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Does Sports Betting Affect Investment Behaviour? Evidence from Ghanaian Sports Betting Participants

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  • Ofosu, Albert
  • Kotey, Richard Angelous

Abstract

The study sought to assess the impact of sports betting on the investment behaviour of Ghanaians, focusing on sports betting centres within the Accra Metropolis, Ghana. The objectives of this observational study were to determine how individuals perceive the risk of sports lotteries as opposed to investment, to determine if sports lottery was viewed as an alternative to investments and savings, and to understand how participation in sports lotteries affects individuals’ ability to save and invest. In adopting a survey approach, 99 sports betting participants across selected betting centres were examined using questionnaires and the data subsequently analyzed through cross-tabulations. The study found that sports betting behaviour had a complementary rather than a substitutionary effect on investment behaviour. The participants were both risk-aware and risk-averse but engaged nevertheless in betting for a chance of winning a high payoff. Thus, the findings demonstrated that sports betting participants viewed betting as a means to an end, a chance to improve their financial circumstances, rather than as a substitute for investing, and exhibited understanding of a clear distinction, with regards to behaviour, towards investing and sports betting. In return for a substantive payoff, the respondents were willing to stop sports betting, thereby indicating that the financial payoffs were the main motivation for sports betting. The findings also provided evidence that individual sports betting behaviour can be moderated by influencing one’s financial circumstances.

Suggested Citation

  • Ofosu, Albert & Kotey, Richard Angelous, 2020. "Does Sports Betting Affect Investment Behaviour? Evidence from Ghanaian Sports Betting Participants," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 43, pages 61-83.
    • Handle: RePEc:zbw:espost:215856
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    References listed on IDEAS

    as
    1. Gulley, O. David & Scott, Frank A. Jr., 1993. "The Demand for Wagering on State-Operated Lotto Games," National Tax Journal, National Tax Association, vol. 46(1), pages 13-22, March.
    2. Diana N-Peline Kombui & Richard Angelous Kotey, 2019. "Foreign Direct Investment in an Emerging Economy: Exploring the Determinants and Causal Linkages," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(1), pages 51-62, March.
    3. Gulley, O. David & Scott, Frank A. Jr., 1993. "The Demand for Wagering on State-Operated Lotto Games," National Tax Journal, National Tax Association;National Tax Journal, vol. 46(1), pages 13-22, March.
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    More about this item

    Keywords

    Sports betting; Investment behaviour; Football gambling;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Z20 - Other Special Topics - - Sports Economics - - - General
    • Z23 - Other Special Topics - - Sports Economics - - - Finance

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