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The effect of online gambling on gambling problems and resulting economic health costs in Germany

Author

Listed:
  • Tobias Effertz

    (University of Hamburg)

  • Anja Bischof

    (University of Lübeck)

  • Hans-Jürgen Rumpf

    (University of Lübeck)

  • Christian Meyer

    (University Medicine Greifswald)

  • Ulrich John

    (University Medicine Greifswald)

Abstract

Problematic and pathological gambling have emerged as substantial problems in many countries. One potential accelerating factor for this phenomenon during recent years is the Internet, which offers different kinds of games and online applications for gambling that are faster, more attractive due to a variety of design and marketing options, less costly and potentially more addictive than terrestrial gambling opportunities. However, the contributing role of the Internet for problematic gambling has not been analyzed sufficiently so far and remains inconclusive. The current study is based on a representative sample with 15,023 individuals from Germany. With a new concept of assessing online gambling with its relative fraction of total gambling activities and a control-function approach to account for possible endogeneity of online gambling, we estimate the impact of online gambling on gambling behavior while additionally controlling for a rich set of important covariates, like education, employment situation and family status. The results show that, on average, replacing 10% of offline gambling with online gambling increases the likelihood of being a problematic gambler by 8.8–12.6%. This increase is equivalent to 139,322 problematic gamblers and 27.24 million € per year of additional expenditures in the German health sector. Our findings underpin the necessity to keep online gambling restricted to prevent further developments of problematic and pathological gambling in Germany.

Suggested Citation

  • Tobias Effertz & Anja Bischof & Hans-Jürgen Rumpf & Christian Meyer & Ulrich John, 2018. "The effect of online gambling on gambling problems and resulting economic health costs in Germany," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(7), pages 967-978, September.
    • Handle: RePEc:spr:eujhec:v:19:y:2018:i:7:d:10.1007_s10198-017-0945-z
    DOI: 10.1007/s10198-017-0945-z
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    2. Sharon Lawn & Candice Oster & Ben Riley & David Smith & Michael Baigent & Mubarak Rahamathulla, 2020. "A Literature Review and Gap Analysis of Emerging Technologies and New Trends in Gambling," IJERPH, MDPI, vol. 17(3), pages 1-20, January.
    3. Anja Niemann & Vivienne Hillerich & Jürgen Wasem & Jan Dieris-Hirche & Laura Bottel & Magdalena Pape & Stephan Herpertz & Nina Timmesfeld & Jale Basten & Bert Theodor te Wildt & Klaus Wölfling & Raine, 2023. "Health Economic Evaluation of an Online-Based Motivational Program to Reduce Problematic Media Use and Promote Treatment Motivation for Internet Use Disorder—Results of the OMPRIS Study," IJERPH, MDPI, vol. 20(24), pages 1-14, December.
    4. Cameron, Lachlan & Ride, Jemimah, 2023. "The role of mental health in online gambling decisions: A discrete choice experiment," Social Science & Medicine, Elsevier, vol. 326(C).
    5. Bernadeta Lelonek-Kuleta & Rafał P. Bartczuk & Michał Wiechetek & Joanna Chwaszcz & Iwona Niewiadomska, 2020. "The Prevalence of E-Gambling and of Problem E-Gambling in Poland," IJERPH, MDPI, vol. 17(2), pages 1-15, January.

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    More about this item

    Keywords

    Online gambling; Medical costs of gambling; Germany; PAGE-study; Gambling prevalence;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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