How come Electronic Gambling Machines are more common in disadvantaged neighborhoods?

Gambling, particularly through electronic gambling machines (EGMs), poses significant public health challenges worldwide. EGMs are recognized as one of the most harmful forms of gambling due to their highly addictive nature, leading also to potentially substantial financial losses. Research across different jurisdictions has repeatedly shown a link between the accessibility of EGMs, gambling expenditure, and the socioeconomic status (SES) of neighborhoods. For instance , a 2019 Finnish study found that EGM availability (measured by the number of machines relative to the population) was considerably higher in disadvantaged postal code areas.

New methods, new data

Traditional methods of estimating gambling expenditure often rely on self-reported data or venue-level revenue statistics, which can be inaccurate. A new Finnish study aimed to deepen the understanding of how socioeconomic status (SES) and electronic gambling machine (EGM) accessibility directly influence individual gambling expenditures. The researchers used high-resolution socioeconomic data along with individual-level account-based data on location and spending patterns. This approach allowed them to explore the relationship between EGM accessibility, neighborhood SES, and individual gambling expenditures.

The study took advantage of unique data regarding the home locations and gambling behavior of individuals playing EGMs in the Helsinki metropolitan area, comprising the municipalities of Espoo, Helsinki, and Vantaa. To assess local socioeconomic conditions, high-resolution grid-level data (250 × 250 meters) on unemployment rate, educational level, and income level were used. EGM accessibility – defined as the number of EGMs reachable to residents – was estimated for each grid cell on the basis of the player account data.

Higher EGM accessibility linked to steep gambling losses

The study found that socioeconomically disadvantaged neighborhoods had significantly higher levels of EGM accessibility. Several clusters of vulnerable neighborhoods with both high EGM accessibility and high levels of socioeconomic disadvantage were identified in the study region. Within a 1,000-meter road network radius, disadvantaged areas had four times more EGMs than advantaged areas, even when controlling for population size.

Overall, both higher EGM accessibility and lower local SES were associated with higher annual gambling losses per adult. In the most disadvantaged areas, annual gambling losses per adult were ten times higher than in the most advantaged areas, even when controlling for population size. In general, EGMs are more accessible in disadvantaged areas, where gambling expenditure tend to occur at venues close to home.

With several vulnerable sub-regions identified as having both high EGM accessibility and significant socioeconomic disadvantage, targeted gambling harm prevention at the local level is essential. The concentration of EGMs in disadvantaged neighborhoods calls for regulatory action to reduce their accessibility and prevent gambling harm.

The role of Veikkaus

In Finland, the state monopoly company Veikkaus has significant discretion over EGM placement, and high overall accessibility of EGMs has for a long time been characteristic to Finnish gambling policy. Veikkaus places EGMs in various partner locations, including grocery stores, service stations, kiosks, and restaurants, justifying this approach as fair to all business partners. However, although the overall number of EGMs has decreased in Finland due to mandatory player identification and the COVID-19 pandemic, the new study confirms that EGM accessibility remains disproportionately high in disadvantaged areas. This imbalance exposes vulnerable populations to a greater risk of gambling harm. Such a concentration of EGMs in socioeconomically disadvantaged areas is concerning and contradicts the precautionary principle in public health, as these decisions are solely made by the state-owned gambling company.

Implications for public health

The findings have clear implications for public health and policy. Protecting the vulnerable population is a priority for many societies, including Finland. One specific challenge is the concentration of EGMs in disadvantaged areas, which exacerbates socioeconomic inequalities and increases gambling harm in these communities. There is a critical need for spatial restrictions on EGM accessibility, particularly in areas with vulnerable populations, as a crucial public health measure. Ensuring fair treatment for residents in these areas is also a matter of equity; everyone should be treated equally in terms of exposure to EGMs, regardless of where they live. It is difficult to justify that Veikkaus has prioritized fairness toward business partners over equitable protection of the public when choosing EGM locations.

A foundation for future research on EGM accessibility and gambling harm

Scientifically and methodologically, these findings provide a solid base for future research on gambling harm, expenditure, accessibility, and socioeconomic status using player account data. Future studies should aim to reveal the spatial dynamics of gambling harm and evaluate the effectiveness of regulatory interventions in reducing EGM accessibility and its related harm. Longitudinal studies can provide new understanding into the long-term impacts of EGM accessibility on individual and community well-being. Moreover, the role of other forms of gambling and their interaction with EGMs in contributing to gambling harm need to be investigated.

The article is written by

Jani Selin, senior researcher

Susanna Raisamo, chief specialist

Finnish Institute for Health and Welfare

on the request of PopNAD