Internet Gambling in Canada: Prevalence, Patterns and Land-Based Comparisons

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1 Internet Gambling in Canada: Prevalence, Patterns and Land-Based Comparisons Dr. Robert Wood & Dr. Robert Williams University of Lethbridge

2 Current Study Funded by a Level IV grant from the Ontario Problem Gambling Research Centre (final research report now published on OPGRC website). Preliminary descriptive results presented at AGRI 2008 conference. The present study departs from others, insofar as it offers a systematic comparison of Internet versus land-based gamblers in Canada.

3 Research Questions 1. What are the comparative demographic and health characteristics of Internet versus land-based gamblers? 2. What demographic characteristics are predictive of Internet gambling? 3. What are the game play patterns and preferences of Internet gamblers? 4. What are the comparative gambling expenditures of Internet versus land-based gamblers? 5. What is the comparative rate of problem gambling among Internet versus land-based gamblers? 6. What factors are predictive of Internet gambling?

4 Data Collection Random digit dial survey of Canadian adults. o o o o Managed by Institute for Social Research, at York University. Adults surveyed from all 10 provinces (January 2006 to June 2007). Survey available in both official languages. Response rate of 46% (completions over eligible respondents). o N = 8,498. o Data weighted by provincial size, household size, and age by gender groupings (as per 2006 census data).

5 Gambling Prevalence Rates Gambling Prevalence o 70.7% overall gambling prevalence rate. o Interprovincial range of 68.1% in Saskatchewan to 75.4% in Newfoundland. Problem Gambling Prevalence o 2.4% moderate problem gamblers (CPGI 3+). o 0.8% severe problem gamblers (CPGI 8+). o 3.2% overall problem gambling rate. o Lowest rate in Quebec, at 1.7%. o Highest rate in Nova Scotia, at 6.0%. o Rate of 2.8% in Ontario.

6 Gambling Prevalence Rates Internet Gambling Prevalence o o 2.1% past year adult prevalence rate (N=179). 3.5% if including adults who use the Internet to buy and sell high risk stocks, or for day-trading.

7 Demographic Characteristics Internet Gamblers Gender Non-Internet Gamblers Gender Male 82% Male 50% Female 18% Female 50%

8 Demographic Characteristics Internet Gamblers Non-Internet Gamblers Age (%) Age (%) Average 35.5 Average 46.3

9 Demographic Characteristics Internet Gamblers Non-Internet Gamblers Marital Status (%) Marital Status (%) Married 33.7 Married 52.2 Living with partner 12.0 Living with partner 14.3 Widowed 1.8 Widowed 5.2 Divorced or separated 3.4 Divorced or separated 8.7 Never Married 49.0 Never married 19.5

10 Demographic Characteristics Internet Gamblers Less than high school Completed high school Some technical school/college/ university Completed technical school Completed college/university Professional or graduate degree Non-Internet Gamblers Education (%) Education (%) Less than high school Completed high school Some technical school/college/ university Completed technical school Completed college/university Professional or graduate degree

11 Demographic Characteristics Internet Gamblers Non-Internet Gamblers Employment (%) Employment (%) Employed full-time 53.9 Employed full-time 48.5 Employed part-time 7.0 Employed part-time Homemaker 0.0 Homemaker 4.2 Unemployed and seeking work 1.7 Unemployed and seeking work Retired 8.5 Retired 17.9 Student 14.3 Student 5.3 Disability 0.2 Disability 1.0 Self-employed 12.0 Self-employed 11.3 Other 2.3 Other

12 Demographic Characteristics Internet Gamblers Non-Internet Gamblers Household Income (%) Household Income (%) Less than $29, Less than $29, $30,000 - $49, $30,000 - $49, $50,000 - $69, $50,000 - $69, $70,000 - $89, $70,000 - $89, $90,000 - $119, $90,000 - $119, $120,000 - $149, $120,000 - $149, More than $150, More than $150, Average $74,600 Average $60,900

13 Demographic Characteristics Internet Gamblers Household Debt Non-Internet Gamblers Household Debt Less than $1, % Less than $1, % Median $30,000 Median $15,000 Average $78,056 Average $57,871

14 Demographic Characteristics Internet Gamblers Aboriginal, Inuit, Métis Non-Internet Gamblers Ethnicity (%) Ethnicity (%) 3.9 Aboriginal, Inuit, Métis African 0.5 African 1.2 Asian (Eastern) 5.3 Asian (Eastern) 2.8 Asian (Southern) 0.8 Asian (Southern) 1.5 European (Eastern) 7.5 European (Eastern) 5.4 European (Western) 63.4 European (Western) Latin American 0.5 Latin American 0.2 Other 2.7 Other 2.3

15 Health Characteristics Internet Gamblers Non-Internet Gamblers Substance Use (%) Substance Use (%) Past month tobacco use 39.0 Past month tobacco use 28.7 Past month alcohol use 76.5 Past month alcohol use 72.8 Past month other drug use Past year serious mental health problem Physical disability or chronic health problem that limits activity 23.3 Past month other drug use Health (%) Health (%) Past year serious mental health problem Physical disability or chronic health problem that limits activity

16 Advantages of Gambling on the Internet Advantage Internet Gamblers (%) 24 hour availability/convenience 42.3 Don t have to drive / leave the house 27.9 Better game experience 8.9 More physically comfortable 8.6 No crowds 6.5 Greater privacy / anonymity 6.1 Higher payout rates 5.5 Less smoke / Able to smoke 3.7 No unpleasant people 1.9 Land-based gambling unavailable or illegal 1.8 Lower secondary costs (travel, food, drinks) 1.2 Other 26.0

