tag:theconversation.com,2011:/id/topics/problem-gambling-5357/articlesProblem gambling – The Conversation2023-05-12T15:25:27Ztag:theconversation.com,2011:article/2046412023-05-12T15:25:27Z2023-05-12T15:25:27ZTechnology can play a vital role in limiting online gambling – here’s how<figure><img src="https://images.theconversation.com/files/525363/original/file-20230510-23-ufsdxd.jpg?ixlib=rb-1.1.0&rect=23%2C0%2C7880%2C5249&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Over a quarter of people in the UK gamble online at least once every four weeks.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/close-male-hands-holding-credit-card-1569629677">Wpadington / Shutterstock</a></span></figcaption></figure><p>More than a quarter of people in the UK gamble online <a href="https://www.bournemouth.ac.uk/sites/default/files/asset/document/enabling-safer-online-gambling-policy-briefing.pdf">at least once every four weeks</a>. And 1%–2% of UK adults demonstrate moderate-to-high risk levels of gambling-related harms.</p>
<p>The substantive and striking changes that the rise of online gambling have introduced are acknowledged by the UK government’s recently published plans to change the <a href="https://www.gov.uk/government/publications/high-stakes-gambling-reform-for-the-digital-age/high-stakes-gambling-reform-for-the-digital-age">law in this area</a>.</p>
<p>Through smartphones or other internet-enabled devices, people can gamble online anywhere, at any time. Gambling online also often allows those experiencing gambling-related harm to more easily <a href="https://www.bournemouth.ac.uk/research/projects/digital-addiction-research/hidden-stories-online-gamblers">hide this from those around them</a>. </p>
<p>The reach of online gambling by operators, and gambling overall, is further enhanced by online promotion using social media. In an analysis of Twitter posts by several UK gambling operators, we found that over 80% of tweets related to sports, but less than 11% of tweets <a href="https://www.bournemouth.ac.uk/sites/default/files/asset/document/social-media-gambling-infographic.pdf">related to responsible gambling</a>.</p>
<p>Greater use of social media for responsible gambling messages would increase the impact of responsible gambling strategies. It would also enable more personalised targeting of this messaging to groups who may be at higher risk of harms, such as <a href="https://www.bournemouth.ac.uk/sites/default/files/asset/document/reducing-gambling-related-harm-lgbtq-communities-policy-briefing.pdf">members of the LGBTQ+ community</a>, who report a higher number of life stressors.</p>
<h2>Loot boxes</h2>
<p>There is also the increasing phenomenon of merging online gambling and other activities, notably loot boxes – which contain random game items that may or may not be desirable or valuable – in video games. These might allow the player to buy better weapons or armour for use in their game, or customise a player’s avatar. Players can purchase loot boxes in games, with either in-game or real-world currency. </p>
<p>In our research, we found that video game players perceive loot boxes to be a <a href="https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0263567">form of gambling</a>, despite attempts by the video game industry to <a href="https://www.polygon.com/2019/6/21/18691760/ea-vp-loot-boxes-surprise-mechanics-ethical-enjoyable">re-brand them with a less descriptive name</a>, such as “surprise mechanics”.</p>
<p>From social psychology research, we know that how we behave and the attitudes we hold are strongly influenced by what we <a href="https://www.tandfonline.com/doi/abs/10.3109/09687631003610977?journalCode=idep20">perceive to be the norm</a>. Also, there are overlaps in the harms experienced with loot boxes, <a href="https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0263567">both in our research</a> and <a href="https://www.bbc.co.uk/news/uk-england-54906393">media reports</a> of issues that would be typically seen in gambling difficulties, such as overspending. Based on this, it seems likely that engaging with loot boxes will prime children and young adults towards becoming involved in gambling. </p>
<p>As has been noted by the Young Gamers and Gamblers Education trust (YGAM), <a href="https://www.ygam.org/mindful-resilience/">awareness raising and training are needed</a>. The concern about loot boxes is so great that they have been banned in Belgium, albeit with an acknowledgment that the ban will be <a href="https://www.bbc.co.uk/news/newsbeat-49674333">difficult to enforce</a>.</p>
<h2>Responsible gambling tools and messages</h2>
<p>The technologies that create the risks and challenges of online gambling can also be used to prevent and reduce harms. Various techniques – known in the industry as responsible gambling tools – are already available from operators to help players take control of their gambling. These include deposit limits and self-exclusion, where users can ask to be denied access.</p>
<p>However, <a href="https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-018-6281-0">uptake of these tools is low</a>, and impact relies upon people recognising that they are at risk and being motivated to engage with these tools. So we welcome the suggestion in the government’s new white paper around making deposit limits mandatory, which is consistent with the views of people who have <a href="https://eprints.bournemouth.ac.uk/36868/">experienced problem gambling</a>.</p>
<p>Our <a href="https://www.bournemouth.ac.uk/research/projects/responsible-gambling-projects">Gambling Research Group</a> has explored how technology can be used to further prevent and reduce harms, including how players respond to personalised, targeted responsible gambling messaging based on <a href="https://bmjopen.bmj.com/content/13/3/e065400">social norms and goal setting</a>.</p>
<p>This ability to receive immediate feedback regarding a harm prevention strategy from the target population is relatively new in psychology, and potentially very powerful. So including people with real experience of gambling problems in the co-creation of responsible gambling messages will result in <a href="https://www.researchgate.net/publication/339662855_Gambling_Data_and_Modalities_of_Interaction_for_Responsible_Online_Gambling_A_Qualitative_Study">more effective strategies</a>.</p>
<p>The proposals included in the white paper would utilise some of the opportunities afforded by online technologies. For example, the use of affordability checks facilitated through credit reference agencies would likely reduce some of the harms associated with online gambling. </p>
<p>Similarly, online data-sharing on high-risk customers is a positive step, as many individuals engaging in problematic gambling report <a href="https://eprints.bournemouth.ac.uk/36868/">chasing losses</a> until their money runs out.</p>
<h2>Safer by design</h2>
<p>We also welcome the proposed limit on online slots, which brings it in line with the 2019 <a href="https://www.legislation.gov.uk/uksi/2018/1402/contents/made">reduction in stake</a> in fixed-odds betting terminals, and the proposal to make online games safer by design. Our research has shown that individuals who are new to gambling are less aware of persuasive design techniques and thus potentially at <a href="https://www.sciencedirect.com/science/article/pii/S0164121222001935?via%3Dihub">greater risk from them</a>.</p>
<p>Similarly, addressing gaps in legislation to ensure under-18s cannot gamble online may help prevent young people from developing problematic gambling behaviour later on. However, this impact may be limited by the UK government’s response in 2022 that no further legislation is planned to regulate loot boxes. Currently, little is known about the impact of gambling-related harms on children aged under 18. </p>
<p>It also cannot be underestimated how skilled gambling-addicted people are at finding a way around any restrictions. The white paper recognises the risks on unregulated gambling in online black markets, and calls for preventative action. But how this will be achieved remains to be seen. </p>
<p>The white paper’s new statutory levy is also a positive step that contributes to funding and the <a href="https://www.bournemouth.ac.uk/sites/default/files/asset/document/How%20to%20Create%20Safer%20Online%20Gambling.pdf">transparency of funding sources</a> for quality gambling research, education and treatment. </p>
<p>While most people gamble online safely and responsibly, those who develop problems can experience severe effects. These negative consequences are not limited to the individual but can also <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7387499/">affect</a> those around them, including <a href="https://www.researchgate.net/publication/317387586_A_typical_problem_gambler_affects_six_others">family, friends and work colleagues</a>. </p>
<p>As technology continues evolving, it is vital that we continue to be mindful of the unique risks and opportunities that arise in online gambling to prevent people from being harmed.</p><img src="https://counter.theconversation.com/content/204641/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>John McAlaney receives funding from GambleAware, the International Centre for Responsible Gaming (both charitable organisations that have received funding from gambling companies), and the Gaming Innovation Group. He is affiliated with the Gordon Moody Association. </span></em></p><p class="fine-print"><em><span>Emily Arden-Close has received funding from GambleAware, the International Center for Responsible Gaming (both charitable organisations that have received funding from gambling companies) and Kindred Group.</span></em></p><p class="fine-print"><em><span>Sarah Hodge receives funding from GambleAware, the International Centre for Responsible Gaming (both charitable organisations that have received funding from gambling companies), Kindred, Playtech, and the Gaming Innovation Group.</span></em></p>We can make better use of technology to limit problem online gambling.John McAlaney, Professor in Psychology, Bournemouth UniversityEmily Arden-Close, Principal Academic in Psychology, Bournemouth UniversitySarah Hodge, Lecturer in Psychology and Cyberpsychology, Bournemouth UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1996572023-02-10T14:31:53Z2023-02-10T14:31:53ZA boon for sports fandom or a looming mental health crisis? 5 essential reads on the effects of legal sports betting<figure><img src="https://images.theconversation.com/files/509263/original/file-20230209-22-4dax04.jpg?ixlib=rb-1.1.0&rect=132%2C97%2C4532%2C2930&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">In a remarkable shift, pro sports leagues like the NFL have eagerly embraced gambling.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/one-hundred-dollar-football-royalty-free-image/471257888?phrase=sports betting&adppopup=true">michaelquirk/iStock via Getty Images</a></span></figcaption></figure><p>A lifelong sports fan, I grew up hearing tales of sports figures felled by gambling scandals – baseball stars <a href="https://www.silive.com/news/2021/06/si-field-of-dreams-black-sox-outfielder-shoeless-joe-jackson-played-here-after-baseball-ban.html">“Shoeless” Joe Jackson</a> and <a href="https://www.history.com/this-day-in-history/pete-rose-gets-booted-from-baseball">Pete Rose</a>, <a href="https://www.espn.com/espn/chalk/story/_/id/11633538/betting-chronicling-worst-fix-ever-1978-79-bc-point-shaving-scandal">the 1978-79 Boston College basketball team</a> and NBA referee <a href="https://www.espn.com/nba/story/_/id/25980368/how-former-ref-tim-donaghy-conspired-fix-nba-games">Tim Donaghy</a>. </p>
<p>Sports leagues wanted nothing to do with gambling, which they feared would taint the integrity of the game. They had <a href="https://www.nytimes.com/1994/01/02/nyregion/how-politics-nipped-a-sports-betting-bill.html">lobbied heavily</a> for the passage of <a href="https://www.govtrack.us/congress/bills/102/s474/summary">the Professional and Amateur Sports Protection Act of 1992</a>, also known as the Bradley Act, which banned sports betting in the U.S.</p>
<p>Then, in May 2018, the Supreme Court <a href="https://www.nytimes.com/2018/05/14/us/politics/supreme-court-sports-betting-new-jersey.html">overturned the Bradley Act</a>.</p>
<p>This time, the leagues and networks were fully on board. Gambling ads for companies like DraftKings, BetMGM and FanDuel started appearing in arenas and beaming across airwaves. Las Vegas Raiders wide receiver Davante Adams <a href="https://raiderswire.usatoday.com/2022/09/15/davante-adams-becomes-brand-ambassador-for-official-gaming-parter-of-the-raiders-mgm-resorts/">signed a sponsorship deal</a> with MGM. And point spreads started being prominently featured on sports media outlets. </p>
<div style="width:50%;float:right;margin:10px;"><a href="https://cdn.theconversation.com/static_files/files/2533/TheConversation_SportsBetting.pdf?1676069169"><img src="https://images.theconversation.com/files/509547/original/file-20230210-26-aade4k.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=300&fit=crop&dpr=1" alt="Cover of ebook on sports gambling"></a><br>
<a href="https://cdn.theconversation.com/static_files/files/2533/TheConversation_SportsBetting.pdf?1676069169"><strong>Download these articles in a magazine-style ebook</strong></a>
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<p>Curious, I started placing some bets myself. I instantly grasped the allure: Here I was, watching games that I would have otherwise never watched – that didn’t involve my favorite teams, the Boston Red Sox and New England Patriots – and I was engaged and excited from start to finish. The leagues, too, must have been keenly aware of this opportunity to engage fans when they decided to change their tune on gambling. </p>
<p>With the five-year anniversary of the Supreme Court’s decision approaching, I wanted to learn more about what scholars at the forefront of gambling research had been discovering. How many people were betting on sports? For those <a href="https://www.npr.org/sections/thetwo-way/2018/05/14/589087523/supreme-court-rules-states-are-free-to-legalize-sports-betting">who criticized</a> the Supreme Court decision five years ago, was their hand-wringing misplaced? Were rates of problem gambling actually on the rise? If so, who was most at risk?</p>
<p>Gambling research can be challenging; <a href="https://www.americangaming.org/research/state-gaming-map/">laws and regulations vary by state</a>, and gambling researchers <a href="https://int.nyt.com/data/documenttools/naadgs-analysis-of-problem-gambling-funding-july-2022/521f7652c06a6d4d/full.pdf">receive almost no federal funding</a>. </p>
<p>But a small and dedicated group of scholars in the U.S. and abroad have been gauging the impact of this new era in American sports. With few regulations in place, gambling companies are going all-in to attract as many customers as possible – with younger, sports-obsessed and smartphone-savvy Americans particularly vulnerable.</p>
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<h2>1. A new fan experience</h2>
<p>Prior to becoming the chair of Penn State’s sports journalism program, <a href="https://www.bellisario.psu.edu/people/individual/john-affleck">John Affleck</a> had worked as a sports reporter and editor for The Associated Press. Both in the newsroom and in his early years at Penn State, there was nary a peep about gambling. </p>
<p>Now he notices his students regularly talking about the point spread and over/under for upcoming games.</p>
<p>He writes about <a href="https://theconversation.com/how-legalized-sports-betting-has-transformed-the-fan-experience-194994">how quickly gambling has become integrated in sports media</a>, with announcers and analysts peppering in references to gambling during live coverage and postgame analysis.</p>
<p>He describes the thousands of betting tip channels on YouTube, the segments on TV devoted to gambling and the betting lines that appear in game previews.</p>
<p>“In the nearly five years since the Supreme Court allowed states to legalize sports betting, a whole industry has sprouted up that, for tens of millions of fans around the country, is now just part of the show.”</p>
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<a href="https://theconversation.com/how-legalized-sports-betting-has-transformed-the-fan-experience-194994">How legalized sports betting has transformed the fan experience</a>
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<h2>2. Is New Jersey a canary in the coal mine?</h2>
<p>After the Supreme Court’s May 2018 ruling, New Jersey was one of a handful of states primed to pounce: Legislation had been prepped in advance, <a href="https://www.nytimes.com/2018/06/11/nyregion/sports-betting-legalized-nj.html">and the governor signed a bill legalizing sports betting</a> less than a month after the federal ban was overturned.</p>
<p>But the state also included something in their legislation that other states didn’t: It gave the Center for Gambling Studies at Rutgers University access to data on every bet placed in the state, and tasked it with conducting regular studies on gambling in New Jersey. </p>
<p>Lia Nower, who directs the center, <a href="https://theconversation.com/data-from-new-jersey-is-a-warning-sign-for-young-sports-bettors-197865">highlights some worrisome findings</a> from her team’s forthcoming gambling prevalence study – particularly for young bettors.</p>
<p>She and her team found that those who bet on sports were more likely than other gamblers to have problems with drugs or alcohol and experience anxiety and depression. Most alarming, about 14% of sports bettors reported thoughts of suicide, with 10% saying they had attempted suicide. And the fastest-growing group of sports bettors in New Jersey were young adults between the ages of 20 and 25 – over 70% of whom had placed in-game bets. </p>
<p>“Since about 70% of the sports bets we analyzed were losing bets,” Nower writes, “most of these young players could find themselves losing more money than they can afford.”</p>
<p>Nower also explains how other countries with a longer history of legal sports betting have enacted a raft of regulations intended to protect gamblers and curb the worst excesses of the gambling companies – a topic another scholar, Alex Russell, <a href="https://theconversation.com/40-years-of-legal-sports-betting-in-australia-points-to-risks-for-us-gamblers-and-tips-for-regulators-194993">explores in his history of sports gambling in Australia</a>.</p>
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Read more:
<a href="https://theconversation.com/data-from-new-jersey-is-a-warning-sign-for-young-sports-bettors-197865">Data from New Jersey is a warning sign for young sports bettors</a>
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<h2>3. Technology facilitates impulsive betting</h2>
<p>If there’s one key difference between the early 1990s, when the Bradley Act passed, and today, it’s the advent of smartphones.</p>
<p>In many states, there’s no need to drive to a casino to place a bet on a game; all you need to do is download a gambling app. <a href="https://www.statista.com/statistics/1299495/forecast-number-of-online-sports-bettors-us/">According to one estimate</a>, there were about 19 million online sports bettors in 2022.</p>
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<p>Clinical psychologist and gambling researcher Meredith K. Ginley explores how <a href="https://theconversation.com/how-legalized-sports-betting-has-transformed-the-fan-experience-194994">these apps facilitate impulsive in-game betting</a> that can cause losses to mount until the final whistle blows.</p>
<p>“Proximity to gambling venues is a known risk factor for problematic levels of gambling,” she writes. “Sports wagering apps essentially load a casino onto the phone in your pocket.”</p>
<p>Many apps offer tools that let users set deposit, loss and wagering limits to encourage responsible gambling. But, she adds, the apps are also “heavily ‘gamified’ to feel more like an interactive video game” with “push notifications, free play, leaderboards and more.”</p>
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Read more:
<a href="https://theconversation.com/sports-betting-apps-notifications-and-leaderboards-encourage-more-and-more-wagers-a-psychologist-who-treats-gambling-addictions-explains-why-some-people-get-hooked-198358">Sports betting apps' notifications and leaderboards encourage more and more wagers – a psychologist who treats gambling addictions explains why some people get hooked</a>
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<h2>4. A new problem gambler profile emerges</h2>
<p>Sure enough, some sports bettors have developed gambling problems.</p>
<p>Tori Horn, a clinical psychologist at the University of Memphis <a href="https://thegamblingclinic.com/">who treats people with gambling disorder</a>, has seen a shift in the profile of her typical patient – from clients who were usually older and gambled in casinos to younger men, mostly in their 20s, who are seeking treatment for problems with sports betting. </p>
<p>Horn explains how many of her patients started betting via gambling apps after learning about promotions like FanDuel’s “No Sweat First Bet,” which offers free bets to new users. </p>
<p>In addiction therapy, therapists often encourage clients to avoid places, people and situations that are associated with the substance. </p>
<p>For these reasons, problem sports gamblers – particularly those who use apps – “present a unique challenge,” she writes, since it is “incredibly difficult, if not impossible, to ask a client to stop using their smartphone or stop watching sports.”</p>
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Read more:
<a href="https://theconversation.com/i-treat-people-with-gambling-disorder-and-im-starting-to-see-more-and-more-young-men-who-are-betting-on-sports-198285">I treat people with gambling disorder – and I’m starting to see more and more young men who are betting on sports</a>
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<h2>5. The ‘hidden addiction’</h2>
<p>But might concerns over sports betting be overblown?</p>
<p>James P. Whalen, who directs the Institute for Gambling Education and Research at the University of Memphis, cautions against reaching any sort of premature conclusions about legal sports betting as a societal scourge.</p>
<p>“A review of 30 years of research on the prevalence of problem gambling and gambling disorder reveals a pattern,” <a href="https://theconversation.com/millions-of-americans-are-problem-gamblers-so-why-do-so-few-people-ever-seek-treatment-197861">he writes</a>. “More gambling availability tends to lead to a spike in the number of people reporting gambling issues in the short term. However, populations tend to adapt over time; the rate of gambling problems decreases accordingly.”</p>
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<p>Regardless, there are still millions of Americans who are caught in the throes of gambling addiction. And treating the disorder – so stigmatized that it’s often called the “<a href="https://cocaberks.org/problem-gambling-the-hidden-addiction/">hidden addiction</a>” – is complicated by the fact that relatively few people seek treatment compared with other mental health disorders.</p>
<p>“The other challenge is the rate at which people discontinue treatment,” Whelan adds. For most mental health disorders, 20% of people who start therapy will drop out before completing a standard course of treatment, he explains.</p>
<p>“By comparison,” he notes, “the dropout rate for gambling harms is nearly double: 39%.”</p>
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Read more:
<a href="https://theconversation.com/millions-of-americans-are-problem-gamblers-so-why-do-so-few-people-ever-seek-treatment-197861">Millions of Americans are problem gamblers – so why do so few people ever seek treatment?</a>
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<img src="https://counter.theconversation.com/content/199657/count.gif" alt="The Conversation" width="1" height="1" />
With few regulations in place, gambling companies are going all-in to attract as many customers as possible – with younger, sports-obsessed and smartphone-savvy Americans particularly vulnerable.Nick Lehr, Arts + Culture EditorLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1978652023-02-09T13:34:03Z2023-02-09T13:34:03ZData from New Jersey is a warning sign for young sports bettors<figure><img src="https://images.theconversation.com/files/508402/original/file-20230206-27-cp4rbb.jpg?ixlib=rb-1.1.0&rect=41%2C53%2C3593%2C2488&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Fans celebrate at the William Hill Sports Book in Atlantic City, N.J.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/fans-gather-at-william-hill-sports-book-at-ocean-resort-news-photo/1127223046?phrase=sports%20book%20new%20jersey&adppopup=true">Lisa Lake/Getty Images for William Hill US</a></span></figcaption></figure><p>When the Philadelphia Eagles and Kansas City Chiefs take the field for Super Bowl LVII, a record-breaking 50 million bettors are expected to have <a href="https://www.americangaming.org/new/record-50-million-americans-to-wager-16b-on-super-bowl-lvii/">US$16 billion</a> of their own skin in the game, according to the American Gaming Association. </p>
<p>In January 2023, Ohio and Massachusetts launched legal sports betting, joining Washington D.C. and <a href="https://www.americangaming.org/research/state-gaming-map/">34 other states</a> that have passed laws since the Supreme Court overturned a federal ban in 2018. State legislatures have generally been eager to capitalize on the tax windfalls from sports betting and get their slice of <a href="https://www.americangaming.org/resources/aga-commercial-gaming-revenue-tracker/">the billions</a> wagered annually. Voters are also <a href="https://www.washingtonpost.com/sports/2022/07/08/legal-sports-betting-support-americans/">increasingly supportive of legalization</a>. </p>
<p>Here in New Jersey, sports betting, both online and in person, has been legal since June 2018. The state is the only jurisdiction that requires yearly evaluations of the relationship of online gambling and sports wagering to problem gambling. </p>
<p>The Center for Gambling Studies at Rutgers University, which I direct, <a href="https://socialwork.rutgers.edu/centers/center-gambling-studies/research-publications">conducts those annual evaluations</a> using data from all sports bets placed in New Jersey since 2018. Our findings suggest that the nation’s love affair with sports betting may be having unintended consequences.</p>
<h2>Sports betting tied to poor mental health</h2>
<p>In a forthcoming statewide gambling prevalence study, we found that those wagering on sports in New Jersey were more likely than others who gamble to have high rates of problem gambling and problems with drugs or alcohol, and to experience mental health problems like anxiety and depression. Most alarming, findings suggest that about 14% of sports bettors reported thoughts of suicide, and 10% said they had made a suicide attempt.</p>
<p>A small group of bettors seem to be most at risk. About 5% of all sports bettors placed nearly half of all bets and spent nearly 70% of the money. That means the people losing the most money are the most essential to operator profits.</p>
<p><a href="https://socialwork.rutgers.edu/centers/center-gambling-studies/research-publications">The fastest-growing group of sports bettors in New Jersey</a> are young adults, ages 21 to 24. Most have placed in-game bets, and about 19% spent half of their money betting during games, <a href="https://theconversation.com/sports-betting-apps-notifications-and-leaderboards-encourage-more-and-more-wagers-a-psychologist-who-treats-gambling-addictions-explains-why-some-people-get-hooked-198358">when emotions and impulsive spending are highest</a>. </p>
<p>Although regulators require operators to allow bettors to set limits – on losses, deposits or time spent gambling – only about 1% of young bettors use any of the safeguards, less than any other age group. Since about <a href="https://socialwork.rutgers.edu/centers/center-gambling-studies/research-publications">70% of the sports bets we analyzed</a> were losing bets, most of these young players could find themselves losing more money than they can afford. </p>
<h2>A vulnerable population</h2>
<p>It is possible, then, that states could unwittingly be introducing a cohort of young people to problem gambling and a lifetime of negative consequences. </p>
<p>That’s because the younger that people <a href="https://doi.org/10.1016%2Fj.jpsychires.2012.02.007">start gambling</a>, the more activities they bet on. And the more frequently they bet, the more likely they are to develop serious gambling problems. Studies suggest that <a href="https://doi.org/10.1007/s10899-017-9726-y">those who gamble as young adults</a> have higher-than-average rates of problem gambling.</p>
<p>The danger is compounded by the easy access afforded by tablets and mobile phones, which eliminate most barriers to gambling even for those who are underage. Children who are exposed to the unrelenting parade of gambling ads <a href="https://doi.org/10.1111/1753-6405.12728">report they remember</a> both the products and the betting terms from those ads, and some teens say <a href="https://doi.org/10.1556/2006.7.2018.128">they intended to gamble as a result</a>. If <a href="https://doi.org/10.1016/j.addbeh.2022.107460">parents or other household members also gamble</a>, those children may later develop not only gambling problems, but also problems with drugs and alcohol. </p>
<h2>Few regulatory measures in place</h2>
<p>In the U.S., the Marlboro Man can no longer gallop across <a href="https://www.ftc.gov/legal-library/browse/statutes/federal-cigarette-labeling-advertising-act">the nation’s television airwaves</a>. Alcohol ads <a href="https://alcohol.org/laws/marketing-to-the-public/">can’t contain</a> statements that are misleading, patently false or target those who are underage.</p>
<p>However, there are currently no such federal guidelines for gambling ads. Major League Baseball, which banned Pete Rose and locked him out of the Hall of Fame for gambling, openly sanctions <a href="https://www.forbes.com/sites/maurybrown/2021/08/10/why-nearly-all-mlb-ballparks-will-have-a-sportsbook-attached-to-it-in-the-future/?sh=52ba50cb36d8">sports books attached to stadiums</a> and <a href="https://www.forbes.com/sites/christianred/2021/01/12/major-league-baseball-teams-and-a-new-revenue-stream-online-gaming-business-partners/?sh=a0866755ef95">partnerships with gambling operators</a>. The same goes for the NFL and most of its teams, with former stars like Eli Manning <a href="https://giantswire.usatoday.com/2022/08/23/see-it-new-york-giants-legend-eli-manning-appears-new-caesars-ad-with-brothers/">encouraging betting</a> in ads and Pro Bowl wide receiver Davonte Adams becoming the <a href="https://www.actionnetwork.com/news/davante-adams-likely-first-active-nfl-player-with-gambling-related-sponsor">first active player</a> with a gambling sponsor.</p>
<figure class="align-center ">
<img alt="Man holding betting slip." src="https://images.theconversation.com/files/508401/original/file-20230206-29-rmkopb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/508401/original/file-20230206-29-rmkopb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/508401/original/file-20230206-29-rmkopb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/508401/original/file-20230206-29-rmkopb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/508401/original/file-20230206-29-rmkopb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/508401/original/file-20230206-29-rmkopb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/508401/original/file-20230206-29-rmkopb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A man holds a betting slip on the first day of legal sports betting in New Jersey on June 14, 2018.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/professional-odds-maker-stu-feiner-holds-up-a-betting-slip-news-photo/974402508?phrase=sports%20gambling%20new%20jersey&adppopup=true">Dominick Reuter/AFP via Getty Images</a></span>
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</figure>
<p>Those who recognize they have a gambling problem also have no assurances that they can find help. </p>
<p>Gambling treatment services <a href="https://naadgs.org/wp-content/uploads/2022/06/NAADGS_2021_Survey_of_Publicly_Funded_Problem_Gambling_Services_in_the_United_States_v2.pdf">vary by state</a>, from specially trained, culturally competent counselors in a few states to a total lack of services in others. Most children and teens receive no education in schools about problem gambling as they do for drugs and alcohol. Some universities <a href="https://www.nytimes.com/2022/11/20/business/caesars-sports-betting-universities-colleges.html">are openly partnering with gambling companies</a> and sponsoring esports competitions, which invite underage betting.</p>
<p>The federal government is noticeably silent on a glamorized addiction. Nationally, there are no federal policies, prohibitions or federally funded research or <a href="https://int.nyt.com/data/documenttools/naadgs-analysis-of-problem-gambling-funding-july-2022/521f7652c06a6d4d/full.pdf">prevention programs</a>, despite all the revenue generated by taxes on gambling winnings.</p>
