A report prepared for the New Zealand Ministry of Health

Transcription

1 schottler consulting insight from complexity Research to investigate the effects of gambling advertising, marketing and sponsorship on gambling perceptions and behaviour A report prepared for the New Zealand Ministry of Health A specialist partner for complex research, policy and strategy Schottler Consulting Pty Ltd Level 23, 127 Creek Street Brisbane 4000, Australia Mobile Enquiries - Sarah Hare (sarah@schottler.com.au) schottler consulting insight from complexity

2 Contents EXECUTIVE SUMMARY... 6 SECTION 1: LITERATURE ON THE MARKETING, ADVERTISING AND SPONSORSHIP OF GAMBLING PRODUCTS AND SERVICES SECTION 2: GLOBAL SCAN OF GUIDELINES AND CODES RELATING TO GAMBLING MARKETING AND ADVERTISING SECTION 3: QUALITATIVE RESEARCH EXPLORING IMPACTS OF GAMBLING MARKETING AND ADVERTISING SECTION 4: QUANTITATIVE RESEARCH EXPLORING IMPACTS OF GAMBLING MARKETING AND ADVERTISING APPENDICES PAGE 1 OF 181

3 Tables and figures TABLES Table 1. Frequency of viewing gambling advertising and the influence of gambling advertising on gambler spending weighted overall results (February-April 2011)... 9 Table 2. Major types of marketing and advertising of gambling within New Zealand Major approaches and channels Table 3. Mix of qualitative focus groups for the qualitative research stage (11 focus groups, N=74) Table 4. Types of advertising stimulus materials used to stimulate discussion during qualitative focus groups Table 5. Study participants in the quantitative study (N=400, February-April 2011) Table 6. Analysis of possible vulnerabilities of problem gamblers and theoretical linkages to gambling advertising Table 7. Noteworthy descriptions of practices under the Queensland Responsible Gambling Advertising and Promotions Guideline (March 2005) Queensland, Australia Table 8. Examples of unacceptable advertising practices for Hotels, Clubs and Casinos - Queensland Responsible Gambling Advertising and Promotions Guideline (March 2005) Queensland, Australia Table 9. Examples of unacceptable advertising practices for Lotto and TAB - Queensland Responsible Gambling Advertising and Promotions Guideline (March 2005) Queensland, Australia Table 10. Advertising requirements for gambling across Australian states and territories Table 11. How lotto advertising influences consumers examples identified from review of lotto advertising materials Table 12. How scratch ticket advertising influences consumers examples identified from review of scratch ticket advertising materials Table 13. How TAB advertising influences consumers examples identified from review of TAB advertising materials Table 14. How casino advertising influences consumers examples identified from review of casino advertising materials Table 15. Suggestions from focus group participants about how to create safer gambling environments Table 16. Awareness that EGM profits are distributed to charitable causes in NZ results by ethnicity (N=400, February-April 2011) Table 17. Awareness of where EGM profits are distributed in NZ results by ethnicity (N=400, February-April 2011) Table 18. Views about display of trust logos to indicate sponsorships results by ethnicity (N=400, February-April 2011) Table 19. Whether gamblers choose to play EGMs at venues owned by particular trusts results by ethnicity (N=194, February-April 2011) 131 Table 20. Playing EGMs as a justification for giving money back to the community results by risk for problem gambling (N=194, February-April 2011) Table 21. Influence of pokies signage on unplanned pokies play results by risk for problem gambling (N=194, February-April 2011) Table 22. Overall influence of pokies signage on spending results by risk for problem gambling (N=239, February-April 2011) Table 23. Views about the appropriateness of pokies advertising signage results by risk for problem gambling (N=194, February-April 2011) Table 24. Views about the appropriateness of pokies advertising signage results by ethnicity (N=194, February-April 2011) Table 25. Frequency of visits to online gambling sites for gamblers exposed to online gambling advertising - results by risk for problem gambling (N=316, February-April 2011) Table 26. Frequency of viewing lotto/instant Kiwi advertising - results by risk for problem gambling (N=386 lotto players and N=319 scratch ticket players, February-April 2011) Table 27. Frequency of viewing lotto advertising by media channel - results by risk for problem gambling (N=386 lotto players, February-April 2011) Table 28. Influence of lotto advertising on unplanned purchasing by media channel results by risk for problem gambling (N=386 lotto players, February-April 2011) PAGE 2 OF 181

