GameStop surge could lead to trading addiction issues
AN Irish gambling addiction expert is concerned that the surge in amateur traders rolling the dice on the stock market could lead to a greater demand for addiction services.
Speaking with Ergo, Barry Grant, the chief executive of Problem Gambling Ireland, said the GameStop surge had the potential to pour “petrol on the flames” of gambling issues amongst those not even aware they are betting.
“A lot of people don’t see trading as gambling at all,” he said. “Unfortunately they are wrong.
“Day trading, spread betting and the leveraged stuff is about as dangerous a form of gambling you could possibly concoct. People see it as something else, so that is dangerous.”
Grant said he had not seen an increase in the number of people exhibiting addiction issues from trading since the GameStop surge started. However, he said he had seen way more people presenting with trading addiction issues in the past year.
Grant pointed to a recent case, where an Irish investment company was ordered to pay a compulsive gambler compensation of €17,000 after it failed to heed his warnings that he had an addiction problem.
Having opened a trading account in March 2017, the individual experienced significant financial losses and sought gambling addiction help. He advised the investment company that same month that he was a compulsive gambler, but it encouraged him to start trading on his account again.
Grant said the case “clearly shows the urgent need for a facility for people to permanently self-exclude from trading accounts”.