Public Health Commitment to Online Gambling

Transcription

1 The public health commitment to online gambling: a duty of science April 8th, th Annual Alberta Conference on Gambling Research

2 Online gambling, a world of influences. Governments Public policies on gambling Public Health arguments Industry arguments Public opinion Utilitarianism vs public health? 2

3 The road to online gambling in Québec VLT S 3

4 Online gambling as the new $ solution Since October 2007, Loto-Québec was allowed to exploit instant lotteries on Internet. However, the return rate was below 75%. This was never really popular. On November 2009, Loto-Québec argued that new, dynamic, fun and competition-based internet games market is required to avoid a customer leak toward foreign online gambling sites. On February 2010, the government of Québec allowed Loto-Québec to compete with online products such as casino games and poker rooms. The return rate was raised by law to a mimimum of 83%, with no upper limit (some games now have a return rate of 97.5%) The new Internet portal of Loto-Québec opened on Dec. 1 st

5 A really sudden emergency This fast agenda is actually legitimized in the official discourse by an impression of acute emergency. oaccording to the authorities, the online gambling market is already widespread, attractive and damaging to the public finances. The government has to get its share back. ofinancial estimates are huge. In 2009, LQ reports studies suggesting that online gambling represent a worldwide market of $25.3 billion - a 300 per cent increase since oit is argued the leak channels would be wide open as the population have access to over 2,000 illegal and unregulated gaming sites whose integrity is dubious. It is also argued that these unregulated sites have weak or no age-control measures and insufficient or no responsible gaming measures. 5

6 1. The public health directors of 18 regions 2. The Parliamentary Ombudsman 3. Consumers Association 4. Québec Pediatrists Association 5. Québec Public Health Association (ASPQ) 6. Québec Youth Centers Association(ACJQ) A one-year moratorium/more research were requested by several public, health and scientific organisations. 7. Québec Health and Social Services Establishments Association (AQESSS) 8. The Dollard-Cormier (treatment) Centre 9. Le Centre québécois d'excellence pour la prevention et le traitement du jeu l'université Laval 10. Quebec University s Health and Media research Group 11. Quebec Association québécoise des retraité(e)s des secteurs public et parapublic (AQRP) 12. L'Ordre des travailleurs sociaux et des thérapeutes conjugaux et familiaux du Québec 13. Fédération des centres communautaires d intervention en dépendance 14. Seigneurie-des-Mille-Îles School board 15. Quebec Medical Spécialits Federation (FMSQ) 16. Québec National Institute of public health 6 All those mémoires had no effect on the Finance Ministry decision

7 The end of the debate September 2010: GTECH G2 announced it s decision to block Canadian users from using their software. December 2010: GTECH G2 and Loto-Quebec launch the first regulated poker network in North America, the Canadian Poker Network, on the Espacejeux.com igaming site. 7

8 Assertions about the gambling offer: any scientific sources?

9 There is over 2000 online gambling sites The source of this assertion was not mentioned. Yet, no scientific study exists to support this estimation Some are counted many times, because they offer different types of games The total gambling offer might be well inferior to what is widely said April 1st,

10 There is over 2000 online gambling sites -2 In fact: The 2417 sites belongs to only 653 site owners. Sites exist, but access may be blocked. The control belongs to the site owner sites accept customers from Canada. But only 1259 sites accept customers from USA. Language is also a natural barrier. Of the 2163 sites that accept customers from Canada, only 481 has a French version. Source : CasinoCity.com 10

11 «Internet gambling growth is unavoidable» Online gambling sites (according to CasinoCity.com) Source:

12 «Internet gambling growth is unavoidable»2 On another hand: Gambling companies or gambling conglomerates, their lawyers and lobbyists have dedicated plenty of time and money the last 15 years to: Have gambling laws modified Influence the interpretation of free provision of services Have poker technically recognized as a skill game rather than a chance game in order not to be submitted to gambling laws Elaborate their business model from «B2C» (Business to Customers) to «B2G» (Business to Governments). So it s not that much that this growth was unavoidable that the industry made everything to make it unavoidable and to sell this idea to governments, public policy makers and opinion leaders 12

13 The honesty of the actual online gaming sites is questionable -1 The honesty of the actual online gaming sites is questionable Their return rates change without notice Large winnings are not paid Governments have no control over the operation of foreign companies Operators could be criminals or the gaming revenue could finance international criminal organization s In fact: Nobody knows how the return rates vary. However, competition forces very high return rates. Complaints about non payment of winnings have not actually been quantified. Every operator understands that the more you pay in winnings the more customers are attracted. Criminals? Most online gaming providers are long-time commercial partners of legal casinos and governmental gambling corporations. 13

14 The honesty of the actual online gaming sites is questionable -2 The IPN network, operated by GTECH: a good example of a single company actually contributing to many gambling sites. Offers a single platform to 48 online gambling portals While operating its private network IPN, GTECH also provides online gambling to State operated sites, like Svenska Spel and Loto-Québec The «illegal gambling offer» is widely constituted by business partners of governments They will potentialy benefit of the customers brought into online gaming by the legitimisation brought by the governemental involvment.

