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Youth gambling: Technology and its impact

Jeffrey L. Derevensky, Ph.D.

International Centre for Youth Gambling Problems and High-Risk Behaviors

McGill University

www.youthgambling.com

EASG Conference Loutraki, Greece September, 2012

Technology has created an information revolution, a digital wave, a new paradigm. The Internet and interactive media have permanently changed the way we communicate with each other, perform our jobs, pay our bills, relax in our off time, and even interact with our government. Martin Owens Jr.

Internet gambling…its new face

Technology is changing society …and us. Nelson Rose

Joe Cada, age 21, Community College dropout, winner World Series of Poker, 2009, $8.55 million

Jonathan Duhamel, age 23, University dropout, winner World Series of Poker, 2010, $8.944 million

Pius Heinz, age 22, University Student, winner World Series of Poker, 2011, $8.72 million

Wagering via the Internet

• Poker/card games • Casino games • Sports wagering • Reality shows • Celebrity adoptions, arrests, etc. • Any form of contest/Political race

Internet’s impact upon gambling

• As of July, 2012 there were 2,909 online gambling sites, with 780 different owners, operating in 784 jurisdictions (Online Casino City, 2012)

• Online global market expected to exceed $43 billion (US) – approximately 34 billion euros

• A number of countries not only regulate Internet gambling but are also the owners

• United States quickly advancing into Internet gambling

Two of the most influential individuals in the

technological revolution

Think outside the box Steve Jobs

Social gaming is the next big thing in 2012

Mark Zuckerberg

Merging of social media sites

Facebook fan sites

1 ?

2 ?

3

4

6

7

8

9

10 5

YouTube Product - Technology 59,412,016 362,757 Talking About

Eminem Musician 58,653,298 387,872 Talking About

Rihanna Musician 57,760,911 624,580 Talking About

The Simpsons TV Show - FOX 52,271,216 356,812 Talking About

Lady Gaga Musician 52,130,774 887,916 Talking About

Shakira Musician 51,809,207 454,280 Talking About

Michael Jackson Musician 50,001,519 405,832 Talking About

Harry Potter and the Deathly Hallows Movie 47,721,567 518,018 Talking About

Social Media

68,514,916 Fans

380,844 Talking About This

Facebook

Game

62,039,451 Fans

526,058 Talking About This

#1

#2 Texas Holdem Poker

Texas Hold’em Poker Growth

# of Fans Daily Growth Weekly Growth

62,039,451 63,515 454,412

Convergence of Social Media & Gambling

• Poker/card games • Casino games • Sports wagering • Reality shows • Celebrity adoptions, arrests, etc. • Any form of contest/Political race

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 gaming companies

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.

www.pokerstars.net

Why are we concerned about youth gambling? Clear evidence that youth are gambling and experiencing gambling problems (Derevensky, 2012; Volberg et al., 2010; Welte et al., 2011)

Adolescent problem gambling prevalence studies

Canada Derevensky & Gupta (2001) Lussier, Derevensky, & Gupta (2007) Hardoon, Derevensky & Gupta (2002) Poulin (2000)

3.4% 3.2% 4.9% 6.4%

U.S. National Research Council (1999) Welte et al. (2008)

3.5-5.0%

2.1%

U.K. Fisher (1999) Wood et al. (2006)

5.6% 3.5%

Scotland Moodie & Finnigan (2006)

9.0%

Adolescent problem gambling prevalence studies

Iceland Olason et al. (2005a, 2006, 2008) Olason et al. (2005b) Olason et al. (2011)

1.9%/2.8% 3.2%/4.4%

2.2%

Norway Gotestam (2003) Hansen & Rossow (2008)

1.8% 3.1%

Sweden Volberg et al. (2001)

2.0% adults

15-24 151% greater risk

Spain Becona & Miguez

5.6%

Lithuania Skokauskas, (2007)

4.2%

Adolescent problem gambling prevalence studies

Romania Lupu et al. (2002)

6.8%

Australia Moore & Ohtsuka (2000) Delfabro et al. (2005)

3.8% 4.4%

What we know about the Internet

• Access is widespread • Access is inexpensive • Internet is anonymous • Internet is convenient • Internet is entertaining • Internet is used for many purposes

Prevalence Findings of Internet Wagering • Vary considerably • Dependent upon method, sampling &

date of data collection • Dependent upon population studied • Dependent upon the games studied • Internet gambling is quickly becoming

the fastest growing segment of the gaming industry

Are Internet gamblers more likely to have problems?

