Study: gambling-fans are rarely seen at the Stock Exchange

Within the framework of a study, finance market researchers want to find out how gambling fans behave at the stock market. The preferences of the investors depend especially on the level of education, as well as the personal wealth. Those who like gambling tend to rarely be found at a stock exchange. Hereunder we are reporting in detail about the interesting results of the recently published study.

The scientists from the Frankfurt Goethe-Uni, of the Leibniz-Institut für Finanzmarktforschung and the WU Wirtschaftsuniversität Wien addressed the question of how do gambling fans behave at the stock exchange. According to them the so-called “lottery stocks“ are very popular with wealthy people and educated people. Those who prefer sports betting and lotteries are rarely found at the stock exchange. In summer 2021 we had reported about the first “gambling-ETFs” in Germany.

Gambling fans avoid speculative shares 

The Frankfurt study, which was published just a few weeks ago, shows that many gambling fans avoid the stock market. Instead, many rich people and educated people buy cheap i.e., speculative shares with high winnings and risk of loss. This sector of the population is less interested in the classical games of chance or lotteries.

During this study the scientists analysed the data of more than 12,000 German bank customers. The requirement: the bank customers do not only hold a portfolio of securities, but also an account with an online gambling provider. The results showed that the majority of these 12,000 bank customers who are interested in gambling have only a few speculative shares. These pose a high risk. According to the data collected in the study, this means that gambling fans generally handle their fixed assets at the exchange responsibly and defensively.

Investors who are stock market savvy and educated invest with a higher risk

The study of the Frankfurt scientists is therefore interesting, since it reveals that wealthy and educated bank customers also prefer bonds with high risks. It is true that they invest the large part of their fixed assets in a conservative way. However, in some cases they are more ready to invest in higher risk assets. At the same time the savvy investors get the same instant buzz as the gambling fans do in the online casino.

How lucrative are gambling stocks now?

The stocks of the globally acting company are often subject to large exchange rate fluctuations. The share price does not only depend on the turnover of the company, but also on the political decisions and licensing procedures. The following recent positive and negative examples show that an investment in famous gambling firms can be high risk:

Source: own research, as at: 25.04.23

Conclusion

The recent study published by the Frankfurt scientist shows that ingrained gambling fans are rarely found at the Stock Exchange. Those gambling fans who are active at the stock market tend to invest in a more conservative way and take only a few risks. The bank customers who in their free time do not have much to do with gambling, take larger risks at the stock market and invest more often in so-called “lottery-shares”.

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