Social media gambling amongst youth: Parental, operator or regulatory responsibility. McGill University

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1 Social media gambling amongst youth: Parental, operator or regulatory responsibility Jeffrey L. Derevensky, Ph.D. Professor, School/Applied Child Psychology Professor, Psychiatry International Centre for Youth Gambling Problems and High-Risk Behaviors McGill University Social Gaming & Gambling: Threat or Opportunity EASG, 2013

2 One of the most influential individuals in the technological revolution

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4 Social gaming is the next big thing in 2012 Mark Zuckerberg

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6 Internet Gambling Without Money: A few examples

7 Practice 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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10 Convergence of social media sites and gambling

11 Casino type games have become the most popular social gaming genre In 2010, 338 applications that allowed wagering using virtual credits were found on Facebook (Korn et al., 2010) Top 5 Facebook casino games attract almost 50 million active monthly users Zynga Poker alone attracts 34.8 million monthly players; 6.8 million daily players Of the top ten grossing iphone apps in the US, three are currently casino games - Slotomania, Zynga Poker, and Texas Hold em Poker Social media games are the new darling; their corporations are the most sought after by gambling companies

12 Social media simulated gambling games originally played for virtual money are now being played for real money

13 Convergence of Social Media & Gambling Poker/card games Casino games Sports wagering Reality shows Celebrity adoptions, arrests, etc. Any form of contest/political race

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18 Is this a problem? Some empirical evidence

19 Frequency of Play on Internet Gambling Sites Without Money in the Past 12 Months by Gambling Severity (McBride & Derevensky, 2006) Gambling Groups*** N = 2205 Internet Gambling Without Money 1 (n = 1082) Internet Gambling With Money 1 (n=183) Non Gambler n = Social Gambler n = At-Risk Gambler n = Probable Pathological Gambler n = Total *

20 Follow-up study (McBride & Derevensky, 2010) Montreal high-school students: N = 1113 Canadian and U.S. college and university students: N = 1273 On-line gaming newsletter link: N = 546

21 Use of Demo/Practice Sites Frequency % High School College/University Internet Sample 0 Male Female

22 Demo/Practice Site Frequency Frequency % High School College/University Internet Sample 0 Never Less than once a month Monthly Weekly Daily

23 Demo/Practice Activities Frequency % High School College/University Internet Sample Roulette Blackjack Dice Sports betting Slot machines Cards Maj Jong Keno

24 Another study (Meerkamper, 2010)

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30 Past-Year Gambling Participation (On and Off the Internet) by Gender and Problem Gambling Severity among college students (McBride & Derevensky, 2013) Gender*** N Offline gambling Practice sites Internet gambling Male (90) Female (90) Problem Gambling Severity Non gambler a (90)*** - Social gambler b (90)*** 11.8 (90)** Problem gambler c (90)*** 35.3 (90)** Total (90) 43.0 (90) 8.0 (90) 1 Percentage, participant numbers in parentheses. a DSM-IV score = 0, no gambling activity (on or off the Internet) in the past 12 months. b DSM-IV score (0-2). c DSM-IV score ( 3). ***p <.001 ** p <.01

31 College Student-Athletes Reporting Playing a Simulated Gambling Activity (Past Year) (Paskus & Derevensky, 2013) N=23, Study Males 28.1% Females 10.2%

32 Gupta, Derevensky & Wohl (2013) Qualitative study (N=51 college studies; ages 18-24) Preliminary evidence for a transition from social gambling sites to online gambling Gambling simulated sites are perceived to be an excellent venue and opportunity for learning how to gamble 30% use social gambling sites; 5.9% use online gamblers Facebook served as a poker training ground

33 Facts & Concerns

34 Gambling sites permitting playing without money have been shown to have differential payout rates represent training ground for future players Much social media gambling incorporates videogame technology Social gaming sites remain unregulated, have few age prohibitions, and provide indirect marketing to consumers Recent studies suggest young male adults are more likely to engage in both simulated gambling and actual Internet gambling

35 Playing on Internet gambling sites without money is a common practice amongst adolescents and young adults At-Risk and PPGs play on Internet with and without money more often than nongamblers and social gamblers Regulation would change the face of the industry Online gambling and social gambling business models are essentially identical (Morgan Stanley Report, 2012)

36 There is concern 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. (Australian Government Review of the Interactive Gambling Act, 2012). Gambling operators are continuing to expand into social gambling Ipsos MORI study in the U.K. found 15% of children (age 11-15) played simulated gambling sites during past week 51% of children playing these games gambled for real money compared to 18% who had not played

37 Morgan Stanley report on social gambling (Nov., 2012) suggests that social gambling offers the potential to teach young people to gamble Australian Government Review of the Interactive Gambling act (2012): The public policy argument for prohibiting access to such gaming simulations is that it potentially normalises gambling amongst children and may lead them to become problem gamblers in the future.

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39 DoubleDown has more than 6 million players Survey of casual players (N=10,000) 25% indicated casino games are unique amongst other games 19% reported wanting the look and feel of a real casino increases entertainment value Player prioritize load times, gaming quality, graphics and variety 31% preferred slot games; especially those found in casinos

40 Social Policy Implications Need to continue to monitor changes in gambling behaviors as new technologies develop Need to help protect vulnerable populations Need to help educate youth about the warning signs associated with problem gambling Need for more prevention/education initiatives Greater public and parental awareness Increased funding for research, prevention and treatment programs Greater need for collaboration between policy makers, regulators, the industry and researchers Regulation???