Financial Literacy and Financial Risk Tolerance of Lottery Gamblers in Thailand

  • Dalina Amonhaemanon Faculty of Commerce and Management, Prince of Songkla University, Trang Campus, Thailand
Keywords: Financial literacy, financial literacy confidence, financial risk tolerance, lottery gambling, informal labor


This paper investigates the impacts of financial literacy level, financial risk tolerance and demographic characteristics on gambling behavior of informal laborers. The data were analyzed by Multivariate Analysis of Variance and Multinomial Logistic Regression. The total of 995 participants used in this research were collected by Multi-Stage Randomization from the informal laborers in Southern Thailand. The empirical analysis revealed that the financial literacy confidence, the risk tolerance, and the demographic characteristics were significant determinants of the gambler’s behavior. The older the gamblers were, the more they got addicted to gambling. Also, the more the people perceived that they have a high level of financial literacy, the more they would gamble. However, it was found that the female laborers were more frequent gamblers than the males. Thus, agencies responsible for supervising the financial education should be aware of the expected outcomes, not only focusing on actual financial literacy, but also supporting the individuals to achieve a healthy level of financial literacy confidence.


Afifi, T. O., Cox, B. J., Martens, P. J., Sareen, J., & Enns, M. W. (2010). Demographic and social variables associated with problem gambling among men and women in Canada. Psychiatry research, 178(2), 395-400.

Albers, N., & Hübl, L. (1997). Gambling market and individual patterns of gambling in Germany. Journal of Gambling Studies, 13(2), 125-144.

Allgood, S., & Walstad, W. B. (2016). The effects of perceived and actual financial literacy on financial behaviors. Economic inquiry, 54(1), 675-697.

Amonhaemanon, D., & Isaramalai, S. (2020). Boosting financial literacy: The roles to enhance quality of life. ABAC Journal, 40(1), 85-108.

Amonhaemanon, D., & Vora-Sitta, P. (2020). From financial literacy to financial capability: A preliminary study of difference generations in informal labor market. The Journal of Asian Finance, Economics, and Business, 7(12), 355-363.

Ariyabuddhiphongs, V. (2011). Lottery gambling: A review. Journal of Gambling Studies, 27(1), 15-33.

Asaad, C. T. (2015). Financial literacy and financial behavior: Assessing knowledge and confidence. Financial Services Review, 24(2), 101-117.

Atkinson, A., & Messy, F. A. (2012). Measuring financial literacy: Results of the OECD/International Network on Financial Education (INFE) pilot study (OECD Working Papers on Finance, Insurance and Private Pensions No. 15).

Bakar, M. Z. A., & Bakar, S. A. (2020). Prudent financial management practices among Malaysian youth: The moderating roles of financial education. The Journal of Asian Finance, Economics and Business, 7(6), 525-535.

Bank of Thailand. (2016). The report of the financial literacy survey in Thailand.

Bayar, Y., Sezgin, H. F., Öztürk, Ö. F., & Şaşmaz, M. Ü. (2020). Financial literacy and financial risk tolerance of individual investors: Multinomial logistic regression approach. Sage Open, 10(3), 1-11.

Beckert, J., & Lutter, M. (2013). Why the poor play the lottery: Sociological approaches to explaining class-based lottery play. Sociology, 47(6), 1152-1170.

Bruyneel, S., Dewitte, S., Franses, P. H., & Dekimpe, M. G. (2005). Why consumers buy lottery tickets when the sun goes down on them. The depleting nature of weather-induced bad moods (ERIM Report Series Reference No. ERS-2005-045-MKT). ract=870245

Bunthiam, T. (2007). Factors affecting the buying behavior of lottery in Khon Kaen Province. [Unpublished master thesis]. Khon Kaen University.

Burger, M. J., Hendriks, M., Pleeging, E., & Van der Zwan, P. W. (2016). The silver linings of lottery play: Motivation and subjective well-being of British lottery participants. Applied Economics Letters, 23(18), 1312-1316.

Chaiphat, C. (2019). Improving financial literacy of undergraduate students with supplementary financial lessons: A case of practical economics for daily life. TEM Journal, 8(2), 492-497.

Chotewattanakul, P., Sharpe, K., & Chand, S. (2019). The drivers of household indebtedness: Evidence from Thailand. Southeast Asian Journal of Economics, 7(1), 1-40.

Clotfelter, C. T., & Cook, P. J. (1990). On the economics of state lotteries. Journal of Economic Perspectives, 4(4), 105-119.

Clotfelter, C., Cook, P. J., Edell, J. A., & Moore, M. (1999). State lotteries at the turn of the century: Report to the National Gambling Impact Study Commission. National Gambling Impact Study Commission. andle/10161/7548/lottrep.pdf

Cunningham-Williams, R. M., Grucza, R. A., Cottler, L. B., Womack, S. B., Books, S. J., Przybeck, T. R., ... & Cloninger, C. R. (2005). Prevalence and predictors of pathological gambling: results from the St. Louis personality, health and lifestyle (SLPHL) study. Journal of Psychiatric Research, 39(4), 377-390.