15 Microgaming PlayTech Electracade NetEnt 888 Holdings Parlay Ent. RTG WagerWorks Dynamite Idea Boss OpenBet CryptoLogic DGS CGTV Games Ongame GTS Virtue Fusion Cashcade Rival Betsoft N. sites The honesty of the actual online gaming sites is questionable -3 Companies offering at least 30 gambling sites. They are providing 75 % of the online gambling offer Most of them and their subsidairies are whether associated with the WLA, certified by Ecogra or G4 Is it accurate to pretend that the parrallel gambling offer is dominated by dishonnest operators? Online gambling software providers (Source: Online.CasinoCity.com [ September 1st, 2010 ] )

16 Online gambling revenues are calculated in billions and are constantly increasing In fact: These estimations were calculated in , prior to the Unlawful Internet Gambling Enforcement Act of 2006 and the economic crisis There was no cost analysis There was no saturation effect/poker craze stagnation projected In absolute figures, sports betting is the biggest growing segment in online gaming - in which LQ is not involved (yet) 16 Net Entertainment Annual Report

17 «It is impossible to block access to illegal gambling sites» except when you decide to do so to protect you market! : French Law n of May 12, 2010: Blocking addresses from service providers Blocking banking transactions Dereferencing search engines Heavy financial penalties for site publishers Imposition of prison sentences of three to seven years for organizers of «illegal» online games Marketing interdiction of unlicensed sites 17

18 Assertions about the security of State control online gambling

19 «The Internet medium offers the possibility for efficient prevention measures» 19 Self exclusion partially technically invalid Possibility of playing under «borrowed» identities Possibility of changing your betting limits within a few hours/days RGF non mandatory/seldom used/non evaluated/non specific to different types of games Self evaluation of gambling problems: false negative can create false sense of security Lack of individual preventive interaction Data mining for protection or for marketing? These measures don t address other determinants of problems which are symbolic, legal, physical, financial accessibility Don t address intrinsic dangerosity features like The return rate The payout tables (focus on large wins or small wins) The frequency of rewards Mandatory maximum bet/deposit The marketing, customers loyalty programs, bonuses, free games and so forth

20 «State controled online gambling is more secure» «The online casino-style program was launched on July 15 and within hours the lottery corporation heard complaints that some customers were able to view the personal information of other 20 users, and some were placing bets with other players money»

21 21 Responsible gambling -1

22 Responsible gambling -2 Industry descriptions of new features in EGM patents: It will «prolongate sessions», «raise the perception of winning probabilities», «maximise profitability», «reinforce immersion», «rise anticipation», «capture the player», etc. BC & QC: weekly online betting limit: $ Then «be responsible» and «play within your own limits» 22

23 Public health data: available and strong

24 Prevalence data Canada online gamblers According to Williams and Wood, in Canada in 2007, 17% of online gamblers have been evaluated as problem gamblers. They have lost an amount of money that represents 41% of online gambling revenues from Canada. Wood, R. T., & Williams, R. J. (2008). Internet Gambling in Canada: Prevalence, Patterns, and Land-Based Comparisons. Alberta Gaming Research Institute Williams, R., Wood, R. (2009). Internet gambling: Setting the stage. AGRI Annual Conference. 27 mars, Banff (Alberta). 24

25 Québec-2002 Nouveau-Mexique-2005 Ontario-2005 South Australia-2005 Californie-2006 Manitoba-2006 Allemagne-2007 Canada-2007 Colombie-Britannique-2007 Finlande-2007 Norvège-2007 Tasmania-2007 UK-2007 Québec(03)-2008 Suède-2009 Québec-2009 Terre-Neuve-2009 Prévalence des joueurs problématiques Online gambling and problem gambling : around the world Parmi la population 30% 25% 20% 15% 10% 5% Parmi les joueurs Parmi les joueurs en ligne 20,7% 21,3% 13,6% 13,0% 11,8% 25,9% 6,7% 17,1% 29,0% 14,8% 7,2% 10,9% 5,0% 19,6% 10,1% 11,0% 21,2% 0%

26 Conclusion Merci! 26 Étatisation des jeux d'argent sur Internet au Québec : une analyse de santé publique Elisabeth Papineau Jean Leblond