Social'Casino'Gambling:'The'Good,'the'Bad,' the'ugly'

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1 Social'Casino'Gambling:'The'Good,'the'Bad,' the'ugly'! Jeffrey L. Derevensky, Ph.D. Professor & Director of Clinical Training School/Applied Child Psychology Professor, Psychiatry International Centre for Youth Gambling Problems and High- Risk Behaviors McGill University igaming North America Las Vegas, April, 2015!!

2 Today s(presenta.on( 1. Briefly!examine!today s!youth!social!gaming!(video!games,! Internet!use,!social'casino'games)!and!youth!gambling!! 2. Is!Internet!gambling!amongst!youth!a!cause!for!concern?! 3. Are!there!any!potenDal!posiDve!aEributes!in!social!gaming!(the' good)! 4. IdenDfying!potenDally!problemaDc!behavior!(the'bad)! 5. Social!casino!gaming!(the'good?'the'bad,'the'ugly)!!

3 Today s(presenta.on( 6.!Can!(should)!the!industry,!researchers!and! clinicians!work!together?!

4 ! The(millennials(

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6 So what s so different??

7 Technologically sophisticated

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9 ( ( Social(Media(Usage( ( Over!70%!of!older!adolescents!use!social!media!daily!(ACMA,! 2012)! Mobile!phones!used!by!upwards!of!95%!of!high!school!youth! 69%!use!smart!phones,!49%!access!Facebook,!43%!play! games!on!mobile!phones!(macpherson,!2013)!

10 Social'gaming'is'the'next'big'thing'in' 2012' '''''''''''''''''''''''''''Mark'Zuckerberg!

11 Games(come(in(many(varie.es( and(can(be(played(on(mul.ple( pla<orms (

12 ! Wii! XVBox! XVBox!360! PlayStaDon! Videogame(pla<orms(

13 Videogames (

14 Mul.ple(genres( AcDon!games! Adventure!games! Sports!games! Science!ficDon!games! Shooter!games! GamblingVrelated!games!(e.g.,!simulated!casinos,! sports!wagering)!

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20 Age'of'Onset'for'Video'Games'by'Gender'and'Gaming' AddicGon! N Mean SD Gender Male Female Gaming addiction Social gamer a Addicted gamer b Total GAS score (0-3). b GAS score ( 4). McBride & Derevensky, 2014

21 Popular(&(innova.ve(online(games(

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24 Interac.ve(games (

25 Trivia Crack

26 Heart of Vegas

27 Motivations for Social Gaming Entertainment/recreaDon! CompeDDon! Challenges!&!opportuniDes!for!achievement!!(selfVesteem)! Escapism/coping! Fantasy!and/or!role!playing! Social!interacDons!with!others! Relief!of!stress! Passing!Dme! Relief!from!boredom!!

28 Social(casino(gaming((gambling)(

29 Social(Gaming( 53%!of!Facebook!users!play!social!media! games!(81!million!people!play!at!least!one! game!daily).!many!of!which!are!social! casino!games.!

30 Popularity(! Social!casino!games!one!of!the!fastest!growing!and!most!profitable!genres! of!social!gaming!(superdata,!2012)! Predicted!to!grow!from!173!million!users!(2012)!to!269!million!users! (2016)!(Morgan!Stanley,!2012)! Social!gaming!equally!popular!with!males!&!females!and!especially!for! youth!ages!14v19!(mcbride!&!derevensky,!2015)! In!2012,!social!casino!games!accounted!for!almost!25%!of!social!gaming! revenue!(superdata,!2012)

31 ( Social(Casino(Gaming(Among(( Young(People( ( In!U.K.,!10%!of!children!11V16!played!a!social!casino!or! pracdce!game!in!past!week!(parke!et!al.,!2013)! In!Australia,!13%!of!children!12V17!played!simulated!casino! games!past!year!(32%!during!their!lifedme)!(king!et!al.,!2014)!

32 Minneapolis Airport

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34 Issues & Concerns Excessive!Dme!on!social!media!websites!(avoidance!of!other!social!interacDons,!familial! issues,!schoolvrelated!problems)!! Social!casino!as!a!gateway:!gaming!to!gambling!and!problem!gambling!! Gambling!as!a!gateway!to!excessive!social!casino!gaming!(!Parke,!Wardle,!Rigbye!&!Parke,! 2013)!! Inflated!payout!rates!on!social!casino!games! Keeps!players!interested! Fosters!a!perceived!illusion!of!control! Increases!likelihood!of!higher!online!wagers!