Wood & Williams (2007) - Sample of on-line adult gamblers

• Non-problem gamblers: 34% • At-risk gamblers: 24% • Moderate problem gamblers: 23% • Severe problem gamblers: 20% • 2/3 of those respondents gambling on the

Internet are likely to have problems

Is Internet gambling problematic for our youth?

Even when no money changes hands, young children are learning the mechanics of gambling. These games can be a gateway to more serious gambling. Mark Griffiths (2011)

Some clinical evidence

Recent Youth Internet Gambling/Simulated Gambling Studies

Frequency of Play on Internet Gambling Sites Without Money in the Past 12 Months by Gambling Severity

N = 2205

Internet Gambling Without Money1

Yes (n = 1082)

No (n = 1123)

Gambling Groups***

Non Gambler n = 726 33.9 66.1

Social Gambler n = 1278 56.6 43.4

At-Risk Gambler n = 129 74.4 25.6

Probable Pathological Gambler n = 72 80.6 19.4

Total 49.1 50.9

1Percentage. ***p<.001.

Age of Onset for Internet Gambling Without Money by Gambling Severity

1Percentage. Gambling Groups are based on DSM-IV and DSM-IV-MR scores. aDSM-IV score (0-2); DSM-IV-MR-J score (0-1). bDSM-IV score (3-4); DSM-IV-MR-J score (2-3). cDSM-IV score ( ≥5); DSM-IV-MR-J score (≥4). ***p<.001.

Gambling Groups1

Social Gamblera (n = 1333)

At-Risk Gamblerb (n = 138)

Probable Pathological

Gamblerc (n = 72)

Age***

Under 10 years 4.4 13.1 16.9

10-11 years 8.8 10.9 16.9

12-13 years 15.2 19.0 25.4

14-15 years 17.2 15.3 15.5

16-17 years 9.1 7.3 2.8

Over 18 years 2.8 0.7 2.8

Frequency of Play on Internet Gambling Sites With Money in the Past 12 Months by Gambling Severity

N = 2292

Internet Gambling With Money1

Yes (n = 183)

No (n = 2109)

Gambling Groups***

Non Gambler n = 745 0 100

Social Gambler n = 1333 9.5 90.5

At-Risk Gambler n = 139 21.6 78.4

Probable Pathological Gambler n = 75 34.7 65.3

Total 8.0* 92.0

1Percentage *13.1% males; 4.6% females are gambling on Internet

Canadian National Study (Meerkamper, 2010)

National Annenberg Survey of Youth (Romer, 2010)

N=835 (2008) N=596 (2010)

At least once per month

• Internet gambling among males 14-17 rose from 2.7% (2008) to 6.2% (2010)

• Internet gambling among males 18-22 rose from 4.4% (2008) to 16.0% (2010)

• Internet gambling among females 14-17 rose from 0.5% (2008)

to 1.5% (2010) • Internet gambling among females 18-22 rose from 0.0% (2008)

to 4.4% (2010)

Past year gambling participation (On and Off the Internet) by gender and problem gambling severity among college students (McBride & Derevensky, 2012)

N Offline gambling Practice sites Internet gambling

Gender***

Male 305 66.2 49.8 11.8 (90)

Female 160 46.9 30.0 0.6 (90)