17 Past Year Involvement Game Internet Gamblers (%) Non-Internet Gamblers (%) Lotteries Instant Win Games of Skill against other Individuals Sports Betting Casino Table Games within Province EGMs within Province EGMs or Casino Table Games outside Province Bingo Horse Racing Average Number of Games Played

18 Weekly Involvement Game Internet Gamblers (%) Non-Internet Gamblers (%) Lotteries Games of Skill against other Individuals Instant Win Sports Betting Bingo EGMs within Province Casino Table Games within Province Horse & Dog Racing EGMs or Casino Table Games outside Province

19 Percentage of Gambling, by Game Type, Conducted on the Internet Game Internet Gamblers (%) Horse & Dog Racing 62.9 Sports Betting 53.5 Games of Skill 51.7 Lotteries 35.3 Bingo 31.8

20 Year First Gambled Online What year did you first start using the Internet for gambling purposes? Internet Gamblers (%)

21 Location of Computer Used Do you primarily use your home or work computer for Internet gambling? Internet Gamblers (%) Home 90.3 Work 3.0 Home and work equally 3.0 Other 3.8

22 Substance Use While Gambling Internet Gamblers (%) Non-Internet Gamblers (%) Frequency of alcohol use while gambling Never Rarely Sometimes Often Always Frequency of drug use while gambling Never Rarely Sometimes Often Always

23 Impact on Spending How does the fact you are using a credit card or electronic bank transfer, rather than cash, impact your spending when you gamble? Internet Gamblers (%) No impact on spending 65.0 Increases spending 18.7 Decreases spending 16.3

24 Comparative Net Monthly Gambling Expenditures Game Internet Gamblers Non- Internet Gamblers Casino table games (in province) -$ $75.31 Slots, VLTs, EGMs (in province) -$ $54.92 Bingo -$ $38.20 Horse and dog racing -$ $35.03 Sports betting -$ $26.07 Games of skill (includes poker) -$ $27.16 Lottery ticket purchases -$ $15.81 Instant win tickets -$ $10.71 Total Expenditure Average -$ $67.09 Total Expenditure Median -$ $20.00

25 Rates of Problem Gambling CPGI Category Internet Gamblers (%) Non- Internet Gamblers (%) Non-problem gambler (CPGI 0) At-risk gambler (CPGI 1-2) Moderate problem gambler (CPGI 3+) Severe problem gambler (CPGI 8+) Average CPGI score

26 Types of Gambling Perceived to Contribute Most to Problem Game Internet Problem Gamblers (%) Non-Internet Problem Gamblers (%) Poker Slot Machines Video Lottery Terminals Roulette Lotteries Blackjack High Risk Stocks Baccarat Bingo Instant Win Tickets Horse Racing Electronic Keno Other

27 Logistic Regression Characteristics statistically differentiating Internet gamblers from non-internet gamblers. o o o A test of a model with 17 predictors against a constant-only model was statistically significant, χ 2 (36) = , p < The variance accounted for is very good, with Nagelkerke R squared of 68.5%. Overall prediction success is 86.1%, with 84.9% of Non-Internet Gamblers correctly classified and 87.4% of Internet Gamblers correctly classified.

28 Significant Predictors of Internet Gambling Greater number of gambling formats. Male gender. Higher CPGI score. Not living in Quebec, Ontario, Saskatchewan, Manitoba, or Alberta. Being a student. Being single. Being of Aboriginal ancestry. Higher household income. Not using alcohol. Not having a mental health problem. Higher educational achievement. Not having a physical disability. Using illicit drugs. Higher household debt.

29 Logistic Regression B Wald Significance Odds Ratio # Gambling Types Gender CPGI Score Province Quebec Ontario Saskatchewan Manitoba Alberta New Brunswick British Columbia Nova Scotia Prince Edward Island Employment Status Student Retired Unemployed Self Employed Employed Part-time Employed Full-time Homemaker

30 Logistic Regression B Wald Significance Odds Ratio Marital Status Never married Widowed Living with a partner Divorced or Separated Ethnic Origins Aboriginal, Inuit or Metis Asian European Household Income Alcohol Use Mental Health Problems Educational Achievement Physical Disability Illicit Drug use Household Debt Age Gambling Expenditure Tobacco Use

31 Recent Relevant Publications 1. Wood, Robert T. and Robert J. Williams. (2009). Internet Gambling: Prevalence, Patterns, Problems, and Policy Options. Final research report prepared for the Ontario Problem Gambling Research Centre. =s 2. Wood, Robert T. and Robert J. Williams. (2007). Problem Gambling on the Internet: Implications for Internet Gambling Policy in North America. New Media & Society, 9(3): Wood, Robert T, Robert J. Williams, Paul K. Lawton. (2007). Why Do Internet Gamblers Prefer Online Versus Land-Based Venues? Some Preliminary Findings and Implications. Journal of Gambling Issues, 20: Wood, Robert T. & Robert J. Williams (2007). "Internet Gambling: Past, Present, and Future." In Gary Smith, David Hodgins & Robert Williams (eds.), Research and Measurement Issues in Gambling Studies (pp ). Toronto: Elsevier Publishing.

32 Researcher Contact Info: Dr. Robert Wood Department of Sociology Phone: (403) University of Lethbridge 4401 University Drive Lethbridge, AB T1K 3M4, Canada

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