<p>Internationally, gambling-related abuses and tragedies have led countries <a href="https://theconversation.com/40-years-of-legal-sports-betting-in-australia-points-to-risks-for-us-gamblers-and-tips-for-regulators-194993">like Australia and the U.K.</a> to enact new regulations and significant penalties for operators. The U.K., for example, <a href="https://doi.org/10.1089/glr2.2022.0020">requires operators to conduct affordability checks</a> on patrons to ensure they can afford their losses and prohibits gambling advertising by athletes, celebrities or social media influencers who appeal to children and teens.</p>
<p>I think it’s only a matter of time before similar proposals make their way to the U.S. In the meantime, however, millions of people in more than half the country will legally lay their hard-earned money on the line for a chance to win big on Sunday.</p>
<p>Hopefully, they can afford to lose.</p><img src="https://counter.theconversation.com/content/197865/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Lia Nower has been a member of advisory boards, and has conducted research and grant reviews for U.S. and international governments, government-related agencies, private firms, and industry operators. These include New Jersey's Division of Gaming Enforcement & Division of Mental Health and Addiction Services, Ohio's Department of Mental Health and Addiction, Camelot (United Kingdom), Crown Casino (Australia), the British Columbia Lottery Corporation (Canada), Churchill Downs (U.S.), Aristocrat Leisure (Australia), the New York Council on Problem Gambling, Publiedit (Italy) and the National Council on Problem Gambling (U.S.).</span></em></p>Researchers who analyzed every sports bet placed online since 2018 found that young adults are the fastest-growing group of bettors, with more than 70% of them placing in-game bets.Lia Nower, Professor and Director, Center for Gambling Studies, Rutgers UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1983582023-02-06T13:28:34Z2023-02-06T13:28:34ZSports betting apps’ notifications and leaderboards encourage more and more wagers – a psychologist who treats gambling addictions explains why some people get hooked<figure><img src="https://images.theconversation.com/files/507897/original/file-20230202-7246-m8e93e.jpeg?ixlib=rb-1.1.0&rect=0%2C638%2C6060%2C4528&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">You can keep placing new bets throughout the whole game.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/watching-soccer-game-at-home-royalty-free-image/1426353191">svetikd/E+ via Getty Images</a></span></figcaption></figure><p>Joe is a full-time college student who also works some nights as a security guard. He played basketball all through high school and loves to follow the sport. Tonight one of his favorite teams is playing and he’s placed a US$100 bet for them to win.</p>
<p>As he sits in his vehicle with one eye on the parking lot and one eye on his physics textbook, he listens to the game. His phone keeps vibrating. <a href="https://www.gamblinginsider.com/in-depth/4015/the-mobile-marketing-challenge-personalising-push-notifications">A notification</a> from a sports wagering app asks if he’d like to place <a href="https://www.thelines.com/betting/prop-bets/">a prop bet</a> – a sort of side bet unrelated to the specific outcomes of the game – for a specific player to make five rebounds tonight. He adds $20 for this bet. His app buzzes again, now suggesting a prop bet for a certain player to make four three-point shots this game. The odds look good; he knows this player; he adds $40 here.</p>
<p>The game continues and his app keeps pinging him about more bets. By the end of the game, Joe’s team has won. He feels good about how well he knows basketball and his ability to pick a winning team and is buzzing from the thrill of chasing in-game bets. But he’s actually down $50 on the evening, as he lost most of his prop bets, and he’s not done nearly enough of his physics homework. He settles in for a long night and tries to push away any thoughts about how much money he actually ended up losing. And I’m certain Joe will be back placing bets the next time his teams are playing.</p>
<p><iframe id="6WGNn" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/6WGNn/1/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>Although Joe isn’t a real person, and the specifics of a sports wagering app can vary from vendor to vendor and even from <a href="https://www.legalsportsbetting.com/states-with-legal-sports-betting/">state to state</a>, this scenario illustrates the kind of game play many sports wagerers report. One estimate suggests there were around <a href="https://www.statista.com/statistics/1299495/forecast-number-of-online-sports-bettors-us/">19 million online sports bettors</a> in the U.S. in 2022; as more states gradually legalize these apps, the number of Joes out there is <a href="https://theconversation.com/access-to-sports-betting-in-the-us-has-exploded-since-2018-and-were-just-starting-to-learn-about-the-effects-192055">bound to rise</a>.</p>
<p>I’m a licensed clinical psychologist who has <a href="https://scholar.google.com/citations?user=bTo-_-oAAAAJ&hl=en&oi=ao">researched</a> <a href="https://thegamblingclinic.com/">and treated gambling-related harm</a> for over a decade. I’m interested in how and why bettors like Joe seem able to focus on how they picked a winning team while discounting that they actually ended up in the red. Humans are built to like reward, pleasure and winning. Sports wagering apps bring these specific opportunities right to your smartphone for immediate enjoyment.</p>
<h2>Gambling feels good in the heat of the moment</h2>
<p>Several theories from neuroscience and psychology can point to why some people might be particularly primed to enjoy gambling.</p>
<p><a href="https://psycnet.apa.org/record/1975-24897-000">One prominent theory of learning</a> suggests people are <a href="https://www.taylorfrancis.com/chapters/edit/10.4324/9781315806914-8/framework-taxonomy-psychiatric-disorder-jeffrey-gray">driven by two basic brain systems</a>. One leads people to seek new, exciting and novel situations. A complementary system encourages them to apply caution, notice risk and keep themselves safe. </p>
<p>In action, these systems are a bit like the gas and the brake on a car – but imagine driving, as my great uncle used to, with both feet. Everyone has both pedals, but how sensitive you are to the brake or how much you crave more gas varies from person to person.</p>
<p>Think of how some people avoid airplanes entirely, while others board because of their excitement about the vacation on the other side, and still others willingly launch themselves out of the plane as skydivers. Sports wagering opportunities can be akin to that plane. One person’s individual blend of desire for novelty and caution can lead them to hesitantly download an app while another person can’t wait to make the jump.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/507900/original/file-20230202-10310-cm8k8l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="people watch play standing around a casino craps table" src="https://images.theconversation.com/files/507900/original/file-20230202-10310-cm8k8l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/507900/original/file-20230202-10310-cm8k8l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=904&fit=crop&dpr=1 600w, https://images.theconversation.com/files/507900/original/file-20230202-10310-cm8k8l.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=904&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/507900/original/file-20230202-10310-cm8k8l.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=904&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/507900/original/file-20230202-10310-cm8k8l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1136&fit=crop&dpr=1 754w, https://images.theconversation.com/files/507900/original/file-20230202-10310-cm8k8l.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1136&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/507900/original/file-20230202-10310-cm8k8l.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1136&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Just a photo of a craps table can activate reward-related parts of a gambler’s brain.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/gamblers-play-craps-in-city-of-dreams-casino-on-december-17-news-photo/461559500">Lucas Schifres/Getty Images AsiaPac</a></span>
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<p>Neuroscientists know that certain genes, brain regions and neurotransmitters, including dopamine, are part of this balancing act of risk and reward. The areas of the brain related to reward may function a bit differently in people who are more driven to engage in higher-risk activities.</p>
<p>For example, <a href="https://doi.org/10.1038/s41598-017-07786-5">when researchers show study participants</a> who are frequent gamblers <a href="https://doi.org/10.1111/j.1369-1600.2010.00242.x">images of people gambling in casinos</a>, their <a href="https://doi.org/10.1007/s40473-019-00177-2">brains may react</a> in a way similar to when they are <a href="https://doi.org/10.3758/s13415-018-0599-z">exposed to cues for natural rewards</a> like food or sex. These findings mirror what has been shown for how people’s <a href="https://doi.org/10.1038/nn1200">brains react to cues</a> for <a href="https://doi.org/10.1016/j.neubiorev.2011.12.004">alcohol, cocaine and cigarettes</a>.</p>
<h2>Wagering apps amp up the attraction</h2>
<p>Beyond the rewarding nature of gambling itself, there may be some structural aspects of sports wagering apps that make them particularly attractive – and, in turn, potentially create higher risk for some people.</p>
<p>For example, Joe really likes basketball, and he’s confident about his skill in knowing how his team will play. Placing a bet on the game may make him more excited to watch a game he already enjoys. Each time his favorite teams play will be an automatic cue to place another bet. There’s a natural pull to be <a href="https://doi.org/10.1007/978-94-017-9088-8_10">more engaged in activities you like and are good at</a>. And when researchers told study participants they would either <a href="https://doi.org/10.3758/s13415-018-0599-z">just watch or also bet</a> on a sporting event, it led to different activation in the brain, particularly in areas related to reward.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/507964/original/file-20230202-14692-ry9pr5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="two pairs of hands hold smartphones with TV showing basketball game in background" src="https://images.theconversation.com/files/507964/original/file-20230202-14692-ry9pr5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/507964/original/file-20230202-14692-ry9pr5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=424&fit=crop&dpr=1 600w, https://images.theconversation.com/files/507964/original/file-20230202-14692-ry9pr5.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=424&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/507964/original/file-20230202-14692-ry9pr5.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=424&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/507964/original/file-20230202-14692-ry9pr5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=533&fit=crop&dpr=1 754w, https://images.theconversation.com/files/507964/original/file-20230202-14692-ry9pr5.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=533&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/507964/original/file-20230202-14692-ry9pr5.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=533&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Live betting can add an additional layer of excitement to watching a game.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/photo/betting-in-basketball-royalty-free-image/822362418">Manuel-F-O/iStock via Getty Images Plus</a></span>
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<p>People are also more likely to participate in activities that are readily accessible and have low barriers to entry. Common advice you might hear if you want to decrease the amount of sugar in your diet is to clear sweets out of your pantry. Sure enough, you’re <a href="https://doi.org/10.1177/1090198115610571">more likely to eat a cupcake on the counter</a> than one you have to go all the way to the store for.</p>
<p>In the same way, <a href="https://doi.org/10.1037/0002-9432.77.4.616">proximity to gambling venues is a known risk factor</a> for problematic levels of gambling. Sports wagering apps essentially load a casino onto the phone in your pocket. The easy access – along with the novelty and excitement – likely increase the risk of potential harm.</p>
<p>And wagering apps are heavily “gamified” to feel more like an interactive video game and less like a staid banking app. Push notifications, free play, leaderboards and more can increase engagement and fun. But these features can also make users feel <a href="https://doi.org/10.1007/978-3-319-39583-8_17">more detached from the actual money</a> they’re spending and make it harder to disengage if they become concerned about the cash or time spent on the app.</p>
<h2>Hardening your defenses</h2>
<p>Most people who gamble or bet on sports <a href="https://doi.org/10.1007/s10899-014-9471-4">don’t experience any harm</a>. Like Joe, they might lose a few bucks. But overall they may find the enjoyment gained by the thrill of deeper engagement with their team and the chance to win is within their budget. Spending on sports wagering can be like springing for movie tickets because of what’s gained from seeing the content in a theater – there’s an added dimension to the entertainment.</p>
<p>When I work with clients, I suggest setting spending limits or loss limits. Many apps offer responsible gaming tools that let users set deposit, loss and wagering limits. For people who are really concerned about their gambling, <a href="https://gamban.com/">blocking software</a> can be an option. The National Council on Problem Gambling’s <a href="https://responsibleplay.org">responsibleplay.org</a> site provides additional strategies and resources.</p>
<p>I also remind clients that sports wagering companies are running a business designed to make money despite a user’s ability to pick a winning team. The apps are very skilled at tapping into what makes betting exciting and rewarding. Players can aim for a level of expenditure that keeps it fun and low-risk. There’s no need to become an app’s best customer.</p><img src="https://counter.theconversation.com/content/198358/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Meredith K. Ginley receives funding from the State of Tennessee Department of Mental Health and Substance Abuse Services to provide prevention and treatment-related services to help mitigate gambling-related harms. </span></em></p>Sports wagering apps bring in-play betting right to the palm of your hand. Easy, ever-present access can lead to excitement and fun – or problem gambling.Meredith K. Ginley, Assistant Professor of Psychology, East Tennessee State UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1933122022-10-28T04:53:48Z2022-10-28T04:53:48ZPubs and clubs – your friendly neighbourhood money-laundering service, thanks to 86,640 pokies<figure><img src="https://images.theconversation.com/files/492250/original/file-20221028-53112-lf1bpj.jpg?ixlib=rb-1.1.0&rect=0%2C298%2C4235%2C2228&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Billions of dollars in proceeds of crime are being funnelled through clubs and pubs in New South Wales, <a href="https://www.crimecommission.nsw.gov.au/final-islington-report.pdf">according to</a> the NSW Crime Commission. Predictably, the industry is claiming it’s not an issue and solutions are too difficult.</p>
<p>Laundering money through a local club or hotel involves loading cash into one of the state’s <a href="https://www.liquorandgaming.nsw.gov.au/resources/gaming-machine-data">86,640 poker machines</a>, then cashing out and claiming the money as winnings.</p>
<p>This is not a preferred method for most organised criminals, the crime commission says. Sophisticated criminals have other methods. But it is still a sizeable proportion of the estimated $20 billion in criminal proceeds laundered in NSW each year.</p>
<p>In Queensland, you can put only $100 into a poker machine at one time. In Victoria the limit is $1,000. In NSW, newer machines allow $5,000, and older machines up to <a href="https://www.theguardian.com/australia-news/2022/jul/14/nsw-poker-machine-laws-may-increase-risk-of-money-laundering-says-commission">$10,000</a>. For supposedly harmless suburban fun it’s hard to understand why such sums are allowed.</p>
<p>The findings of the NSW Crime Commission’s <a href="https://www.crimecommission.nsw.gov.au/final-islington-report.pdf">inquiry into money laundering via clubs and hotels</a> follow scandalous money-laundering revelations from casino inquiries in <a href="https://theconversation.com/not-suitable-where-to-now-for-james-packer-and-crowns-other-casinos-154938">NSW</a>, <a href="https://theconversation.com/illegal-dishonest-unethical-and-exploitative-but-crown-resorts-keeps-its-melbourne-casino-licence-170625">Victoria</a>, Western Australia and Queensland.</p>
<p>Those inquiries found Crown Resorts and Star Entertainment allowed hundreds of millions of dollars to pass through their casinos, in contravention of anti-money-laundering regulations.</p>
<p>Both companies were found not fit to hold their licences. Crown has been fined <a href="https://www.abc.net.au/news/2022-05-30/crown-casino-fined-80-million-dollars-china-union-pay/101111660">$80 million</a> in Victoria. Star has been fined <a href="https://www.abc.net.au/news/2022-10-16/star-casino-set-to-be-fined-100-million/101541354">$100 million</a> in NSW, and had its licence suspended. </p>
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<strong>
Read more:
<a href="https://theconversation.com/star-sydney-suspension-how-do-casino-operators-found-so-unfit-get-to-keep-their-licences-192608">Star Sydney suspension: how do casino operators found so unfit get to keep their licences?</a>
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<p>Both have been required to undergo extensive “renewal”. They have agreed to adopt cashless gaming to better protect against money laundering.</p>
<p>It’s therefore unsurprising the NSW Crime Commission’s principal recommendation is to introduce a cashless system for all electronic gaming machines in NSW. Also unsurprising is that the industry is focused on why it shouldn’t.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/now-sydney-has-two-casinos-run-by-companies-unfit-to-hold-a-gaming-licence-190540">Now Sydney has two casinos run by companies unfit to hold a gaming licence</a>
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<h2>Cashless gambling recommended</h2>
<p>The NSW Crime Commission’s report recommends a cashless gambling system for pubs and clubs the same as for casinos – consistent with the identification requirements of Australia’s <a href="https://www.legislation.gov.au/Details/C2021C00243">Anti-Money Laundering and Counter-Terrorism Financing Act</a>.</p>
<p>Electronic gaming cards would record amounts loaded and withdrawn, times, turnover, and losses/wins. The maximum amount of cash able to be loaded on to a player’s account in a single day would be $1,000.</p>
<figure class="align-center ">
<img alt="Older electronic gaming machines in NSW allow you to 'load up' to $9,999." src="https://images.theconversation.com/files/491840/original/file-20221026-4274-h5s605.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/491840/original/file-20221026-4274-h5s605.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/491840/original/file-20221026-4274-h5s605.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/491840/original/file-20221026-4274-h5s605.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/491840/original/file-20221026-4274-h5s605.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/491840/original/file-20221026-4274-h5s605.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/491840/original/file-20221026-4274-h5s605.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Older electronic gaming machines in NSW allow ‘load up’ to $9,999.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>Josh Landis, the chief executive of ClubsNSW (which represents most of the state’s 1,200 licensed clubs) <a href="https://www.abc.net.au/sydney/programs/breakfast/breakfast/14090002">has said</a> that such technology has not been trialled, and was uncosted and unproven.</p>
<p>But Crown Resorts and Star Entertainment are implementing such systems. Similar systems have been operating successfully in Norway <a href="https://nla.gov.au/nla.obj-571970219/view">since 2009</a>, and in Sweden <a href="https://aifs.gov.au/resources/policy-and-practice-papers/pre-commitment-systems-electronic-gambling-machines">since 2013</a>. </p>
<p>Victoria has already implemented a card-based <a href="https://www.yourplay.com.au/">precommitment system</a>, incorporating most necessary characteristics. Every poker machine in the state is linked to this system. Its flaw is that it is voluntary, allowing those who wish to clean dirty money, or avoid a limit, <a href="https://www.justice.vic.gov.au/safer-communities/gambling/evaluation-of-yourplay-final-report">to simply opt out</a>. </p>
<h2>It’s not just about money laundering</h2>
<p>Money laundering isn’t the only reason to introduce cashless gaming systems.</p>
<p>On any day in NSW, <a href="https://www.responsiblegambling.nsw.gov.au/__data/assets/pdf_file/0008/881279/NSW-Gambling-Survey-2019-report-FINAL-AMENDED-Mar-2020.pdf">hundreds of thousands of people</a> are experiencing significant gambling harm, mostly using poker machines. Many hundreds of thousands more – <a href="https://www.tandfonline.com/doi/abs/10.1080/14459795.2017.1331252">partners, children, employers</a> – are also harmed as a consequence. </p>
<p>A pre-commitment system incorporating all the features of the NSW Crime Commission’s cashless model would stop money laundering and also help those struggling to control their gambling. For those who want to stop it would provide a truly effective gambling self-exclusion system. </p>
<p>The Tasmanian government <a href="https://www.abc.net.au/news/2022-09-16/tasmania-pokies-gambling-limits-reform-explained/101446788">has promised to implement</a> a statewide system by 2024.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/responsible-gambling-a-bright-shining-lie-crown-resorts-and-others-can-no-longer-hide-behind-162089">Responsible gambling – a bright shining lie Crown Resorts and others can no longer hide behind</a>
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</em>
</p>
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<h2>A matter of political commitment</h2>
<p>The real test here isn’t technology. It’s political will. </p>
<p>NSW Premier Dominic Perrottet has expressed concern at the <a href="https://www.smh.com.au/politics/nsw/premier-says-pokies-taxing-on-the-misery-of-others-vows-to-do-better-20221002-p5bmjz.html">exploitation of vulnerable people</a> via gambling. Opposition leader Chris Minns has <a href="https://www.theage.com.au/politics/nsw/coalition-labor-set-to-be-wedged-on-cashless-gaming-card-as-crossbench-pushes-for-reform-20221027-p5bteh.html">said the crime commission’s report is concerning</a> but will not commit to a cashless card. </p>
<p>ClubsNSW and the Australian Hotels Association are two of Australia’s most powerful lobby groups. According to an <a href="https://www.abc.net.au/news/2021-11-23/how-gambling-industrys-biggest-political-donors-influence-votes/100592068">ABC investigation</a>, they have doled out about a third of $40 million in political donations disclosed by gambling-related organisations over the past two decades.</p>
<p>Since 2010, ClubsNSW has signed <a href="https://www.smh.com.au/national/nsw/the-million-dollar-men-who-run-the-clubs-industry-20221011-p5bowp.html">memorandums of understanding</a> with incoming governments to protect its members interests.</p>
<p>In the first six months of 2022 (the <a href="https://nswgov.sharepoint.com/sites/GamingMachineReports/Shared%20Documents/Forms/AllItems.aspx">most recent data</a> available), people in NSW lost $4 billion using pokies – $2.4 billion in clubs, $1.6 billion in pubs. This is 23% more than the same period in 2019, before pandemic restrictions. </p>
<p>Yet according to the Australian Hotels Association, the industry is on “<a href="https://www.afr.com/chanticleer/why-a-pokie-crackdown-will-have-pub-owners-nervous-20221026-p5bt48">on its knees</a>” and being told to introduce “an unproven, untested, un-costed and unnecessary cashless system”.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/4-gambling-reform-ideas-from-overseas-to-save-australia-from-gambling-loss-and-harm-165387">4 gambling reform ideas from overseas to save Australia from gambling loss and harm</a>
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</em>
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<p>In NSW, gambling operators are not permitted to donate to state political campaigns. But ClubsNSW (and its member clubs) can because they are “<a href="https://www.elections.nsw.gov.au/Funding-and-disclosure/Political-donations/Unlawful-political-donations/Prohibited-donors">not for profit</a>”.</p>
<p>If this continues, political parties will be open to the allegation that they, like clubs, are benefiting from the proceeds of crime.</p>
<p>Pokie operators have billions of reasons to assert this is no big deal. Politicians should take a different view.</p><img src="https://counter.theconversation.com/content/193312/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Charles Livingstone has received funding from the Victorian Responsible Gambling Foundation, the (former) Victorian Gambling Research Panel, and the South Australian Independent Gambling Authority (the funds for which were derived from hypothecation of gambling tax revenue to research purposes), from the Australian and New Zealand School of Government and the Foundation for Alcohol Research and Education, and from non-government organisations for research into multiple aspects of poker machine gambling, including regulatory reform, existing harm minimisation practices, and technical characteristics of gambling forms. He has received travel and co-operation grants from the Alberta Problem Gambling Research Institute, the Finnish Institute for Public Health, the Finnish Alcohol Research Foundation, the Ontario Problem Gambling Research Committee, the Turkish Red Crescent Society, and the Problem Gambling Foundation of New Zealand. He was a Chief Investigator on an Australian Research Council funded project researching mechanisms of influence on government by the tobacco, alcohol and gambling industries. He has undertaken consultancy research for local governments and non-government organisations in Australia and the UK seeking to restrict or reduce the concentration of poker machines and gambling impacts, and was a member of the Australian government's Ministerial Expert Advisory Group on Gambling in 2010-11. He is a member of the Lancet Public Health Commission into gambling, and of the World Health Organisation expert group on gambling and gambling harm. </span></em></p>The NSW Crime Commission says cashless gambling cards are needed to stop billions of dollars of ‘dirty money’ being funnelled through NSW pokie venues,Charles Livingstone, Associate Professor, School of Public Health and Preventive Medicine, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1770662022-05-13T03:17:34Z2022-05-13T03:17:34ZGambling and homelessness in older age: hidden and overlooked, but preventable<figure><img src="https://images.theconversation.com/files/454611/original/file-20220328-13-1uko5d4.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C2400%2C1598&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source"> Erik Mclea/Unsplash</span>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span></figcaption></figure><p>Gambling and homelessness are clearly <a href="https://doi.org/10.1016/j.addbeh.2021.107151">linked</a>. Australians over 50 are particularly vulnerable. They have high rates of <a href="https://aifs.gov.au/agrc/publications/gambling-activity-australia">regular gambling</a>, and are the <a href="https://www.launchhousing.org.au/ending-homelessness/research-hub/australian-homelessness-monitor-2020">fastest-growing</a> age group of Australians experiencing homelessness.</p>
<p>Data from <a href="https://www.aihw.gov.au/reports/housing-assistance/problem-gambling-among-seeking-homelessness/contents/summary">homelessness services</a> across Australia reveals older service users have the highest rates of gambling problems.</p>
<p>Until now, little attention has been given to the issue. For example, there’s no mention of gambling in any current state or territory homelessness strategy. This is a startling oversight, especially given Australia ranks <a href="https://www.economist.com/graphic-detail/2017/02/09/the-worlds-biggest-gamblers">highest globally for gambling losses per capita</a>, according to 2016 data.</p>
<p>To better understand this issue, myself and a research team at Monash University studied how gambling and homelessness are linked in older adults.</p>
<p>We found gambling and homelessness <a href="https://responsiblegambling.vic.gov.au/resources/publications/gambling-and-homelessness-among-older-people-an-exploratory-study-971/">often occur together</a>, but the problem is generally hidden and not well measured in Australia. So it’s often overlooked by policymakers and service providers.</p>
<h2>Higher rates of harmful gambling</h2>
<p>We <a href="https://doi.org/10.1016/j.addbeh.2021.107151">reviewed</a> the international research on how commonly gambling and homelessness occur together, and <a href="https://doi.org/10.1111/add.15756">explored</a> the possible reasons for this in older Victorians.</p>
<p>Research suggests up to <a href="https://akjournals.com/view/journals/2006/5/4/article-p592.xml">60-80%</a> of the general population gambled in the past year in countries including Australia (64%), New Zealand (86%) and the United States (82.2%). But studies find <a href="https://doi.org/10.1016/j.addbeh.2021.107151">less than 30%</a> of people experiencing homelessness report any gambling. </p>
<figure class="align-center ">
<img alt="Person sports betting" src="https://images.theconversation.com/files/454574/original/file-20220328-23-1j3dgmh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/454574/original/file-20220328-23-1j3dgmh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/454574/original/file-20220328-23-1j3dgmh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/454574/original/file-20220328-23-1j3dgmh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/454574/original/file-20220328-23-1j3dgmh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/454574/original/file-20220328-23-1j3dgmh.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/454574/original/file-20220328-23-1j3dgmh.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Research consistently finds up to 80% of people have gambled.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>However, the prevalence of harmful gambling is higher in <a href="https://akjournals.com/view/journals/2006/5/2/article-p318.xml">people experiencing homelessness</a> (10–20%) compared to the general population (approximately 1–7%). Harmful gambling is repetitive gambling resulting in recurring harms. These include financial problems, addiction, and mental health issues.</p>
<p>This <a href="https://doi.org/10.1016/j.addbeh.2021.107151">paradox</a> – of lower rates of past-year gambling among people experiencing homelessness but higher rates of harmful gambling – was evident across the dozen countries we examined.</p>
<p>The body of research we reviewed also shows the rate of experiencing periods of homelessness is <a href="https://doi.org/10.1016/j.addbeh.2017.07.002">disproportionately high</a> in people who gamble harmfully.</p>
<p>On average, around one in six people who gamble harmfully experience housing problems or periods of homelessness. </p>
<h2>Two-way relationship</h2>
<p>To more deeply understand the relationship between gambling and homelessness in older age, we interviewed 48 workers in health care, financial counselling, gamblers’ help and homelessness services across Victoria. We looked for reasons why gambling and homelessness often occur together and what can be done to prevent the harm.</p>
<p><a href="https://doi.org/10.1111/add.15756">We found</a> experiencing homelessness into older age is often accompanied by gambling. We also found gambling can contribute to older adults becoming homeless.</p>
<p>However, the link between gambling and homelessness in older age is often complex and indirect. Frequently, it depends on personal circumstances and societal factors outside an individual’s control. </p>
<p>For example, a key factor is the isolation and hardship of homelessness for older adults. This makes gambling seem attractive.</p>
<p>Often added to this is a mix of individual vulnerabilities, including early life adversity, substance use, mental health disorders, and relationship breakdown.
