Abstract
Online gambling has grown into a global social and economic phenomenon. It is, however, regarded as a risky practice, as it may be connected to the development of gambling-related disorders. Literature has shown a growing interest to determine the direction of the relationship between online gambling participation and gambling-related harm, as it raises some endogeneity concerns. This paper aims to contribute to the study of this relationship. Using data from the prevalence study of gambling users in Spain, a two-stage approach with instrumental variables is proposed to address these endogeneity concerns. An ordered probit model is then estimated to explore the correlation between online gambling participation, the intensity of participation, and the risk of developing some kind of gambling-related harm. Findings showed that online gambling had a significant impact on the odds of experiencing a gambling disorder, which worsened as online gambling participation increased.
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