Harmful Gambling and Financial Data Report February 2023 - Report - Page 2
Gambling is common
among financially vulnerable
people seeking a loan.
Addictive and problem
gambling is increasing.
This report is based on analysis of
over 100 million financial transactions
from more than 77,000 people. They
are mainly female, lower-paid NHS
and public sector workers, with an
average annual income of £24,000.
The data reveals disturbing evidence
and the need for urgent action:
• Addiction and problem gambling is
commonplace and has increased in
the past year.
• One in eight people spend more
than £500 per month (at least
a quarter of their income) on
gambling transactions; 8% spend
more than £1,000 per month.
• Credit Reference Agencies’ data
appears completely ineffective at
predicting problem gambling. Many
lenders do not identify it and there
is distressing evidence that people
are fueling an addiction to harmful
gambling with credit they should
not be able to access.
It is now four years since the UK
Government promised a review of
the 2005 Gambling Act to ensure
it is “fit for the digital age” yet there
is no sign of its publication. Delay
has followed delay despite Public
Health England’s compelling evidence
of the financial, relationship, health,
employment and educational harms
associated with gambling and call for
more action “to prevent and reduce”
these harms. There are more than
400 gambling-related suicides every
year in the UK.
This report shows problem gambling
is increasing, is prevalent across
all demographics, and is not being
addressed by the gambling industry.
Worryingly many in the traditional
consumer credit industry are making
poor lending decisions for vulnerable
consumers. Why are financially
vulnerable customers allowed to
continue gambling and granted credit
to do so? Change is overdue.
Lord McNicol
Baroness Evans
Salad Projects Oversight Body
ABOUT THIS REPORT
Salad Money is a social purpose
lender. Our customers work in the
NHS and public sector, can afford to
repay credit, but cannot access it on
fair terms elsewhere. We use Open
Banking rather than credit scores to
assess affordability for a loan. 50% of
our customers are classed as ‘near
prime.’ We are a social enterprise and
Responsible Finance member.
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We have built a powerful and fair
credit affordability process using
Open Banking data. On average
each applicant has 1,600 individual
transactions spanning the previous
12 months which we categorise and
can analyse not only to make an
approval decision but to generate
unique insights into applicants’
financial health.
This report is based on all 77,000
applications for credit we received
between 1 November 2022 and
20 January 2023. If we decline an
applicant due to excessive
gambling we inform them that
this is the reason, providing an
independent perspective on their
gambling habits.
Harmful Gambling