4 Table 29. Advertising messages recalled which led lotto players to purchase unplanned lotto tickets results by risk for problem gambling (N=89, February-April 2011) Table 30. Reasons why lotto players purchase lotto tickets results by risk for problem gambling (N=386, February-April 2011) Table 31. Overall influence of lotto advertising on spending results by risk for problem gambling (N=386, February-April 2011) Table 32. Influence of lotto jackpots and prize configurations on likelihood of ticket purchasing results by risk for problem gambling (N=386, February-April 2011) Table 33. Influence of lotto slogans on likelihood of ticket purchasing by risk for problem gambling (N=386, February-April 2011) Table 34. Influence of scratch ticket slogans on likelihood of ticket purchasing by risk for problem gambling (N=319, February-April 2011) Table 35. Influence of ethnic celebrities in advertising on likelihood of ticket purchasing results by ethnicity (N=400, February-April 2011) Table 36. Overall influence of scratch ticket advertising on spending results by risk for problem gambling (N=319, February-April 2011) Table 37. Advertising messages recalled which led scratch ticket players to spend more than they wanted to spend on scratch tickets results by risk for problem gambling (N=72, February-April 2011) Table 38. Frequency of viewing TAB advertising - results by risk for problem gambling (N=157, February-April 2011) Table 39. Frequency of viewing TAB advertising by media channel - results by risk for problem gambling (N=157, February-April 2011) Table 40. Influence of TAB advertising on unplanned betting by media channel results by risk for problem gambling (N=157, February-April 2011) Table 41. Advertising messages recalled which led TAB punters to place unplanned bets results by risk for problem gambling (N=44, February-April 2011) Table 42. Influence of TAB slogans on likelihood of betting - results by risk for problem gambling (N=157, February-April 2011) Table 43. Overall influence of TAB advertising on spending results by risk for problem gambling (N=157, February-April 2011) Table 44. Gambler perceptions of casinos results by ethnicity (N=400, February-April 2011) Table 45. Frequency of viewing casino advertising results by risk for problem gambling (N=217, February-April 2011) Table 46. Frequency of viewing casino advertising by media channel results by risk for problem gambling (N=217, February-April 2011) Table 47. Influence of casino advertising on overall spending on casino gambling in past year results by risk for problem gambling (N=217, February-April 2011) Table 48. Advertising messages recalled which led casino gamblers to unplanned casino gambling results by risk for problem gambling (N=68, February-April 2011) Table 49. Gambler awareness of host responsibility programs by risk for problem gambling (N=400, February-April 2011) Table 50. How well host responsibility programs are promoted by risk for problem gambling (N=400, February-April 2011) Table 51. Gambling advertising which should not be permitted in New Zealand results by risk for problem gambling (N=60, February-April 2011) Table 52. Awareness that complaints about gambling advertising can be made results by ethnicity (N=400, February-April 2011) Table 53. Most harmful type of gambling advertising results by ethnicity (N=400, February-April 2011) Table 54. Why advertising of specific gambling activities was seen as harmful results by activity (N=91, February-April 2011) Table 55. Gambling advertising seen as culturally offensive or inappropriate results by ethnicity (N=231, February-April 2011) Table 56. Gambling advertising seen as generally inappropriate results by risk for problem gambling (N=95, February-April 2011) Table 57. Frequency of seeing advertising results by gambling activity participation (February-April 2011) Table 58. Variables adding to the prediction of advertising awareness (results of stepwise multiple regression analysis showing partial correlations) Table 59. Variables adding to the prediction of advertising influence (results of stepwise multiple regression analysis showing partial correlations) Table 60. Awareness of gambling advertising comparative results results by risk for problem gambling (February-April 2011) PAGE 3 OF 181

5 Table 61. Overall influence of gambling advertising on spending comparative results results by risk for problem gambling (February-April 2011) FIGURES Figure 1. Comparison of the likelihood to buy a lotto ticket non-problem versus moderate risk/problem gamblers (N=386, February-April 2011) Figure 2. Awareness of gambling advertising and promotions within New Zealand (N=1973, Gaming and Betting Activities Survey 2007 Health Sponsorship Council) Figure 3. Percent of gamblers engaging in informal social marketing of gambling opportunities with family or friends - overall results (February-April 2011) Figure 4. Percent of gamblers who had viewed advertising on the internet about gambling - overall results (N=400, February-April 2011) PAGE 4 OF 181

6 The marketing, advertising and sponsorship of gambling products and services within New Zealand Prepared by Schottler Consulting Pty Ltd for the New Zealand Ministry of Health ABSTRACT The current study explores the effects of marketing, advertising and sponsorship of major gambling activities within New Zealand. This exploratory study involved conduct of focus groups and a survey of gamblers to identify how marketing and advertising approaches may impact gambler perceptions of gambling and motivations to gamble. As part of focus groups, a diverse range of gambling marketing and advertising materials from within New Zealand were reviewed. In addition, a literature review and scan of international marketing and advertising codes was undertaken. Based on major insights from the research, the key characteristics of harmful marketing and advertising were identified. Effects were similarly explored from both a general community perspective and from the perspective of people of Maori, Pacific and Asian backgrounds. Key words Marketing, advertising, sponsorship, gambling, New Zealand, problem gambling, culture Published March, 2012 Acknowledgements: Sincere thanks is extended to staff of the New Zealand Problem Gambling Foundation, Te Herenga Waka o Te Ora Whanau and the Ministry of Health New Zealand for their valued support and input during this research. PAGE 5 OF 181

7 Executive summary Report purpose The current report presents key findings of exploratory research examining the marketing, advertising and sponsorship of gambling products and services within New Zealand. The Ministry of Health recognises the marketing, advertising and sponsorship of gambling as key issues with potential to affect public health within New Zealand. However, while some past research has examined the effects of advertising of other potentially harmful products on consumers, very little research has explored the effects of gambling marketing and advertising on the attitudes and behaviours of gamblers. There is a particular need to better understand and explore how advertising may affect at-risk gamblers and whether advertising approaches within New Zealand could be further enhanced for improved consumer protection. As an exploratory study, the research was broad in focus and aimed to inform a diverse range of research questions. Given the limited available prior research, the study does not attempt to present a definitive or fully conclusive position on all effects of gambling advertising. Indeed, in this very early stage of research, it is important to recognise that many effects are difficult to define and quantify, and in some cases, will still remain unanswered. However, the study has been instrumental in identifying a range of important insights into the possible effects of gambling marketing and advertising and has provided a strong foundation for further research into the topic. For this reason, key findings should be considered indicative, rather than definitive. Methodology The current study was primarily a qualitative study. The methodology, however, included: A literature review on the marketing, advertising and sponsorship of gambling products and services A global scan of guidelines and codes relating to gambling and general marketing and advertising (including a scan of codes in Asian and Pacific nations) Conduct of 11 focus groups with gamblers to explore the effects of gambling marketing and advertising (including review of New Zealand gambling advertising materials in groups to stimulate discussion) Conduct of a quantitative survey of 400 gamblers using an online research panel to further explore the effects of gambling marketing and advertising in a convenience sample of non-problem and at-risk gamblers (This also included sampling of New Zealand Europeans, Maori, Pacific and Asian gamblers) Issues examined in the study In recognition of the limited research conducted on the topic of marketing, advertising and sponsorship of gambling products and services, the Ministry of Health developed a range of very broad research questions, whilst recognising that not all questions could be answered in a single study. The current research aimed to inform as many of the research questions as possible, within the constraints of the research methodologies. Specific areas of enquiry which formed a focus for the current study included the following key research topics: > The relationship between awareness of gambling marketing and advertising and gambling behaviour > The impacts of gambling marketing and advertising on public views and attitudes about gambling > The types of gambling marketing and advertising with potential to cause consumer harm > The special impacts of large scale lotto jackpots including Must Be Won (and similar) promotions > Public views on the acceptability and impacts of gambling advertising which targets specific cultures > The types of marketing and advertising activities which may create safer gambling environments > International guidelines and codes highlighting good practice in the advertising and marketing of gambling For the purpose of the study, marketing, advertising and sponsorship of gambling was defined to include any promotional activities that may be utilised to sell or raise awareness of gambling products and services. PAGE 6 OF 181