35 Social!casino!games! May!be!the!first!exposure!for!young!people!to!gambling!(Morgan! Stanley,!2012)! Behavior!modificaDon/normalizaDon!of!gambling! Relapse!risks!for!problem!gamblers!! No!limits!on!expenditures! Issues & Concerns Possible!migraDon!to!online!gambling! Short!longitudinal!study!(6!months)!found!25%!of!social!casino!gamers! migrated!to!online!gambling!(kim!et!al.,!2014)!

36 Student-Athletes Reporting Playing Any Simulated Gambling Activity (Past Year) (Paskus & Derevensky, 2013) 2012 Study Males 28.1% Females 10.2%

37 Internet( Gambling +Without( Money:(A(few(examples(

38 Prac.ce(Sites( This website does not permit players to wager real money. Chips in players' accounts have no monetary value, and cannot be exchanged for anything of value. Any and all references in the website to "pots," "limits", "betting or the like are solely for instructional or illustrative purposes and do not involve wagering real money.

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41 Past/Year+Gambling+Par3cipa3on+(On+and+Off+the+Internet)+by+Gender+and+ Problem+Gambling+Severity+among+college+students+ Gender***! N+ Offline!gambling( PracDce!sites( Internet!gambling( Male! 305! 66.2! 49.8! 11.8!! Female! 160! 46.9! 30.0! 0.6!! Problem!Gambling! Severity! Non!gambler! a! 186! V! 22.0!***! V! Social!gambler! b! 262! 99.2! 55.3!***! 11.8!**! Problem!gambler! c! 17! 100! 82.4!***! 35.3!**! Total! 465! 59.6!(90)! 43.0!! 8.0!! a DSMVIV!score!=!0,!no!gambling!acDvity!(on!or!off!the!Internet)!in!the!past!12!months.! b DSMVIV!score!(0!V!2).! c DSMVIV!score!(!3).! ***p!<!.001! **!p!<!.01! McBride!&!Derevensky,!2014!

42 Why is Internet gambling potentially problematic for youth? Increased accessibility & availability Convenience Similarity with video-game technology Can gamble small amounts of money Play in comfortable, non-intrusive environments often results in longer play Anonymity No travel barriers Psychologically youth perceive themselves as invincible and smarter than adults Represents a challenge

43 Types of Internet Gambling Activities by Gambling Group Social Gambler At-Risk Gambler Probable Pathological Frequency % Roulette Blackjack Sports Betting Slot machines Cards Maj Jong Stock Market Games

44 Frequency+of+Play+on+Internet+Gambling+Sites+With+Money+ in+the+past+12+months+by+gambling+severity!! Gambling!Groups***!!N!=!2292 Yes! (n!=!183) Internet!Gambling!! With!Money 1 No! (n!=!2109)!!!non!gambler!!! n!=! !!!Social!Gambler n!=! !!!AtVRisk!Gambler n!=! !!!Probable!!!!!Pathological!Gambler n!=! Total 8.0* Percentage *13.1% males; 4.6% females are gambling on Internet McBride!&!Derevensky,!2014!

45 Is(there(a(link(between(social(casino(gambling(and( online(gambling?((

46 A(qualita.ve(research(study( amongst(college(students((gupta,!wohl!&! Derevensky,!2013)! "A general progression starts with these Facebook entertainment games, which are purely for fun, and some people take it to the next level where the its for fun and money. That s where we are now most of us, and then some people will take it eventually to the next level where the fun has disappeared and they are just doing it for the money. (male, age 18)

47 I!didn t!understand!how!i!got!from!one!place!to!another!place,! from!playing!for!fun!to!being!in!trouble.!

48 Gambling'ParGcipaGon'During'the'Past'12'Months'by'Gender'and'Age! Gambling participation Free online N Offline gambling gambling games Online gambling Gender Male (68.2%) 326 (61.0%) 54 (10.1%) Female (40.0%) 180 (25.9%) 6 (.9%) Age Group Under (34.0%) 61 (40.7%) 5 (3.3%) (53.4%) 387 (41.0%) 44 (4.7%) (64.9%) 58 (44.3%) 11 (8.4%) (age excluded) Total (52.2%) 506 (41.2%) 60 (4.9%) McBride & Derevensky, 2014

49 Table(15(( ParGcipaGon'in'Free'Online'Gambling'Games'by'Gender! Free online activity Male Female ( n = 506) ( n = 326) ( n = 180) Roulette 48 (14.7%) 16 (8.9%) Blackjack 196 (60.1%) 96 (53.3%) Baccarat 5 (1.5%) 2 (1.1%) Dice 39 (12.0%) 28 (15.6%) Keno 5 (1.5%) 3 (1.7%) Bingo 41 (12.6%) 63 (35.0%) Sports betting 113 (34.7%) 25 (13.9%) Electronic gaming machines 85 (26.1%) 52 (28.9%) Slot machines 58 (17.8%) 48 (26.7%) Horses/dogs/animals 7 (2.1%) 9 (5.0%) Poker 265 (81.3%) 106 (58.9%)