The fact that gambling is readily available also contributes, along with poverty and housing insecurity.</p>
<p>This aligns with <a href="https://search.informit.org/doi/abs/10.3316/INFORMIT.659354563147675">previous research</a> showing gambling during homelessness is sometimes motivated out of desperation and in the hope of financial gain.</p>
<p>Studies also show the <a href="https://haushofer.ne.su.se/publications/Haushofer_Fehr_Science_2014.pdf">psychological effects of poverty</a>, such as chronic stress, can create a feedback loop of behaviours and economic decision-making that reinforces disadvantage. For example, in our research we heard basic necessities such as shelter, food and medications were sometimes forgone because an individual had lost all of their money gambling. As one participant, who works for Gambler’s Help, said:</p>
<blockquote>
<p>[…] They become that desperate that even if they have $20 left, that they can use on food, they’d rather put that in there to double it up or make some sort of jackpot.</p>
</blockquote>
<p>For some people, gambling also contributes to becoming homeless for the first time in their lives at an old age. As another Gambler’s Help worker said:</p>
<blockquote>
<p>[…] I’ve come across people who specifically blame their entire homelessness on gambling and basically say “I’m homeless because I gamble”. It’s pretty much just as straightforward as that.</p>
</blockquote>
<p>Often, those who experience homelessness for the first time later in life have had significant, rapid losses from high-intensity gambling such as online betting or pokies.</p>
<p>Major life events and changes can also trigger harmful gambling in older adults, including bereavement, job loss, or relationship difficulties. Recognising these as potential markers for increased risk of gambling and homelessness in older age is important for prevention.</p>
<p>We found the design of high-intensity gambling products, <a href="https://www.thelancet.com/journals/lanpsy/article/PIIS2215-0366(17)30467-4/fulltext">especially pokies</a>, and the conduct of <a href="https://www.financialcounsellingaustralia.org.au/docs/duds-mugs-and-the-a-list-the-impact-of-uncontrolled-sportsbetting/">gambling operators and creditors</a>, can accelerate financial harm from gambling.</p>
<figure class="align-center ">
<img alt="Person experiencing homelessness" src="https://images.theconversation.com/files/454612/original/file-20220328-23-1vs575.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/454612/original/file-20220328-23-1vs575.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=397&fit=crop&dpr=1 600w, https://images.theconversation.com/files/454612/original/file-20220328-23-1vs575.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=397&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/454612/original/file-20220328-23-1vs575.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=397&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/454612/original/file-20220328-23-1vs575.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=499&fit=crop&dpr=1 754w, https://images.theconversation.com/files/454612/original/file-20220328-23-1vs575.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=499&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/454612/original/file-20220328-23-1vs575.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=499&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Gambling during homelessness is sometimes motivated out of desperation.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
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</figure>
<h2>What can be done?</h2>
<p>Moves signalled by Victoria’s regulators to introduce new <a href="https://www.theage.com.au/politics/victoria/crown-to-face-nation-s-toughest-pokies-pre-commitment-rules-20220216-p59x0j.html">pre-set time and loss limits</a> on Crown Casino pokies may be a step towards preventing harm. </p>
<p>There’s also a need for <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/add.15876">developing and testing interventions</a> on an individual level for people who are experiencing homelessness and gamble. However, this can be challenging, because gambling is often hidden in older homeless adults, in part because of the <a href="https://www.thelancet.com/journals/lanpub/article/PIIS2468-2667(20)30257-7/fulltext">stigma and shame</a> that surrounds it. This can hinder service providers’ attempts to effectively identify gambling issues and offer help. </p>
<p>A related challenge is that homelessness services sometimes neglect tackling gambling issues because they <a href="https://jgi.camh.net/index.php/jgi/article/view/4052/4454">lack the capacity to respond</a>, or view it as a lower priority for older homeless adults with many other pressing needs. </p>
<p>The recent Victorian parliamentary inquiry into homelessness <a href="https://www.parliament.vic.gov.au/lsic-lc/inquiries/inquiry/976">acknowledged</a> more should be done to measure how many people gamble and experience homelessness. The inquiry’s <a href="https://www.parliament.vic.gov.au/images/stories/committees/SCLSI/Inquiry_into_Homelessness_in_Victoria/Report/LCLSIC_59-06_Homelessness_in_Vic_Final_report.pdf">final report</a> echoed our call to expand routine screening and early detection of gambling issues in the homeless population.</p>
<p>The state government’s response to the inquiry is now <a href="https://www.dhhs.vic.gov.au/publications/parliamentary-inquiry-homelessness-victoria">overdue</a>.</p>
<p>Meanwhile, cuts to JobSeeker and the coronavirus supplement have <a href="https://homelessnessaustralia.org.au/we-can-and-did-dramatically-reduce-homelessness-with-increased-income-support-new-data-shows/">seen a jump in people seeking help for homelessness nationally</a>. And gambling losses have <a href="https://www.e61.in/index-tracker">risen sharply</a> since gambling venues re-opened.</p>
<p>It’s time to strengthen policies and improve services that can prevent and reduce the substantial but avoidable harm from gambling and homelessness in older age.</p><img src="https://counter.theconversation.com/content/177066/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Brian Vandenberg receives funding from the Victorian Responsible Gambling Foundation. This story is part of The Conversation's Breaking the Cycle series, which is about escaping cycles of disadvantage. It is supported by a philanthropic grant from the Paul Ramsay Foundation.</span></em></p>Gambling during homelessness is sometimes motivated out of desperation and in the hope of financial gain.Brian Vandenberg, Research Fellow, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1771492022-02-16T04:50:19Z2022-02-16T04:50:19ZCrown Resorts has sunk so low that private equity is the best option<figure><img src="https://images.theconversation.com/files/446691/original/file-20220216-26-16cb0ax.jpg?ixlib=rb-1.1.0&rect=0%2C298%2C1920%2C974&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Michał Parzuchowski/Unsplash</span>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span></figcaption></figure><p>Private equity companies generally have a reputation for buying “distressed assets” at bargain prices, squeezing as much cash out of them while making them look as profitable as possible, then selling out for a huge profit.</p>
<p>But the takeover of Australia’s disgraced casino operator Crown Resorts by US private equity behemoth the Blackstone Group may be the best option available to Crown’s shareholders, the governments that benefit from gambling revenue, and the community that suffers the consequences of problem gambling.</p>
<p>The board of Crown Resorts has recommended Blackstone’s A$9 billion offer for total ownership, subject to approval from the federal Foreign Investment Review Board and state gaming regulators in New South Wales, Victoria and Western Australia.</p>
<p>The astonishing ethical and moral depths Crown plumbed in its pursuit of profit means that this may be one of those rare occasions where private equity’s financial and (particularly) non-financial engineering leads to a net positive outcome for the wider community. </p>
<h2>An atypical private equity deal</h2>
<p>Private equity companies raise money from private investors to buy undervalued and often distressed businesses to nurture back to commercial health before exiting at a profit.</p>
<p>Private ownership can be advantageous for a struggling company because it removes the regulatory and other distractions that come with being a listed public company. It means management can make decisions without worrying about short-term stock price fluctuations, for example. </p>
<p>Blackstone’s takeover of Crown Resorts is not a typical private equity transaction; Crown’s problems arose from moral, not financial, bankruptcy. </p>
<p>Notwithstanding the impact of the pandemic on casino profits – in particular the loss of foreign high-rollers – Crown has been consistently profitable. But its licences to continue to rake in those profits are under a cloud. </p>
<p>A NSW commission of inquiry (headed by former NSW Supreme Court judge Patricia Bergin) and a Victorian royal commission (headed by former Federal Court judge Ray Finkelstein) found Crown unfit to hold its Sydney and Melbourne casino licences. A Western Australian royal commission into the company’s fitness to hold its Perth casino licence is pending. </p>
<h2>Illegal, dishonest, unethical, exploitative</h2>
<p>The Victorian royal commission’s <a href="https://content.royalcommission.vic.gov.au/sites/default/files/2021-10/The%20Report%20-%20RCCOL%20-%2015%20October%202021.pdf">final report</a> described Crown Melbourne’s management as disgraceful and its practices as variously illegal, dishonest, unethical and exploitative. </p>
<p>It lambasted senior executives for being “indifferent to their ethical, moral and sometimes legal obligations”, and the board for failing in its prime responsibility to ensure the company “satisfied its legal and regulatory obligations”. </p>
<p>This included facilitating the laundering of millions of dollars and ignoring its problem gambling obligations. Its claim to have a “world’s best approach to problem gambling”, Finkelstein said, could not “be further from the truth”.</p>
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<strong>
Read more:
<a href="https://theconversation.com/responsible-gambling-a-bright-shining-lie-crown-resorts-and-others-can-no-longer-hide-behind-162089">Responsible gambling – a bright shining lie Crown Resorts and others can no longer hide behind</a>
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<p>It is hard to imagine a more damning indictment. </p>
<p>Blackstone’s priority, therefore, will be to repair Crown’s many regulatory inadequacies, and deeply tarnished reputation, away from the gaze of shareholders, the media and investment bank analysts.</p>
<h2>A rare opportunity</h2>
<p>For Blackstone, Crown Resorts is a rare opportunity. Casino cash flows are irresistible to highly leveraged private equity investors. Casino company balance sheets dominated by valuable real estate assets are also a draw-card. </p>
<p>Blackstone has extensive experience in “flipping” hotels and casinos.</p>
<p>For example, it acquired the <a href="https://www.afr.com/property/blackstone-exits-hilton-earning-18-billion-after-11-years-20180521-h10bb3">Hilton hotels empire</a> in 2007 and exited 11 years later, making a $US14 billion profit. Last year it sold The Cosmopolitan of Las Vegas <a href="https://www.wsj.com/articles/blackstone-selling-vegas-casino-firms-most-profitable-property-deal-11632744001">for US$5.65 billion</a>, seven years after buying it for US$1.8 billion. It is in the process of exiting its investment in Spanish <a href="https://www.reuters.com/markets/funds/blackstone-plans-34-bln-ipo-bookmaker-cirsa-spanish-paper-says-2021-12-09/">gambling company CIRSA</a>, which runs casinos and betting shops across Spain and Latin America.</p>
<p>Crown Resorts’ shareholders, meanwhile, are over a regulatory barrel. </p>
<p>The company’s licence to operate its brand-new Barangaroo casino is suspended. Its Victorian licence <a href="https://theconversation.com/illegal-dishonest-unethical-and-exploitative-but-crown-resorts-keeps-its-melbourne-casino-licence-170625">is on probation</a>, with a requirement that Packer reduce his 37% stake (through his company Consolidated Press Holdings) to 5%.</p>
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Read more:
<a href="https://theconversation.com/how-sydneys-barangaroo-tower-paved-the-way-for-closed-door-deals-161816">How Sydney's Barangaroo tower paved the way for closed-door deals</a>
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<p>Existing casino operators would have been averse to tarnishing their reputations by buying into Crown, given its outstanding regulatory problems. Correcting its myriad problems can be expected to raise Crown’s costs (especially compliance costs) and cut its revenue (fewer high-roller junkets) – reducing its profitability and, hence, investor appeal. </p>
<p>If Blackstone can oversee Crown’s rehabilitation from regulatory pariah, it has the opportunity to profit from the ultimate corporate redemption story.</p>
<h2>What happens next</h2>
<p>Private equity outfits assist distressed companies by injecting the money required to turn things around and providing management expertise. </p>
<p>Crown doesn’t need money, so Blackstone’s main role will be rehabilitating its brand and corporate credentials with regulators and, hence, the investment community. </p>
<p>It can then be expected, after a polite interval, to sell Crown either to a global casino operator via a trade sale, or to public investors via a refloat on the Australian Stock Exchange. </p>
<p>One of the criticisms often made of private equity firms like Blackstone is that they aggressively (but legally) minimise their tax obligations. In the case of a casino, tax obligations should be harder to avoid since they are calculated on the basis of revenue received rather than reported profit. (That said, the Victorian Royal Commission did find Crown Resorts had avoided $200 million in tax, of which the company has since repaid $61.5 million). </p>
<p>But so long as Blackstone follows the rules, particularly those to do with policing problem gambling, there’s a chance it could serve shareholder interests while minimising the social harm casinos tend to visit on the communities in which they operate.</p><img src="https://counter.theconversation.com/content/177149/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mark Melatos is a member of the Reserve Bank of Australia's Educators Advisory Panel and a member of the NSW Education Standards Authority's HSC Standards Committee. He is also a volunteer for the Australian Conservation Foundation.</span></em></p>Crown Resorts has plumbed astonishing ethical and moral depths in pursuit of profits. Private equity giant Blackstone is also chasing a profit – from redeeming Crown’s reputation.Mark Melatos, Associate Professor of Economics, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1706252021-10-26T06:42:18Z2021-10-26T06:42:18Z‘Illegal, dishonest, unethical and exploitative’ – but Crown Resorts keeps its Melbourne casino licence<figure><img src="https://images.theconversation.com/files/428421/original/file-20211026-15-2sc4rz.jpg?ixlib=rb-1.1.0&rect=44%2C528%2C4899%2C2273&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>The report of Victoria’s Royal Commission into Melbourne’s casino has been <a href="https://content.royalcommission.vic.gov.au/sites/default/files/2021-10/The%20Report%20-%20RCCOL%20-%2015%20October%202021.pdf">made public</a>. It has found the behaviour of the casino’s operator, Crown Resorts to be “disgraceful”, with practices that have been “variously illegal, dishonest, unethical and exploitative”. </p>
<p>But royal commissioner Ray Finkelstein has also decided the <a href="https://theconversation.com/crown-resorts-is-not-too-big-to-fail-it-has-failed-already-165659">economic effects</a> of Crown losing its licence, the impact on innocent parties, and the company’s belated attempts at rehabilitation mean it should keep its casino licence – at least for now.</p>
<p>The Victorian government has <a href="https://www.parliament.vic.gov.au/file_uploads/Government_response_to_Crown_Royal_Commission_report_QYfCym70.pdf">accepted this recommendation</a>. It will appoint a “special manager” – <a href="https://www.vicbar.com.au/profile/6231">Stephen O'Bryan QC</a>, a former commissioner with the state’s anti-corruption commission – to oversee the casino’s operations over the next two years.</p>
<p>After two years O'Bryan will prepare a report for the new gambling regulator the Victorian government will establish in response to the deficiencies identified with the Victorian Commission for Gambling and Liquor Regulation. The new beefed-up regulator, to be known as the <a href="https://www.premier.vic.gov.au/new-regulator-strengthen-casino-oversight">Victorian Gambling and Casino Control Commission</a>, will then decide if Crown keeps its licence. </p>
<p>The government has also announced it will repeal provisions enabling Crown to be compensated for any regulatory changes affecting its business. It will also increase the maximum penalty for breaches of the Casino Control Act from A$1 million to A$100 million. </p>
<p>This is all good. But all these things should, of course, have been in place far earlier. </p>
<p>It is the failure of regulation, and the politics that sit behind it, that made the Crown Melbourne debacle possible, and perhaps inevitable. </p>
<p>As with other gambling businesses, Crown’s <a href="https://theconversation.com/gambling-lobby-gives-big-to-political-parties-and-names-names-73131">political influence</a> has been significant, and a key feature of its business model. </p>
<p>Politically and socially <a href="https://theconversation.com/gambling-industry-finds-plenty-of-political-guns-for-hire-to-defend-the-status-quo-70124">well connected directors and staff</a> were recruited, clearly with an eye to their ability to influence governments. Their aim, it seems, was to make Crown too big to be regulated. They seem to have succeeded.</p>
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Read more:
<a href="https://theconversation.com/crown-resorts-is-not-too-big-to-fail-it-has-failed-already-165659">Crown Resorts is not too big to fail. It has failed already</a>
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<h2>Recommendations kicked down the road</h2>
<p>Beyond the government’s headline announcements, some of Commissioner Finkelstein’s key recommendations have been kicked down the road – until next year, at least. These include those addressing money laundering, and changes to the operator’s structure. The latter relate to reductions in maximum shareholdings, and the independence of the board and senior management. </p>
<p>Also deferred is any response to the recommendations focused on gambling harm prevention and minimisation. Many in favour of gambling reform will be encouraged by Finkelstein’s focus on these. The government says it accepts all his recommendations, but exactly how it will act on them requires “further detailed analysis and consultation”.</p>
<p>Finkelstein focused on the harms of gambling, finding that:</p>
<blockquote>
<p>Crown Melbourne had for years held itself out as having a world’s best approach to problem gambling. Nothing can be further from the truth.</p>
</blockquote>
<p>His recommendations to improve Crown’s paltry “responsible gambling” program are far reaching and significant. They include implementing a comprehensive pre-commitment system, requiring gamblers to establish accounts and set limits of time and money. This would establish an effective self-exclusion system for the first time, in which those struggling with gambling would be able to ban themselves from gambling without the possibility of easily revoking that arrangement.</p>
<p>Australia’s Productivity Commission recommended a pre-commitment system in its 2010 <a href="https://www.pc.gov.au/inquiries/completed/gambling-2010/report">report</a> on gambling. The Gillard government was set to implement that recommendation, but ClubsNSW spearheaded <a href="https://insidestory.org.au/the-lobby-group-that-got-much-more-bang-for-its-buck/">a successful campaign</a> to sink the plan. </p>
<p>The gambling lobby will no doubt be keenly interested in how the Victorian government responds to Finkelstein’s recommendation, which goes further than the Productivity Commission by recommending a default loss limit and regulated breaks in use. </p>
<h2>Reversing the ‘responsible gambling’ discourse</h2>
<p>Finkelstein’s report recommends the casino also have “a duty to take all reasonable steps to prevent and minimise harm from gambling”. This effectively reverses the “responsible gambling” discourse which puts the onus on gamblers – and arguably blames them for harming themselves. Such a change, if well implemented, has the potential to finally make harm prevention a high priority in gaming regulation.</p>
<p>The report also recommends that casino data be made available for proper research purposes. It points out the importance, and difficulty, of obtaining such data. Without it, evaluating the casino’s personal and social impacts is virtually impossible. This too would be a big step forward in harm prevention and reduction efforts. It could also help with anti money-laundering endeavours.</p>
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Read more:
<a href="https://theconversation.com/responsible-gambling-a-bright-shining-lie-crown-resorts-and-others-can-no-longer-hide-behind-162089">Responsible gambling – a bright shining lie Crown Resorts and others can no longer hide behind</a>
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<h2>A blueprint for wider regulation</h2>
<p>Assuming its board and executives have the nous to clean up the business to the necessary standard, Crown Resorts will get to keep its Melbourne casino. This will shock many, given what has transpired.</p>
<p>Political will is needed. The outcome may be that a powerful and harmful gambling business is cleaned up. Or the situation may revert to <a href="https://www.tandfonline.com/doi/abs/10.1080/14459790701601810">business as usual</a> – the default position for gambling regulation. This depends on what the Victorian government does with the recommendations on which it has postponed action. </p>
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Read more:
<a href="https://theconversation.com/casino-operator-crown-plays-an-old-business-trick-using-workers-as-human-shields-165815">Casino operator Crown plays an old business trick: using workers as human shields</a>
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<p>Most of the money <a href="https://responsiblegambling.vic.gov.au/resources/gambling-victoria/expenditure-on-gambling-victoria-and-australia/">Victorians</a> (and <a href="https://responsiblegambling.vic.gov.au/about-us/news-and-media/latest-edition-australian-gambling-statistics-2019/">Australians</a>) gamble away is through poker machines in local clubs and pubs. The Finkelstein royal commission has provided an important blueprint to tackle that gambling harm, too. The Victorian government could lead the way by extending Finkelstein’s recommendations to all gambling businesses. No business, or sector, should be too big to be regulated.</p><img src="https://counter.theconversation.com/content/170625/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Charles Livingstone has received funding from the Victorian Responsible Gambling Foundation, the (former) Victorian Gambling Research Panel, and the South Australian Independent Gambling Authority (the funds for which were derived from hypothecation of gambling tax revenue to research purposes), from the Australian and New Zealand School of Government and the Foundation for Alcohol Research and Education, and from non-government organisations for research into multiple aspects of poker machine gambling, including regulatory reform, existing harm minimisation practices, and technical characteristics of gambling forms. He has received travel and co-operation grants from the Alberta Problem Gambling Research Institute, the Finnish Institute for Public Health, the Finnish Alcohol Research Foundation, the Ontario Problem Gambling Research Committee, and the Problem Gambling Foundation of New Zealand. He was a Chief Investigator on an Australian Research Council funded project researching mechanisms of influence on government by the tobacco, alcohol and gambling industries. He has undertaken consultancy research for local governments and non-government organisations in Australia and the UK seeking to restrict or reduce the concentration of poker machines and gambling impacts, and was a member of the Australian government's Ministerial Expert Advisory Group on Gambling in 2010-11. He is a member of the Australian Greens.</span></em></p>Whether the Victorian royal commission leads to a more responsible gambling industry depends on the recommendations the state government has kicked down the road.Charles Livingstone, Associate Professor, School of Public Health and Preventive Medicine, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1656592021-08-08T21:05:22Z2021-08-08T21:05:22ZCrown Resorts is not too big to fail. It has failed already<figure><img src="https://images.theconversation.com/files/414964/original/file-20210806-5434-1q71het.jpg?ixlib=rb-1.1.0&rect=0%2C653%2C4592%2C2151&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Nils Versemann/Shutterstock</span></span></figcaption></figure><p>Crown Resorts was very sorry it had done so many wrong things in running its Melbourne casino, the company’s
senior counsel, Michael Borsky, <a href="https://www.afr.com/companies/games-and-wagering/crown-melbourne-ceo-stands-down-20210803-p58fcj">last week</a> told Victoria’s Finkelstein royal commission. </p>
<p>But his main point was to argue that Crown should keep running the casino, because cancelling or suspending its licence would not be in the public interest.</p>
<p>His submissions — responding to the arguments made by the counsel assisting the commission, Adrian Finanzio, for why Crown should be stripped of its licence — emphasised allowing the company to get on with reforming as the best course of action. At worst, Borsky argued, an independent supervisor or monitor with broad powers could be be appointed to direct the company’s activities.</p>
<p>Crown’s spin is that the public interest is mostly about maintaining the employment of the 11,600 people who work at the sprawling Melbourne casino and entertainment complex. It argues Victoria’s tourism industry would be endangered, should the licence be lost, and it is important to keep the revenue the casino provides to Victoria’s treasury flowing. </p>
<p>But based on the evidence, this seems a very optimistic take. </p>
<p>The commission has heard a litany of revelations about Crown’s malfeasance and improper conduct across a range of areas. </p>
<p>Last month royal commissioner Ray Finkelstein observed that everywhere he looked in the company there was evidence of <a href="https://theconversation.com/illegal-improper-unacceptable-revelations-about-crowns-casino-culture-just-get-worse-164084">inappropriate or unlawful behaviour</a>. Last week he compared Crown Resorts to <a href="https://www.theguardian.com/australia-news/2021/aug/03/crown-asks-royal-commission-for-trust-to-run-melbourne-casino">a car thief</a> who promises to stop stealing cars when apprehended. He suggested it was certainly not in the public interest for a decade of malfeasance to be rewarded.</p>
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Read more:
<a href="https://theconversation.com/responsible-gambling-a-bright-shining-lie-crown-resorts-and-others-can-no-longer-hide-behind-162089">Responsible gambling – a bright shining lie Crown Resorts and others can no longer hide behind</a>
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<h2>Finkelstein’s options</h2>
<p>Several paths are open to Finkelstein. He can recommend Crown Resorts lose its licence. He could recommend the company be granted some further opportunity to rehabilitate itself. Perhaps under supervision. A manager could be appointed until Crown achieves its reform agenda, or the business is sold. Some combination of all these might be possible.</p>
<p>But on the prospect of Crown reforming itself, Finanzio made the case that Crown could never again be trusted. </p>
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Read more:
<a href="https://theconversation.com/illegal-improper-unacceptable-revelations-about-crowns-casino-culture-just-get-worse-164084">Illegal, improper, unacceptable: revelations about Crown's casino culture just get worse</a>
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<p>The inevitability of any of the dire consequences painted by Crown if it loses its casino licence is also a question Finkelstein has kept open. Someone else might operate the casino, he has suggested. Given the profitability of the casino, why wouldn’t someone else want it?</p>
<p>But Crown doesn’t have much else to argue for why it should be allowed keep its casino licence. </p>
<p>It began spruiking these arguments to the state government more than a month ago, in a <a href="https://www.rccol.vic.gov.au/sites/default/files/2021-07/RC415%20Letter%20from%20ABL%20to%20Minister%20for%20Consumer%20Affairs%20Gaming%20and%20Liquor%2C%202%20July%202021%2C%20tendered%206%20July%202021.pdf">July 2 letter</a> to the Victorian minister for gaming. That letter has been interpreted by Finkelstein <a href="https://www.afr.com/chanticleer/crown-jumps-the-gun-with-crazy-finkelstein-ambush-20210708-p587zb">and others</a> as an attempt to short-circuit the royal commission’s findings. </p>
<p>Indeed, the whole point of the casino is to contribute to Victoria, as successive governments have argued.</p>
<p>So what, exactly, is this contribution?</p>
<h2>What Crown Melbourne gives …</h2>
<p>In 2018-19 (Crown’s last “normal” year of operation) <a href="https://www.abs.gov.au/statistics/economy/government/taxation-revenue-australia/2018-19">ABS data</a> shows the Melbourne casino contributed $268 million in gambling taxes to Victoria’s tax revenue. This amounts to 0.8% of state tax revenue (which was $29.2 billion in that year). </p>
<p>Overall, gambling taxes contributed 8.4% of state tax revenue. Poker machine gambling in pubs and clubs contributed 3.8% ($1.12 billion). </p>
<p>Crown Melbourne employs about 11,600 people. That’s about 0.32% of Victoria’s 3.45 million employes as of <a href="https://www.abs.gov.au/statisics/labour/employment-and-unemployment/labour-force-australia/mar-2021">March 2021</a>. It contributes about $30 million of the total $6.3 billion the state collects in payroll taxes. That’s about 0.45% of total payroll taxes, about 0.1% of total state tax revenue. </p>
<p>Thus, at the upper range, Crown contributes about 0.9% of state tax revenue.</p>
<h2>… and what it takes</h2>
<p>Of course 11,600 jobs are significant, as is $300 million a year in taxes.</p>
<p>But what is also significant is Crown’s disproportionate contribution to the <a href="https://responsiblegambling.vic.gov.au/resources/publications/the-social-cost-of-gambling-to-victoria-121/#:%7E:text=The%20research%20categorised%20the%20types,distress%2C%20depression%2C%20suicide%20and%20violence&text=%24600%20million%20%E2%80%93%20lost%20productivity%20and%20other%20work%2Drelated%20costs">$7 billion</a> in annual costs attributable to gambling harm in Victoria. </p>
<p>The casino also significantly contributes to the <a href="https://responsiblegambling.vic.gov.au/resources/publications/victorian-population-gambling-and-health-study-20182019-759/">36,000</a> Victorians who are, at any one time, directly affected by serious gambling problems, and to the estimated <a href="https://www.tandfonline.com/doi/abs/10.1080/14459795.2017.1331252?journalCode=rigs20">216,000</a> children, partners, employers and others connected to those gamblers who also suffer significant harm.</p>
<p>If Crown were to be placed into independent management, no one need lose their job — with the possible exception of a few board members and executives — and revenue would continue flowing to the state.</p>
<h2>Business as usual is not an option</h2>
<p>Whatever happens, business as usual at the casino cannot continue. </p>
<p>If effective responsible gambling interventions are put in place and properly observed, revenue will inevitably decline. If Crown’s permit to operate 1,000 “unlimited” poker machines is withdrawn or reduced (as it should be), revenue will decline. If it goes cashless and <a href="https://www.asgam.com/index.php/2021/03/09/crown-resorts-to-eliminate-all-indoor-smoking-at-australian-casinos-%0Aby-end-of-2022/">eliminates indoor smoking</a>, revenue will decline. If criminal syndicates can no longer use the casino to launder money, revenue will decline. </p>
<p>These impacts are the least that can be expected from a reasonable review of casino operating practices in Victoria. A new operator may also impose their own operational requirements, and look to reduce the workforce.</p>
<p>Crown is not and has never been a magic pudding, producing something from nothing. What it has done is transfer large sums to shareholders from many ordinary people (and a few, often criminally connected, high rollers). </p>
<p>The consequences of this have been considerable, in harm to gamblers and their families, to the integrity of Australia’s attempts to stop criminals laundering money, and to stamping out <a href="https://www.theage.com.au/national/crown-s-conclusion-the-buck-stops-with-the-andrews-government-20210804-p58fph.html">political corruption</a>.</p>
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Read more:
<a href="https://theconversation.com/how-sydneys-barangaroo-tower-paved-the-way-for-closed-door-deals-161816">How Sydney's Barangaroo tower paved the way for closed-door deals</a>
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<p>Whatever the royal commission recommends, the profitability of the casino will be affected, with consequences for the jobs and tax revenue it provides. </p>
<p>But the gains — involving a reduction in gambling harm, a strengthening of the rule of law, and the reinforcement of effective regulatory systems — are worth a great deal more.</p><img src="https://counter.theconversation.com/content/165659/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Charles Livingstone has received funding from the Victorian Responsible Gambling Foundation, the (former) Victorian Gambling Research Panel, and the South Australian Independent Gambling Authority (the funds for which were derived from hypothecation of gambling tax revenue to research purposes), from the Australian and New Zealand School of Government and the Foundation for Alcohol Research and Education, and from non-government organisations for research into multiple aspects of poker machine gambling, including regulatory reform, existing harm minimisation practices, and technical characteristics of gambling forms. He has received travel and co-operation grants from the Alberta Problem Gambling Research Institute, the Finnish Institute for Public Health, the Finnish Alcohol Research Foundation, the Ontario Problem Gambling Research Committee, and the Problem Gambling Foundation of New Zealand. He was a Chief Investigator on an Australian Research Council funded project researching mechanisms of influence on government by the tobacco, alcohol and gambling industries. He has undertaken consultancy research for local governments and non-government organisations in Australia and the UK seeking to restrict or reduce the concentration of poker machines and gambling impacts, and was a member of the Australian government's Ministerial Expert Advisory Group on Gambling in 2010-11. He is a member of the Australian Greens.</span></em></p>Crown Resorts’ contribution to Victoria is at the core of its attempts to keep its casino licence. But the costs of it keeping the casino may well be greaterCharles Livingstone, Associate Professor, School of Public Health and Preventive Medicine, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1640842021-07-09T06:40:31Z2021-07-09T06:40:31ZIllegal, improper, unacceptable: revelations about Crown’s casino culture just get worse<figure><img src="https://images.theconversation.com/files/410504/original/file-20210709-15-1u40djs.jpg?ixlib=rb-1.1.0&rect=0%2C477%2C3008%2C1508&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">ChameleonsEye/Shutterstock</span></span></figcaption></figure><p>“Wherever I look I see not just bad conduct but illegal conduct, improper conduct, unacceptable conduct and it permeates the whole organisation,” Ray Finkelstein, the royal commissioner into Crown Resorts’ Melbourne casino said this week.</p>
<p>That was when Xavier Walsh, Crown Melbourne’s chief executive, was in the stand. Then came his boss, Crown Resorts’ chief executive Steve McCann, who started his role only on June 1. He reportedly <a href="https://www.afr.com/companies/games-and-wagering/tearful-trouble-for-crown-s-new-ceo-steve-mccann-20210706-p587b2">almost burst into tears</a> during questioning. </p>
<p>But a far more revealing performance was to come — from Crown Resorts’ executive chair, Helen Coonan, the former federal minister who has been on <a href="https://www.crownresorts.com.au/About-Us/Board-of-Directors">Crown’s board</a> since 2012.</p>
<h2>A litany of bad behaviour</h2>
<p>Revelation after revelation has flowed from Victoria’s royal commission into the casino.</p>
<p>Before this week, evidence from Crown staff and submissions by counsel assisting had <a href="https://www.smh.com.au/business/companies/crown-in-last-minute-overhaul-as-inquiry-targets-gambling-addiction-failures-20210601-p57wz6.html">revealed shocking inadequacies</a> in “responsible service of gambling” (RSG) practices. This included the case of a woman who gambled for four days without leaving the casino, <a href="https://www.afr.com/companies/games-and-wagering/punter-gambled-for-96-hours-without-leaving-crown-20210630-p585lm">napping at the poker machines</a>.</p>
<p>Crown Resorts reduced its tax bill by <a href="https://www.smh.com.au/business/companies/crown-shortchanged-victoria-almost-200-million-in-pokies-tax-20210607-p57ypq.html">hundreds of millions of dollars</a> by claiming the cost of freebies to gamblers in its poker machine loyalty scheme.</p>
<p>It breached the Casino Control Act by allowing credit and debit cards to be used to buy casino chips.</p>
<p>On top of this, ABC’s <a href="https://www.abc.net.au/news/2021-07-06/crown-casino-gambling-regulator-inspectors-speak-out/100231722">Four Corners</a> program this week reported that five former inspectors with Victoria’s gambling regulator, the Victorian Commission for Gambling & Liquor Regulation, believed their attempts to investigate criminal activities and money laundering at Crown had been thwarted by the regulator.</p>
<p>All of this, and more, comes after the <a href="https://www.parliament.nsw.gov.au/la/papers/Pages/tabled-paper-details.aspx?pk=79129">NSW casino inquiry</a> headed by Patricia Bergin revealed extensive money laundering and criminal infiltration of Crown’s existing operations. This evidence was sufficient for the NSW regulator to find Crown not suitable to operate its new Barangaroo casino.</p>
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Read more:
<a href="https://theconversation.com/how-sydneys-barangaroo-tower-paved-the-way-for-closed-door-deals-161816">How Sydney's Barangaroo tower paved the way for closed-door deals</a>
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<p>On Tuesday McCann said he wasn’t informed of the tax avoidance issue until he had been in the job for a week. He is yet to complete probity checks, but assured Finkelstein he had a track record of “turning things around”.</p>
<p>He has his work cut out, based on Coonan’s <a href="https://www.rccol.vic.gov.au/recordings">evidence yesterday</a>.</p>
<h2>Coonan’s evidence</h2>
<p>Coonan told the commission that until February, when the NSW casino inquiry published its report, changing Crown’s culture was very difficult. Even though she was the board’s chair, she reported being blocked in her attempts to override the combative approach Crown took to inquiries into its operations. </p>
<p>In answer to questions from counsel assisting, Adrian Finanzio SC, Coonan said the board lacked independence, and pushing back against the company’s “defensive” strategy would have involved leaving it. </p>
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Read more:
<a href="https://theconversation.com/gaming-the-board-crown-resorts-shows-you-just-cant-bet-on-independent-directors-148522">Gaming the board: Crown Resorts shows you just can't bet on 'independent' directors</a>
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<p>It was the “wrong course”, she said, but the legal advice was that changing strategy was not advisable. </p>
<p>Management also, apparently, failed to disclose all necessary information to the board, which became clear only after May 2019, when the Victorian gaming regulator provided the board its draft report into the arrests of 19 Crown staff in China in 2016 for allegedly illegally promoting Crown’s casinos. Yet even after media reports in mid-2019, the board did not pursue any independent investigations into the issues raised. </p>
<h2>A ‘personal’ commitment</h2>
<p>Between late December 2020 and the start of the royal commission in mid-May, Coonan said she met with officials from the Victorian gaming regulator five times to improve their relationship. At the first meeting, Coonan said she conveyed her “absolute commitment” to a more cooperative approach. </p>
<p>But that commitment, she explained to the commission yesterday, was “personal”. </p>
<p>When the regulator subsequently prepared a statement of factual information on the China arrests, Crown responded in January 2021 with a combative 31-page rebuttal signed by Coonan.</p>
<h2>Blaming ‘the old regime’</h2>
<p>That response, she told the commission, was symptomatic of the “old Crown”.</p>
<p>It wasn’t easy to turn around a board or a senior management team, she explained. The royal commission provided a great opportunity to get to the bottom of things.</p>
<p>Commissioner Finkelstein asked whether it might not have been better for directors to acquit their duties and scrutinise, explore and be curious – in other words, to do the job they were meant to perform. </p>
<p>Coonan agreed that might be the case in “textbook terms”. But in practice the “old regime” prevented this, via legal advice, a lack of transparency, and the stance of the company’s management.</p>
<h2>Irresponsible service of gaming</h2>
<p>Coonan also agreed Crown Resorts’ approach to its responsible-service-of-gaming obligations “needs further enhancement and attention”.</p>
<p>Until last month Crown argued its approach was “world leading”. This ceased after Crown Melbourne’s general manager for responsible gambling, Sonja Bauer, admitted to the commission <a href="https://theconversation.com/responsible-gambling-a-bright-shining-lie-crown-resorts-and-others-can-no-longer-hide-behind-162089">this was not so</a>. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/responsible-gambling-a-bright-shining-lie-crown-resorts-and-others-can-no-longer-hide-behind-162089">Responsible gambling – a bright shining lie Crown Resorts and others can no longer hide behind</a>
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<p>After extraordinary revelations from the royal commission about the company’s lack of care — including examples such as a patron being allowed to gamble for <a href="https://www.theguardian.com/australia-news/2021/jun/02/gambler-at-crowns-melbourne-casino-allowed-to-play-for-34-hours-straight">34 hours straight without a break</a> — Crown announced <a href="https://www.smh.com.au/business/companies/crown-in-last-minute-overhaul-as-inquiry-targets-gambling-addiction-failures-20210601-p57wz6.html">changes to its policies</a>. </p>
<p>Yesterday Coonan said that, having not been on the company’s responsible gambling committee until recently, she had not previously pursued information about these issues.</p>
<h2>Old Crown, new Crown</h2>
<p>To this point Coonan’s evidence was the “Old Crown” was gone. The “New Crown” would acquit its responsibilities properly. She said she wanted to vacate her seat by the company’s annual general meeting in October, having put that “New Crown” into effect.</p>
<p>Yet less than two weeks ago, <a href="https://www.rccol.vic.gov.au/sites/default/files/2021-07/RC415%20Letter%20from%20ABL%20to%20Minister%20for%20Consumer%20Affairs%20Gaming%20and%20Liquor%2C%202%20July%202021%2C%20tendered%206%20July%202021.pdf">on July 2</a>, Crown’s law firm, acting for the directors of Crown Resorts, wrote to the Victorian Government seeking a meeting. The letter stressed it was “not in the public interest for Crown to fail”. </p>
<p>Commissioner Finkelstein suggested yesterday the intention behind the letter was “to avoid a particular finding that the commission might make”. Coonan denied this, saying she was only “trying to look after the broader interests of the company”.</p>
<p>The royal commission’s final report will certainly make interesting reading.</p><img src="https://counter.theconversation.com/content/164084/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Charles Livingstone has received funding from the Victorian Responsible Gambling Foundation, the (former) Victorian Gambling Research Panel, and the South Australian Independent Gambling Authority (the funds for which were derived from hypothecation of gambling tax revenue to research purposes), from the Australian and New Zealand School of Government and the Foundation for Alcohol Research and Education, and from non-government organisations for research into multiple aspects of poker machine gambling, including regulatory reform, existing harm minimisation practices, and technical characteristics of gambling forms. He has received travel and co-operation grants from the Alberta Problem Gambling Research Institute, the Finnish Institute for Public Health, the Finnish Alcohol Research Foundation, the Ontario Problem Gambling Research Committee, and the Problem Gambling Foundation of New Zealand. He was a Chief Investigator on an Australian Research Council funded project researching mechanisms of influence on government by the tobacco, alcohol and gambling industries. He has undertaken consultancy research for local governments and non-government organisations in Australia and the UK seeking to restrict or reduce the concentration of poker machines and gambling impacts, and was a member of the Australian government's Ministerial Expert Advisory Group on Gambling in 2010-11. He is a member of the Australian Greens.</span></em></p>Helen Coonan’s evidence to the Victorian Royal Commission into Crown Melbourne shows how entrenched the gaming company’s cutlural problems are.Charles Livingstone, Associate Professor, School of Public Health and Preventive Medicine, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1620892021-06-04T02:17:30Z2021-06-04T02:17:30ZResponsible gambling – a bright shining lie Crown Resorts and others can no longer hide behind<p>This week the Victorian Royal Commission into Crown Resorts’ Melbourne casino heard from Sonja Bauer, Crown Melbourne’s general manager for responsible gambling. Her evidence revealed a series of deficiencies in the way Crown goes about its “responsible gambling” practices. </p>
<p>These include allowing a patron at the casino to gamble for <a href="https://thenewdaily.com.au/finance/2021/06/02/patron-crown-gambled-34-hours-straight-royal-commission/">34 hours straight</a>, and regularly letting people gamble for <a href="https://thenewdaily.com.au/news/2021/06/02/crown-problem-gamblers/">12 hours or more</a> before suggesting they take a break.</p>
<p>Bauer told the commission Crown Melbourne employed 12 staff as responsible gambling liaison officers. Their job is to monitor gamblers for signs of gambling harm. </p>
<p>Commissioner Ray Finkelstein (a former Federal Court judge) wondered how 12 staff could monitor a casino – one of the world’s biggest, with more than 2,600 gaming machines and 540 gaming tables – that attracted an average 64,000 visitors a day.</p>
<p>“I’m just trying to work out how a handful of people can look out for people suffering from gambling problems,” <a href="https://7news.com.au/news/crime/crown-withholds-responsible-gaming-papers-c-2984633">he told Bauer</a>. “It can’t be done. It is physically, humanly impossible.” </p>
<p>The 12 officers are, at least, an improvement from the seven employed up until 2019. That increase was brought about by the Victorian Commission for Gambling and Liquor Regulation’s <a href="https://www.vcglr.vic.gov.au/sites/default/files/sixth_review_of_the_casino_operator_and_licence.pdf">2018 review</a> of Crown Melbourne. </p>
<p>The review reported the seven officers spent most of their time dealing with breaches of <a href="https://www.gamblinghelponline.org.au/making-a-change/self-exclusion">self-exclusion orders</a> – by which people who recognise they have a gambling problem voluntarily ask gambling venues to keep them out – or queries about revoking self-exclusion. In 2017 and 2018 the officers identified an average of just 112 patrons a week exhibiting signs of potential gambling harm. </p>
<h2>An odd way to minimise harm</h2>
<p>The Victorian gambling regulator requires Crown Melbourne to operate with a “<a href="https://www.vcglr.vic.gov.au/sites/default/files/crown_melbourne_limited.pdf">responsible gambling code of conduct</a>”. This code states the casino will intervene when people display signs of harmful gambling. It advises that patrons will have access to the “YourPlay” system, to allow them to set limits on time and money spent gambling. </p>
<p>YourPlay has not been an overwhelming success in pubs and clubs, as a <a href="https://apo.org.au/sites/default/files/resource-files/2020-02/apo-nid277096.pdf">2019 evaluation</a> found. There has been significant uptake at the casino, however. This is because using it in conjunction with Crown’s loyalty program means gamblers can access the casino’s 1,000 unrestricted poker machines. These allow for unlimited bets, and can be operated continuously. </p>
<p>That’s why Crown was giving patrons plastic “picks” to jam the buttons of machines, so they could play without pushing the buttons. </p>
<p>The Victorian gambling regulator <a href="https://www.abc.net.au/news/2019-03-27/regulator-takes-action-against-crown-casino/10945328">banned this practice</a> after it was drawn to the regulator’s attention, but it did not impose a penalty. </p>
<h2>Not fit for purpose</h2>
<p>These arrangements seems like a strange way to minimise harm. In fact, “responsible gambling” has come under <a href="https://theconversation.com/australia-has-a-long-way-to-go-on-responsible-gambling-101320">significant criticism</a> in recent years.</p>
<p>Gambling operators adopted <a href="https://link.springer.com/content/pdf/10.1007/s10899-010-9214-0.pdf">the concept</a> to defend themselves against concern over the rising tide of gambling harm. This followed widespread gambling liberalisation in the latter part of the 20th century. </p>
<p>However, it is increasingly seen as <a href="https://www.sciencedirect.com/science/article/pii/S0033350620300822">not fit for purpose</a>. It is not concerned with preventing harm, and it frequently fails to minimise it. </p>
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Read more:
<a href="https://theconversation.com/australia-has-a-long-way-to-go-on-responsible-gambling-101320">Australia has a long way to go on responsible gambling</a>
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<p>A review I and colleagues did in 2014 found <a href="https://www.anzsog.edu.au/resource-library/research/what-is-the-evidence-for-harm-minimisation-measures-in-gambling-venues">little if any evidence</a> to support most responsible gambling “interventions”. Although there is evidence to support the idea that gamblers experiencing harm can be identified via observation, there is no evidence that intervening produces benefits. </p>
<p>And, of course, an intervention needs to occur – which the evidence from <a href="https://www.tandfonline.com/doi/full/10.1080/16066359.2017.1314465">venue observations</a> and from the royal commission this week suggests is very unlikely.</p>
<p>Crown Melbourne has 25 times more poker machines than the next largest Victorian venue. We know big venues are the most harmful. Crown should, arguably, have the most active harm prevention and minimisation system in the country. It doesn’t. Its approach to harm prevention and minimisation appears as well considered and implemented as its approach to money laundering.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/size-really-does-matter-big-pokie-venues-are-the-most-dangerous-16350">Size really does matter: big pokie venues are the most dangerous</a>
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<h2>Treat this as a public health issue</h2>
<p>How can Crown Resorts, along with other gambling venues, stop the appearance, if not the reality, of being harm production factories?</p>
<p>Public health principles can readily be adopted to prevent and reduce gambling harm. Just as with the COVID-19 pandemic, tobacco control and motor vehicle injury reduction – in all of which Australia has been world-leading – public health can prevent gambling harm. </p>
<p>This means the “responsible gambling” mantra has to come to an end. </p>
<p>As colleagues and I argued in <a href="https://responsiblegambling.vic.gov.au/documents/640/Livingstone-identifying-effective-policy-interventions-June-2019.pdf">a 2019 report</a> prepared for the Victorian Responsible Gambling Foundation, public health can identify multiple “strategies, policies and interventions likely to prevent or minimise harm associated with gambling”.</p>
<p>First among these is a major overhaul of how gambling harm is viewed. Up to this point gambling harm has been seen as synonymous with the concept of the “problem gambler”. This term is stigmatising and effectively blames individuals, which of course <a href="https://www.tandfonline.com/doi/abs/10.1080/14459790701601810">suits an industry</a> eager to deflect responsibility. </p>
<p>Legislation should focus on the harms of gambling and how to prevent them. There are myriad effective ways to achieve this, including:</p>
<ul>
<li>cashless gambling systems based on accounts (as is to be <a href="https://www.theguardian.com/australia-news/2021/mar/16/rsl-and-leagues-clubs-to-trial-alternative-to-nsw-governments-gaming-card">trialled in NSW</a>, and operates in <a href="https://churchilltrustapp.secure.force.com/api/services/apexrest/v1/image/?Id=0697F00000lcW8MQAU&forceDownload=Yes">Norway</a>)</li>
<li>adopting statewide and effective self-exclusion systems</li>
<li>improving transparency of data about gambling activities at the casino and elsewhere</li>
<li>a better resourced and adequately powered regulator</li>
<li>distancing of gambling interests from political parties and government.</li>
</ul>
<p>Crown Resorts has been in the spotlight through the Victorian royal commission, the <a href="https://www.wa.gov.au/government/perth-casino-royal-commission">West Australian royal commission</a> into its Perth casino and the NSW Independent Liquor and Gaming Authority’s <a href="https://theconversation.com/its-hard-to-see-how-crown-resorts-can-be-found-fit-and-proper-to-run-sydneys-barangaroo-casino-150379">inquiry into its fitness</a> to operate the Barangaroo casino. But all forms of gambling can impose harms – none more so than poker machines. </p>
<p>Effective regulation can prevent harm. We know what to do. Ditching “responsible gambling”, the emptiest of empty vessels, would be a great start.</p><img src="https://counter.theconversation.com/content/162089/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Charles Livingstone has received funding from the Victorian Responsible Gambling Foundation, the (former) Victorian Gambling Research Panel, and the South Australian Independent Gambling Authority (the funds for which were derived from hypothecation of gambling tax revenue to research purposes), from the Australian and New Zealand School of Government and the Foundation for Alcohol Research and Education, and from non-government organisations for research into multiple aspects of poker machine gambling, including regulatory reform, existing harm minimisation practices, and technical characteristics of gambling forms. He has received travel and co-operation grants from the Alberta Problem Gambling Research Institute, the Finnish Institute for Public Health, the Finnish Alcohol Research Foundation, the Ontario Problem Gambling Research Committee, and the Problem Gambling Foundation of New Zealand. He was a Chief Investigator on an Australian Research Council funded project researching mechanisms of influence on government by the tobacco, alcohol and gambling industries. He has undertaken consultancy research for local governments and non-government organisations in Australia and the UK seeking to restrict or reduce the concentration of poker machines and gambling impacts, and was a member of the Australian government's Ministerial Expert Advisory Group on Gambling in 2010-11. He is a member of the Australian Greens.</span></em></p>Evidence to the Victorian Royal Commission into Crown’s Melbourne casino shows the emptiness of ‘responsible gambling’ strategies.Charles Livingstone, Associate Professor, School of Public Health and Preventive Medicine, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1471242020-10-01T15:37:58Z2020-10-01T15:37:58ZEsports could be quietly spawning a whole new generation of problem gamblers<figure><img src="https://images.theconversation.com/files/360542/original/file-20200929-20-8q3fjz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The new problem gambling?</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/team-professional-gamer-playing-winning-tournaments-1584735865">Parilov</a></span></figcaption></figure><p>Most large sports events came to an abrupt halt during the pandemic, but one category was not only unaffected but enjoyed <a href="https://www.economist.com/international/2020/06/27/the-pandemic-has-accelerated-the-growth-of-e-sports">accelerated growth</a>: esports. Esports is the competitive playing of video games such as League of Legends, Fortnite and Fifa Football. </p>
<p>The audiences for the biggest titles <a href="https://www.businessinsider.com/esports-ecosystem-market-report?r=US&IR=T">are now enormous</a>. Fortnite alone has around 78 million monthly players and professional tournaments draw in many millions of online spectators. League of Legends World Championship attracted over 100 million viewers in 2019 with a peak of 44 million. In comparison, the Wimbledon men’s final 2019 peaked at around <a href="https://www.bbc.co.uk/sport/tennis/48989639">9 million viewers</a>. </p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/AXfkqXamJU0?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
</figure>
<p>It’s not just the size of the audience that’s different, it’s also their age. The average tennis spectator is 61, whereas esports spectators are on <a href="https://www.pmg.com/wp-content/uploads/2018/06/eSports-Marketing-PMG-Whitepaper.pdf">average 26</a>. </p>
<p>Major bookmakers such as PaddyPower, Bet365 and Betway, along with many niche operators, are now offering bets on esports tournaments. Monthly esports betting revenues for UK operators <a href="https://www.gamblingcommission.gov.uk/news-action-and-statistics/Statistics-and-research/Covid-19-research/Covid-19-updated-August-2020/Gambling-business-data-on-gambling-during-Covid-19-updated-August-2020.aspx">rose 30-fold</a> between March 2019 and March 2020, and by June they had more than doubled again. </p>
<p>The global esports betting market is <a href="https://sbcnews.co.uk/esports-fantasy/2020/05/06/everymatrix-sports-titles-esports-betting-volume-growth/#:%7E:text=The%20report%20estimated%20that%20total,from%202%25%20to%2027%25.">expected to be</a> worth up to $15 billion (£12 billion) this year, compared with less than US$6 billion in 2016. This explosive growth has been fuelled by online advertising, which almost <a href="https://www.campaignlive.co.uk/article/online-gambling-ad-impressions-almost-triple-during-lockdown/1682440">tripled during lockdown</a>.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/360546/original/file-20200929-14-16c94y5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Fan standing up in mass audience for esports event in Moscow" src="https://images.theconversation.com/files/360546/original/file-20200929-14-16c94y5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/360546/original/file-20200929-14-16c94y5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/360546/original/file-20200929-14-16c94y5.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/360546/original/file-20200929-14-16c94y5.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/360546/original/file-20200929-14-16c94y5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/360546/original/file-20200929-14-16c94y5.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/360546/original/file-20200929-14-16c94y5.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Esports Counter Strike global event in Moscow, September 2019.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/moscow-russia-14th-september-2019-esports-1520640266">Roman Kosolapov</a></span>
</figcaption>
</figure>
<p>The danger is that younger people are being drawn to gamble on esports. In 2019, <a href="https://www.gamblingcommission.gov.uk/PDF/survey-data/Gambling-participation-in-2019-behaviour-awareness-and-attitudes.pdf">17% of esports gamblers</a> were aged 18-24. In general, <a href="https://www.gamblingcommission.gov.uk/PDF/survey-data/Gambling-participation-in-2019-behaviour-awareness-and-attitudes.pdf">more and more</a> UK 16-34-year-olds are gambling, and the average age of gamblers <a href="https://www.gamblingcommission.gov.uk/PDF/survey-data/Gambling-participation-in-2019-behaviour-awareness-and-attitudes.pdf">is decreasing</a>. The number of problem gamblers aged 11-16 <a href="https://www.bbc.co.uk/news/business-46286945">has also quadrupled</a> to more than 50,000 in just two years. This comes at a time when
<a href="https://www.childrenscommissioner.gov.uk/report/gaming-the-system/">93% of UK children</a> play video games, averaging three hours a day and a growing number also follow professional esports teams. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/virtual-tour-de-france-shows-how-esports-has-come-of-age-during-lockdown-143547">Virtual Tour de France shows how esports has come of age during lockdown</a>
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<p>There is scant research into whether esports gaming leads to gambling, but <a href="https://www.bristol.ac.uk/media-library/sites/news/2019/aug/D1261_Horne_DEMOS_Management%20report_2019_web.pdf">our study</a> in 2019 found children heavily engaged with tweets from esports bookmakers and their affiliates. And regulators can’t keep up. During the recent <a href="https://parliamentlive.tv/Event/Index/44cb93e3-bd4c-48a7-8762-9bafa7a60de9">House of Lords inquiry</a> into gambling, Guy Parker, chief executive of the Advertising Standards Authority (ASA), admitted he finds it almost impossible to track and regulate online gambling advertising.</p>
<h2>Esports betting adverts and children</h2>
<p><a href="https://www.bristol.ac.uk/media-library/sites/news/2019/aug/D1261_Horne_DEMOS_Management%20report_2019_web.pdf">Our research</a>, sponsored by GambleAware and in collaboration with Ipsos MORI, the thinktank Demos and the University of Sussex, analysed 880,000 tweets from 417 UK-based accounts related to gambling operators. We looked at data from their 621,000 UK-based followers, and the 166,969 UK-based individuals who engaged with these tweets by commenting, liking or sharing them. We analysed tweets related to both traditional sports and esports betting, with the latter making up about a tenth of the accounts studied. </p>
<p>We identified three particular concerns. First, people following esport gambling accounts are very young. We found that 17% of followers were under 16, and another 69% were aged 16-23. In other words, 85% of esports betting-account followers are under 24. The same is true for those commenting on, liking or sharing these tweets: 28% were under 16, and 66% were aged 16-23.</p>
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<p>Second, the advertising techniques used by gambling operators are somewhat different from those used for traditional sports (with an older audience). Rather than getting people to sign up or make impulsive gambles by offering “free bets”, “matched bets” or “sign-up bonuses”, esports betting appears to concentrate much more on tweets that are funny, using gifs, memes and esports insider-knowledge. </p>
<p>This content doesn’t look like a hard sell or an incitement to gamble. Children <a href="https://www.ama.org/discussions/mppc20proceedings-digitalmarketing-poster2/">might not even realise</a> it is commercial content designed to make them part with their money, and might do little to resist. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"979797184194469888"}"></div></p>
<p>Funny stuff is also highly shareable. As these posts are circulated on social media, more children – who may have previously had no interest in gambling - are inadvertently looped in. So while gambling is illegal for many engaging with these adverts, with a minimum age of 18 in the UK, a positive image is slowly and implicitly building in the back of their minds.</p>
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<p>Third, when our researchers analysed a sample of all the tweets in depth, many appeared to contravene the UK’s <a href="https://www.asa.org.uk/type/non_broadcast/code_section/16.html">CAP gambling advertising code</a>. We found esports gambling tweets that used cartoons and animated characters, associated themselves with youth culture or featured esports stars under 25 years old. All of this activity breaches the code. </p>
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<p><a href="https://digitalscholarship.unlv.edu/cgi/viewcontent.cgi?article=1336&context=gaming_institute">Other research</a> has highlighted issues with gambling advertising potentially appealing to children, but our focus on esports highlights a worrying trend that has been under the radar of researchers and policymakers.</p>
<h2>Next steps</h2>
<p>With the pandemic unlikely to disappear soon, esports playing, following and betting will continue to grow. We need to act now to stop social-media advertising turning children’s gaming into gambling. </p>
<p>After reading our research, the Gambling Commission and ASA sent all UK esports betting operators <a href="https://www.asa.org.uk/uploads/assets/f08a1429-1e0b-45ab-857bfd085549f0fb/Advice-Notice-The-marketing-of-Gambling-on-eSports-on-Social-Media.pdf">a reminder</a> of the advertising rules, and <a href="https://www.asa.org.uk/resource/cap-s-response-to-gambleaware-s-research-on-social-media-marketing-for-esports-gambling.html">published a response</a> to the findings pointing out that many tweets were from non-UK operators and therefore beyond the remit of the CAP code. </p>