Dixey, R., & Talbot, M. (1982). Women, leisure and bingo. Trinity & All Saints' College.

Duasa, J., & Yusof, S. A. (2013). Determinants of risk tolerance on financial asset ownership: A case of Malaysia. International Journal of Business & Society, 14(1), 1-16.

Felsher, J. R., Derevensky, J. L., & Gupta, R. (2003). Parental influences and social modelling of youth lottery participation. Journal of Community & Applied Social Psychology, 13(5), 361-377.

Fisher, P. J., & Yao, R. (2017). Gender differences in financial risk tolerance. Journal of Economic Psychology, 61(C), 191-202.

Friedman, M., & Savage, L. J. (1948). The utility analysis of choices involving risk. Journal of Political Economy, 56(4), 279-304.

Frijns, B., Koellen, E., & Lehnert, T. (2008). On the determinants of portfolio choice. Journal of Economic Behavior and Organization, 66(2), 373-386.

Garrett, T. A., & Sobel, R. S. (1999). Gamblers favor skewness, not risk: Further evidence from United States' lottery games. Economics Letters, 63(1), 85-90.

Government Lottery Office. (2015). Statistic income send to National income for year 2015.

Grable, J., Lytton, R., & O'Neill, B. (2004). Projection bias and financial risk tolerance. The Journal of Behavioral Finance, 5(3), 142-147.

Grable, J., & Lytton, R. H. (1999). Financial risk tolerance revisited: The development of a risk assessment instrument. Financial Services Review, 8(3), 163-181.

Grable, J. E. (2008). Risk tolerance. In J. X. Jing (Ed.), Handbook of Consumer Finance Research (pp. 3-19). Springer.

Grable, J. E. (2016). Financial risk tolerance. In In J. X. Jing (Ed.), Handbook of consumer finance research (2nd ed., pp. 19-31). Springer.

Grable, J. E., & Joo, S. H. (2004). Environmental and biophysical factors associated with financial risk tolerance. Journal of Financial Counseling and Planning, 15(1), 73-82.

Grable, J. E., & Roszkowski, M. J. (2008). The influence of mood on the willingness to take financial risks. Journal of Risk Research, 11(7), 905-923.

Griffiths, M., & Wood, R. T. (2000). Risk factors in adolescence: The case of gambling, videogame playing, and the Internet. Journal of gambling studies, 16(2), 199-225.

Grohmann, A. (2018). Financial literacy and financial behavior: Evidence from the emerging Asian middle class. Pacific-Basin Finance Journal, 48(C), 129-143.

Gruenwald, H., & Chatterji, S. D. (2016). Finance and banking behavior patterns of Thai generation Y. Proceedings of the 5th Burapha University International Conference 2016, 622-634.

Gupta, R., & Derevensky, J. L. (1998). Adolescent gambling behavior: A prevalence study and examination of the correlates associated with problem gambling. Journal of Gambling Studies, 14(4), 319-345.

Halicka, Z., & Krawczyk, M. (2014). Happy-go-lucky. Positive emotions boost demand for lotto (University of Warsaw, Faculty of Economic Sciences Working Paper No. 9/2014 (126)). 14.pdf

Hallahan, T. A., Faff, R. W., & McKenzie, M. D. (2004). An empirical investigation of personal financial risk tolerance. Financial Services Review, 13(1), 57-78.

Hung, A., Parker, A. M., & Yoong, J. (2009). Defining and measuring financial literacy (RAND Labor and Population Working Paper No. WR-708). rand/pubs/working_papers/2009/RAND_WR708.pdf

Kamnualsilp, P., Wongthanawasu, S., & Suthipongpracha, T. (2014). Gambling situation in Thailand: An analysis of social policy. Phra Dharmakhan Printing House.

Kannadhasan, M. (2015). Retail investors' financial risk tolerance and their risk-taking behaviour: The role of demographics as differentiating and classifying factors. IIMB Management Review, 27(3), 175-184.

Kaplan, H. R. (1988). Gambling among lottery winners: Before and after the big score. Journal of Gambling Behavior, 4(3), 171-182.

Kempson, E., Collard, S., & Moore, N. (2006). Measuring financial capability: An exploratory study for the Financial Services Authority. In European Credit Research Institute (Ed.), Consumer Financial Capability: Empowering European consumers (pp. 39-76). European Credit Research Institute.

Lang, K. B., & Omori, M. (2009). Can demographic variables predict lottery and pari-mutuel losses? An empirical investigation. Journal of Gambling Studies, 25(2), 171-183.

Lee, C. H., Dyson, T., Park., M., Handy, C., & Reynolds, M. B. (2015). State government finances summary: 2013. United States Census Bureau, United States Department of Commerce.

Lusardi, A. (2012). Numeracy, financial literacy, and financial decision-making (National Bureau of Economic Research Working Paper No. 17821). /files/working_papers/w17821/w17821.pdf

Lusardi, A., & Mitchell, O. S. (2007). Financial literacy and retirement planning: New evidence from the Rand American Life Panel (Michigan Retirement Research Center Research Paper No. 157).