50 RelaGonship'Between'Gambling'Severity'and'Gaming'AddicGon'! Gambling s everity Non - Social N g ambler a g ambler b Problem g ambler c Game a ddiction s cale Non - g amer d ( 69.2% ) 3 3 ( 28.2% ) 3 (2.6 % ) Social g amer e ( 45.6% ) 55 8 (51. 8% ) 28 (2.6 % ) Addicted g amer f (37.1 % ) 18 (51.4 % ) 4 (11.4 % ) Total ( 47.6% ) 60 9 (49. 6% ) 35 (2.8 % ) a DSM - IV score = 0, no gambling activity (on or off the online ) during the past 12 months. b DSM - IV score (0-2). c DSM - IV score ( 3). d GAS score = 0, no gaming activity (including MMORPGs) during the past 12 months. e GAS score(0-3). f GAS score ( 4). McBride & Derevensky, 2014

51 What(do(we(currently(know??( Gambling!and!social!game!playing!represent!two!leisure!acDviDes!in! which!adolescents!and!young!adults!pardcipate.! Problem!gamblers!had!higher!rates!of!social!game!playing!than!nonV gamblers.! Addicted!gamers!had!higher!rates!of!landVbased!gambling!than!nonV gamers.!many!college!students!indicated!learning!how!to!gamble!on! Facebook,!commenDng!that!it!served!as!a!poker!training!ground.! There!was!concern!that!online!site!providers!use!psychological! principles!of!persuasion!to!manipulate!users!and!migrate!people!from! the!playvforvfun!sites!to!online!gambling!sites.!

52 Some!social!casino!games!permirng!play!with!virtual!currency!have! been!shown!to! have!differendal!payout!rates! represent!inidal!exposure!for!future!players! Much!social!media!gambling!incorporates!videogame!technology! Playing!on!Internet!gambling!sites!without!money!is!a!common! pracdce!amongst!adolescents!and!young!adults! AtVRisk!and!PPGs!play!on!Internet!with!and!without!money!more! osen!than!nonvgamblers!and!social!gamblers!! What(do(we(currently(know??(

53 What(do(we(currently(know??( A!considerable!number!of!university!students!who!do!not!gamble!for!money!(either!on!or!off!the!Internet)!report!playing!on! pracdce!sites! Individuals!who!use!social!casino!games!as!a!way!of!developing!skills!and!experDse!are!at!risk!for!increased!gambling!(possibly! bad!news)! Problem!gamblers!who!use!social!casino!games!report!a!reducDon!in!gambling!urges!and!reduced!gambling!(good!news)!

54 Several reviews. Morgan!Stanley!report!on!social!gambling!(Nov.,!2012)!suggests!that!social! gambling!offers!the!potendal!to! teach'young'people'to'gamble! Australian!Government!Review!of!the!InteracDve!Gambling!act!(2012):!!!!! The!public!policy!argument!for!prohibiDng!access!to!such!!!!!!!gaming!simulaDons!is!that!it!potenDally!normalises!!!!!!!!!!!gambling! amongst!children!and!may!lead!them!to!become!!problem!gamblers!in! the!future.!!! that with many gambling simulations is how the odds are often geared to benefit the players, which may provide a false impression of the ease of winning.

55 U.(K.(Gambling(Commission((2015)( The!boundaries!between!social!gaming!and!commercial! gambling!have!become!increasingly!blurred!and!are!of! concern!for!young!people!as!a!result!of:!! the!growth!in!use!of!social!media!for!social!gaming!and! gambling!! an!increasing!convergence!between!the!products!of! tradidonal!gambling!and!social!gaming!businesses!! significant!investment!!by!companies!developing!new! products!or!ways!of!markedng!exisdng!products!!!

56 So(why(should(we(care?(! Corporate!social!responsibility! ProtecDng!youth!from!harm! PotenDal!legislaDve!regulaDon!of!social!casino!gaming! industry!

57 Industry Cooperation! The!use!of!social!gaming!and!social!casino!games!as!a!form!of!educaDon! To!promote!safer!gaming/gambling!habits!!! DisseminaDon!of!educaDonal!informaDon! Providing!personalized!normaDve!feedback!about!the!individual s! playing!behavior!!! Providing!warnings!related!to!excessive!play! Working!collaboraDvely!with!researchers!and!sharing!data!

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