<p>However, we found that it is possible in many cases for children to click through to non-UK sites and open accounts by saying they are 18, highlighting a major effectiveness issue with a UK-focused code in a world of international social media. We also believe that the ASA needs to call more UK transgressors to account with sanctions for those who fail to comply. </p>
<p>In our view, the rules do not adequately address the peculiarities of social-media marketing, where funny content can quickly and effectively make esports betting more appealing to children and normalise the link between popular games and gambling. An awareness campaign for parents is also needed. Many parents might know that their children are playing esports in their bedrooms or following professional tournaments, but most are probably unaware of the strong link with betting. Last but not least, we also need a lot more research.</p>
<hr>
<p><strong>Asked to comment, a spokesperson for the Betting and Gaming Council, which <a href="https://bettingandgamingcouncil.com/wp-content/uploads/2020/06/BGC-Membership-List.pdf">represents most operators</a> in the UK betting industry, said:</strong> </p>
<blockquote>
<p>We are committed to driving up standards in the betting and gaming industry. It is illegal for anyone under 18 to bet with any of our members and we operate strict age and identification measures to prevent anyone underage accessing these products. </p>
<p>We have also taken further steps to prevent young people from seeing betting adverts. From October 1, the updated industry code for socially responsible advertising means that all sponsored or paid-for adverts on search engines must make clear the products are only for those aged over 18, while YouTube users will need to have age-verified accounts before they can view betting adverts. BGC members will also have to frequently post responsible betting messages on their Twitter accounts.</p>
<p>We look forward to the government’s forthcoming gambling review, which we hope will lead to a crackdown on black market operators who have no interest in safer gambling or protecting their customers and do not work to the same responsible standards as BGC members.</p>
</blockquote><img src="https://counter.theconversation.com/content/147124/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The study on which this article is based was funded by GambleAware, a national charity instructed by government to commission research into gambling in Great Britain. GambleAware is funded through contributions from the gambling industry, but decisions about what research to fund are made by the Responsible Gambling Strategy Board (renamed in 2019 to The Advisory Board for Safer Gambling), an independent group that provides advice on gambling policy and research to government. In September 2016, the RGSB and GambleAware published a Research Commissioning and Governance Procedure, which describes how research priorities are set and commissioned, in isolation from the gambling industry.</span></em></p>Esports is becoming a goldmine for betting companies. New research shows how their online ads are reeling in children.Raffaello Rossi, Doctoral Researcher in Marketing, University of BristolAgnes Nairn, Professor of Marketing, University of BristolLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1186482019-06-13T14:41:35Z2019-06-13T14:41:35ZNew gambling tax is moving up the agenda – here’s how it needs to work<figure><img src="https://images.theconversation.com/files/279325/original/file-20190613-32361-t70zh8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Feeling lucky?</span> <span class="attribution"><a class="source" href="https://unsplash.com/photos/q661yH-ewRg">tiny_packages</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span></figcaption></figure><p>Gambling has become a talking point in the UK Conservative Party leadership election after the health secretary Matt Hancock <a href="https://www.thesun.co.uk/news/9265028/matt-hancock-tax-bookies-gambling/">called for</a> a £100m-plus annual levy on betting companies. If chosen as the next prime minister, Hancock said he intends to impose a 1% tax on these companies’ profits to pay for treatment and research into this area. </p>
<p>Labour have also called for this policy and a radical overhaul of the UK Gambling Act. The party <a href="https://d3n8a8pro7vhmx.cloudfront.net/campaigncountdown/pages/2214/attachments/original/1537438117/11519_18_Gambling_addiction_Paper-_Tom_Watson_v7_%28ELECTRONIC%29%28WEB%29.pdf?1537438117">has described</a> gambling as a “hidden epidemic”, and deputy leader Tom Watson <a href="https://www.theguardian.com/society/2017/sep/26/labour-betting-firms-levy-gambling-addiction">has promised</a> that it would introduce a mandatory levy on the industry if elected to government. </p>
<p>It is certainly good to see this issue being addressed by frontline politicians. But imposing a levy is one thing, spending it wisely another – for the swathes of people affected by gambling harms, it is vital that we get this right. </p>
<h2>The ripple effect</h2>
<p><a href="https://www.bmj.com/content/365/bmj.l1807">There are</a> around 340,000 problem gamblers in the UK, and over half a million more people at moderate risk of harm from an expanding <a href="https://www.routledge.com/Addictive-Consumption-Capitalism-Modernity-and-Excess/Reith/p/book/9780415268271">commercial landscape</a> of products, particularly electronic gaming machines and games on online platforms. </p>
<p>The impacts from problem gambling spread out to families, communities and society as a whole. As well as financial problems, <a href="https://www.gamblingcommission.gov.uk/PDF/Measuring-gambling-related-harms.pdf">they include</a> relationships breaking down, the abuse or neglect of partners and children and, in extreme cases, suicide – with all the corresponding burdens on social and health services that this involves. </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/279324/original/file-20190613-32373-c6vrs4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/279324/original/file-20190613-32373-c6vrs4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/279324/original/file-20190613-32373-c6vrs4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=736&fit=crop&dpr=1 600w, https://images.theconversation.com/files/279324/original/file-20190613-32373-c6vrs4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=736&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/279324/original/file-20190613-32373-c6vrs4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=736&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/279324/original/file-20190613-32373-c6vrs4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=925&fit=crop&dpr=1 754w, https://images.theconversation.com/files/279324/original/file-20190613-32373-c6vrs4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=925&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/279324/original/file-20190613-32373-c6vrs4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=925&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Eyes down.</span>
<span class="attribution"><a class="source" href="https://unsplash.com/photos/q661yH-ewRg">Jordan Bauer</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<p>For every one person with problems, it is <a href="http://stoppredatorygambling.org/wp-content/uploads/2012/12/Australias-Gambling-Industries-1999-Report-Vol.-1-.pdf">estimated that</a> five to ten other people end up being affected. Cost <a href="https://www.ippr.org/publications/cards-on-the-table">estimates</a> to the UK alone range from £200m to £1.2 billion per year. The Faculty of Public Health has <a href="https://www.fph.org.uk/media/1810/fph-gambling-position-statement-june-2018.pdf">called this</a> a “serious and worsening public health issue”. </p>
<p>In Australia, where the evidence base is more fully developed, the burden of harms on health and well-being is <a href="https://responsiblegambling.vic.gov.au/documents/69/Research-report-assessing-gambling-related-harm-in-vic.pdf">estimated</a> to be comparable to alcohol misuse. From an economic perspective, it actually costs societies more if they ignore these harms than if they address them. </p>
<p>Several years ago in Australia’s state of Victoria, <a href="https://responsiblegambling.vic.gov.au/resources/publications/the-social-cost-of-gambling-to-victoria-121/">for example</a>, total tax revenue from gambling was AU$1.6 billion (£874m) while estimated social costs were AU$7 billion, a net deficit of AU$5.4 billion. </p>
<h2>The funding gap</h2>
<p>In the UK, the current system of funding for research, education and treatment of gambling harms relies on voluntary industry donations to a charitable organisation, GambleAware. Too often, GambleAware <a href="https://www.theguardian.com/society/2019/may/03/gambling-industry-fails-to-meet-target-donation-to-addiction-charity">struggles</a> to meet its target contributions of just 0.1% of the money that industry retains once bets have been paid out – known as the gross gambling yield. That’s about £10m in donations for an industry whose gross gambling yield <a href="https://www.gamblingcommission.gov.uk/PDF/survey-data/Gambling-industry-statistics.pdf">exceeds</a> £14 billion. In this context, a £100m annual levy could clearly make an enormous difference.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/online-gambling-children-among-easy-prey-for-advertisers-who-face-few-sanctions-117480">Online gambling: children among easy prey for advertisers who face few sanctions</a>
</strong>
</em>
</p>
<hr>
<p>Yet while Hancock’s promises to fund treatment and research are welcome, he makes no mention of prevention. This is disappointing, since any attempt to reduce gambling harms <a href="https://www.bmj.com/content/365/bmj.l1807">must address</a> causes and not simply consequences. That prevention is better than cure is well recognised across other areas of public health. It is also a matter of <a href="https://www.bmj.com/content/365/bmj.l1807">social justice</a>, since those who suffer from gambling are <a href="https://www.bmj.com/content/365/bmj.l1807">disproportionately</a> likely to be poorer people from the poorest areas. </p>
<p>In the UK in 2017-18, the <a href="https://about.gambleaware.org/media/1836/gamble-aware-annual-review-2017-18.pdf">total spending</a> via GambleAware on prevention was less than £1.5m, which amounts to approximately 2p per capita. Compare this to a jurisdiction that treats gambling as a public health issue – in New Zealand, for instance, where harm reduction is a legislative requirement, the <a href="https://www.health.govt.nz/system/files/documents/publications/strategy-prevent-minimise-gambling-harm-2016-17-2018-19-may16.pdf">annual budget</a> for prevention is more than NZ$18m (£9.3m) for a population of 4.7 million. That’s 99 times more per capita than the UK. </p>
<p>Prevention would involve using legislation to curtail advertising, particularly the <a href="https://www.gamingintelligence.com/blog/44151-opinion-the-future-is-now-for-personalisation">personalised marketing</a> that we see all over social media. We should be stricter about promotions and inducements, such as special offers and “free” bets, and stop the use of online credit. </p>
<p>We need tougher regulations on the design and placement of gambling products: this was <a href="https://www.gambling.com/news/uk-government-confirms-fobt-change-now-set-for-april-2019-1674400">done recently</a> with high-stakes machines, but betting companies <a href="https://www.theguardian.com/uk-news/2019/apr/01/bookmakers-bet-on-roulette-style-games-to-bypass-new-fobt-rules">are already</a> finding ways around these rules with different machines. </p>
<p>Prevention also means targeting people who are at risk. This sort of approach is under developed in gambling, so we need to invest in research to understand what works, for whom and under what circumstances. This also needs to be supported by public health campaigns to increase awareness. </p>
<h2>Optimising the system</h2>
<p>There are several other critical considerations. The first is that funds from a levy need to be ringfenced. Experience from other jurisdictions such as <a href="https://www.cbc.ca/news/canada/toronto/gambling-research-exchange-ontario-cut-1.5123316">Ontario, Canada</a> shows that if funding is not ringfenced, monies can become swallowed by national healthcare budgets. There are precedents for doing this in the UK: all monies from the sugar tax <a href="https://www.funding4sport.co.uk/2017/01/16/ministers-confirm-sugar-tax-will-ringfenced-school-sports/">go to</a> school sports, for instance, while from next year the majority of the Highways England budget <a href="https://www.fleetnews.co.uk/news/fleet-industry-news/2018/10/29/autumn-budget-2018-pothole-cash-and-ved-to-be-ring-fenced-for-roads-funding">will be</a> ringfenced funds from vehicle road duty. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/279219/original/file-20190612-32361-1rib82s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/279219/original/file-20190612-32361-1rib82s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/279219/original/file-20190612-32361-1rib82s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/279219/original/file-20190612-32361-1rib82s.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/279219/original/file-20190612-32361-1rib82s.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/279219/original/file-20190612-32361-1rib82s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/279219/original/file-20190612-32361-1rib82s.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/279219/original/file-20190612-32361-1rib82s.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Machine learning.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/blurred-image-slots-machines-cruise-liner-767552770?src=EXvmSCFxiOZawkS5wGQZ-A-1-70&studio=1">Igor_Koptilin</a></span>
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</figure>
<p>Prevention, education and treatment all <a href="https://www.gold.ac.uk/media/documents-by-section/departments/anthropology/Fair-Game-Web-Final.pdf">need to be</a> grounded in robust and trusted evidence. One option involves channelling funding through the infrastructure and expertise of independent academic research councils such as the Economic and Social Research Council and the Medical Research Council. </p>
<p>Another would be to adopt the Department of Health and Social Care’s highly successful model of <a href="https://www.nihr.ac.uk/about-us/how-we-are-managed/our-structure/research/policy-research-units.htm">policy research units</a>. This could help to produce timely evidence that keeps up with the speed at which gambling technologies are changing.</p>
<p>Finally, we need to <a href="https://www.bmj.com/content/365/bmj.l1807">overhaul the system</a> in which commercial gambling is regulated. This would involve a new gambling act that is focused on protecting public health rather than promoting gambling as a leisure activity. This new approach is long overdue.</p><img src="https://counter.theconversation.com/content/118648/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Gerda Reith has received funding from the Economic and Social Research Council, the National Institute of Health Research, the Medical Research Council, the Australian Research Council, the Danish Research Council, the Scottish Government, the Gambling Commission and GambleAware. She has received honorarium from the Gambling Research Exchange Ontario and Alberta Gambling Research Institute (AGRI). She has had travel and accommodation expenses paid by GambleAware, government departments and universities. She is a member of the Howard League for Penal Reform's Commission on Crime and Problem Gambling, and receives reimbursement for travel expenses from them. The research paper on which much of this article is based was co-written by Professor Robert D Rogers of Bangor University. </span></em></p><p class="fine-print"><em><span>Erika Langham has received research funds from the Victorian Responsible Gambling Foundation, Gambling Research Australia, Department of Human Services, New Zealand Ministry of Health, Menzies School of Health, Education Queensland, Lowitja Institute, Australia’s National Research Organisation for Women’s Safety and the National Health and Medical Research Council. She has received honoraria from Gambling Research Exchange Ontario; and had travel expenses paid by Victorian Responsible Gambling Foundation, Gambling Impact Society, Gamble Aware and the Gambling Research Exchange Ontario.</span></em></p><p class="fine-print"><em><span>Heather Wardle receives funding from Wellcome, GambleAware and the Gambling Commission. She has also received funding from the Department of Health, the ESRC and MRC and various Local Authorities. She runs an independent research consultancy which provides research services for public and third sector organisations. She does not and has not provided research or consultancy services to industry. She is Head of the Gambling & Place Research Hub at Geofutures which receives funding from local government. She has received travel bursaries from the Alberta Gambling Research Institute, Ontario Responsible Gambling Council and British Columbia Lottery Corporation. She is Deputy Chair of the Advisory Board on Safer Gambling, a group providing independent advice to the Gambling Commission on gambling policy and practice. This is funded by the Gambling Commission. </span></em></p>Matt Hancock wants a new levy to tackle gambling harms, but it’s a lost opportunity unless you spend it the right way.Gerda Reith, Professor of Social Science, University of GlasgowErika Langham, Lecturer in Health Promotion, CQUniversity AustraliaHeather Wardle, Assistant Professor in Gambling Behaviour, London School of Hygiene & Tropical MedicineLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/910522018-08-13T10:33:29Z2018-08-13T10:33:29ZDesigned to deceive: How gambling distorts reality and hooks your brain<figure><img src="https://images.theconversation.com/files/231111/original/file-20180808-142251-u75psh.jpg?ixlib=rb-1.1.0&rect=240%2C7%2C4415%2C3437&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The longer they keep you plugged in to a game, the better it is for the house.</span> <span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Catskills-Casino/676f83651f1f49c19876f7e5db5f90f3/8/0">AP Photo/Seth Wenig</a></span></figcaption></figure><p>To call gambling a “game of chance” evokes fun, random luck and a sense of collective engagement. These playful connotations may be part of why almost 80 percent of American adults <a href="https://doi.org/10.1017/S0033291708002900">gamble at some point</a> in their lifetime. When I ask my psychology students why they think people gamble, the most frequent suggestions are for pleasure, money or the thrill.</p>
<p>While these might be reasons why people gamble initially, psychologists don’t definitely know why, for some, gambling stops being an enjoyable diversion and becomes compulsive. What keeps people playing even when it stops being fun? Why stick with games people know are designed for them to lose? Are some people just more unlucky than the rest of us, or simply worse at calculating the odds?</p>
<p><a href="https://scholar.google.com/citations?user=PGE3iuMAAAAJ&hl=en&oi=sra">As an addiction researcher</a> for the past 15 years, I look to the brain to understand the hooks that make gambling so compelling. I’ve found that many are intentionally hidden in how the games are designed. And these hooks work on casual casino-goers just as well as they do on problem gamblers.</p>
<h2>Uncertainty as its own reward in the brain</h2>
<p>One of the hallmarks of gambling is <a href="https://mitpress.mit.edu/books/uncertainty-games">its uncertainty</a> – whether it’s the size of a jackpot or the probability of winning at all. And reward uncertainty plays a crucial role in gambling’s attraction.</p>
<p><a href="https://en.wikipedia.org/wiki/Dopamine">Dopamine</a>, the neurotransmitter the brain releases during enjoyable activities such as eating, sex and drugs, is also released during situations where the <a href="https://doi.org/10.1126/science.1077349">reward is uncertain</a>. In fact dopamine release increases particularly during the moments leading up to a potential reward. This anticipation effect might explain why dopamine release parallels an individual’s levels of <a href="https://doi.org/10.1016/j.neuroimage.2012.02.006">gambling “high” and the severity of his or her gambling addiction</a>. It likely also plays a role in <a href="https://doi.org/10.1016/j.neuroscience.2011.09.037">reinforcing the risk-taking behavior</a> seen in gambling. </p>
<p>Studies have shown that the release of dopamine during gambling <a href="https://doi.org/10.1111/j.1360-0443.2010.03126.x">occurs in brain areas</a> similar to those activated by taking drugs of abuse. In fact, similar to drugs, repeated exposure to gambling and uncertainty produces <a href="https://doi.org/10.1038/mp.2013.163">lasting changes in the human brain</a>. These reward pathways, similar to those seen in individuals suffering from <a href="https://doi.org/10.1111/adb.12242">drug addiction</a>, become hypersensitive. Animal studies suggest that these <a href="https://doi.org/10.1038/s41386-018-0099-4">brain changes due to uncertainty</a> can even enhance gamblers’ cravings and desire for addictive drugs.</p>
<p>Repeated exposure to gambling and uncertainty can even change how you respond to losing. Counterintuitively, in individuals with a gambling problem, <a href="https://doi.org/10.1111/j.1600-0447.2010.01591.x">losing money comes to trigger</a> the rewarding release of dopamine almost to the same degree that winning does. As a result, in problem gamblers, losing sets off the urge to keep playing, rather than the disappointment that might prompt you to walk away, a phenomenon known as <a href="https://doi.org/10.1016/j.biopsych.2007.05.014">chasing losses</a>.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/231114/original/file-20180808-191013-1u4dsgs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/231114/original/file-20180808-191013-1u4dsgs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/231114/original/file-20180808-191013-1u4dsgs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=366&fit=crop&dpr=1 600w, https://images.theconversation.com/files/231114/original/file-20180808-191013-1u4dsgs.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=366&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/231114/original/file-20180808-191013-1u4dsgs.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=366&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/231114/original/file-20180808-191013-1u4dsgs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=460&fit=crop&dpr=1 754w, https://images.theconversation.com/files/231114/original/file-20180808-191013-1u4dsgs.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=460&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/231114/original/file-20180808-191013-1u4dsgs.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=460&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">All the bells and whistles work to keep you engaged and playing.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/persian-gulf-april-14-slot-machines-62296870">Pavel L Photo and Video/Shutterstock.com</a></span>
</figcaption>
</figure>
<h2>Lights and sounds egg you on</h2>
<p>But gambling is more than just winning and losing. It can be a whole immersive environment with an array of flashing lights and sounds. This is particularly true in a busy casino, but even a game or gambling app on a smartphone includes plenty of audio and visual frills to capture your attention.</p>
<p>But are they just frills? Studies suggest that these lights and sounds become <a href="https://doi.org/10.1016/j.bbr.2012.10.006">more attractive</a> and capable of <a href="https://doi.org/10.1016/j.addbeh.2014.09.027">triggering urges to play</a> when they are paired with reward uncertainty. In particular, win-associated cues – such as jingles that vary in length and size as a function of jackpot size – both <a href="https://doi.org/10.1007/s10899-013-9391-8">increase excitement and lead gamblers to overestimate</a> how often they are winning. Crucially, they can also keep you <a href="https://doi.org/10.1556/JBA.3.2014.006">gambling longer and encourage you to play faster</a>.</p>
<h2>Feeling like a winner while you’re losing</h2>
<p>Since games of chance are set up so the house always has an advantage, a gambler wins infrequently at best. You might only rarely experience the lights and sounds that come along with hitting a true jackpot. However, the gaming industry may have devised a way to overcome that issue.</p>
<p>Over the last few decades, casinos and game manufacturers significantly upgraded slot machines, retiring the old mechanical arms and reels in favor of electronic versions known as <a href="https://www.casinopedia.org/terms/e/electronic-gaming-machine-egm">electronic gaming machines</a>. These new computerized games and online slots come with more attractive colorful lights and a variety of sounds. They also possess more reels, ushering in a new era of multi-line video slot machines.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/231112/original/file-20180808-191044-1iqnmo9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/231112/original/file-20180808-191044-1iqnmo9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/231112/original/file-20180808-191044-1iqnmo9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=402&fit=crop&dpr=1 600w, https://images.theconversation.com/files/231112/original/file-20180808-191044-1iqnmo9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=402&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/231112/original/file-20180808-191044-1iqnmo9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=402&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/231112/original/file-20180808-191044-1iqnmo9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=506&fit=crop&dpr=1 754w, https://images.theconversation.com/files/231112/original/file-20180808-191044-1iqnmo9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=506&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/231112/original/file-20180808-191044-1iqnmo9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=506&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Rather than just hoping for three cherries to line up in a horizontal row, players can bet on lining up icons on multiple lines going in a variety of directions.</span>
<span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Casinos-Inflated-Expectations/55422441810a43f8a06117df2d3e199b/1/0">AP Photo/Alex Brandon</a></span>
</figcaption>
</figure>
<p>Having multiple lines enables players to place a bunch of bets per spin, often up to 20 or more. Although each individual bet can be small, many players place the <a href="https://doi.org/10.1111/add.12675">maximum number of bets on each spin</a>. This strategy means a player can win on some lines while losing on others, netting less than the original wager. Even when you “win,” you don’t come out ahead, a phenomenon known as “<a href="http://blog.practicalethics.ox.ac.uk/2013/07/losses-disguised-as-wins-slot-machines-and-deception/">losses disguised as wins</a>.” Yet each win, even when it is a loss disguised as a win, comes with the lights and sounds of victory.</p>
<p>The result is that these multi-line slot machines produce <a href="https://doi.org/10.1111/add.12675">more enjoyment and are highly preferred by players</a>. Crucially, they tend to make gamblers <a href="https://doi.org/10.1007/s10899-013-9411-8">overestimate how often they’re truly winning</a>. The dramatic increase in the frequency of wins, whether real or fabricated, produces more arousal and activation of reward pathways in the brain, possibly accelerating the rate at which brain changes occur. Multi-line slots also seem to promote the development of <a href="https://doi.org/10.1007/s10899-017-9695-1">“dark flow,” a trance-like state</a> in which players get wholly absorbed in the game, sometimes for hours on end.</p>
<h2>Almost: Near-miss effect and chasing your losses</h2>
<p>The rise of electronic gambling machines also means that rather than being constrained by the physical arrangement of different possible outcomes on each reel, possible outcomes are programmed onto a set of virtual reels. Gaming designers can therefore stack the deck to make certain events occur more frequently than others.</p>
<p>This includes near-misses, where one of the reels stops just short of lining up for a jackpot. These near-miss almost-wins recruit <a href="https://doi.org/10.1016/j.neuron.2008.12.031">areas of the brain that usually respond to wins</a>, and increase one’s desire to play more, <a href="https://doi.org/10.1038/npp.2016.43">especially in problem gamblers</a>.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/231115/original/file-20180808-191019-1oja5no.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/231115/original/file-20180808-191019-1oja5no.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/231115/original/file-20180808-191019-1oja5no.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=442&fit=crop&dpr=1 600w, https://images.theconversation.com/files/231115/original/file-20180808-191019-1oja5no.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=442&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/231115/original/file-20180808-191019-1oja5no.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=442&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/231115/original/file-20180808-191019-1oja5no.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=556&fit=crop&dpr=1 754w, https://images.theconversation.com/files/231115/original/file-20180808-191019-1oja5no.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=556&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/231115/original/file-20180808-191019-1oja5no.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=556&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The same hooks that work in casinos work in smartphone apps.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/bucharest-romania-january-25-2017-close-569219710">Alexandru Nika/Shutterstock.com</a></span>
</figcaption>
</figure>
<p>This phenomenon is not confined to slot machines and casinos. Near-misses play an integral part in the <a href="https://doi.org/10.1007/s10899-016-9633-7">addictive potential of smartphone games</a> like the very popular “Candy Crush.”</p>
<p>Near-misses are more arousing than losses – despite being more frustrating and significantly <a href="https://doi.org/10.1007/s10899-015-9578-2">less pleasant than missing by a longshot</a>. But crucially, almost winning triggers a more substantial <a href="https://doi.org/10.1016/j.neuron.2008.12.031">urge to play</a> than even winning itself. Near-misses seem to be highly motivating and increase player commitment to a game, resulting in individuals <a href="https://www.ncbi.nlm.nih.gov/pubmed/11419232">playing longer than they intended</a>. The size of the dopamine response to a near-miss in fact <a href="https://doi.org/10.1523/JNEUROSCI.5758-09.2010">correlates with the severity of an individual’s gambling addiction</a>. </p>
<h2>Gambling and its games</h2>
<p>When you engage in recreational gambling, you are not simply playing against the odds, but also battling an enemy trained in the art of deceit and subterfuge. Games of chance have a vested interest in hooking players for longer and letting them eventually walk away with the impression they did better than chance, <a href="https://doi.org/10.1007/s10899-017-9699-x">fostering a false impression of skill</a>.</p>
<p>For many people, these carefully designed outcomes enhance the satisfaction they get from gambling. It may remain easy for them to simply walk away when the chips run out.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/231116/original/file-20180808-142251-c0ks6l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/231116/original/file-20180808-142251-c0ks6l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/231116/original/file-20180808-142251-c0ks6l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=377&fit=crop&dpr=1 600w, https://images.theconversation.com/files/231116/original/file-20180808-142251-c0ks6l.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=377&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/231116/original/file-20180808-142251-c0ks6l.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=377&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/231116/original/file-20180808-142251-c0ks6l.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=473&fit=crop&dpr=1 754w, https://images.theconversation.com/files/231116/original/file-20180808-142251-c0ks6l.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=473&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/231116/original/file-20180808-142251-c0ks6l.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=473&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Casinos aim to hook players – and sometimes their strategies work all too well.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/gambling-addicted-man-glasses-front-online-754693879">Alexander Kirch/Shutterstock.com</a></span>
</figcaption>
</figure>
<p>But gambling isn’t only a lighthearted promise of a good time and a possible jackpot. Up to <a href="https://doi.org/10.1017/S0033291708002900">2 percent of the U.S. population</a> are problem gamblers, suffering from what’s recently been reclassified <a href="https://www.psychiatry.org/patients-families/gambling-disorder/what-is-gambling-disorder">as gambling disorder</a>.</p>