8 The New Zealand context Specific aspects of gambling marketing and advertising which were relevant to the New Zealand context and were of research interest in the study included: Poker machine signage while promotion of jackpots and pokies is not permitted within New Zealand, pokies signage (e.g., pokies lounge ) is permitted outside gaming machine venues (pubs and clubs are referred to as non-casino gaming machine venues). Pokies signage was considered a type of advertising for the purpose of the current study Lottery products lotto and scratch ticket (Instant Kiwi) advertising are two major types of gambling for which advertising is permitted within New Zealand. A special type of promotion called a Must Be Won lotto promotion was also a point of research interest. These are major jackpot draws (typically over $10 million) for which there is a guaranteed jackpot winner. Lotto and scratch tickets are widely available in New Zealand including through convenience stores (e.g., called dairies in New Zealand), supermarkets, newspaper stores and lotto outlets (Refer the survey in Appendix B for the major distribution channels) TAB horse race and sports betting advertising are permitted within New Zealand and were considered as part of the study. TAB is promoted through TAB outlets and a diverse range of channels including the TAB internet site, radio, TV, pubs and similar (Refer the survey in Appendix B for the major distribution channels). Sports commentators also talk about sports odds before and during sports events (including discussion of live odds). Accordingly, these aspects were considered types of marketing and advertising Casino In New Zealand, there are six casinos with the major casino located in Auckland. Marketing and advertising relating to casino-based gambling (especially pokies and table games) were points of focus of the study, along with general entertainment-related casino promotions (e.g., general casino TV advertising) Gaming trust logos and branding In New Zealand, gaming machine profits are earned and distributed by gaming machine societies or trusts (as they are termed). If a charitable cause or sports team receives funding, it is often a requirement of trusts that funding recipients display logos/branding to indicate that funding was received by the trust. This was considered a subtle type of gambling marketing or advertising in New Zealand, as its appropriateness has generated considerable debate. Trust funding of sports teams could also be considered a subtle type of sponsorship strategy. Trust sponsorship is the term used in the report to describe the way trusts award and distribute grants to community causes (i.e., trust logos show an implicit association between a sporting team and a certain trust). As such, it should not be viewed in the same way as a traditional sponsorship arrangement Findings of the New Zealand Health Survey 2006/07 highlight that the most popular gambling activities in New Zealand (in the previous 12 months - for people aged 15yrs and over) are lotto (55% participation), scratch tickets (27%), non-casino gaming machines (pokies in pubs/clubs) (10%), track betting (9%), casino gaming machines (8%) and sports betting (5%). Within New Zealand, people of Maori, Pacific and Asian backgrounds are the three main ethnicities and cultural groups (For the purpose of reporting, non-ethnic people are referred to as New Zealand Europeans ). As the Indigenous people of New Zealand, the Treaty of Waitangi (signed in 1840) provides special protections for Maori. However, findings of the New Zealand Health Survey suggest that problem gambling disproportionately affects both Maori and people of Pacific backgrounds (with prevalence rates of 1.7% for each ethnicity). In comparison, problem gambling prevalence rates for New Zealand Europeans and Asian people were respectively 0.2% and 0.1%. Given the importance of Maori within New Zealand and the diversity of cultures within the country, one aspect of the study involved examining gambling marketing and advertising from a Maori, Pacific and Asian perspective. It should be recognised, however, that this is only a general study at this stage, given that very little is known about the effects of gambling marketing and advertising. However, where possible, some cultural aspects have been noted and gambling advertising codes relating to different cultures were also reviewed. As with all exploratory research, findings should once again be considered indicative, rather than definitive. PAGE 7 OF 181

9 MAJOR STUDY FINDINGS What effect does advertising, marketing and sponsorship of gambling have on public views about the desirability of gambling? Findings of research highlight that advertising and marketing play a significant role in increasing the attractiveness of gambling opportunities to consumers. Without advertising, it would also be likely that many gambling products and activities would not be successful, as it plays a major role in driving the consumer urge to gamble. At a general level, gambling advertising and marketing serves to: Make gamblers aware of new gambling promotions or opportunities Encourage gamblers to try new gambling products and services Remind gamblers about their positive past experiences in gambling Encourage gamblers to reflect on how their life may change as a result of a win in gambling (particularly in lotto) Increase the perception that certain types of gambling are fun, exciting or glamorous (e.g., casinos, race days at the track) and; In cases where gamblers have previously won in gambling, marketing and advertising reminds people of past winning experiences The only type of advertising which was not reported to increase the attractiveness of gambling was pokies venue signage (i.e., directional signage such as Pokies Lounge ). While not a traditional type of advertising, pokies signage was reported to remind existing players about the availability of pokies and to stimulate existing player interest in entering venues to experience new machines. Problem and at-risk gamblers also reported some level of unplanned play due to pokies signage. However, analysis of survey findings indicates that this behaviour is probably infrequent and not the major cause of gambling problems (although it does affect some gamblers to some degree). In relation to sponsorship of gambling by poker machine trusts, findings indicated that: Gamblers have a limited understanding of the nature of trusts, how trusts operate and how trusts distribute revenue within New Zealand Trust sponsorship plays a limited role in a gambler s choice of gaming machine venue (e.g., only 8% of gamblers indicated that they at least sometimes chose to play at a specific venue owned by a particular trust) As gambler knowledge about trusts is rudimentary at best, there is limited evidence to suggest that trust sponsorship of charitable causes (e.g., sports) increases the attractiveness or appeal of gambling What effect does advertising, marketing and sponsorship have on gambling spending? Results of a survey of gamblers highlight that the most frequently viewed types of gambling advertising within New Zealand are lotto advertising, casino advertising followed by Instant Kiwi advertising. In comparison, TAB advertising is the least frequently viewed type of gambling advertising. While the influence of advertising on participation was not directly measured in the study, the influence of advertising on gamblers spending more than they wanted to on gambling activities was examined. This was seen as a more useful measure of the true influence of gambling advertising (as all advertising clearly influences participation). For New Zealand gamblers overall, results showed that most forms of gambling advertising had only a relatively conservative influence on gamblers spending more than they wanted to on gambling. While all effects were relatively small, casino advertising was reported to have the largest effect, followed by lotto advertising and pokies advertising (pokies signage). In comparison, scratch ticket and TAB advertising had the lowest overall level of influence. Overall results are summarised in Table 1. PAGE 8 OF 181

