The Role of Fear of Missing Out in Mediating the Effect of Digital Financial Literacy on Online Gambling Decisions

Abstract

This study examines the mediating role of Fear of Missing Out (FOMO) in the relationship between Digital Financial Literacy (DFL) and Online Gambling Decisions (OGD) among productive-age communities in East Java, Indonesia. A quantitative explanatory approach was employed using purposive sampling with 96 respondents. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that Digital Financial Literacy does not significantly influence Online Gambling Decisions directly. However, Digital Financial Literacy significantly affects Fear of Missing Out, which in turn significantly influences Online Gambling Decisions. Furthermore, Fear of Missing Out fully mediates the relationship between Digital Financial Literacy and Online Gambling Decisions. These findings suggest that online gambling decisions are influenced more strongly by emotional and psychological factors than by rational financial considerations. The study supports Dual Process Theory by demonstrating that emotional and impulsive processes may dominate cognitive abilities in financial decision-making within digital environments.