<p>It stands out as one of the few addictions that doesn’t involve consumption of a substance, such as a drug. Like other forms of addiction, gambling disorder is a <a href="https://pdfs.semanticscholar.org/d000/26410235cd37b68079c7ce6da4932a7b4d37.pdf">solitary</a> and <a href="https://consumer.healthday.com/mental-health-information-25/addiction-news-6/risky-gambling-tied-to-social-isolation-678614.html">isolating experience</a>. It’s tied to <a href="https://doi.org/10.4088/JCP.v66n0504">growing anxiety</a>, and problem gamblers are at <a href="https://www.elementsbehavioralhealth.com/news-and-research/problem-gamblers-have-increased-risk-of-suicide-personality-disorders/">greater risk of suicide</a>.</p>
<p>For these more susceptible individuals, the game designers’ hooks start to seem more sinister. A solution to life’s problems always feels just one spin away.</p><img src="https://counter.theconversation.com/content/91052/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mike Robinson has previously received funding from the National Center for Responsible Gaming (NCRG). </span></em></p>When you engage in recreational gambling, you’re not simply playing against the odds – you’re battling an enemy trained in the art of deceit and subterfuge who uses human nature against you.Mike Robinson, Assistant Professor of Psychology, Wesleyan UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/968282018-05-18T12:40:25Z2018-05-18T12:40:25ZFixed-odds betting terminal cap must be just the start of gambling regulation<figure><img src="https://images.theconversation.com/files/219554/original/file-20180518-42230-19efjl2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Fixed-odds betting terminals have been called the 'crack cocaine' of gambling.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/download/confirm/287164913">massimofusar/Shutterstock</a></span></figcaption></figure><p>The maximum stakes permitted on fixed-odds betting terminals in the UK is to be cut <a href="https://www.theguardian.com/uk-news/2018/may/17/maximum-stake-for-fixed-odds-betting-terminals-cut-to-2">from £100 to £2</a>, following years of campaigning for the change in the face of gambling industry lobbying. Those who campaigned hardest for greater protection for users of the machines such as the <a href="http://fairergambling.org/">Campaign For Fairer Gambling</a> will be pleased by the UK government’s decision, but the loudest cheers will come from people like <a href="https://twitter.com/gamblinghurts?lang=en">Tony Franklin</a> who have suffered terribly because of decisions taken by British governments – of all stripes and over many years – that allowed high-stakes electronic gambling to enter the previously low-stakes world of high street betting shops.</p>
<p>I’ve been among those arguing for the maximum stakes to be reduced, in <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/707763/drive-download-20180514T173730Z-001.zip">many government consultations on the issue</a>, and I’m glad that common sense has prevailed at last. But the decision to cut maximum stakes leaves other problems still to be tackled – and these go to the heart of gambling policy. The government’s announcement shows they have yet to come to grips with a powerful industry which lobbies hard for self-regulation.</p>
<p>Fixed-odds betting terminals (FOBTs) were introduced around 2000, and it soon became apparent that they were used differently from the fruit machines that they replaced. A tax change in 2001 had enabled bookies to create digitised, virtual games of roulette and allow punters to bet on the outcome of each spin, as they would on the outcome of a horserace. The vital difference is that while a horserace takes place a few times each hour at a track – or every few minutes, if you beam action from around the world into the betting shop – each spin of a digital roulette real on an FOBTs takes 20 seconds, quicker even than the real thing.</p>
<p>Not every bookmaker expected FOBTs to be popular – some were taken by surprise when their profits outstripped over-the-counter betting. This was less <a href="https://www.amazon.co.uk/Addiction-Design-Machine-Gambling-Vegas/dp/0691160880">“Addiction by Design”</a> and more a flotation device for betting shops, which had been struggling to find new customers as the older generation of punters betting on horses and dogs were not replaced. Some bookies did not expect the machines to survive as long as they have in their current, high-stakes, high-frequency form. One said to me recently that the only real surprise is that it took the government so long to act.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/219556/original/file-20180518-42210-t2343y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/219556/original/file-20180518-42210-t2343y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/219556/original/file-20180518-42210-t2343y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=840&fit=crop&dpr=1 600w, https://images.theconversation.com/files/219556/original/file-20180518-42210-t2343y.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=840&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/219556/original/file-20180518-42210-t2343y.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=840&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/219556/original/file-20180518-42210-t2343y.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1056&fit=crop&dpr=1 754w, https://images.theconversation.com/files/219556/original/file-20180518-42210-t2343y.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1056&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/219556/original/file-20180518-42210-t2343y.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1056&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Digital betting terminals can serve up bets quicker than the real thing.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/london-uk-mar-5-2018-mature-1039609732">Alexandre Rotenberg/Shutterstock</a></span>
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</figure>
<p>But is it really a surprise?</p>
<h2>Industry influence</h2>
<p>As I’ve <a href="https://www.gold.ac.uk/media/documents-by-section/departments/anthropology/Fair-Game-Web-Final.pdf">written elsewhere</a>, much of the evidence on which policy decisions in the UK are nominally based is acknowledged to be limited – compromised by the involvement of industry that not only funds research but also can control access to data.</p>
<p>If we want policy makers to make timely, well-informed decisions about gambling we need better data, and more of it. That can only come from a strong research culture, supported by a data sharing agreement and an independent commissioner.</p>
<p>Who might take on this key role? The Gambling Commission, which <a href="https://www.theguardian.com/uk-news/2018/mar/19/gambling-regulator-urges-government-to-cut-fobt-stakes-to-30">did not recommend a reduction to £2</a>, has both a duty to permit gambling and also a duty to consider the impact of its activities on economic growth. It is telling that gambling policy in the UK is determined by the Department for Digital, Culture, Media and Sport. In New Zealand, by contrast, gambling policy is a matter for the Department of Health.</p>
<p>While the cap on stakes has been broadly welcomed, the government’s announcement of “a major multi-million pound advertising campaign promoting responsible gambling”, supported by industry and GambleAware, has raised eyebrows. What made the government decide that this was the best way to educate people about the harm caused by gambling? Or even a good idea?</p>
<h2>Legislators must arm themselves with evidence</h2>
<p>Unsurprisingly, the international evidence does not support the idea that industries producing harmful products are best placed to <a href="https://epublications.marquette.edu/comm_fac/337/">communicate their risks</a>. On the contrary, we know that these campaigns are often tactics for <a href="http://jech.bmj.com/content/early/2017/09/29/jech-2017-209710">delaying the imposition of meaningful regulation</a>.</p>
<p>The government also announced that the Industry Group for Responsible Gambling has amended its <a href="http://igrg.org.uk/wp/industry-advertising-code/">code</a> to ensure that a responsible gambling message will appear for the duration of all TV adverts.</p>
<p>In Australia, gambling advertising during broadcasts of live sports has been banned before the watershed precisely due to concerns that children will <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1753-6405.12564">associate betting with sport</a>. Yet in the UK, the government has chosen to accept industry promises to add warnings to adverts, even though evidence from alcohol advertising suggests that responsible drinking messages may in certain contexts actually <a href="https://www.ncbi.nlm.nih.gov/pubmed/25577316">increase alcohol consumption</a>.</p>
<p>All this points to UK gambling policy continuing along a path of compromise. As other nations move to a public health approach that recognises that the harm caused by gambling is <a href="https://responsiblegambling.vic.gov.au/about-us/news-and-media/assessing-gambling-related-harm-victoria-public-health-perspective/">not restricted to the gambler alone, or to their mental health</a>, the British government remains rooted to the model of “promoting responsible gambling” – part of what DCMS minister Tracey Crouch has called “<a href="https://www.gov.uk/government/news/government-to-cut-fixed-odds-betting-terminals-maximum-stake-from-100-to-2">a healthy gambling industry that contributes to the economy</a>”.</p>
<p>Until we have more independent research about the effects of gambling, any attempt to change the rules in order to protect people from harm will take years. We need a compulsory levy and no more horse-trading with industry. GambleAware, the charity responsible for funding research into gambling, must be reformed – and at the very least not have <a href="https://about.gambleaware.org/about/trustees-and-management/">industry representatives on its board</a>.</p>
<p>The delay to the cap in betting stakes – arriving five years late due to the lack of evidence that FOBTs “cause” problem gambling (itself a gigantic <a href="https://gamblingacrossborders.wordpress.com/2015/01/16/the-ghost-in-the-machine/">red herring</a>) – has cost people not just their money, but their homes, their relationships, their jobs and <a href="https://www.theguardian.com/commentisfree/2018/mar/19/gambling-life-fixed-odds-betting-terminals-maximum-stake-addicts">even their lives</a>. If it is evidence-based policy that governments claim to aim for, then they must ask where that research will come from in future – and if it is worth the paper it is written on.</p><img src="https://counter.theconversation.com/content/96828/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Rebecca Cassidy was funded by the European Research Council, grant number 263433, between 2010 and 2015. Between 2006 and 2009 she received £90,697.22 from ‘Research into Problem Gambling’, a collaborative research initiative between the Economic and Social Research Council (ESRC) (lead organisation) and the Responsibility in Gambling Trust (RiGT), (now GambleAware). All aspects of the grant were administered by the ESRC. Between 2007 and 2009 she received ad hoc support from the National Lottery Commission for the Gambling Research Network, a group of early career and PhD researchers coming together in London two or three times a year. Money covered refreshments and no explicit restrictions or inducements were placed on the group by the NLC. Since 2015, she has had her travel expenses to speak at an international conference paid for by the Alberta Gambling Research Institute, an organisation that is funded by the provincial government of Alberta, and by the New Zealand Problem Gambling Foundation and The Gambling and Addictions Research Centre at AUT University. She has also received support from the British Academy and Edinburgh University. She has paid to attend industry-sponsored events and attended free, industry-supported events in order to conduct anthropological fieldwork. </span></em></p>That the government has finally moved to limit the damage is welcome, but there is much still to do.Rebecca Cassidy, Professor of Anthropology, Goldsmiths, University of LondonLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/931892018-03-13T10:33:18Z2018-03-13T10:33:18ZFactCheck: would pokies reform in South Australia wipe out ‘many’ of 26,000 jobs?<figure><img src="https://images.theconversation.com/files/209872/original/file-20180312-30994-1tzmw8n.jpg?ixlib=rb-1.1.0&rect=4%2C3%2C1017%2C706&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The Australian Hotels Association (South Australia) has campaigned against the SA Best party's proposed poker machine reforms.</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/threthny/4853564182/in/photolist-8oTMx5-5QFRFa-4wy4pE-bA8vTo-bD7Z7u-4wy3QQ-9BUVPQ-6wLx96-KcQZ4j-4wy4tG-8sHLLK-AWggWg-4wtUrH-4EStJF-4NA64S-8j1Nea-8ypaEx-7DTtwD-asQgRY-7Zi8H3-brw3CQ-asQgTm-p8WtE-p8TF8-p8JR3-p8KL9-p8JkF-4ESu6c-4wy5f3-dMW9LX-4wy5by-8Fdwbz-6ezmJt-4wtTtg-4wy3M5-nepi4-8kr4kt-9bZVNf-4wtUki-BTuBzv-4wy4cU-7snQNm-8J8PhA-fr6Gnu-Kf9kF5-JjtovB-Ki4J3k-4wy48q-4wtT8z-4wtTMB">Threthny/Flickr</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc-sa/4.0/">CC BY-NC-SA</a></span></figcaption></figure><blockquote>
<p>This plan will decimate hotels across South Australia, wiping out many of the 26,000 jobs it directly creates.</p>
<p><strong>Australian Hotels Association (South Australia) chief executive Ian Horne, <a href="https://www.theguardian.com/australia-news/2018/feb/19/sa-best-gambling-policy-deal-maker-and-deal-breaker-nick-xenophon-says">quoted in The Guardian</a>, February 21, 2018</strong></p>
<p>… a majority of pub employees (over 26,000 in SA!) will likely lose their jobs.</p>
<p><strong><a href="https://cdn.theconversation.com/static_files/files/32/Lonsdale_Letter.pdf?1520471911">Letter</a> signed by the McCallum family, owners of The Lonsdale Hotel, February-March, 2018</strong> </p>
</blockquote>
<p>SA Best leader Nick Xenophon has said that if his party wins the balance of power in this Saturday’s South Australian state election, poker machine reform would be “a key issue in any negotiations” about the formation of the next government. </p>
<p>Among other reforms, Xenophon has <a href="https://sabest.org.au/state-policies/gambling-reform/">proposed</a> a reduction in the number of poker machines in some pubs by 50% over five years, and the introduction of a $1 maximum bet per spin for machines in all venues other than the Adelaide casino. </p>
<p>The South Australian branch of the Australian Hotels Association (AHA SA), led by chief executive Ian Horne, says the SA Best policy would “decimate hotels across South Australia, wiping out many of the 26,000 jobs it directly creates”. </p>
<p>A <a href="https://cdn.theconversation.com/static_files/files/32/Lonsdale_Letter.pdf?1520471911">letter signed</a> and shared by the owners of one Adelaide hotel went further, saying “a majority” of 26,000 South Australian pub employees would “likely lose their jobs”.</p>
<p>Is that right?</p>
<h2>Checking the source</h2>
<p>In response to a request for sources to support the claim made in the Lonsdale Hotel letter, Keith McCallum referred The Conversation to the AHA SA. </p>
<p>A spokesperson for the AHA SA pointed The Conversation to a <a href="https://cdn.theconversation.com/static_files/files/38/Ferrier_Hodgeson_Newsletter_February_2018.pdf?1520737924">February 2018 newsletter</a> from Ferrier Hodgson Adelaide partner David Kidman, and the <a href="http://www.nowaynick.com.au/">‘No Way Nick’ website</a>, authorised by AHA SA chief executive Ian Horne.</p>
<p>The Conversation asked the AHA spokesperson to quantify what the association meant by “many” jobs, but did not receive a response to that question.</p>
<hr>
<h2>Verdict</h2>
<p>The claim made by Australian Hotels Association of South Australia that proposed poker machine reforms would wipe out “many of the 26,000 jobs” in the South Australian hotel industry appears to be grossly exaggerated.</p>
<p>The Australian Hotels Association did not provide modelling or evidence to show how “many” jobs might be affected.</p>
<p>The number of gaming related jobs in South Australian hotels in 2015 was around 3,000. In the same year, less than 20% of the South Australian hotel industry’s revenue came from gaming. </p>
<p>The reforms proposed by SA Best aim to reduce the number of poker machines in some hotels, and reduce maximum bet limits, rather than removing the machines entirely. </p>
<p>Based on these factors, the Australian Hotels Association claim greatly overstates potential job losses.</p>
<p>In addition, at least some of the money not spent on poker machines would be spent on other recreational activities.</p>
<p>This means that potential job losses due to poker machine reforms may be partially offset by increases in employment elsewhere in the economy – or even within the same hotels.</p>
<hr>
<h2>What changes is SA Best proposing?</h2>
<p>Among a suite of reforms, the SA Best party <a href="https://sabest.org.au/state-policies/gambling-reform/">wants</a> to reduce the number of poker machines in pubs with 10 or more machines by 10% each year over the next five years. This reduction wouldn’t apply to not-for-profit community clubs or the Adelaide Casino. </p>
<p>SA Best is also proposing the introduction of a $1 maximum bet per spin and a maximum win of $500 for machines in pubs and and not-for-profit community clubs. </p>
<p>SA Best leader Nick Xenophon said these reforms would reduce the number of poker machines in South Australia from <a href="http://www.ahasa.com.au/__files/f/19639/Economic_Contribution_of_the_Hotel_Industry_in_South_Australia.pdf">around 12,000</a> to around 8,000, and reduce potential personal losses on pokies in pubs and community clubs from around $1,200 an hour to around $120 per hour.</p>
<p>The policy includes a poker machine buyback scheme, a “jobs fund” to assist affected employees, and the possibility of compensation for smaller poker machine operators.</p>
<h2>Would ‘many of 26,000 jobs’ be wiped out?</h2>
<p>First of all, let’s look at how many people work in the hotel industry in South Australia, and how many of those jobs are related to gaming. </p>
<p>This information is not available from the Australian Bureau of Statistics.</p>
<p>However, in January 2016, the South Australian Centre for Economic Studies published a <a href="http://www.ahasa.com.au/__files/f/19639/Economic_Contribution_of_the_Hotel_Industry_in_South_Australia.pdf">report</a> that examined the economic contribution of the hotel industry in South Australia. </p>
<p>The report was commissioned by the AHA SA, but it adopts a sound statistical approach to measuring employment in the hotel sector.</p>
<p>According to that report, a total of 26,250 staff were employed in hotels in South Australia in 2015. Of those, 3,048 were classified as gaming staff (or 11.6% of total employment).</p>
<p>Of the 26,250 people employed across the industry, the majority were casual staff (rather than permanent or part-time staff).</p>
<p>The SA Best proposal is to reduce poker machine numbers and maximum bets in some venues, as opposed to removing pokies entirely. So it’s clear that not all 3,000 gaming staff would be at risk.</p>
<p>However, the AHA SA is arguing that reduced revenue from pokies would threaten other jobs. </p>
<p>According to the same <a href="http://www.ahasa.com.au/__files/f/19639/Economic_Contribution_of_the_Hotel_Industry_in_South_Australia.pdf">report</a>, in 2015, 17% of the South Australian hotel industry’s annual revenue came from gaming. Around 80% of revenue came from liquor sales, food and beverage sales and accommodation.</p>
<p>So even in light of reduced gaming revenue, assertions that “many” or “the majority” of 26,000 pub employees would be affected appear to be unsubstantiated. </p>
<iframe src="https://datawrapper.dwcdn.net/fN5nA/3/" scrolling="no" frameborder="0" allowtransparency="true" width="100%" height="400"></iframe>
<h2>Jobs may be shifted elsewhere</h2>
<p>To understand what might happen if Xenophon’s proposed reforms were introduced, we need to take two factors into account.</p>
<p>On the one hand, if less money is spent on poker machines, then the number of hours requested to service gaming activities decreases. This could result in less demand for labour, and hence a potential reduction in the number of those roles.</p>
<p>On the other hand, money not spent on gaming could be redirected to other recreational activities – like going to cafes, restaurants and cinemas – or to the retail sector. This would mean that new jobs would be created in other parts of the economy. </p>
<p>Spending diverted to food and beverage sales and other forms of entertainment could also see new jobs created within the same venues.</p>
<p>Another <a href="https://www.adelaide.edu.au/saces/docs/the-south-australian-gambling-industry.pdf">report conducted in 2006</a> by the South Australian Centre for Economic Studies, commissioned by the South Australian Independent Gambling Authority, found that following the introduction of electronic gaming machines in South Australia, employment in hotels did increase. </p>
<p>However, most of this increase came at the expense of other businesses, like cafes and restaurants. This shows that there is a strong substitution effect in employment between gaming activities and other recreational activities. </p>
<p>Having been published in 2006, the exact numbers in the report are dated. But the qualitative argument is unlikely to have changed. This conclusion is also supported by <a href="https://www.socialactionresearchcentre.org.au/wp-content/uploads/Removing-poker-machines-from-hotels-and-clubs-in-Tasmania-Economic-Considerations.pdf">more recent studies</a>.</p>
<p>In summary, while some of the 3,000 gaming-related jobs in the hotel industry may be lost as a result of the proposed poker machine reforms, claims that “many” or “the majority” of 26,000 jobs would be lost are grossly exaggerated, and not supported by available evidence or existing research. <strong>– Fabrizio Carmignani</strong></p>
<h2>Blind review</h2>
<p>I agree with the conclusions of this FactCheck.</p>
<p>The assertions that “a majority” or “many” of the 26,000 jobs in the South Australian hotel industry would be lost if the proposals put forward by SA Best were to be implemented are gross exaggerations.</p>
<p>They might not be quite as gross an exaggeration as the <a href="https://theconversation.com/factcheck-are-around-5-000-jobs-at-risk-if-pokies-are-removed-from-pubs-and-clubs-in-tasmania-91149">analogous assertions</a> made in Tasmania during that state’s recent election campaign, but they are an exaggeration, nonetheless. <strong>– Saul Eslake</strong></p>
<hr>
<p><strong>The Conversation is fact-checking the South Australian election. If you see a ‘fact’ you’d like checked, let us know by sending a note via <a href="mailto:checkit@theconversation.edu.au">email</a>, <a href="http://www.twitter.com/conversationEDU">Twitter</a> or <a href="http://www.facebook.com/conversationEDU">Facebook</a>.</strong></p>
<p><strong>The Conversation thanks <a href="https://theconversation.com/the-conversation-is-fact-checking-the-south-australian-election-and-we-want-to-hear-from-you-92809">The University of South Australia</a> for its support.</strong></p>
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<span class="caption">The Conversation FactCheck is accredited by the International Fact-Checking Network.</span>
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<p><em>The Conversation’s FactCheck unit was the first fact-checking team in Australia and one of the first worldwide to be accredited by the International Fact-Checking Network, an alliance of fact-checkers hosted at the Poynter Institute in the US. <a href="https://theconversation.com/the-conversations-factcheck-granted-accreditation-by-international-fact-checking-network-at-poynter-74363">Read more here</a>.</em></p>
<p><em>Have you seen a “fact” worth checking? The Conversation’s FactCheck asks academic experts to test claims and see how true they are. We then ask a second academic to review an anonymous copy of the article. You can request a check at <a href="mailto:checkit@theconversation.edu.au">checkit@theconversation.edu.au</a>. Please include the statement you would like us to check, the date it was made, and a link or a photo if possible.</em></p><img src="https://counter.theconversation.com/content/93189/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Fabrizio Carmignani received funding from the Australian Research Council for a project on the estimation of the linear continuous piecewise model and its application in macroeconomics.</span></em></p><p class="fine-print"><em><span>Saul Eslake does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The Australian Hotels Association of South Australia claims poker machine reforms proposed by Nick Xenophon’s SA Best party would wipe out ‘many of the 26,000’ jobs in the hotel industry. Is that right?Fabrizio Carmignani, Professor, Griffith Business School, Griffith UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/920382018-02-20T23:22:22Z2018-02-20T23:22:22Z‘No pokies’ Xenophon goes for ‘some pokies’, but does his gambling policy go far enough?<figure><img src="https://images.theconversation.com/files/207017/original/file-20180219-116327-1xls5ni.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The evidence behind Nick Xenophon's proposed gambling reforms in South Australia is reasonably strong. </span> <span class="attribution"><span class="source">AAP/Morgan Sette</span></span></figcaption></figure><p>SA-Best, led by high-profile former senator Nick Xenophon, has announced its <a href="https://sabest.org.au/media/sa-best-gambling-reform-policies-will-dramatically-reduce-pokies-addiction-and-community-harm/">gambling policy</a> ahead of next month’s South Australian election. Xenophon has backed away from the “no pokies” policy that characterised his earlier approach to gambling reform. However, the evidence behind his party’s proposed suite of measures is reasonably strong. </p>
<h2>What’s in the policy?</h2>
<p>Key aspects of SA-Best’s proposal are:</p>
<ul>
<li><p>a five-year plan to cut poker machines numbers in South Australia from 12,100 to 8,100;</p></li>
<li><p>a reduction in maximum bets to A$1, from the current $5;</p></li>
<li><p>a reduction in maximum prizes from $10,000 to $500;</p></li>
<li><p>removing particularly addictive features such as <a href="https://theconversation.com/poker-machines-and-the-law-when-is-a-win-not-a-win-49580">“losses disguised as wins”</a>;</p></li>
<li><p>prohibition of political donations from gambling businesses; and</p></li>
<li><p>the removal of EFTPOS facilities from gambling venues.</p></li>
</ul>
<p>The policy would also empower the state’s <a href="http://iga.sa.gov.au/">Independent Gambling Authority</a> to implement and evaluate these proposals. </p>
<p>The policy is targeted at commercial hotel operators; clubs, “community hotels” and the casino are exempt from the reduction provisions. </p>
<p>There are also proposals to cut trading hours from 18 to 16 per day, with the introduction of a seven-year pokie licence for venues, from January 1, 2019. Increased resources would go to counselling and support for those with gambling problems.</p>
<p>Notably absent from the policy is the introduction of a <a href="https://aifs.gov.au/agrc/sites/default/files/publication-documents/agrc-precommitment-limit-setting.pdf">pre-commitment</a> system, which would enable pokie users to decide in advance how much they want to spend. Along with $1 maximum bets, this was a key recommendation of a <a href="https://www.pc.gov.au/inquiries/completed/gambling-2009/report">Productivity Commission inquiry</a> in 2010.</p>
<p>The policy has attracted the <a href="https://www.theshout.com.au/australian-hotelier/xenophons-gaming-policy-blasted-aha-sa/">expected response</a> from the gambling industry. The Australian Hotels Association argued the changes would “rip the guts” out of the gambling industry and attack the “26,000 jobs” it claims the industry directly creates.</p>
<h2>Does evidence support SA Best’s policies?</h2>
<p>We’ve known for some time that <a href="https://theconversation.com/a-1-maximum-bet-on-pokies-would-reduce-gambling-harm-22931">reducing maximum bets</a> is likely to reduce the amount wagered by people experiencing severe gambling problems. This in turn reduces the harm they suffer.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/a-1-maximum-bet-on-pokies-would-reduce-gambling-harm-22931">A $1 maximum bet on pokies would reduce gambling harm</a>
</strong>
</em>
</p>
<hr>
<p>Reducing maximum prizes reduces “<a href="https://aifs.gov.au/agrc/publications/how-electronic-gambling-machines-work/structural-characteristics-egms">volatility</a>”, meaning pokies may have more consistent loss rates.</p>
<p>Reducing access to pokies is also an important intervention, since easy access is a <a href="https://theconversation.com/too-close-to-home-people-who-live-near-pokie-venues-at-risk-20771">key risk factor</a> for developing a gambling problem. Reducing the number of machines, and the hours they are accessible, support this. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/too-close-to-home-people-who-live-near-pokie-venues-at-risk-20771">Too close to home: people who live near pokie venues at risk</a>
</strong>
</em>
</p>
<hr>
<p>However, <a href="https://www.adelaide.edu.au/saces/docs/study-of-the-impact-of-caps-on-electronic-gaming-machines.pdf">very substantial cuts in pokie numbers</a> are needed to meaningfully reduce harm. A cut of the magnitude SA-Best proposes may not be sufficient to prevent those with serious gambling habits from readily accessing pokies. This is because pokies are rarely fully utilised at all times of the week.</p>
<p>Removing <a href="https://www.responsiblegambling.vic.gov.au/__data/assets/pdf_file/0007/26881/Thomas-A-Evaluation-of-the-removal-of-ATMs-Victoria-Sept-2013.pdf">easy access to cash</a> has also been identified as an important harm-reduction intervention. This had a positive initial effect in Victoria (especially among high-risk gamblers), when ATMs were removed from pokie venues in 2012.</p>
<p>The harms associated with gambling generally affect <a href="http://www.tandfonline.com/doi/abs/10.1080/14459795.2017.1331252?journalCode=rigs20">far more people</a> than just the gambler. The <a href="http://www.problemgambling.sa.gov.au/professionals/news_and_events/news-items/release-of-the-2012-gambling-prevalence-study-in-south-australia?a=13625">most recent study</a>, from 2012 indicates that 0.6% of the SA adult population is classified as at high risk of gambling harm, 2.5% are classified as at moderate risk, and another 7.1% at low risk.</p>
<p>Based on <a href="http://www.censusdata.abs.gov.au/census_services/getproduct/census/2016/communityprofile/4?opendocument">census data</a>, this equates to about 8,000 South Australians experiencing severe harm from gambling. Another 33,100 are experiencing significant harm, and about 94,000 are experiencing some harm.</p>
<p>However, each high-risk gambler affects six others; each moderate-risk gambler affects three others; and each low-risk gambler one other. So, the problems of each high-risk gambler affect another 47,660 South Australians. These are children, spouses, other relatives, friends, employers, the general community via the costs of crime, and so on. </p>
<p>Another 99,300 are affected by moderate-risk gambling, and another 94,000 by low-risk gambling. All up, this amounts to 241,000 people.</p>
<p>Of these, 190,000 are affected at high or significant levels. <a href="http://www.responsiblegambling.vic.gov.au/__data/assets/pdf_file/0007/28465/Browne_assessing_gambling-related_harm_in_Vic_Apr_2016-REPLACEMENT2.pdf">These harms include</a> financial disaster and bankruptcy, divorce or separation, neglect of children, intimate partner violence and other violent crime, crimes against property, mental and physical ill-health, and in some cases, suicide.</p>
<p>Most gambling problems (around 75%) <a href="https://www.pc.gov.au/inquiries/completed/gambling-2009/report/gambling-report-volume1.pdf">are related to pokies</a>, and by far the greatest expenditure goes through them. Nothing has changed in this regard since the Productivity Commission identified this in 2010.</p>
<p>In this context, SA-Best’s policy has substantial justification.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/removing-pokies-from-tasmanias-clubs-and-pubs-would-help-gamblers-without-hurting-the-economy-90019">Removing pokies from Tasmania's clubs and pubs would help gamblers without hurting the economy</a>
</strong>
</em>
</p>
<hr>
<h2>Does it go far enough?</h2>
<p>The <a href="http://www.abc.net.au/news/2018-01-20/greens-target-xenophon-with-policy-to-ban-pokies-angering-hotels/9344960">South Australian Greens</a>, like their <a href="http://www.abc.net.au/news/2017-10-16/greens-to-force-tas-labor-hand-on-pokies-policy/9055102">counterparts in Tasmania</a> and the Tasmanian Labor Party, want to get all pokies out of pubs and clubs. They argue gambling’s social and economic costs are far in excess of the benefits. </p>
<p>For Tasmania, the costs of gambling can be estimated at about <a href="http://www.tai.org.au/content/estimating-revenue-share-farrell-group-and-other-gambling-industry-participants-gambling">$342 million per year</a>. This is more than three times as much as the total tax take from all gambling in the state.</p>
<p>A similar calculation for South Australia suggests its overall costs of problem gambling are more than $1.6 billion per year. This is more than four times the total taxes from gambling the South Australian government <a href="http://www.qgso.qld.gov.au/products/reports/aus-gambling-stats/">derived in 2015-16</a> ($380.3 million).</p>