10 Table 1. Frequency of viewing gambling advertising and the influence of gambling advertising on gambler spending weighted overall results (February-April 2011) Influence of advertising on Frequency of the gambler spending Gambling activity Base viewing advertising more than they wanted to Base (1=not at all, spend on gambling 5=very frequently) (1=not at all, 4=significant influence) Lotto advertising Lotto players 3.2 Lotto players 1.4 Casino advertising Instant Kiwi advertising Pokies advertising signage (N=386) Casino gamblers (N=217) Scratch ticket players (N=319) Club/pub pokies players (N=194) (N=386) Casino gamblers (N=217) Scratch ticket players (N=319) Pub/club/casino pokies players (N=239) TAB punters TAB, racing or sports TAB punters betting advertising (N=157) (N=157) Question: How often have you seen the following types of advertising in the past 12 months? (1=not at all, 5=very frequently). If any, how much influence do you feel that this gambling advertising had on you spending more than you wanted to spend in the past 12 mths? Is there a relationship between gambler awareness of advertising and problem gambling? Findings of research highlight that participating in a gambling activity may prime gamblers to be more aware of gambling advertising. Supporting this, results of the survey of gamblers showed that respondents participating in a gambling activity reported seeing gambling advertising significantly more frequently than those who did not participate in the activity. Qualitative research also supported this trend e.g., You have to be interested in gambling to see the ads. If you don t do TAB, you don t tend to notice the ads. In addition, a relationship between awareness and risk for problem gambling was identified. While the direction of effects cannot of course be determined by the current research, based on players participating in the gambling activity, findings showed that: moderate risk and problem gamblers reported seeing more pokies venue signage than low risk gamblers (p<.05) moderate risk and problem gamblers reported seeing more TAB advertising than non-problem gamblers (p<.05) moderate risk and problem gamblers reported seeing more casino advertising than non-problem gamblers (p<.05) Interestingly, however, differences between non-problem and moderate risk/problem gamblers were not statistically significant for lotto advertising (including for both general draws and jackpots) and for scratch ticket advertising. While this may in part be due to sampling characteristics, it may also be because lotto and scratch ticket advertising are quite pervasive across New Zealand and are also not typically linked to gambling problems. PAGE 9 OF 181

11 Findings also showed an association between risk for problem gambling and the reported influence of gambling advertising on gamblers spending more than they wanted to on gambling. Specifically, based on a scale where 1=no influence and 4=a significant influence, findings showed that the influence of: pokies signage was greater for moderate risk/problem gamblers than non-problem gamblers (p<.05) (mean=1.7 versus 1.1) lotto advertising was greater for moderate risk/problem gamblers than non-problem gamblers (p<.05) (mean=2.1 versus 1.6) scratch ticket advertising was greater for moderate risk/problem gamblers than non-problem gamblers (p<.05) (mean=1.8 versus 1.3) TAB advertising was greater for moderate risk/problem gamblers than non-problem gamblers (p<.05) (mean=1.6 versus 1.1) casino advertising was greater for moderate risk/problem gamblers than non-problem gamblers (p<.05) (mean=1.8 versus 1.1) What are the effects of marketing of large lottery jackpots? Findings of qualitative and quantitative research highlight that gamblers focus primarily on the size of cash prize when evaluating the attractiveness of a lotto draw. The larger the cash prize, the higher the consumer attraction to purchase lotto tickets (Figure 1). Moderate risk and problem gamblers were also significantly more likely to purchase a ticket for all tested prize configurations, compared to non-problem gamblers (p<.05). Figure 1. Comparison of the likelihood to buy a lotto ticket non-problem versus moderate risk/problem gamblers (N=386, February-April 2011) Likelihood of buying a lotto ticket (1=not at all, 5=very like H H 4.1B J H 3.9 J B B J 3.2 H B J H 2.2 J 2 B $1 million $5 million $10 million $20 million $36 million B All NZ Gamblers J Non-problem gamblers H Moderate risk/problem gamblers The quantitative study of gamblers also showed that: there was a slightly larger gap between moderate risk/problem gamblers and non-problem gamblers at the three higher jackpot sizes (mean gap of 0.5 at $10m, $20m and $36m), compared to the lower jackpot sizes (mean gap of 0.4 at $1m and $5m) while further research would be needed to explore effects, this may suggest that the attractiveness of big jackpots is disproportionately larger for higher risk segments when gamblers were asked about their likelihood of purchasing lotto tickets based on different advertising slogans, moderate risk/problem gamblers were significantly more motivated to purchase tickets upon hearing all slogans, compared to non-problem gamblers (p<.05) Must be Won was by far the most powerful of all tested slogans in influencing gamblers to purchase a lotto ticket (mean=3.8 versus means of 2.3 to 2.8 for other tested slogans) the gap between non-problem and moderate risk/problem gamblers for the Must be Won slogan was the smallest of all slogans, possibly indicating that the slogan has a relatively more consistent effect for all risk segments (mean=0.3) PAGE 10 OF 181

