The Psychology of Lotteries and Gambling

Why do we continue to buy lottery tickets and hit the pokies when we lose more often than not? The 2021 New Zealand National Gambling Study found that the more we gamble, the more likely we are to experience adverse outcomes like anxiety and depression, relationship issues, and financial problems.

The Ministry of Health is responsible for refreshing the strategy every three years. The Draft Strategy to Prevent and Minimise Gambling Harm says that about 0.2 percent of New Zealand’s population are problem gamblers, and 1.2 percent are at moderate risk of gambling harm.

Further, about five percent of adults are affected by gambling harm, either directly or through someone they know. Gambling-related harm is estimated to cost the country between $450 million to $1.1 billion annually in social costs, including health impacts and loss of productivity.

One 2023 Australian study by BMC Public Health concluded that “older adults are vulnerable to gambling harm due to life-stage experiences”.

Andree Froude is the advocacy and public health director of the Problem Gambling Foundation (PGF). She says that there’s little data about understanding what entices seniors to participate in lotteries.

 

Normalised Gambling

Andree cites that same Australian study, which suggests that older adults may perceive gambling as an inexpensive and affordable leisure activity. She adds how another quantitative study in Singapore indicated that lotteries were a popular, socially accepted form of gambling.

“Gambling is also very normalised in our society. Lotto advertising is “everywhere”, and tickets are available online through an app, from one of their many outlets or even at a supermarket check-out.  Some people don’t even recognise Lotto as a form of gambling as it is so normalised,” Andree says.

“To highlight the sheer volume of advertising, recent Nielson ad intel showed that Lotto was the 12th highest spending organisation on advertising in 2023.”

“While purchasing Lotto tickets may seem like a harmless activity, it can be problematic if someone is spending more than they can afford.

“Purchasing Instant Kiwi tickets is more harmful as it is a continuous form of gambling. It is also helpful to know the odds of winning – if you buy a $7 ticket, your odds of winning first division are 1 in 383,838. Those are low odds!”

Andree says that some types of gambling are more harmful than others. Continuous gambling, like pokie machines and Instant scratch tickets, is one example.

“Evidence tells us that there is more harm associated with continuous forms of gambling – those types of gambling where a person can “reinvest” their winnings in further gambling.

“You get the result quickly and can immediately continue to gamble as opposed to lottery draws or raffles where there is usually a delay between placing a stake or buying a ticket and receiving the result.”

 

Money On The Mind

From the illusion of control to the gambler’s fallacy, the mind loves to trick itself when it comes to money matters. On continuous gambling, people can experience cognitive dissonance when their actions conflict with their knowledge that gambling is financially harmful. Feeling like their luck is about to change is why players might keep betting on the pokies despite constant losses. This false hope overlooks the fact that each gamble is independent of the last, with no impact on the outcome.

Some players might feel like personalising their ticket might land them the big win, but those who pick their lottery numbers have the same chance as someone whose numbers were randomly generated. The illusion of control is the belief that a player can influence the outcome of a random event, which can lead to more frequent gambling.

On a neurological level, gambling activates the brain’s reward system, releasing dopamine, the chemical responsible for feelings of pleasure and satisfaction. Even anticipating a win can lead to a dopamine spike, driving people to chase that high, sometimes without regard for potential financial losses.

Finally, when someone experiences a near-miss – nearly winning but falling short – their brain’s reward system can be triggered similarly to an actual win. This can make players feel that success is just within reach and, therefore, continue gambling. Understanding the mind games, we can get wrapped up in is the start of reducing problematic play.

 

Supporting Loved Ones

Finding support can be easier said than done. One in twenty Kiwi adults are affected by gambling harm in some way. Per Health New Zealand, anyone can access counselling support, including those affected by someone else’s gambling.

Andree shares data on how many people have accessed treatment services with a disclaimer. She says these figures are not “a good measure of harm” because so many people do not access treatment services such as PGF; some feel the stigma or shame associated with gambling, and some go elsewhere for support, such as to a family member or friend.

“The latest Ministry of Health data for the period between July 2022 and June 2023 shows the total number of clients excluding brief interventions was 4,411, with 6.4 percent aged 65 and over. If you look at 45–64-year-olds, the figure is 27.3 percent.

“In 2022 and 2023, the most common gambling mode, reported by almost half of all clients receiving intervention services, was pokies in pubs, clubs and TABs (45.6 percent), followed by Lotto NZ products (11.8 percent). The Lotto percentage covers all Lotto products, so it could also include Instant Kiwi.”

Anyone who is impacted by gambling harm, whether it be the person who is gambling or a family member or friend, can contact PGF for support on 0800 664 262 or email help@pgf.nz or via online chat at www.pgf.nz. Their services are provided nationally and are free and confidential.

Further, the PGF is currently putting the ‘Petition of Problem Gambling Foundation of New Zealand: Prohibit the advertising of gambling’ to Parliament. It looks to ban gambling advertising on traditional media and online platforms; the likes of pokies, casinos, Lotto, TAB, and online gambling. Signatures are open until 31 October 2024.

 

Need Help?

If you or someone you know is experiencing problem gambling, consider these resources:

Asian Family Services: Phone 0800 862 342 and visit www.asianfamilyservices.nz

Choice not Chance: Freephone 0800 654 655 and visit www.safergambling.org.nz/help-and-support

Gambling Helpline Aotearoa: Freephone 0800 654 655, text 8006 and visit www.gamblinghelpline.co.nz

Mapu Maia: Freephone 0800 21 21 22 and visit www.mapumaia.nz

Mental Health Foundation: For further links and resources, visit www.mentalhealth.org.nz/helplines

PGF Services: Freephone 0800 664 262, text 5819, email help@pgf.nz and visit www.pgf.nz