<p>With a cost-benefit ratio like that, some strong measures could well be called for. Xenophon says the proposals encapsulated in his party’s policy are the start. However, Tasmanian Labor has set the new benchmark for pokie regulation – removing them entirely from pubs and clubs.</p>
<p>It is remarkable that a party traditionally in lockstep with – and <a href="https://theconversation.com/gambling-lobby-gives-big-to-political-parties-and-names-names-73131">substantially supported by</a> – the gambling industry has adopted such a position. Perhaps the harms have become too much to ignore?</p>
<p>How these policies might be implemented, amid the resistance they will face from a well-heeled and <a href="http://insidestory.org.au/the-lobby-group-that-got-much-more-bang-for-its-buck/">often-influential</a> gambling industry, presents an intriguing prospect over coming months.</p><img src="https://counter.theconversation.com/content/92038/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Charles Livingstone has received funding from the Victorian Responsible Gambling Foundation, the (former) Victorian Gambling Research Panel, and the South Australian Independent Gambling Authority (the funds for which were derived from hypothecation of gambling tax revenue to research purposes), from the Australian and New Zealand School of Government, and from non-government organisations for research into multiple aspects of poker machine gambling, including regulatory reform, existing harm minimisation practices, and technical characteristics of gambling forms. He has received travel and co-operation grants from the Alberta Problem Gambling Research Institute, the Finnish Institute for Public Health, the Ontario Problem Gambling Research Committee, and the Problem Gambling Foundation of New Zealand. He is a Chief Investigator on an Australian Research Council funded project researching mechanisms of influence on government by the tobacco, alcohol and gambling industries. He has undertaken consultancy research for local governments and non-government organisations in Australia and the UK seeking to restrict or reduce the concentration of poker machines and gambling impacts, and was a member of the Australian government's Ministerial Expert Advisory Group on Gambling in 2010-11. He is a member of the Australian Greens.</span></em></p>Nick Xenophon says the proposals encapsulated in his party’s gambling policy for the South Australian election are just the start of a wider push for reform.Charles Livingstone, Senior Lecturer, School of Public Health and Preventive Medicine, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/900192018-01-16T19:13:01Z2018-01-16T19:13:01ZRemoving pokies from Tasmania’s clubs and pubs would help gamblers without hurting the economy<figure><img src="https://images.theconversation.com/files/202014/original/file-20180116-53295-9sst7f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Money gambled on pokies is frequently diverted from other, often more productive purposes, such as mortgage repayments, rent or other entertainment.</span> <span class="attribution"><span class="source">AAP/Julian Smith</span></span></figcaption></figure><p>Debate over poker machines is at the centre of the lead-up to this year’s Tasmanian state election. <a href="http://www.abc.net.au/news/2017-12-13/poker-machines-to-be-out-of-pubs-clubs-under-tasmanian-labor/9254442">Labor’s promise</a> to remove pokies from Tasmania’s pubs and clubs by 2023 if it wins government has been met with both praise and fierce criticism from lobby groups.</p>
<p>Announcing the Liberals’ gaming policy recently, <a href="http://www.abc.net.au/news/2018-01-09/tas-liberals-gaming-policy-announced/9314398">Premier Will Hodgman said</a>:</p>
<blockquote>
<p>Unlike Labor, we believe that Tasmanians should be able to choose how to spend their money, not be dictated to by the government.</p>
</blockquote>
<p>Amid claim and counter-claim, what are the facts on pokies in Tasmania? And what do we know about the impact of Labor’s policy of removing the machines from pubs and clubs?</p>
<h2>Ownership and location of pokies in Tasmanian pubs and clubs</h2>
<p>Tasmanian pubs and clubs <a href="http://www.treasury.tas.gov.au/liquor-and-gaming/legislation-and-data/gambling-industry-data/gaming-and-wagering-industry-data">house 2,365 pokies</a>. In 2016-17, those who used them lost A$110 million.</p>
<p>Like most jurisdictions that have pokies in clubs and pubs, Tasmania’s are concentrated in areas of social stress. In fact, disadvantage predicts the extent of pokie losses <a href="https://theconversation.com/tasmanias-pokie-problem-stress-and-disadvantage-exploited-more-than-anywhere-else-in-australia-73525">far more in Tasmania</a> than in other Australian states and territories.</p>
<hr>
<p><em><strong>Further reading: <a href="https://theconversation.com/tasmanias-pokie-problem-stress-and-disadvantage-exploited-more-than-anywhere-else-in-australia-73525">Tasmania’s pokie problem: stress and disadvantage exploited more than anywhere else in Australia</a></strong></em></p>
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<p>This may be largely attributable to the ownership arrangements in Tasmania, where one company – the Federal Group, <a href="https://theconversation.com/how-one-family-used-pokies-and-politics-to-extract-a-fortune-from-tasmanians-73193">owned by the Farrell family</a> – holds the licence for all pokies in pubs and clubs, and the state’s two casinos. Ownership of the licences means Federal has excellent data, and can decide where to locate pokies to maximise profit.</p>
<p>Federal also entirely <a href="http://www.treasury.tas.gov.au/liquor-and-gaming/legislation-and-data/gambling-industry-data">owns and operates 12 pubs</a> through its subsidiary, Vantage Hotel Group. Each venue operates 30 pokies. Australia Leisure and Hospitality Group, a subsidiary of Woolworths, operates another five venues, each also with 30 pokies.</p>
<p>Six of these 17 venues are in Glenorchy, a hotspot for pokie gambling. Pokies in Glenorchy make 1.6 times the state average – $74,589 per machine, compared to $46,486 across pubs and clubs in Tasmania. No other local government area even comes close to that figure. These losses translate to $560 per adult per year, compared to a Tasmanian average of $272.</p>
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<p>Glenorchy and some other local government areas have previously been <a href="http://www.treasury.tas.gov.au/Documents/20150109SEISVolume2FINALREVISEDCHANGES.PDF">described as “low income”</a>, and are reported as having a problem gambling rate of 1.1%, compared to the state average of 0.6%. It’s little wonder, then, that the rate of losses is also more than twice the state average.</p>
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<p><em><strong>Further reading: <a href="https://theconversation.com/how-one-family-used-pokies-and-politics-to-extract-a-fortune-from-tasmanians-73193">How one family used pokies and politics to extract a fortune from Tasmanians</a></strong></em></p>
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<p>It’s no accident that pokies in Tasmania are located in areas of significant social and economic stress. People who get hooked on them are likely to be seeking relief from life’s stresses – whether that’s caused by poverty, social exclusion, or difficult personal circumstances.</p>
<h2>How widespread is harm from gambling in Tasmania?</h2>
<p>The most recent published <a href="http://www.treasury.tas.gov.au/Documents/Vol%202%20-%20SEIS%202017%20-%2022%20DECEMBER%202017%20-%20FINAL.pdf">survey of gambling activity</a> in Tasmania reports that 0.6% of the state’s adult population can be classified as “problem gamblers”. Another 1.4% were classed as “moderate-risk” gamblers, the next-lowest category. </p>
<p>All these people not only experience some degree of harm from gambling, but their gambling also affects others. Moderate-risk gamblers on average affect <a href="http://www.tandfonline.com/doi/full/10.1080/14459795.2017.1331252">three other people</a>, while the gambling of those in the more severe category affects six others.</p>
<p>We can use these data to develop some sense of how widespread the harm from gambling is in Tasmania.</p>
<p>Tasmania’s adult population is <a href="http://www.abs.gov.au/ausstats/abs@.nsf/Previousproducts/3235.0Main%20Features402014?opendocument&tabname=Summary&prodno=3235.0&issue=2014&num=&view=">estimated to be</a> around 405,000. Applying data from the gambling survey, Tasmania has around 2,430 problem gamblers, each of whom affects another six people (children, spouses, employers, friends and neighbours). That’s around 14,580 other people. </p>
<p>There’s 5,670 moderate-risk gamblers, each affecting three other people: roughly another 17,010 people. Low-risk gamblers comprise 4.8% of the adult population – around 19,440 people – and each of these will affect one other. And the <a href="https://www.responsiblegambling.vic.gov.au/__data/assets/pdf_file/0007/28465/Browne_assessing_gambling-related_harm_in_Vic_Apr_2016-REPLACEMENT2.pdf">harms of gambling</a> are <a href="https://aifs.gov.au/agrc/publications/impact-gambling-problems-families/what-are-impacts-gambling-problems-families">significant</a>.</p>
<p>All up, those harmed by gambling in Tasmania at any one time amounts to more than 78,000 people, or more than 15% of the state’s total population. This is almost certainly both an underestimate, and overwhelmingly attributable to pokies – given the vast majority of problem gamblers use pokies, almost entirely in pubs and clubs.</p>
<h2>The potential impacts of Labor’s policy</h2>
<p>The Tasmanian government received about <a href="http://www.treasury.tas.gov.au/liquor-and-gaming/legislation-and-data/gambling-industry-data/gaming-and-wagering-industry-data">$31.2 million in 2016-17</a> from pokies in pubs and clubs. That amounts to 3% of Tasmanian <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/5506.02014-15?OpenDocument">state tax revenue</a>. </p>
<p>However, if pokies were removed from pubs and clubs, the money spent on gambling would not disappear. And it’s likely that revenue would flow to Treasury from other expenditures. </p>
<p>Gambling doesn’t create money from nothing. In fact, money gambled on pokies is frequently diverted from other, often more productive purposes, such as mortgage repayments, rent or other entertainment. Many of these other uses provide at least the same level of economic benefit, while not being associated with harm.</p>
<p>Gambling expenditure of $1 million <a href="http://www.treasury.tas.gov.au/Documents/Soc-Economic-Impact-Study-Vol1.pdf">creates about 3.2 jobs</a>. The same expenditure on sales of liquor and other beverages equates to 8.3 jobs. And spending $1 million on sales of food and meals generates 20 jobs.</p>
<p>Most of the changes that would result from Labor’s policy would be felt by the minority of pubs whose business model has been built around the steady stream of pokie revenue. This includes some large corporations mentioned earlier. </p>
<p>Of the 343 “general” (or pub) licences, 89 (25.9%) have pokies. Of the 197 licensed clubs, a very modest seven (3.6%) operate pokies. The operators of these establishments would have until 2023 to reorganise their affairs, and would be assisted by a <a href="http://taslabor.com/phasing-out-poker-machines/">government package</a> to do so.</p>
<p>Pokies are highly addictive <a href="https://aifs.gov.au/agrc/publications/how-electronic-gambling-machines-work">for many reasons</a>, but importantly because they’re high impact, almost continuous, and everywhere. If social space is saturated with pokies, they’ll be used. If used, they are likely to addict a significant proportion of those who use them.</p>
<p>Some of those currently hooked on pokies may move to other forms of gambling if pokies are not available, such as those available via the internet. However, when slot machines were similarly phased out in Norway, <a href="http://onlinelibrary.wiley.com/wol1/doi/10.1111/add.13172/abstract">the result was</a> a decline in gambling expenditure, and in harmful gambling. There was no evidence of other gambling forms substituting for expenditure on slot machines. </p>
<p>Without exposure to the highly intense form of gambling that pokies provide, the strong likelihood is a substantial reduction in harm across a variety of areas. It is also likely to lead to growth in other types of economic activity that don’t create these problems.</p><img src="https://counter.theconversation.com/content/90019/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Charles Livingstone has received funding from the Victorian Responsible Gambling Foundation, the (former) Victorian Gambling Research Panel, and the South Australian Independent Gambling Authority (the funds for which were derived from hypothecation of gambling tax revenue to research purposes), from the Australian and New Zealand School of Government, and from non-government organisations for research into multiple aspects of poker machine gambling, including regulatory reform, existing harm minimisation practices, and technical characteristics of gambling forms. He has received travel and co-operation grants from the Alberta Problem Gambling Research Institute, the Finnish Institute for Public Health, the Ontario Problem Gambling Research Committee, and the Problem Gambling Foundation of New Zealand. He is a Chief Investigator on an Australian Research Council funded project researching mechanisms of influence on government by the tobacco, alcohol and gambling industries. He has undertaken consultancy research for local governments and non-government organisations in Australia and the UK seeking to restrict or reduce the concentration of poker machines and gambling impacts, and was a member of the Australian government's Ministerial Expert Advisory Group on Gambling in 2010-11. He is a member of the Australian Greens.</span></em></p>Disadvantage predicts the extent of poker machine losses far more in Tasmania than in other Australian states and territories.Charles Livingstone, Senior Lecturer, School of Public Health and Preventive Medicine, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/894672017-12-28T10:53:09Z2017-12-28T10:53:09ZThe day zero was banned from British roulette – how times have changed<figure><img src="https://images.theconversation.com/files/200395/original/file-20171221-15899-nfaxlg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Feeling lucky?</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/stuart-buchanan/5123069290/in/photolist-8NH51S-cofK7w-bZSbtQ-adCstu-6nYaWa-4VzWfm-5g24oe-4VvGZg-5g6peq-4VvGZT-CF6Mf-4VvGYt-4wi2gE-5RV4Jf-5R7vhU-5R7vih-2fjjsF-fxoRZB-4Z2qPN-4MrJj7-6kzArw-6nDw8D-4UcsEB-4tF8Qa-4UcsBM-4UgEUC-4UcsCt-7Vy19g-94RARW-5ZGkPj-9wYCja-6kvsPP-tK62sK-tJXroY-nZZPo-e7xr8t-b26WFR-oPPtAH-imvhiR-34vzK6-8ZUbJy-5Q3dj7-NPbgXT-h1Egb-ipAbV-aH34ux-89twje-JfaHg-6cvqrK-5dkLUi">Stuart-Buchanan</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span></figcaption></figure><p>On December 30, 1967, senior detectives from Scotland Yard sent owners of gambling clubs into a proverbial spin. Anyone operating a roulette wheel that contained the number zero would be prosecuted, they warned. From now on the whirl of numbers would all be reds and blacks – starting with the number one. </p>
<p>This warning 50 years ago followed a judgment in the House of Lords, the country’s highest court of appeal at the time, that the green zero was illegal under gaming law. According to these so-called “law lords”, this was because the chances must be equally favourable to all players in the game. </p>
<p>The Lords’ problem with the zero was that players betting on the ball landing on an individual number were being offered odds of 35/1 – put £1 on number 7 and if it came up you got £35 back plus your stake. But standard British roulette wheels have 37 numbers including zero, so the odds should have been 36/1. </p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/200399/original/file-20171221-15867-1y50jd1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/200399/original/file-20171221-15867-1y50jd1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/200399/original/file-20171221-15867-1y50jd1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=800&fit=crop&dpr=1 600w, https://images.theconversation.com/files/200399/original/file-20171221-15867-1y50jd1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=800&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/200399/original/file-20171221-15867-1y50jd1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=800&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/200399/original/file-20171221-15867-1y50jd1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1005&fit=crop&dpr=1 754w, https://images.theconversation.com/files/200399/original/file-20171221-15867-1y50jd1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1005&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/200399/original/file-20171221-15867-1y50jd1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1005&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Look, two zeros.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/casinofun/8271039743/in/photolist-dATeXv-btnLYK-5BuyYm-bn4edQ-4PaXB1-7KvoL8-4P6GTt-4PaWXm-dVGKM1-4P6H6c-dVGLbf-4PaXqq-5Wa28F-9o3NKs-mur8a-5kqadE-dVBaZa-qaAHVH-9FxMZC-JYEQH-5jDK8k-dVBajx-dVGLNU-7GCsL9-8CVPfn-9o8Lks-r7oX5z-4tQToy-ECVoep-9CcBKd-Whziiy-JYD8g-JYGw2-HQmQg-JYDoi-5zaMaB-EAEHDj-5g22VK-5g6puQ-JYEy2-5g23Je-JYseS-dBMxBa-5g6nTJ-44Spnq-5pyGqq-JYi1U-JYEjP-5CtrZ4-bHxaUc">Casino Fun</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span>
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<p>This discrepancy gave the house an edge of 2.7% – the proportion of times the ball would randomly fall into the zero slot. (Note that in the US and South America roulette wheels normally have both a zero and double zero, giving them a house edge of just over 5%). </p>
<p>The British edge on roulette wheels was a small one, such that someone staking £10 on a spin would expect statistically to lose an average of 27 pence. But it’s a vital one. Without an edge on a game the operator would expect only to break even, and that’s before accounting for running costs. The Lords’ decision also looked like the back door to banning every other game with a house edge, such as blackjack and baccarat.</p>
<h2>Casinos royale</h2>
<p>It had been illegal in the UK to organise and manage the playing of games of chance since the <a href="https://www.legislation.gov.uk/ukpga/1845/109/pdfs/ukpga_18450109_en.pdf">Gaming Act of 1845</a>. The <a href="http://news.bbc.co.uk/onthisday/hi/dates/stories/september/1/newsid_2969000/2969846.stm">Betting and Gaming Act 1960</a> was the most substantive change to gambling regulation since then. As well as permitting the likes of betting shops and pub fruit machines, it opened the door to gambling halls – though only in a very restricted way. </p>
<p>Designed to permit small-stakes play on bridge in members’ clubs, the act legalised gaming clubs so long as they took their money from membership fees and from charges to cover the cost of the gaming facilities. Casinos soon proliferated, however, and by the mid-1960s around a thousand had sprung up. </p>
<p>Many introduced French-style roulette, with wheels that included a single zero, since the law had arguably not been clear as to whether the house could have an edge. The one variation thought necessary by some to comply with the legislation was that when the ball landed on zero the house and player split the stake, instead of it being kept by the house. </p>
<p>Not only had the law liberalised gambling more than had been envisaged by the government of the day, many casinos had apparent ties to organised crime. London gaming quickly became notorious. Film star <a href="http://www.imdb.com/name/nm0706368/bio">George Raft</a>, a man once linked to such shady characters as Las Vegas mobster <a href="https://themobmuseum.org/notable_names/benjamin-bugsy-siegel/">Benjamin “Bugsy” Siegel</a>, was one of the more high-profile names <a href="http://www.gamingfloor.com/features/mafia_london/mafia_lon.htm">associated with</a> the scene.</p>
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<a href="https://images.theconversation.com/files/200396/original/file-20171221-15867-171txtr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/200396/original/file-20171221-15867-171txtr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/200396/original/file-20171221-15867-171txtr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=398&fit=crop&dpr=1 600w, https://images.theconversation.com/files/200396/original/file-20171221-15867-171txtr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=398&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/200396/original/file-20171221-15867-171txtr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=398&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/200396/original/file-20171221-15867-171txtr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=500&fit=crop&dpr=1 754w, https://images.theconversation.com/files/200396/original/file-20171221-15867-171txtr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=500&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/200396/original/file-20171221-15867-171txtr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=500&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Man about town: film star George Raft (left).</span>
<span class="attribution"><a class="source" href="https://commons.wikimedia.org/wiki/File:George_Raft_and_Yvonne_DeCarlo_(214260208).jpg#/media/File:George_Raft_and_Yvonne_DeCarlo_(214260208).jpg">Wikimedia</a></span>
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<p>When the Lords drew a line in the sand in 1967 by banning zeros in roulette, gaming bodies went into overdrive. One proposal designed to save the zero was to offer odds of 36/1 on individual numbers, and instead levy a playing charge on the players. </p>
<h2>Let the games begin …</h2>
<p>The government was soon persuaded it needed to legislate again. In 1968 a new <a href="https://www.legislation.gov.uk/ukpga/1968/65">Gaming Act</a> introduced a Gaming Board and strict measures to regulate and police gaming in Great Britain. New licensing rules, including a “fit and proper persons” test, pushed out the shady operators. </p>
<p>The one concession to the industry was that gaming clubs and casinos would be permitted to play roulette with a zero. Other games with a house edge, such as baccarat, blackjack and craps were also explicitly permitted. In an environment of regulated, licensed gaming establishments, the government was saying, a small edge was acceptable as a way of paying for costs and turning a profit. </p>
<p>This came on the back of another reform that was vital for developing the industry that we see today. Following the legalisation of betting shops in 1960, the government began taxing their turnover <a href="http://www.legislation.gov.uk/ukpga/1966/18/pdfs/ukpga_19660018_en.pdf">in 1966</a>. It was the first tax on betting since the one <a href="http://www.economicissues.org.uk/Files/2014/214LVW.pdf">introduced in 1926</a> by then Chancellor of the Exchequer, Winston Churchill, in the days before cash bookmaking was legal and above board.</p>
<p>“I am not looking for trouble. I am looking for revenue,” Churchill declared at the time. He didn’t see much of the latter and got a lot of the former: endless enforcement difficulties and opposition from lobby groups and in parliament. The tax was gone by 1930. </p>
<p>Yet the 1966 tax stuck, and today the UK gambling landscape is much changed – not only because of the <a href="http://news.bbc.co.uk/onthisday/hi/dates/stories/november/19/newsid_3702000/3702998.stm">introduction of</a> the National Lottery in 1994 but thanks also in large measure to two key pieces of modernising legislation. The first was the <a href="http://irep.ntu.ac.uk/id/eprint/20898/1/196054_154%20Vaughan%20williams%20Post%20Print.pdf">radical overhaul</a> of betting taxation in 2001 and the other was the <a href="https://publications.parliament.uk/pa/jt200304/jtselect/jtgamb/uc139-iv/uc13902.htm">Gambling Act of 2005</a>, both of which I was closely involved with as an adviser. </p>
<p>Instead of taxing betting turnover, now operators are taxed on their winnings (gross profits). Casinos, betting shops and online operators can advertise on radio and TV; players no longer need to be members of casinos to visit them; and online operators based overseas but active in the UK market must comply with UK licence requirements. </p>
<p>Betting exchanges allow people to bet person-to-person, a Gambling Commission regulates betting and gaming, and electronic roulette with a zero is legally available in betting shops and casinos. </p>
<p>The industry as a whole has grown very <a href="http://www.gamblingcommission.gov.uk/news-action-and-statistics/Statistics-and-research/Statistics/Gambling-key-facts.aspx">significantly in size</a> and employs a lot of people, and there is more evidence-based research and focus on the issue of <a href="http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.576.2072&rep=rep1&type=pdf">gambling prevalence</a> and <a href="http://about.gambleaware.org/">problem gambling</a> than ever before. The wheel has certainly turned a long way since that Lords decision in 1967, when the country was still trying to decide what kind of gambling system it wanted. The question that now divides opinion is how far the wheel has turned for the better.</p><img src="https://counter.theconversation.com/content/89467/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Leighton Vaughan Williams has produced commissioned reports and expert witness evidence on the taxation, regulation, economic impacts and prevalence of gambling for HM Revenue and Customs, DCMS, Gambling Commission, Joint Scrutiny Committee of the House of Commons and House of Lords, and the Competition Commission. He has also acted as a special adviser to the National Audit Office on the taxation of gambling.</span></em></p>On December 30, 1967 the UK’s highest court drew a line in the sand over the rise of casinos. Here’s what happened next.Leighton Vaughan Williams, Professor of Economics and Finance. Director of the Betting Research Unit and the Political Forecasting Unit at Nottingham Business School, Nottingham Trent UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/840652017-09-15T02:50:26Z2017-09-15T02:50:26ZSnap that prize up: croc research on gambling habits gets an Ig Nobel<figure><img src="https://images.theconversation.com/files/186112/original/file-20170914-8975-1iltwl8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The one-metre long relatives of this snappy croc at the Koorana Crocodile Farm, near Rockhampton, helped test the betting risks of potential gamblers.</span> <span class="attribution"><a class="source" href="https://www.flickr.com/photos/gorey/3446805828/">Flickr/Michael Gorey</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc/4.0/">CC BY-NC</a></span></figcaption></figure><p>Our research examining the effects of holding a live crocodile on slot-machine gambling has won one of this year’s infamous <a href="http://www.improbable.com/">Ig Nobel prizes</a>.</p>
<p>The award was one of several presented at a ceremony at Harvard University in the US on Thursday night, which honours research topics that “<a href="http://www.improbable.com/about/">first make people laugh, then make people think</a>”. They’re often regarded as a parody of the Nobel Prizes.</p>
<p>The judges said to all those who didn’t win an award, “better luck next year” and repeated the same to the recipients.</p>
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Read more:
<a href="https://theconversation.com/three-charts-on-australias-addiction-to-poker-machines-78353">Three charts on: Australia's addiction to poker machines</a>
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<p>Our original research paper, <a href="https://link.springer.com/article/10.1007%2Fs10899-009-9174-4">Never Smile at a Crocodile: Betting on Electronic Gaming Machines is Intensified by Reptile-Induced Arousal</a> published in the Journal of Gambling Studies in 2010, did get <a href="http://www.abc.net.au/science/articles/2010/01/29/2802811.htm">some coverage</a> at the time.</p>
<p>Now that our work has been awarded the 2017 Ig Nobel prize for Economics, does it mean the influence of emotions on people’s gambling may get more attention in the literature? </p>
<p>Frankly, probably not. People will laugh a little, and carry on with their lives.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/186114/original/file-20170914-9038-2baqnd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/186114/original/file-20170914-9038-2baqnd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/186114/original/file-20170914-9038-2baqnd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=675&fit=crop&dpr=1 600w, https://images.theconversation.com/files/186114/original/file-20170914-9038-2baqnd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=675&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/186114/original/file-20170914-9038-2baqnd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=675&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/186114/original/file-20170914-9038-2baqnd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=848&fit=crop&dpr=1 754w, https://images.theconversation.com/files/186114/original/file-20170914-9038-2baqnd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=848&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/186114/original/file-20170914-9038-2baqnd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=848&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Researcher Nancy Greer and Prof Matthew Rockloff were suitably dressed for the Ig Nobel occasion.</span>
<span class="attribution"><span class="source">CQUniversity</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<h2>The croc research</h2>
<p>But the research addressed a surprisingly serious topic of how gambling is affected by the excitement generated by pokies or slot machines. </p>
<p>One of the important entertainment elements of gambling is its ability to generate excitement. This excitement is particularly important for people with pre-existing gambling problems, who often suffer from low moods.</p>
<p>The research was devised to subtly manipulate excitement just prior to gambling.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/186120/original/file-20170915-8998-15pji09.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/186120/original/file-20170915-8998-15pji09.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/186120/original/file-20170915-8998-15pji09.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/186120/original/file-20170915-8998-15pji09.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/186120/original/file-20170915-8998-15pji09.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/186120/original/file-20170915-8998-15pji09.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/186120/original/file-20170915-8998-15pji09.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/186120/original/file-20170915-8998-15pji09.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The researchers used smaller crocs like this one as part of the study.</span>
<span class="attribution"><span class="source">Shutterstock/Digital Video Bank</span></span>
</figcaption>
</figure>
<p>Our supposition was that some of the excitement from holding the crocodile would be misattributed to the gambling experience, allowing us to study how that feeling of excitement might influence gambling decisions.</p>
<p>So we attended 100 crocodile tours at the <a href="https://www.koorana.com.au/">Koorana Crocodile Farm</a> in Coowonga, Central Queensland, Australia. For about half of the tours, we approached people at random to play a simulated pokie game before entering the farm and having any contact with crocodiles. </p>
<p>For the other half of participants, they were approached immediately after holding a live one-metre crocodile. Photos holding the crocodile are a feature of the end of the tour, and most tourists take a turn holding this ancient - and potentially deadly - animal.</p>
<p>We measured all aspects of people’s real-money gambling on our simulated pokie game. We also took standard measures of people’s physiological state and mood, and surveyed them for any pre-existing gambling problems.</p>
<h2>The findings</h2>
<p>Most of our subjects, the tourists at the croc farm, had fun holding the croc. The juvenile crocodile had its mouth taped shut, but still had sharp teeth protruding from its mouth. </p>
<p>It also had sharp claws, and tourists were advised to handle it carefully. In our debriefing of the participants, nobody indicated an awareness that the crocodile had any influence on their gambling decisions.</p>
<p>But our results showed that people with pre-existing problems bet larger amounts after they held a one-metre crocodile, as long as they did not rate themselves as having a negative mood. </p>
<p>In contrast, gamblers with pre-existing problems who were in a negative mood bet substantially less. This demonstrated that emotions are an important determinant of gambling choices.</p>
<p>The research used a paradigm consistent with experimental realism, in which the goal was to simulate the psychological processes involved in real-world gambling rather than to simulate the mundane realism of the casino environment.</p>
<p>Experimental research often sacrifices some features of realism to improve control. Later correlational research supports our result by showing that people generally bet more in large, and presumably more exciting, casino environments than in smaller local venues.</p>