12 the slogan Trump up your life and a Winner s Story promotion outlining how a lotto win fixed financial worries produced the largest gaps between non-problem and moderate risk/problem gamblers (each a mean=0.6) this may highlight that such messages are more powerful in encouraging at-risk gamblers to purchase lotto tickets (respective means=2.3 and 2.8) relative to non-problem gamblers, moderate risk and problem gamblers were more likely to report unplanned purchases of lotto tickets due to advertising across most advertising channels including via TV, dairies, pharmacies, paper stores, shopping centres, train stations, internet, newspapers/magazines, bus shelters and supermarkets (each p<.05) - the largest gaps between risk segments, however, related to dairies, shopping centres and supermarkets (a mean gap of 0.7), possibly highlighting that such channels may present increased risk for higher risk segments. Qualitative research similarly highlighted a view that placing lotto in supermarkets was particularly risky as some at-risk gamblers would be tempted to purchase a ticket prior to food e.g., I don't like the idea of lotto at supermarkets. People will buy tickets before they buy food. They should only put them on the way out, so people can buy their food first relative to non-problem gamblers, moderate risk and problem gamblers were more likely to report buying a lotto ticket to feel better about life and because they wanted to make a large purchase (p<.05) this may suggest that advertising which focuses on such topics may resonate more with higher risk segments While quantitative results suggested that many gamblers would be likely to purchase a lotto ticket for Must be Won promotions, findings also indicated that at-risk gamblers would be particularly at-risk of spending more than they could afford on lotto purchases. This is also reflected in some at-risk gambler comments in the qualitative research e.g., Advertising definitely makes me spend more money. When the Powerball or Big Wednesday is up to $30 million or whatever, I'm definitely buying more tickets. You go to places like Manukau which has won in the past and people line up. You spend more than you can afford, as it's the big one. A review of literature on lotteries also highlights that: Kearney (2005) found that lottery spending is primarily financed by a reduction in non-gambling expenditure (i.e., general household budgets) Guryan and Kearney (2008) found that following a win in a lotto store, winning stores can experience a 12-38% relative sales increase and that this effect can remain stable for up to 40 weeks, with total sales increasing proportionately to the jackpot size. In addition, effects were found to be larger in areas with more economically disadvantaged communities How do marketing and promotional strategies influence gambling behaviour and create possible harm? As part of the research, qualitative focus groups with gamblers were used to review and discuss a comprehensive range of gambling advertising stimulus materials from across New Zealand. The purpose of discussions was to identify how advertising materials may influence gambler perceptions and behaviours and create possible harm. Based on findings of the qualitative research, a conceptual model was developed to summarise possible risks of gambling advertising. The model outlines the major types of gambling marketing and advertising which were seen by gamblers to present some level of risk or potential for harm based on a review of actual NZ gambling advertising materials. PAGE 11 OF 181

13 While further research is clearly needed to fully understand and possibly also quantify some effects, major themes across all materials in summary were that gambling marketing and advertising has potential to create risk or lead to harm when: 1. There is low informed consent about what is being purchased Findings showed that many NZ gambling advertising offers were misinterpreted by gamblers, as prize values shown in gambling advertising were not always those on offer. This typically occurred in cases where advertising: Presented prize pools rather than the distribution of specific prizes available Did not fully articulate the assumptions of prizes (e.g., did not show how prize values were derived and on what assumptions they were based) Presented prizes inaccurately (e.g., holidays when only cash was available to buy a holiday) Did not clearly outline conditions associated with winning prizes (e.g., including more detailed pricing or entry conditions) Presented the best possible prize outcome, rather than typical or ranges of possible outcomes Used words such as guaranteed in spite of the possibility that actual prize values may not be won or would only be won under certain conditions Presented prizes still available without information on prizes available 2. Advertising content reinforces problem gambling risk factors - Advertising materials which reinforce superstitions about gambling were found to have potential to lead to harm. It is also likely that harm for problem and at-risk gamblers is greater, due to the tendency of such groups to hold these misperceptions. Advertising which reinforced superstitions included concepts such as lucky lotto stores, lucky poker machines, referencing luck generally, referencing lotto wins during holidays and suggestive luck-oriented phrases (e.g., 'On a roll') 3. Content reinforces that gambling is non-random or is influenced by expertise - Advertising using words, phrases or terms such as expertise, expert, smart and successful were found to reinforce the misperception that gambling is expertise-based (and non-random) or that gambling outcomes can be influenced or controlled (and should thus not be used unless skill applies) 4. Odds information is presented in a way which is not understood by gamblers - Advertising which presented odds in certain ways confused some gamblers. For instance, some gamblers were reported to buy three tickets if a draw says 1 in 3 tickets will win, as they believed that this implies a guaranteed or highly likely win 5. Advertising which pressures gamblers or encourages on the spot decisions - Advertising approaches prompting gambling decisions 'on the spot' were considered higher-risk forms of advertising due to the pressure they place on gamblers. Such approaches were seen as having potential to lead to poorly considered decisions to gamble and for this reason, were likely to pose some level of risk to all gamblers (and particularly problem and at-risk gamblers). This included use of advertising words such as hurry, quick, beat the odds, Don t miss your chance, Be a good mate and even pressure from sports commentators during live sporting events (e.g., talking up live odds) 6. Advertising which encourages bravado or creates a perception of ego/status - Advertising which encouraged bravado and perceptions of status from gambling or encouraged gamblers to question their self-worth (e.g., Do you stack up? Fortune favours the bold) was seen as a potentially harmful form of gambling advertising. This is because such statements challenge gambler emotions or encourage risk taking and may thus not lead to more rational or informed decisions about gambling 7. Advertising offers which encourage repeat visits in a short time frame - Advertising offers with very short time frames to claim free offers or discounts were seen as potentially harmful to all gamblers and particularly to problem and at-risk gamblers. These included casino advertising offers such as free points, free car parks and food and beverage offers with short time frames to claim offers PAGE 12 OF 181

