trading models. Our results have important implications for understanding interrelationships between gambling-adjacent activities and more traditional gambling forms, as well as the moderating roles of key psychosocial concepts in these relationships.

Correlates of Gambling Behaviours Among Day Traders: Evidence from a National Study

Although research examining the relationship between participation in financial speculation (e.g., purchasing penny stocks, shorting stocks, cryptocurrency trading, and day trading) is sparse, findings consistently indicate that engaging in speculative activities is associated with problematic gambling behaviour. For the present study, gamblers across Canada who had or had not also engaged in day trading were surveyed. A total of n = 467 day traders and n = 9,558 non-day traders were compared in terms of their sociodemographic backgrounds, gambling habits, primary gambling motives, and endorsement of gambling fallacies. Male gender, racial/ethnic minority status, higher educational attainment and income, not working or studying full- or part-time, participation in a larger number of gambling activities, and lower endorsement of coping motives were associated with day trading involvement. Furthermore, lower income, participation in a larger number of gambling activities, greater endorsement of gambling fallacies, and not showing a preference for either skill- or chance-based games predicted moderate-risk-to-problem gambling behaviour among day traders. This research provides insight into factors that may underlie day traders' susceptibility to experiencing gambling problems.

COVID-19 and resultant restrictions on gambling behaviour

Since the onset of COVID-19, studies suggest a significant increase in online gambling, potentially facilitated by increased time at home, social isolation and boredom. This study aimed to address what is known about the impact of the pandemic on gambling behaviour by conducting a mapping review. A systematic literature search was conducted using four online databases. Additional studies were identified using reference lists. Relevant studies were quality scored and their findings synthesised in terms of overall changes at the population level and potentially vulnerable groups. The weight of evidence from 35 relevant reports across 12 countries indicated reductions of gambling during the pandemic at the level of the general population. However, marked increases in gambling amongst vulnerable sub-populations including amongst young adults and people with pre-existing at-risk gambling were also noted. The impact of COVID-19 on gambling is highly contingent on context. If policy makers examine only population level data, this could overlook profound negative effects identified in those with at-risk gambling, gambling disorder, and amongst young adults.