The digital transformation of investment behavior: a systematic review of gambling tendencies in modern financial markets

This systematic literature review investigates how digital transformation has influenced trading behavior and fostered gambling tendencies in contemporary financial markets. Analyzing 57 peer-reviewed articles (2008–2025), we examine the interplay between technological platforms, demographics, psychological factors, and market structures in shaping gambling-like trading patterns. Our findings indicate approximately 9.5% of investors display problematic trading patterns, with digital interfaces and social media significantly amplifying overconfidence, herding behaviors, and emotional trading decisions. Technological elements such as gamification features and instant trading capabilities create dopamine-driven feedback loops resembling traditional gambling environments. While younger investors show higher digital platform adoption and risk appetite, even financially knowledgeable investors demonstrate vulnerability to speculative behavior, particularly in cryptocurrency markets. We propose a comprehensive framework integrating behavioral finance theory, prospect theory, and gambling psychology to understand the growing convergence between investment and gambling behaviors. This framework offers implications for investor education, platform design ethics, and regulatory considerations in increasingly digitalized financial markets.

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Publication Details

Journal
Cogent Economics & Finance
Published
2025-10-09
DOI
https://doi.org/10.1080/23322039.2025.2568643
Primary Topic
Financial Markets and Investment Strategies
Type
article
Field-Weighted Citation Impact
0.00
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article

The digital transformation of investment behavior: a systematic review of gambling tendencies in modern financial markets

Yunieta Anny Nainggolan, Raden Aswin Rahadi, Muhammad Rizky Amin
Cogent Economics & Finance
Financial Markets and Investment Strategies
article

The digital transformation of investment behavior: a systematic review of gambling tendencies in modern financial markets

Yunieta Anny Nainggolan, Raden Aswin Rahadi, Muhammad Rizky Amin
article en

Abstract

This systematic literature review investigates how digital transformation has influenced trading behavior and fostered gambling tendencies in contemporary financial markets. Analyzing 57 peer-reviewed articles (2008–2025), we examine the interplay between technological platforms, demographics, psychological factors, and market structures in shaping gambling-like trading patterns. Our findings indicate approximately 9.5% of investors display problematic trading patterns, with digital interfaces and social media significantly amplifying overconfidence, herding behaviors, and emotional trading decisions. Technological elements such as gamification features and instant trading capabilities create dopamine-driven feedback loops resembling traditional gambling environments. While younger investors show higher digital platform adoption and risk appetite, even financially knowledgeable investors demonstrate vulnerability to speculative behavior, particularly in cryptocurrency markets. We propose a comprehensive framework integrating behavioral finance theory, prospect theory, and gambling psychology to understand the growing convergence between investment and gambling behaviors. This framework offers implications for investor education, platform design ethics, and regulatory considerations in increasingly digitalized financial markets.

Cogent Economics & FinanceVol. 13(1)
Bandung Institute of Technology (ID), School of Business and Management (FR)
Openalex Percentile: Top 64%
Financial Markets and Investment Strategies
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