14 8. Advertising offers which require gamblers to stay in a venue for long periods - Advertising offers such as free prize draws which required consumers to remain in a venue for some time were seen as having potential to harm gamblers (and particularly problem and at-risk gamblers) if the period between entry and the prize draw is lengthy. While a maximum length to avoid harm cannot be determined from qualitative research, this highlights that the structure of draws should be considered in the future from a gambling risk perspective 9. Advertising claims about gambling are presented which cannot be verified - Some advertising offers were identified with extreme claims which were difficult for consumers to prove and were possibly also incorrect. Using such approaches was seen as presenting risk to all gamblers, as claims were unable to be evaluated and advertising did not contain information to allow consumers to independently assess claims 10. Advertising makes gambling look cheap and affordable - Any gambling advertising promoting 'low-priced' offers were frequently seen as cheap and affordable gambling opportunities by people of low-income backgrounds. Such offers tended to convey that little money was needed to generate large amounts of money or winnings. As problem gamblers are by definition 'spending more than they can afford', they are effectively vulnerable to this type of advertising. Use of words such 'only (e.g., only $2 to win $10,000) also reinforced the perception that the betting or gambling offer is cheap and affordable. Advertising offers providing 'free money' (e.g., free $20 to gamble with) also appealed to lower-income gamblers and may potentially pose risk in a similar way 11. Advertising uses words which suggest that gambling may be an investment - Advertising words which equate gambling to investments were reported to give gamblers the misperception that money can be made from gambling. Examples included words such as invest, returning and share 12. Advertising contains stories which financially vulnerable people relate to - Any winners stories (or similar advertising) which detail how people went from hardship to prosperity from winning in gambling (e.g., lotto) were reported to appeal to more vulnerable people (particularly people of lower-income backgrounds or those experiencing financial difficulties). Such groups identified with the people described in the stories and this increased the effect of the advertising (and the appeal of gambling). This implies that stories depicting hardships should be avoided in advertising to protect more vulnerable consumers (e.g., including avoidance of words such as redundancy, mortgages, financial difficulties or other hardships which more vulnerable people may relate to) 13. Advertising uses other forms of gambling as part of promotions - gambling advertising depicting gambling activities was reported to particularly appeal to at-risk gamblers due to their fixation on gambling. This included use of themes such as card games and casino games in advertising of other types of gambling products. As problem gamblers play many gambling activities, advertising using gambling themes was also reported to pose particular risk to this segment 14. Advertising phrases are not consistent with responsible gambling - Advertising phrases suggesting continuous or irresponsible gambling were seen by gamblers to encourage such behaviour (e.g., Bet anytime or anywhere ). This implies the need to ensure that future advertising slogans and straplines do not contradict the principles of responsible gambling 15. Offers present very low value inducements as an incentive to gamble - Very low value inducements to gamble (e.g., $2 free chip) were seen to pose more risk to gamblers than the value of the inducement. This implied that gambling advertising offers should be evaluated in terms of their potential risk to gamblers, balanced alongside the value of the inducement from a consumer perspective PAGE 13 OF 181

15 How do marketing and promotional strategies influence gambling behaviour for different types of gambling products? Qualitative discussions with gamblers in focus groups highlighted a range of advertising effects for different gambling product lines. While effects are fully detailed in qualitative reporting, major effects in summary are as follows: Pokies advertising Some at-risk gamblers viewed signage advertising pokies as leading to unplanned gambling. Pokies signage facing oncoming pedestrians was seen as increasing the potential for unplanned gambling in at-risk gamblers (although pokies signage was not seen as the cause of problem gambling) Lotteries advertising In addition to the effects of Must be Won promotions as previously described, several other interesting effects of lotto advertising were identified. These included: Promoting prizes alongside cash led some gamblers to believe that there were increased odds of winning (which may not always be the case) (leading to larger spending) Promoting stores selling winning tickets led some gamblers to incorrectly believe in the concept of lucky stores and this reinforced the misperception that winning is not random Advertising large prize values led some gamblers to believe that exact prizes promoted can be won. There was often misunderstanding that amounts were just prize pools Some lotto products were found to not clearly identify ticket costs and misled gamblers about what needed to be purchased to obtain certain offers Promotion of low priced lotto games offering high-returns were seen as harmful for gamblers with financial difficulties (as they were inferred to be cheap or affordable products) Game designs offering gamblers a chance to win with a number either side of a target number (e.g., Bullseye) were seen to offer a better chance of winning in this respect, the game design appeared to undermine gambler understanding of how odds work Winners Stories promoting scenarios where gamblers went from hardship to prosperity appealed more to people in similar financial difficulties (and reinforced ticket purchasing) References to winning lotto during holidays had a similar effect to the lucky store effect i.e., people would buy tickets on holiday thinking that it would increase their chance of winning Scratch ticket advertising a range of advertising effects were reported in scratch ticket advertising with some potential to harm gamblers including the following: Some gamblers misunderstood advertising stating that 1 in 3 tickets win and would buy three tickets on the basis that a win would be guaranteed or highly likely Consumers reported a need for more information on still available Instant Kiwi prizes in the context of purchasing to allow more informed decisions about whether tickets should be purchased (i.e., remaining prizes should be identified if the promotion says - prizes still to be won ) In addition, the word still led some gamblers to infer that this meant that major prizes had not been won Advertising of some scratch ticket products led gamblers to misunderstand the nature of prizes available (e.g., a scratch ticket promoting a holiday as a prize was reported to be only cash to buy a holiday; live a little for 20 years led consumers to believe that the prize would be supplied annually for 20 years) Gamblers became confused about the price of some scratch ticket promotions and highlighted the need for clearer information on ticket pricing in advertising (e.g., fun packs) Advertising words such as Hurry and Quick were reported to place pressure on gamblers to purchase tickets without thinking and this was seen as potentially harmful Using gambling games to promote scratch tickets was seen as a risky practice, with potential to entice heavy gamblers to buy tickets (e.g., poker card game depicted in advertising) Use of the word free in advertising was reported to focus gamblers and led some gamblers to overlook ticket pricing (and other important information) Advertising promoting prize pools rather than exact prizes to be won confused gamblers and most believed that prize values presented were specific prizes (i.e., gamblers missed that amounts were only prize pools) PAGE 14 OF 181