Mahdzan, N. S., Mohd-Any, A. A., & Chan, M. K. (2017). The influence of financial literacy, risk aversion and expectations on retirement planning and portfolio allocation in Malaysia. Gadjah Mada International Journal of Business, 19(3), 267-288.

McCannon, B. C., Asaad, C. T., & Wilson, M. (2016). Financial competence, overconfidence, and trusting investments: Results from an experiment. Journal of Economics and Finance, 40(3), 590-606.

McConkey, C. W., & Warren, W. E. (1987). Psychographic and demographic profiles of state lottery ticket purchasers. Journal of Consumer Affairs, 21(2), 314-327.

Meeboon, T. (2003). Factors Affecting Gambling in Illegal Lottery in Bangkok Metropolis [Unpublished master thesis]. Chulalongkorn University.

National Statistical Office (NSO). (2017). The informal employment survey 2017. Labor Statistics Group. Social Statistics Division. 2.aspx

Noppanun, W. (2011). The underground lottery economy: A view of changing in the Thai social economy structure through gambling business. Office of the Health Promotion Foundation, Thai Health Promotion Foundation. dmins/research_file/gambling_research_file-2012-03-23_14-25-31.pdf

Pravichai, S., & Ariyabuddhiphongs, V. (2015). Superstitious beliefs and problem gambling among Thai lottery gamblers: The mediation effects of number search and gambling intensity. Journal of Gambling Studies, 31(4), 1633-1649.

Pinjisakikool, T. (2017). The effect of personality traits on households' financial literacy. Citizenship, Social and Economics Education, 16(1), 39-51.

Piriyarangsan, S., Chaipong, Y., Gensaku, U., Treerat, N., Phrommontri, W., Wongyeekul, P., & Wongsinsirikul, W. (2003). The Gambling Economy:Policy Options. Government Lottery Office.

Piriyarangsan, S., Sonsuphap, R., & Kesapradi, B. (2014). The study and research of the Thai Lottery for Development: knowledge, conceptual framework and organization development approach. Government Lottery Office.

Pongpracha, C. (2015). Social dimension of the behaviour of playing underground lottery in Thailand. Journal of Local Administration, 8(4), 64-75.

Rahmawati, S., Agustiningsih, S. W., & Setiany, E. (2015). The effect of earnings management with special item to investment decision: empirical study at manufacture firm listed in Indonesia Stock Exchange 2008 - 2010. International Journal of Monetary Economics and Finance, 8(2), 111-125.

Research Centre for Social and Business Development (SAB). (2017). Study of the situation, behavior and impact of gambling in Thailand 2017. Gambling Problems Study Center vorChulalongkorn University. e/ebook-60-19-SAB-national.pdf

Research Centre for Social and Business Development (SAB). (2020). A study of the situation, behavior and impact of gambling in Thailand 2019: Important situations by province. Gambling Study Center Chulalongkorn University. _Final%20_09.03.2020.pdf

Rogers, P., & Webley, P. (2001). "It could be us!": Cognitive and social psychological factors in UK National Lottery play. Applied Psychology, 50(1), 181-199.

Sharma, D. R., Chalise, M., & Dangol, J. (2017). Risk tolerance behaviour of individual Nepalese investors. Global Management Review, 11(2), 63-70.

Snelbecker, G. E., Roszkowski, M. J., & Cutler, N. E. (1990). Investors' risk tolerance and return aspirations, and financial advisors' interpretations: A conceptual model and exploratory data. Journal of Behavioral Economics, 19(4), 377-393.

Sulaiman, E. K. (2012). An empirical analysis of financial risk tolerance and demographic features of individual investors. Procedia Economics and Finance, 2, 109-115.

TMB Analytics. (2019, January 18). TMB Research Insight into Thai lottery behaviour. Lottery is a dream come true for millions of Thais. Thai Publica. /tmb-lottary-research/

Van de Venter, G., Michayluk, D., & Davey, G. (2012). A longitudinal study of financial risk tolerance. Journal of Economic Psychology, 33(4), 794-800.

Vora-Sitta, P. (2018). An evaluation of possibility in reshaping lottery money to long-term savings for the poor in outer Bangkok, Thailand. NIDA Development Journal, 58(1), 74-102.

Welte, J. W., Barnes, G. M., Wieczorek, W. F., Tidwell, M. C., & Parker, J. (2002). Gambling participation in the US-results from a national survey. Journal of Gambling Studies, 18(4), 313-337.

Yong, H. N. A., & Tan, K. L. (2017). The influence of financial literacy towards risk tolerance. International Journal of Business And Society, 18(3), 469-484.

Zahirovic-Herbert, V., Gibler, K. M., & Chatterjee, S. (2016). Financial literacy, risky mortgages, and delinquency in the US during the financial crisis. International Journal of Housing Markets and Analysis, 9(2), 164-189.

How to Cite
Dalina Amonhaemanon. (2022). Financial Literacy and Financial Risk Tolerance of Lottery Gamblers in Thailand. International Journal of Business and Society, 23(2), 633-648.