26% of London residents who gamble turn to gambling as a quick fix for financial issues—twice that of the UK average – IFA Magazine

• Searches for gambling applications on the Google Play store and Apple AppStore have seen an increase over the past 12 months
• 49% of London respondents are funding their gambling activity with credit products – 2.2 times higher than the national average
• 20% see gambling as a quick fix to money problems
• Lowell’s recent Financial Vulnerability Index (FVI) showed London had the highest use of alternative financial products in the UK 

A new nationwide report found that 49% of London residents who gamble are funding their gambling activity with credit products, 2.2 times the national average, and the highest of regions across the UK.

Lowell’s research on attitudes towards gambling also revealed that 20% of respondents from London see gambling as a quick fix to their money issues. 

The findings paint a picture of the current wealth inequality within the capital, as while the top 10% hold 44.3% of London’s total net wealth, recent data from Lowell’s financial vulnerability report (FVI) also saw London as an area with the highest use of alternative financial products, and the highest use of benefits in the UK.

The findings come as searches for gambling apps increased by 18% on the Apple AppStore and 10% on the Google Play store over the past 12 months, according to a new report by Lowell.

49% of London respondents are using credit to fund their gambling, as one in five (20%) see the activity as a quick fix to money problems

As average rents in the capital stand at £2,101 PCM [5], many London residents are struggling to keep up with the rising costs in the UK capital. 

According to Lowell’s recent financial vulnerability index (FVI) this has meant that many people in the capital are now relying on alternative financial products such as payday loans and Buy-Now-Pay-Later – as well as 49% of London respondents using credit to fund their gambling. 

The report also revealed gamblers in London also spend an average of 19.39% of their disposable income on gambling, 1.9 times the national average.

When it came to the use of credit products, respondents had a greater likelihood of using their own credit, but many also took actions which could have a negative effect on the financial health of loved ones.

Over a quarter (27%) said they used their own credit, with 19% withdrawing cash from their credit card – an action that can warrant additional charges or have a negative effect on your credit score. 

10% said they used their overdraft facilities, which can result in high interest costs in addition to the money overdrawn.

As an area with a large distribution of income and wealth, 24% of Londoners are in poverty [6], meaning many living in the capital are looking for alternative ways to bring in income to cover costs. According to those surveyed, 20% of Londoners saw gambling as a quick fix to money problems, with 26% outlining it as an investment. 

29% of London respondents have taken out new credit to cover household expenses

When taking out credit it is important to borrow money responsibly, meaning it is important for those borrowing to assess whether they can realistically keep on top of repayments. Otherwise, this can have a negative impact on financial health, from your ability to be approved for future credit agreements, to creating damage to your credit score. 

For those surveyed, the financial impact of gambling activity has meant that  17% of respondents have had to take out new credit just to cover household expenses, with 12% taking out further joint credit to cover their essential outgoings, and a further 12% missing paying priority bills.

Furthermore, due to acts like credit card withdrawals and missed repayments, over one in 10 (13%) reported damage to their credit score – over 3 times that of the national average of 4%.

39% of UK gamblers are unaware of the tools and resources available to support them in gambling money they don’t have

For those experiencing financial issues and debt due to gambling activity, having insight into how to improve your situation is key. Unfortunately, across the UK 39% of people are unaware of the tools and resources needed to support their gambling use. 

Organisations such as GamCare provide their own gambling-blocking tools and offer round-the-clock support and advice. Debt charities such as StepChange are also available to give free advice to those experiencing debt from gambling, and in general.

Commenting on the report John Pears, UK CEO of Lowell UK said 

“Our latest research has shown a worrying trend amongst London residents utilising credit in order to gamble, or fill the financial hole left by gambling. Whether it’s gambling for a perceived ‘quick win’ to help to pay the bills or taking out new credit facilities to help with them, this can lead to vulnerabilities for people’s financial health and put them and their families at risk of further debt.

“Debt can affect anyone, and it is important to reach out for advice and support, as no one should deal with the effects of it alone. We’d like to remind anyone feeling financial pressure to reach out for support, and a list of organisations who can help can be seen at https://www.lowell.co.uk/help-and-support/independent-support/”

We’d like to remind anyone looking for support for gambling debt of our online hub resource : https://www.lowell.co.uk/help-and-support/debt-guidance/gambling-and-debt