16 Encouraging risk taking in advertising was seen as inappropriate - Such as encouraging gamblers to believe that being bold brings good fortune (e.g., Fortune favours the Bold) TAB advertising A range of advertising effects were noted in TAB advertising with potential to present risk or harm to gamblers including the following effects: Sports commentators were reported to implicitly advertise odds during sports commentaries and many gamblers saw this as high-pressure advertising (also creating perceptions that expert recommendations are being made) (especially on TV and radio) Talking up live odds was seen to increase the risk of unplanned gambling/impulse betting (and some gamblers were confused about whether this was an advertisement or independent expert recommendation) Advertising promoting low entry price betting with the potential to win big was seen as harmful for low income gamblers including at-risk gamblers Use of words likening punting to investments (e.g., for a $8 investment ) or Returning (e.g., A $10 multi returning $8,000) were seen as inappropriate, as they implied that money can be made from gambling Use of words such as smart, successful in advertising was seen as inappropriate, as it gave gamblers the impression that skill is used to increase the success of gambling Advertising free $20 incentives to set-up TAB accounts was seen as a risky practice for low-income gamblers and potentially harmful Free TAB account top-ups were seen as less harmful, as they were directed to people already with a TAB account (i.e., people who had made an informed decision to gamble) Advertising focusing on entertainment or the experience of punting was seen as far less harmful than advertising focusing on punting as a way to make money Advertising words - How to bet like an expert - were seen to convey that skill is used to make money from betting (contributing to myths about gambling) Social marketing approaches in advertising such as Be a good mate were seen as inappropriate, as they were seen to pressure gamblers Advertising the strapline Beat the odds was seen to encourage gamblers to believe that odds can be beaten with skill Advertising promoting guaranteed prize values frequently confused gamblers and led to the impression that prize values would definitely be won (in reality, this may not be the case unless a single punter correctly Picked 6) Many TAB advertisements were seen as needing further information about the assumptions of prizes promoted (e.g., Guaranteed Pick 6 - based on a single punter Picking 6 or Free bets explaining how free bets are attained and conditions; Harness Jewels - $5 share should explain the share in more detail) Advertising which promoted the highest possible return rather than typical or possible ranges of returns led punters to believe that prizes would be won Mobile betting advertising the potential to bet Anyway, Anytime was seen to encourage continuous betting and was not seen to be in the spirit of responsible gambling PAGE 15 OF 181

17 Casino advertising A range of advertising effects were noted in casino advertising with potential to present risk or harm to gamblers including the following effects: Advertising promoting low cost gambling offers was seen as potentially harmful for low income gamblers including at-risk gamblers (e.g., pokies Cent City promotions give the promotion that cheap or affordable pokies are available) Advertising of some casino prize draws was seen as misleading, as large prize values would be advertised without mentioning that the prize value was a prize pool (e.g., win $30,000 means to a consumer that $30,000 is the prize, however, in reality this could be a total prize pool; Win $80,000 daily may imply a prize pool, but gamblers assume that a single prize of $80,000 is available daily) Advertising of bravado and status were seen as inappropriate and potentially harmful in gambling advertising Advertising which plays on gambler egos was seen as inappropriate and as having potential to create harm (e.g., Do you stack up? ) Promotions for free prize draws which required gamblers to stay in casinos for hours were viewed as having potential to harm both recreational and at-risk gamblers - gamblers also advocated the need for casinos to better inform gamblers about conditions of draws Advertising via Facebook and the web was seen as needing further controls to prevent risk Advertising Guaranteed prizes was reported to have similar effects to Must be Won prizes in lotto in that they attracted stronger gambler interest Gamblers raised concern over the possible harms of Happy Hour promotions in the context of gambling advertising (due to the risk of alcohol) Advertising which promoted Don t miss your chance was seen as inappropriate, as it was seen as pressuring gamblers to gamble Free offers which must be redeemed within 24hrs or very short periods were seen as creating harm, as gamblers would visit the casino the next day to claim the offer Free gambling chip giveaways were seen as potentially harmful to low income and at-risk gamblers, as were offers requiring consumers to match expenditure Very low value inducements (e.g., $2 free chip) to gamble were seen as creating harm, as the value of the offer was too low to balance the risk to consumers Advertising words such as On a roll were seen to create the impression in at-risk gamblers that winning would be likely Pitching poker tournaments like a sport was seen to increase consumer appeal (e.g., poker champs promotions) there was also seen to be a need for clearer information on total expenditure required to play in poker tournaments Promoting lucky poker machines was seen to contribute to gambling superstitions Using superlatives in poker machine advertising without reference to return to player information was seen as misleading (e.g., ours are bigger, better and go off more often ) Prizes such as cars at casinos were seen as easier to win than jackpots and created high interest from gamblers Casino advertising promoting entertainment and fun was seen as more appropriate and lower risk than advertising which focuses on making money from gambling PAGE 16 OF 181

