Dr. Sally Gainsbury. Discovery April 7, centre for gambling education & research
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1 Dr. Sally Gainsbury Discovery 2011 April 7, 2011 centre for gambling education & research
2 Current global state of Internet gambling and sports betting Canadian Internet sports betting Australian Internet sports betting Internet gambling and problem gambling Conducting Internet gambling research
3 centre for gambling education & research
4 Initial explosive market expansion Followed by period of consolidation 2,319 Internet gambling sites available in March % of English-language sites accept play from Canada 199 different forms of payment Internet gambling is highly accessible
5 2% 1% 4% 17% 32% 18% 21% Casino Sports/race book Bingo Betting exchange Poker Lottery Skill game
6 Of the 79 jurisdictions the major providers and # of sites - are: 1. Malta Netherlands Antilles Gibraltar Costa Rica Kahnawake United Kingdom Alderney Antigua & Barbuda Cyprus Italy Isle of Man Panama Australia United States - 29
7 A permissive legal framework Low and predictable taxes Availability of low costs workers that speak the required language Appropriate time zone Telecommunication systems
8 Annual growth of10-20% Internet gambling represents 5-10% of global gambling market Sports betting estimated to be 41% of total online market Gross Gaming yield (US$ million) 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,
9 Betting heightens interest in sports Televised sports events Increased broadband access Increased mobile access Liberalised regulation
10 Bookmaker Fixed odds on bets spreadline & moneyline Pari-mutuel betting Proportional distribution of winning bets (less commission) Exchange betting Players match each others bets (less commission) Gamblers transfer funds using credit card or electronic payment to an account used to place bets
11 Customer service Attractive and user-friendly website Sign-up bonuses Referral bonuses Competitive odds
12 Customer service Attractive and user-friendly website Sign-up bonuses Referral bonuses Competitive odds Reputation Social interaction Cross-gambling products
13 centre for gambling education & research
14 No specific legislation for Internet gambling Criminal code (1985) covers all gambling Provincial-based sites are being introduced Offshore Internet gambling sites are easily accessible
15 9% national participation Higher participation by Internet gamblers 13% vs. 2% 54% of sports betting conducted online Higher average monthly expenditure by Internet gamblers $40 vs. $26 Wood & Williams (2009)
16 centre for gambling education & research
17 Interactive Gambling Act (2001) Interactive wagering & lotteries legal State-based policy & regulation 13 th largest provider of online gambling globally Productivity Commission recommended legalisation Ongoing issues for regulatory consideration
18 4-30% Australians gamble online each year Sports betting fastest growing form of gambling
19 2% of population usually place bets online 8% of bettors usually place bets online Roy Morgan Research
20 Example: Tabcorp AUD$678 million expenditure in Q1& % annual increase 10% of the value of all bets wagered in 2010
21
22 95% male 67% married or living with partner 26% completed high school 29% completed 1 or more university degrees 65% employed full time 16% earn >$150, % have placed sports bets online (n=903) Preliminary results
23 interactive tv 1% telephone 11% Internet - mobile 22% Internet - computer land-based Preliminary results 29% 75% 0% 20% 40% 60% 80%
24 More likely to be male than non-internet sports bettors (87% vs. 67%) In the general population, men are 3 times more likely to have placed a bet online than women (3.8% vs. 1.3%) Roy Morgan Research Preliminary results
25 More likely to earn >$150,000 Preliminary results
26 81% gamble from home 70% 60% 50% 40% 30% 20% 10% 0% 8.5% 6am 12pm 61.6% 12pm 6pm 28.7% 6pm - midnight 1.2% midnight 6am Preliminary results
27 Preliminary results
28 Preliminary results
29 Factor general reputation 35 payout rates 33 monetary deposits safe and wins paid out in timely fashion bonuses/provision of monetary incentives to play Percentage legality 13 better game experience/interface 12 country the site is based in 12 recommendation from friend(s) 10 Preliminary results software used 10 fairness of games 6 larger range of games 6
30 Factor don't have to drive anywhere or leave the house 62 Percentage 24 hour availability/convenience 54 no crowds 35 greater privacy/anonymity 33 no unpleasant people 33 more physically comfortable 32 higher payout rates (better odds, lower potential losses) less noise 22 interesting/exciting games) 21 less smoke 14 better game experience (higher speed of play, more leisurely speed of play, more Preliminary results able to smoke 7 land-based gambling unavailable or illegal 2
31 Factors Percentage too convenient 38 easier to spend more money 34 poorer social atmosphere (no crowds, too isolating) 20 more addictive 17 worry about monetary deposits being safe and/or having wins paid out in timely fashion poorer physical atmosphere (lacks the lights and noise of a real casino, etc.) poorer game experience (not as fun, etc.) 11 difficulty verifying fairness of games Preliminary results lack of face-to-face contact makes betting more difficult 7 difficulty excluding underage gamblers 4 Illegality 3
32 centre for gambling education & research
33 Research shows higher rates of problem gambling among Internet gamblers Increasing number of Internet gamblers and sports bettors presenting for treatment Features that lead to problem gambling Accessibility and convenience Comfort Solitary play Affordability Anonymity Immersive interface Electronic payments
34 Preliminary results
35 Wood & Williams (2009)
36 Internet sports gamblers more likely to report problems with Internet gambling 33% of Internet gamblers Non-Internet gamblers more likely to report problems with land-based gambling 52% of non-internet gamblers 23% of Internet gamblers Preliminary results
37 21% admitted gambling problems 68% had problems before gambling online 16% had disrupted sleep 10% had disrupted eating Preliminary results 19% spent more $ using electronic means (credit cards, bank transfers)
38 centre for gambling education & research
39 consolidation more non-traditional gambling brands entering the market more land-based gaming brands entering the market more targeting of growth markets more cross-selling of products greater efforts to hold onto existing players more innovation/production of offerings and formats
40 more sports and types of bets better security increasing use of social media increasing relationship with television increasing use of sponsorship investment in better systems and platforms
41 Challenges Lessons Future Directions
42 Difficult population to access Self-selected non-representative samples Difficult to access data Diverse research questions Unique ethics considerations Dynamic field
43 Internet gamblers are not a homogenous group Online communication is difficult Participation should be interesting Involve stakeholders
44 Collaboration with industry, government and researchers Multi-modal research Player account data Gainsbury (2011) International Gambling Studies
45 Further research required Collaboration between industry, government and researchers Responsible gambling promoted
46 Menzies Foundation for supporting research Roy Morgan Research for sharing data Wood & Williams for use of online survey Ethel Harris (University of Sydney) for modifications to online survey Prof. Alex Blaszczynski, Prof. Nerilee Hing & Dr. Robert Wood for collaboration Participating organisations that host links to survey
47 Dr. Sally Gainsbury Post Doctoral Research Fellow Southern Cross University Website:
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