Source: New Zealand Ministry of Health
The research strengthens understanding of the gambling-related financial harms experienced by affected others in New Zealand, including the extent of these harms, the differences across gender and ethnicity, and the role of financial products and related policies.
Three in four (75.9%) surveyed affected others reported experiencing at least one type of financial harm due to someone else’s gambling. The most common financial harms included reduced available spending money (36.8%), less spending on recreational expenses (30.9%), diminished savings (26.2%), and late payments on bills (22.0%).
Three in five (61.0%) surveyed affected others experienced at least one issue related to economic control. The most common issues were concern over missing money (21.4%), pressure to take on debt (19.3%), and financial information being withheld (18.3%).
The types of financial harms experienced differed by gender. Among surveyed affected others, women were more likely than men to report being late on their bill payments due to someone else’s gambling (26.1% vs. 16.5%) and having less to spend on beneficial expenses (21.3% vs. 14.7%). Men were more likely than women to report taking on additional employment (11.7% vs. 6.5%) and experiencing bankruptcy (4.8% vs. 1.9%).
Māori were more likely than non-Māori to report gambling while accompanying the other person during their gambling (24.7% vs. 12.2%), having late payments on bills (28.8% vs. 20.1%), and less spending on essential expenses (27.4% vs. 19.3%).
Pacific people were more likely than non-Pacific people (excluding Māori) to report a loss of supply of utilities (18.6% vs. 6.8%) and less spending on essential expenses (30.5% vs. 17.8%).
Asian people did not differ significantly from European/other ethnicities in the types of financial harms experienced.
Half of surveyed affected others (51.7%) reported that at least one financial product or service has played a role in the financial harms that they experienced. The most cited products were ‘buy now, pay later’ services (28.3%) and followed by forms of borrowing (e.g., payday lenders, high-interest fees from financial institutions related to gambling purchases, title loans; 25.6%).
Most affected others have used at least one informal strategy (77.0%), and half have used at least one formal strategy (50.5%) to help prevent, reduce, or address the financial impacts they experienced because of someone else’s gambling.
Practical solutions for reducing financial harm were suggested including:
- focussing attention on structural change, including changes to the legislation and regulation of the gambling and financial sectors to provide greater protection against gambling-related financial harm
- implementing harm mitigation measures for financial products, such as interest rate caps on credit-related services, and strengthen financial safeguards related to gambling, such as gambling transaction blocking or credit card restrictions.