18 What cultural issues and effects have implications for gambling advertising? As part of the research, discussions were held with people of Maori, Pacific and Asian backgrounds about the use of cultural elements in gambling advertising. This included both focus group discussions and a survey of approximately 100 people of each ethnicity. Key findings of the research included: Maori, Pacific and Asian gamblers were not able to identify any current approaches to gambling advertising within New Zealand which they felt were culturally inappropriate or offensive this was seen to be largely due to current industry self-regulation Gambling advertising which was seen as posing risk to Maori and Pacific people was seen to include any advertising approaches which: Portray Maori or Pacific celebrities in advertising Stereotype any particular ethnicities in advertising Reinforce common misperceptions that people of lower educational backgrounds may hold about gambling (e.g., advertising playing on notions of luck and superstition as an example) Tell stories of lower income people winning in gambling (e.g., Winners Stories which implicitly suggest that gambling can address hardship or improve lifestyles) Maori and Pacific gamblers reported vulnerability of Maori and Pacific communities to low-priced gambling offers, as these were seen to promote perceptions that gambling is cheap and affordable or a way to make money The high availability of poker machines in Maori and Pacific communities was seen as a type of advertising which presents clear risk to people living in those communities People of Asian backgrounds were not strongly opposed to gambling advertising in the context of Chinese New Year, as most promotions were seen to relate to broader entertainment Quantitative survey results showed that using ethnic celebrities in gambling advertising (with lotto used as a pretend gambling activity) makes the message appeal more to specific ethnicities used and a significant effect was identified for people of Maori, Pacific and Asian backgrounds (p<.05) A multivariate analysis of the predictive power of different variables on the overall influence of gambling advertising (in leading people to spend more than they wanted to spend on gambling) showed a number of trends. While associations naturally do not imply causality, interesting exploratory trends included: For lotto - risk for problem gambling was the best predictor of the influence of lotto advertising. In addition, struggling with financial issues added to the prediction of lotto advertising influence. Being Maori also decreased likelihood of lotto advertising influence and being Asian increased the likelihood of lotto advertising influence For Pokies - the key variable related to the influence of pokies advertising was being at higher risk for problem gambling. No other variables added to the prediction of pokies advertising influence For TAB - A similar trend applied to TAB punting. Risk for problem gambling was the largest predictor of the influence of TAB advertising. In addition, being Asian added to the influence of TAB advertising over and above a gambler s risk for problem gambling For casino gambling while risk for problem gambling was again a predictor, so was playing table games at the casino more frequently. In addition, being Maori was associated with a reduced effect of casino advertising, while being of Pacific background increased the effect of casino advertising. Overall, findings highlight that risk for problem gambling is a strong and consistent predictor of the influence of lotto, pokies, TAB and casino advertising and being of a lower financial situation is also a consistent predictor of increasing effects of lotto advertising (although is only a moderate predictor in terms of partial correlation size). This latter result requires further research, however, may reflect that lotto players of lower financial situation may be influenced to buy lotto tickets as a means to improving their finances. PAGE 17 OF 181

19 What approaches to marketing and advertising may help create safer gambling environments? As gambling marketing and advertising has potential to pose some level of harm to gamblers (and particularly to problem and at-risk gamblers), ways to create safer gambling environments were explored as part of the study. Key findings included: Marketing and advertising codes to reduce the potential for harm from advertising were identified in a number of jurisdictions. Standards identified included innovative content in the form of standards to: Protect problem and at-risk gamblers including standards such as requirements for no sounds of gaming machine operation or coin drops in ads Protect vulnerable community groups these emphasized the need to protect not only ethnic groups, but also a range of other vulnerable groups including minors and young people, the unemployed, people with mental illness, people with financial difficulties, refugees, minority groups and low socioeconomic areas Preserve and protect cultural values including standards to protect sacred objects and places or objects of religious significance Protect general consumers including standards to ensure high-levels of informed consent in advertising information Prevent harmful sponsorships including standards such as no sponsorship messages during sports programs or bulletins Prevent community offence to advertising including a general standard to ensure that prevailing community standards are not offended through advertising Encourage responsible gambling including standards for responsible gambling messages to be placed at the end of any advertising (including on print materials) to balance the effects of gambling advertising Marketing and advertising codes identify many innovative advertising standards with possible relevance to the media channels used in gambling advertising. In particular, findings showed that: Restrictions are often placed on when advertising can occur by channel for TV, the common trend was to avoid prime time and children s TV time. For radio, restrictions were typically placed on advertising during peak listening periods (e.g., mornings) A best practice requirement for radio advertising was also to clearly distinguish advertisements and sponsorships by mentioning to listeners when advertisements commenced and ended (e.g., in the context of sports commentaries on radio) Advertising must occur only through media channels where the viewing audience is 75% adults or greater (with application to every possible channel whether TV, radio, cinema, promotional events or other media channels) While very few gambling sponsorship policies have been developed internationally, some principles have been developed as a precautionary measure to avoid harm. This included no sponsorship of sports teams by gambling providers when players are under 18 years and no branding of gambling providers on children s replica sports clothes While most gamblers had some idea that complaints can be made about advertising, there is currently limited understanding of precise complaints channels and current gambling advertising standards within New Zealand Gamblers held a view that promotion of host responsibility programs is currently limited within New Zealand and many gamblers additionally do not understand how host responsibility programs operate An experimental study by Lee et. al (2008) provides some evidence that problem gambling harm-mimimisation advertising has some potential to balance the effects of gambling advertising PAGE 18 OF 181

20 Gaming machine venue signage appears to have received limited attention in most advertising codes. However, some jurisdictions have outlined requirements relating to the size of venue signage, the types of signs permitted (e.g., only directional signs, no freeway billboards) and in New South Wales (Australia), gaming machine signs have also been completely prohibited In terms of other possible approaches to improving gambling advertising, some jurisdictions have also proposed research to test the effects of gambling advertising on at-risk gamblers and have developed tools to measure the risk of gambling advertising as part of business practices PAGE 19 OF 181