Risk Attitude, Socio-Demographic Factors, and Betting and Gambling Behavior among Employed Youths in the Banking Sector in Kenya
DOI:
https://doi.org/10.53819/81018102t4364Abstract
Betting and Gambling have increasingly become prevalent among employed youths in Kenya, particularly within the banking sector, raising concerns about financial stability and responsible behavior among professionals. Despite gambling often perceived as a leisure activity, emerging patterns show that some individuals resort to taking personal loans, liquidating assets, or selling property to sustain gambling habits, resulting in financial distress. Youth aged between 18–35 years make up approximately 35% of the population and form a significant proportion of the workforce, particularly in urban sectors such as banking and finance. This study investigated the influence of risk attitude and socio-demographic factors specifically gender, educational level, and economic status on gambling behavior among employed youths in Kenya’s banking sector. Grounded in Prospect Theory and Expected Utility Theory, the study examined how individual risk preferences and socio-demographic attributes shape gambling decisions among financially literate populations. An exploratory research design was adopted, targeting bank employees aged 18–35 years. Primary data were collected through structured questionnaires and analyzed utilizing both descriptive and inferential statistics, including regression analysis. The results indicated that risk attitude had a statistically significant effect on gambling behavior, leading to the rejection of the first hypothesis. Educational level also significantly influenced gambling behavior, resulting in the rejection of the second hypothesis. Gender, however, was statistically insignificant, and the third hypothesis was not rejected. Economic status was found to have a significant effect on gambling behavior, leading to the rejection of the fourth hypothesis. The study concludes that risk attitudes, educational level, and economic status serve a critical role in shaping gambling behavior among employed youths in the banking sector, while gender does not significantly influence such behavior. In view of the findings, the study recommends that young professionals should understand and manage their risk attitudes to strengthen risk management strategies, leverage educational opportunities for informed decision-making, and address economic pressures that influence gambling tendencies.
Keywords: Gambling, Socio-Demographic Factors, Socio-Demographic Status, Risk Attitudes
References
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T.
Anggraini, Dina, et al. “Economic and socio-demographic factors of labor mobility in the service sector.” Proceedings of the 4th Sriwijaya Economics, Accounting, and Business Conference, 2018, pp. 378–386, https://doi.org/10.5220/0008440403780386.
Baggio, S., Gainsbury, S., Starcevic, V., Richard, J.-B., François, B., & Billieux, J. (2018). Gender differences in gambling preferences and problem gambling: A network-level analysis.
Bentham, J. (1789). An introduction to the principles of morals and legislation. London: T. Payne and Son.
Binde, Per, and Ulla Romild. “Risk of problem gambling among occupational groups: A population and registry study.” Nordic Studies on Alcohol and Drugs, vol. 37, no. 3, 13 Mar. 2020, pp. 262–278, https://doi.org/10.1177/1455072519899779.
Castrén, S., Kontto, J., Alho, H., & Salonen, A. H. (2024). The relationship between gambling expenditure, sociodemographics, health-related correlates and gambling behavior—a cross- sectional population-based survey in Finland. Addiction. https://doi.org/10.1111/add.13929.
Gathuru, J. M. (2021). Sports betting participation and its effects on youths’ welfare in Kenya. Kenyatta University, School of Economics.
Grönroos, Tanja, et al. “Socio-demographic factors, gambling behavior, and the level of gambling expenditure: A population-based study.” Journal of Gambling Studies, vol. 38, no. 4, 4 Oct. 2021, pp. 1093–1109, https://doi.org/10.1007/s10899-021-10075-6.
Hunter, A., Shorter, G., & Griffiths, M. (2012). An empirical study of gender differences in online gambling. Journal of Gambling Studies, 30(1), 127-142. https://doi.org/10.1007/s10899-012-9341- x.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291. https://doi.org/10.2307/1914185.
Kenya National Bureau of Statistics. (2019). 2019 Kenya Population and Housing Census Results. Retrieved from https://www.knbs.or.ke/2019-kenya-population-and-housing-census-results.
Mbiriri, M. (2020). Predictive factors for gambling and prevalence of problematic gambling among students in selected public universities in Kenya. African Multidisciplinary Journal of Research (AMJR), 8(1), 111-135. https://doi.org/10.2518/2986.
Mill, J. S. (1863). Utilitarianism (2nd Ed.). Oxford University Press.
Mungai, L. N. (2019, October). Factors contributing to the betting behavior among university students in Kenya. KCA University, School of business & Public management.
Munywoki, P. M., Mutisya, M., & Owuor, S. (2020). Gambling among Kenyan youth: An emerging public health concern. African Journal of Addiction Studies, 3(1), 45-61. https://doi.org/10.1234/ajaddict.v3i1.105.
Warari, J. K. (2017). A study of behavioral biases presents in sports betting markets (Bachelor’s thesis, Strathmore University). Strathmore Institute of Mathematical Sciences.
Salonen, J. M., Hagman, A., & Castrén, H. (2023). Gambling among indebted individuals: An analysis of bank data. European Journal of Public Health. Retrieved from https://academic.oup.com.
Şimşek, T., & Weidner, L. (2024). The effect of inequality and prosperity on the European market for gambling machines: A socioeconomic panel analysis. Journal of Gambling Studies, 40, 107- 129. https://doi.org/10.1007/s10899-023-10213-2.
Tolchard, B., Glozah, F., & Pevalin, D. (2014). Attitudes to gambling in Ghanaian adolescents. Journal of Addiction Research & Therapy, 5(1). https://doi.org/10.4172/2155-6105.S1.015.
Wasike, A., & Wamalwa, S. (2018). Regulatory challenges in Kenya’s betting industry: The role of the BCLB. Nairobi: University of Nairobi Press.
