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Betting against the odds? The effect of mental health on problem gambling behavior

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  • Kesavayuth, Dusanee
  • Shangkhum, Prompong
  • Zikos, Vasileios

Abstract

This study examines mental health as a risk factor for problem gambling. Drawing on representative longitudinal data from Australia, we hypothesize that poor mental health increases the probability of engaging in problem gambling. The idea is that risky behaviors like gambling may serve as coping mechanisms for emotional distress. To address the endogeneity of mental health, we employ an instrumental variables approach. We find that poor mental health can increase the likelihood of problem gambling. Specifically, a one standard deviation decrease in mental health leads to an increase of 8 percentage points in the probability of being a problem gambler. Our findings highlight the importance of prioritizing mental health alongside, or even above, changes to gambling regulations.

Suggested Citation

  • Kesavayuth, Dusanee & Shangkhum, Prompong & Zikos, Vasileios, 2025. "Betting against the odds? The effect of mental health on problem gambling behavior," Economic Modelling, Elsevier, vol. 152(C).
    • Handle: RePEc:eee:ecmode:v:152:y:2025:i:c:s0264999325002731
    DOI: 10.1016/j.econmod.2025.107278
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    References listed on IDEAS

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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • I10 - Health, Education, and Welfare - - Health - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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