Problem Gambling

Severity

Non gambler a 186 - 22.0 (90)*** -

Social gambler b 262 99.2 55.3 (90)*** 11.8 (90)**

Problem gambler c 17 100 82.4 (90)*** 35.3 (90)**

Total 465 59.6 (90) 43.0 (90) 8.0 (90)

1Percentage, participant numbers in parentheses. aDSM-IV score = 0, no gambling activity (on or off the Internet) in the past 12 months. bDSM-IV score (0 - 2). cDSM-IV score (≥ 3). ***p < .001 ** p < .01

U.K Gambling studies (Griffiths et al., 2009; 2011)

6% of gamblers in general (9% males; 3% females) were Internet gamblers

Internet gamblers tended to be males (74% vs 26%)

55% of Internet gamblers <age 34 Highest percentage of Internet gamblers were

between age 16-24; 25-34 Pathological gamblers (Internet 5% vs 0.5% non-

Internet gamblers) Large number of adolescents gambling via the

Internet Ipsos Mori study suggests that the best predictor

of youth gambling problems was whether they played social media gambling-simulated games

NCAA Study (Derevensky & Paskus, 2010)

Comparison between 2004 & 2008

Casino gambling via the Internet represented the largest increase

Student athletes increased sports wagering via the Internet (10.9% in 2004 to 18.8% in 2008)

“Internet (and mobile gambling) will become particularly problematic for this group [student athletes] and need to be carefully monitored”

Our current knowledge

Characteristics of Internet Gamblers Predominantly male (number of

females growing) Dependent upon type of game

Age Most under age 40 Vast majority young adults

Socio-demographic characteristics Better educated Higher salaries

Most have played on free sites Increasing use of social media sites Most Internet gamblers wager on

multiple sites Much of Internet gambling typically

occurs in the evenings Vast majority of Internet gamblers

play for short periods (less than 2 hours each time

Some reports suggest that they gamble $30-$60 per session

Often solitary activity but can also be used as way of socializing

Internet wagers for money increases with severity of gambling problems

Most money won and lost increases by gambling severity

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 non-gamblers and social gamblers

Why is Internet gambling potentially problematic for youth?

• Increased accessibility & availability • Convenience • Similarity with video-game technology • Can gamble for 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

Facts & Concerns

Internet Gambling • Provides a form of entertainment • Enhances levels of excitement and arousal • Provides an opportunity to win money • Younger generation of teens very attracted to Internet

gambling sights • Practice sights are exceedingly popular amongst

problem gamblers-age of onset is before 13 • Adolescents are gambling on the net, occasionally • Over 10% of problem gamblers spent over $500 on

Internet gambling • Sites are widely advertised

Internet Gambling

• Offers free games and trial (practice) sites • Incorporates video-game technology • Reward and loyalty programs • Initial deposit bonuses • Bettor’s Insurance • Graphics add to the excitement of the game • Perceived elements of skill • Convenience and ease of access • Allows individuals to lie about their age • Allows underage youth to gamble on prohibited

activities • Reinforcement schedules are quick

Parental behaviors….

40%

60%

64%

64%

66%

66%

73%

75%

81%

81%

82%

87%

Gambling (13)

Depression (12)

Excessive video game playing (10)

Negative body image (10)

Spending too much time online (8)

Obesity, eating disorders (8)

Smoking (7)

Violence in schools, bullying (6)

Unsafe sexual activities (3)

Drinking and driving (3)

Alcohol use (2)

Drug use (1)

Parental perceptions: Serious youth issues (Campbell, Derevensky, Meerkamper & Cutajar, 2011)

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

A number of gaming companies have spent hundreds of millions of dollars on social gaming for one reason..because there is a solid business case behind it. Rob Wheeler, 2012

Mobile wagering

A growing number of companies are developing apps for smart phones and Tablets

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 • Greater need for prevention/education initiatives • Greater public and parental awareness • Greater funding for research, prevention and treatment

programs • Greater need for collaboration between policy makers,

the industry and researchers