<h2>Ig Nobel recognition of the research</h2>
<p>Great science and great humour are often based on a surprise or unexpected results. It is important for people to understand that not all research has to be stuffy to be valuable. </p>
<p>Public recognition for our research through the Ig Nobels may allow people to “laugh”, but also to “think”. People need to be more aware of how their emotional states can influence their gambling decisions so that they can make better gambling choices.</p>
<p>The crocodile study was actually completed ten years ago, and we have made great progress since in understanding gambling choices. Our <a href="https://theconversation.com/responsible-gambling-why-occasional-use-is-generally-safe-25493">more recent research</a> looks at gambling harms and benefits, with the purpose of trying to identify what amount of gambling is “too much”.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/from-huh-to-who-the-universal-utterances-that-keep-us-talking-47775">From 'Huh?' to 'Who?': the universal utterances that keep us talking</a>
</strong>
</em>
</p>
<hr>
<p>Many people participate in gambling with measurable recreational benefits. The key to engaging successfully with gambling products, including slots, is to maximise the benefit and minimise the harms.</p>
<p>One of our new research platforms to examine this and other questions is a customised Luck Lolly Slots slot machine game available from <a href="https://itunes.apple.com/us/app/lucky-lolly-slots/id1055174667">iOS</a> and <a href="https://play.google.com/store/apps/details?id=au.com.headjam.cqu.lucky_lolly_slots&hl=en">Android</a> app stores. It’s been developed by CQUniversity for a research project investigating pokie-style mobile apps and is available for free (with no in-app purchases and no ads). </p>
<p>As for the Ig Nobel prize, it includes a cash award of <a href="http://www.improbable.com/2016/04/27/april-30-as-final-day-for-retiring-the-zimbabwe-100-trillion-dollar-bills/">10 trillion Zimbabwe dollars</a>. This will soon be spent by the research team on necessary supplies: two cups of coffee at Dunkin’ Donuts (medium, no milk).</p><img src="https://counter.theconversation.com/content/84065/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Matthew Rockloff has received research grants from Gambling Research Australia, the Queensland Treasury Department, the Federal Department of Social Services, the Victorian Treasury Department, the Victorian Responsible Gambling Foundation, the Tasmanian Department of Treasury and Finance, the First Nations Foundation, the New Zealand Ministry of Health, and the Alberta Gambling Research Institute.</span></em></p><p class="fine-print"><em><span>Nancy Greer does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Research that studied the pokie risks gamblers were prepared to take after they held a live crocodile has been awarded one of this year’s Ig Nobel prizes.Matthew Rockloff, Head, Population Research Laboratory, CQUniversity AustraliaNancy Greer, Researcher and PhD Candidate, CQUniversity AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/814862017-08-01T20:15:28Z2017-08-01T20:15:28ZPokies, sport and racing harm 41% of monthly gamblers: survey<figure><img src="https://images.theconversation.com/files/180302/original/file-20170731-15340-1n7fp71.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">About 39.1% of Australians typically gamble on a monthly basis: most of them buy lottery products.</span> <span class="attribution"><span class="source">AAP/Mick Tsikas</span></span></figcaption></figure><p>For the first time, the Household, Income and Labour Dynamics in Australia (HILDA) Survey has turned its attention to gambling, revealing that around 1.4 million Australians are directly harmed by the activity.</p>
<h2>What did HILDA find?</h2>
<p>Australian adults <a href="http://www.qgso.qld.gov.au/products/reports/aus-gambling-stats/">spend $A1,240</a> on gambling per year. This is well above <a href="https://www.economist.com/blogs/graphicdetail/2017/02/daily-chart-4">global averages</a>, and nearly twice as much as the next country on the list.</p>
<p>HILDA shows most Australians are not very regular gamblers. About 39.1% of Australians typically gamble on a monthly basis. Most of them buy lottery products.</p>
<p>However, for those who do engage with more harmful gambling products, such as poker machines and wagering, the results are troubling. HILDA confirms that rates of harm among people gambling monthly on specific harmful products are much higher than for more benign lottery products.</p>
<p>Among the overall population, HILDA data suggest that about 1.1% of the adult population – about 200,000 people – score eight or more on the <a href="https://www.problemgambling.ca/EN/ResourcesForProfessionals/pages/problemgamblingseverityindexpgsi.aspx">Problem Gambling Severity Index</a> (a screening tool for gambling problems). These people are generally categorised in Australia as “problem gamblers”. </p>
<p>HILDA’s estimates are higher than most recent <a href="http://onlinelibrary.wiley.com/doi/10.1111/add.13216/full">prevalence studies</a>, which use telephone interviews. HILDA uses face-to-face interviews involving quite sophisticated interviewing techniques. It’s thus likely to be more reliable than other <a href="https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-017-4413-6">prevalence studies</a>.</p>
<p>Regardless, <a href="https://www.responsiblegambling.vic.gov.au/information-and-resources/research/recent-research/assessing-gambling-related-harm-in-victoria-a-public-health-perspective">new evidence</a> suggests that problem gambling is not limited to those who score eight or more on the Problem Gambling Severity Index. In total, more harm accrues to people in the “moderate” and “low” risk groups. That’s because there are many more people in those groups, and all experience some degree of harm.</p>
<p>The HILDA survey shows that another 8% of the Australian population experience some harm from gambling.</p>
<p>For each “problem gambler”, six other people <a href="http://www.tandfonline.com/doi/abs/10.1080/14459795.2017.1331252">are affected</a>. For each “moderate risk” gambler, about three others are affected. And for each “low risk” gambler, an additional person is affected.</p>
<p>If these estimates are applied to the HILDA data, this suggests gambling adversely affects more than 3.3 million Australians, in addition to the 1.4 million directly affected.</p>
<p>The most harmful forms of gambling for monthly gamblers are poker, casino games and private betting. However, these activities are rare. Just 1% or so of the population typically gamble in these ways monthly. Thus the estimates of the harm incurred by these types of gambling are unreliable, although certainly high. </p>
<p>Gambling on lotteries is clearly a much less risky pastime. Those who typically gamble on lotteries monthly have a “problem gambler” rate only marginally higher than the overall population (1.2%), and 86.8% experience no gambling harms. Harm to this group may accrue from other forms of gambling rather than from lotteries. </p>
<p>Of those who typically use poker machines monthly, however, estimates are more robust. Among the 8% of adults who typically use pokies once a month or more, 6.2% are categorised as “problem gamblers”, and another 35.3% experience some level of harm. </p>
<p>About 3% of the adult population typically bet on sports monthly. This group has a “problem gambler” rate of 6.7%, along with another 34.2% who experience some level of harm. A similar pattern emerges with horse or dog wagering. Of this group, 5.2% are serious problem gamblers and 35.9% are harmed to some extent.</p>
<p>Thus, of monthly pokie users, 41.5% experience at least some harm. For those who bet on sports, it’s 40.9%. And for those who bet on racing, 41.1% experience harm.</p>
<h2>HILDA and pokies</h2>
<p>HILDA also asked people about their enjoyment of life. The results demonstrate that those experiencing gambling harm generally have a lower average score for this than those who don’t. Enjoyment of life for those scoring eight or more on the Problem Gambling Severity Index is, unsurprisingly, below those in other categories.</p>
<p>This is an important finding. Pokies in particular are concentrated in <a href="http://www.tandfonline.com/doi/abs/10.3109/16066359.2012.727507">areas of stress</a> – places where people are socioeconomically disadvantaged or experiencing stress of other kinds.</p>
<p>For example, outer-suburban areas often have a significant concentration of pokies and high losses. People in these suburbs are not necessarily socioeconomically disadvantaged. They may, however, experience stress from such phenomena as long travel times, the difficulties of managing two-income families, significant mortgages, and childcare issues. </p>
<p>It is probable that pokies are concentrated in stressed areas because they provide some relief for people living under difficult or stressful circumstances. HILDA provides some support for this view. </p>
<p>Causality for reduced enjoyment of life and gambling harm may be difficult to disentangle. But as HILDA progresses, we can expect to see a finer-grained view of gambling harm and its demographic distribution. This will provide a much-improved tool for regulators and policymakers to consider how to reduce harm.</p>
<p>The Victorian Commission for Gambling and Liquor Regulation recently rejected an application for additional pokies in a <a href="https://www.vcglr.vic.gov.au/sites/default/files/Noble_Park_Football_Social_Club_-_EGM_increase_-_Decision_and_reasons_for_decision.pdf">southeast Melbourne local government area</a>. It did this in substantial part because <a href="https://theconversation.com/areas-with-more-poker-machines-have-higher-rates-of-domestic-violence-66982">evidence demonstrated</a> a relationship between intimate partner violence and pokie concentration: the more spent on pokies, the greater the incidence of such violence.</p>
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<h2>Using data to inform decisions</h2>
<p>Because HILDA collects data across multiple domains, it will allow researchers to examine the correlates of gambling, and explore how these relate to gambling behaviour and harms.</p>
<p>The reverse of this is also true. Gambling has impacts on many aspects of life – including employment, income and wealth.</p>
<p>The HILDA report provides a summary of key findings. However, continuing to ask about gambling over time will allow a better understanding of how people engage and disengage with gambling activities. It will also support a better understanding of how, and in what circumstances, gambling harm accrues. </p>
<p>As better and more detailed data are collected, regulatory decision-making and policy development can be significantly enhanced.</p>
<p>We now have a better understanding of how much harm gambling causes. HILDA can improve our understanding of where this is concentrated, what forms are most likely to cause it, and how it can be prevented or minimised.</p>
<p>Such a mainstreaming of gambling data collection will help maximise the benefits that gambling may provide, while minimising the harms. That represents a significant development.</p>
<hr>
<p><em>This piece is <a href="https://theconversation.com/au/topics/hilda-2017-41279">part of a series</a> on the recent release of HILDA survey data.</em></p>
<p><em>Read more:</em></p>
<p><a href="http://theconversation.com/home-ownership-falling-debts-rising-its-looking-grim-for-the-under-40s-81619"><em>Home ownership falling, debts rising – it’s looking grim for the under 40s</em></a></p>
<p><a href="http://theconversation.com/australians-want-more-children-than-they-have-so-are-we-in-the-midst-of-a-demographic-crisis-81547"><em>Australians want more children than they have, so are we in the midst of a demographic crisis?</em></a></p>
<p><a href="http://theconversation.com/12-charts-on-what-our-work-and-family-life-looks-like-81897"><em>Men still prefer mothers to stay at home: 12 charts on attitudes to work and family</em></a></p><img src="https://counter.theconversation.com/content/81486/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Charles Livingstone has received funding from the Victorian Responsible Gambling Foundation, the (former) Victorian Gambling Research Panel, and the South Australian Independent Gambling Authority (the funds for which were derived from hypothecation of gambling tax revenue to research purposes), from the Australian and New Zealand School of Government, and from non-government organisations for research into multiple aspects of poker machine gambling, including regulatory reform, existing harm minimisation practices, and technical characteristics of gambling forms. He has received travel and co-operation grants from the Alberta Problem Gambling Research Institute, the Finnish Institute for Public Health, the Ontario Problem Gambling Research Committee, and the Problem Gambling Foundation of New Zealand. He is a Chief Investigator on an Australian Research Council funded project researching mechanisms of influence on government by the tobacco, alcohol and gambling industries. He has undertaken consultancy research for local governments and non-government organisations in Australia and the UK seeking to restrict or reduce the concentration of poker machines and gambling impacts, and was a member of the Australian government's Ministerial Expert Advisory Group on Gambling in 2010-11. He is a member of the Australian Greens. </span></em></p>Gambling has impacts on many aspects of life – including employment, income and wealth. The release of HILDA’s latest survey provides more evidence to help inform decisions on gambling policy.Charles Livingstone, Senior Lecturer, School of Public Health and Preventive Medicine, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/799982017-07-04T20:11:49Z2017-07-04T20:11:49ZWhat the rise of daily fantasy sports will mean for problem gambling<figure><img src="https://images.theconversation.com/files/175980/original/file-20170628-25843-59g5sx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Sydney's Lance Franklin is a popular choice for many fantasy AFL coaches.</span> <span class="attribution"><span class="source">AAP/David Moir</span></span></figcaption></figure><p>Fantasy sports is gaining popularity around the world – and it is now big business. Articles relating to the NRL and AFL SuperCoach competitions now appear weekly in the <a href="http://www.dailytelegraph.com.au/sport/nrl/supercoach/nrl-supercoach-round-16-wrap-haynes-back-in-style-and-widdop-repays-owners-faith/news-story/89fb6d2d5dd49ac442ba3e73fcb274c7">Daily Telegraph</a> and the <a href="http://www.heraldsun.com.au/subscribe/news/1/index.html?sourceCode=HSWEB_WRE170_a_GGL&mode=premium&dest=http:%2F%2Fwww.heraldsun.com.au%2Fsport%2Fafl%2Fsupercoach-news%2Fsupercoach-market-watch-top-scores-max-gawn-trade-advice-after-round-14%2Fnew">Herald Sun</a> tabloids. Leading daily fantasy operators FanDuel and DraftKings spent more than US$200 million on TV commercials <a href="http://www.seattletimes.com/sports/seahawks/draftkings-and-fanduel-spend-millions-on-fantasy-sports-advertising-and-it-works/">during the 2015 NFL season</a>.</p>
<p>Fantasy sports come in all shapes and sizes. This ranges from typical formats – including fantasy football, baseball and basketball – to the more obscure fantasy bass fishing, movies (predicting box office successes), and Congress (based on achievements of members of the US Congress).</p>
<p>Fantasy sports began as a niche hobby for statistically inclined sports fanatics. But, with the internet, it has evolved into a multi-billion-dollar industry <a href="http://fsta.org/fantasy-sports-grows-to-57-4-million/">played by</a> 16% of the US and Canadian population – or 57.4 million people in total.</p>
<h2>How do fantasy sports work?</h2>
<p>Participants select a virtual team of real-life players from a professional sporting code.</p>
<p>For example, an AFL SuperCoach team may include Sydney forward Lance Franklin, Collingwood midfielder Adam Treloar, and Carlton defender Sam Docherty in a squad of a given number of players, each with a price attached. Each team has a maximum “salary cap” to spend.</p>
<p>During each round of competition, players are awarded “fantasy points” based on their actual game performance statistics. The points may be, for instance, four for a tackle, three for a kick, or two for a handball. Participants are matched against others in their fantasy league, and winners are determined by the best-scoring combination of players per round.</p>
<h2>What are daily fantasy sports?</h2>
<p>Traditional fantasy leagues are conducted over an entire sporting season. They involve a small entry fee, or can be free to enter. But, in recent years, the format of fantasy sports has changed dramatically, with the emergence of a fast-paced variant: daily fantasy sports.</p>
<p>Daily fantasy sports is played over a single game or a round of competition. Participants pay an entry fee, and the top-performing participants win money from the prize pool once the operator has retained a small commission.</p>
<p>In the US, daily fantasy sports is a <a href="https://www.legalsportsreport.com/13243/ny-daily-fantasy-sports/">US$3.2 billion per-year industry</a>. FanDuel and DraftKings have a combined market share of 95%.</p>
<h2>Daily fantasy sports in Australia</h2>
<p><a href="http://www.kwm.com/en/au/knowledge/insights/living-in-fantasy-sports-world-regulation-virtual-team-20160601">Estimates suggest</a> there are 1.65 million (traditional) fantasy sports participants in Australia. This suggests daily fantasy sports competitions are a natural fit to the Australian market. </p>
<p>Rax Huq and Ryan Fitzgerald <a href="http://www.sportingnews.com/au/other-sports/news/moneyball-turn-your-fantasy-skills-in-to-cash/1s3et0pcbvnrl1v4qx4kl7z36n">launched Moneyball in February 2015</a>, the first and largest daily fantasy sports platform in Australia. Since its inception, it has experienced between 50% and 70% <a href="https://hotcopper.com.au/threads/moneyball.3477012/page-6?post_id=25196256">year-over-year revenue growth</a>. </p>
<p>However, Moneyball is no longer the only game in town. Multiple new daily fantasy sports companies have launched similar platforms, including <a href="https://www.legalsportsreport.com/9397/draftday-launches-draftstars-in-australia/">Draftstars</a> (a joint venture between CrownBet, Fox Sports, and Seven West Media). Sports betting company TopBetta has also moved into the Australian market after signing an advertising deal with Fairfax Media to <a href="http://www.smh.com.au/business/topbetta-strikes-fantasy-betting-deal-with-fairfax-media-20160227-gn5iee.html">promote its fantasy tournaments</a>.</p>
<h2>Is it legal?</h2>
<p>In the US, it is illegal to place online wagers on sporting events. However, an <a href="https://www.gpo.gov/fdsys/pkg/STATUTE-120/pdf/STATUTE-120-Pg1884.pdf">exemption for fantasy sports</a> has allowed the daily fantasy sports industry to develop. </p>
<p>Daily fantasy sports’ legality rests on an assessment of whether its outcomes are determined mostly by chance (gambling, therefore illegal), or the individual skillset of participants (contests, therefore legal). The Fantasy Sports Trade Association has left no doubt as to its position, devoting an entire page of its website to attesting <a href="http://fsta.org/research/why-fantasy-sports-is-not-gambling/">“why fantasy sports is not gambling”</a>. </p>
<p>It seems contradictory, however, that US law bans online poker – which includes a <a href="http://www.tandfonline.com/doi/abs/10.1080/13669877.2016.1200657">substantial skill element</a> – but not daily fantasy sports. </p>
<p>Daily fantasy sports also constitutes gambling as it involves staking something of value on an event determined – in part – by chance in the hope of winning something of greater value. </p>
<p>But, as online sports wagering is regulated in Australia, the legal environment for daily fantasy sports operators here has been far less complex. Australian operators are licensed by the <a href="https://justice.nt.gov.au/attorney-general-and-justice/racing-commission/sports-bookmakers-and-betting-exchange-operators">Northern Territory Racing Commission</a>, and their operations are guided by the <a href="http://iga.sa.gov.au/sites/default/files/uploaded/regulatory/GCoP13-V08_0.pdf">South Australian Responsible Gambling Code of Practice</a>.</p>
<h2>Potential for harm</h2>
<p>As with traditional betting forms, excessive involvement in daily fantasy sports – spending more time and/or money on the activity than is personally affordable – <a href="https://link.springer.com/article/10.1007/s40429-016-0111-1">will cause</a> users problems that may also affect the people around them. </p>
<p>Early studies on this topic have <a href="https://www.ncbi.nlm.nih.gov/pubmed/24926906">found a link</a> between fantasy sports involvement and gambling-related problems among US college students. <a href="https://link.springer.com/article/10.1007/s40429-015-0068-5">Certain structural features</a> of daily fantasy sports – like high bet frequency, short event duration, high maximum bet amount, and short payout intervals – multiply the potential for harm relative to the traditional fantasy format. </p>
<p>Daily fantasy sports websites also allow users to quickly populate the same team into multiple simultaneous contests. This theoretically allows them to spend thousands of dollars in a matter of seconds. </p>
<p>However, daily fantasy sports’ unique characteristics may serve as protective factors. The key motivations for participating in fantasy sports – fee and no fee – include <a href="http://journals.humankinetics.com/doi/abs/10.1123/jsm.25.1.70">socialising, entertainment and competition</a>, rather than gambling to win money.</p>
<hr>
<p><em><a href="https://sydneypsy.qualtrics.com/jfe/form/SV_3gVcUeG7zCEZgK9">Click here</a> to find out more about a University of Sydney study and take part in our survey, if you bet on sports and/or play daily fantasy sports.</em></p><img src="https://counter.theconversation.com/content/79998/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Dylan Pickering has received funding from ClubsNSW and the Australian National Association for Gambling Studies (NAGS).</span></em></p>Fantasy sports began as a niche hobby for statistically inclined sports fanatics. But, with the internet, it has evolved into a multi-billion-dollar industry.Dylan Pickering, PhD Candidate, School of Psychology, University of SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/783532017-06-26T20:09:37Z2017-06-26T20:09:37ZThree charts on: Australia’s addiction to poker machines<figure><img src="https://images.theconversation.com/files/174657/original/file-20170620-24885-ggjhtd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Pokie losses in Australia's pubs and clubs increased fourfold between 1990 and 2000.</span> <span class="attribution"><span class="source">AAP/Paul Jeffers</span></span></figcaption></figure><p>Australia has <a href="http://gamingta.com/australia-has-2-4-of-the-worlds-gaming-machines/">more poker machines per person</a> than any country in the world, excluding casino-tourism destinations like Macau and Monaco. It has nearly 200,000 machines – one for every 114 people.</p>
<p>This startling statistic resulted from a wave of pokie liberalisation during the 1990s that saw them introduced into pubs and clubs in every state and territory – except Western Australia.</p>
<p>To track the social impacts of this expansion, state and territory governments have commissioned surveys to measure the levels of gambling consumption and gambling-related harm. In total, more than 275,000 Australians have been interviewed in 42 studies of this kind since 1994. </p>
<p>We recently conducted <a href="https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-017-4413-6">an analysis</a> of these studies to build a nationwide picture of how pokie gambling has changed across Australia over the past 25 years. We linked the participation rates reported by the surveys with government data on <a href="http://www.qgso.qld.gov.au/products/reports/aus-gambling-stats/">actual poker machine expenditure in pubs and clubs</a> for each jurisdiction – converted into 2015 dollars to account for inflation. </p>
<p>The expenditure data exclude poker machines in casinos; these data are not disaggregated for government reporting purposes.</p>
<p>Consequently, the figures we present here should be considered minimums – especially in Tasmania and the Northern Territory, where a large proportion of pokies are located in casinos. WA is excluded from the expenditure analysis because it has no pokies outside Burswood Casino.</p>
<h2>A recent gradual decline in pokie losses</h2>
<p>Nationally, pokie losses in pubs and clubs increased fourfold between 1990 and 2000 before plateauing at around A$860 per adult per year in 2005. Since 2005, there has been a consistent gradual decline in gambling losses across the various jurisdictions. Throughout this period, pokie losses per adult in New South Wales have remained around 50% higher than the national average. </p>
<iframe src="https://datawrapper.dwcdn.net/GAMUs/2/" scrolling="no" frameborder="0" allowtransparency="true" allowfullscreen="allowfullscreen" webkitallowfullscreen="webkitallowfullscreen" mozallowfullscreen="mozallowfullscreen" oallowfullscreen="oallowfullscreen" msallowfullscreen="msallowfullscreen" width="100%" height="800"></iframe>
<p>The biggest contributor to the decline since 2005 has been tobacco control, not gambling policy. The introduction of indoor smoking bans across Australia in the 2000s <a href="http://doi.org/10.1136/jech.2006.051557">hit pokie revenues</a> quite hard. </p>
<p>It is also likely that caps on pokie numbers – which have been relatively stable since 2000 – <a href="http://doi.org/10.4309/jgi.2013.28.2">played a role</a> in limiting pokie expenditure.</p>
<p>However, this should give no reason for complacency. The decline in pokie revenue is slowing, and possibly beginning to reverse in NSW, the NT and Queensland.</p>
<p>Current annual losses on pokies in pubs and clubs for Australia amount to $633 per adult. Losses in NSW are highest at $978 per adult and lowest in Tasmania at $283 per adult – although casinos play a more important role in Tasmania. </p>
<p>These figures are <a href="http://www.economist.com/blogs/graphicdetail/2017/02/daily-chart-4">very high by world standards</a>. The losses by Australians on pokies outside of casinos dwarf those of any other comparable country. They are 2.4 times greater than those of our nearest rival, Italy.</p>
<p>These losses are even more anomalous when compared to non-casino gambling machines in other English-speaking countries. Australians lose three times more than New Zealanders, 4.1 times more than Canadians, 6.4 times more than the Irish, 7.5 times more than the British, and 9.8 times more than Americans.</p>
<h2>Falling numbers of pokie gamblers</h2>
<p>The modest decline in losses since the mid-2000s has been driven by a falling number of people playing the pokies. </p>
<p>The chart below shows the proportion of the adult population in each Australian state or territory that gambles on pokies at least once per year. These proportions are derived from the surveys described above. Each survey estimate is represented by a single dot.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/175149/original/file-20170622-3049-1nu8fwx.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/175149/original/file-20170622-3049-1nu8fwx.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=606&fit=crop&dpr=1 600w, https://images.theconversation.com/files/175149/original/file-20170622-3049-1nu8fwx.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=606&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/175149/original/file-20170622-3049-1nu8fwx.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=606&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/175149/original/file-20170622-3049-1nu8fwx.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=761&fit=crop&dpr=1 754w, https://images.theconversation.com/files/175149/original/file-20170622-3049-1nu8fwx.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=761&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/175149/original/file-20170622-3049-1nu8fwx.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=761&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">Author provided/The Conversation</span>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span>
</figcaption>
</figure>
<p>Participation rates peaked shortly after pokies were introduced in the late 1990s at around 40% for the larger states. Since that time, participation has consistently dropped to below 30% across Australia and has fallen to less than 20% in Tasmania, Victoria and the ACT.</p>
<h2>Amounts lost per gambler have remained constant</h2>
<p>Dividing the pokie losses in clubs and pubs for each jurisdiction by the number of actual gamblers reveals the average amount lost per pokie gambler per year as shown by the chart below. Some lines on this chart are shorter than others because the survey-based participation data is not uniformly available.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/174874/original/file-20170621-30211-1i5o31p.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/174874/original/file-20170621-30211-1i5o31p.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=618&fit=crop&dpr=1 600w, https://images.theconversation.com/files/174874/original/file-20170621-30211-1i5o31p.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=618&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/174874/original/file-20170621-30211-1i5o31p.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=618&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/174874/original/file-20170621-30211-1i5o31p.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=777&fit=crop&dpr=1 754w, https://images.theconversation.com/files/174874/original/file-20170621-30211-1i5o31p.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=777&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/174874/original/file-20170621-30211-1i5o31p.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=777&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="source">Author provided/The Conversation</span>, <a class="license" href="http://creativecommons.org/licenses/by-nd/4.0/">CC BY-ND</a></span>
</figcaption>
</figure>
<p>The reduction in total pokie losses since 2005 has not been matched by a corresponding decline in losses per individual gambler. After a reduction due to the smoking bans, losses per gambler appear to have plateaued – with some jurisdictions trending up (ACT and NT) and others down (NSW and SA). </p>
<p>This suggests that while fewer people are playing the pokies, the amount of money lost per gambler has remained relatively constant. And this amount appears very high. </p>
<p>The amount lost per pokie gambler (just in pubs and clubs) in both NSW and Victoria is around $3,500 per year, or around $65 per week. The ACT sits at around $3,000 per gambler per year, followed by the NT and Tasmania at around $1,500 per year.</p>
<p>To put this in some perspective, the average Australian adult <a href="http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/5204.02014-15?OpenDocument">spent $1,245</a> on electricity and gas in 2014-15. </p>
<p>And while we now have concerted government action to <a href="https://theconversation.com/the-finkel-review-finally-a-sensible-and-solid-footing-for-the-electricity-sector-79118">reduce energy costs</a>, the regulatory reforms required to reduce the amount of losses for pokie gamblers are not on the legislative agenda in most of Australia.</p><img src="https://counter.theconversation.com/content/78353/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Martin Young has previously received research funding from the Australian Research Council, Gambling Research Australia, and several state government departments. His research is currently funded by the Community Benefit Fund of the Northern Territory Government. In addition to his SCU position, he a Visiting Fellow, Fenner School of Environment and Society, ANU.</span></em></p><p class="fine-print"><em><span>Francis Markham has received funding from or been employed on projects that received funding from the Australian Research Council, the Community Benefit Fund of the Northern Territory and the ACT Gambling and Racing Commission. He has had his travel expenses to speak at an international conference paid for by the Alberta Gambling Research Institute, an organisation that is funded by the provincial government of Alberta. He is a member of the Public Health Association of Australia.
</span></em></p>While fewer people are gambling on the pokies, the amount of money lost per gambler has remained relatively constant over time.Martin Young, Associate Professor, School of Business and Tourism, Southern Cross UniversityFrancis Markham, Research Fellow, College of Arts and Social Sciences, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/776632017-05-17T15:09:00Z2017-05-17T15:09:00ZGambling’s ‘crack cocaine’ is devastating lives and not doing much for the economy either<figure><img src="https://images.theconversation.com/files/169785/original/file-20170517-6030-1ozw6dc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-vector/luck-word-on-slot-machine-vector-560811694">Shutterstock</a></span></figcaption></figure><p>Since 2008, UK gamblers have squandered £11.4 billion playing games such as poker and roulette on <a href="http://www.itv.com/news/2016-12-13/what-are-fixed-odds-betting-terminals/">fixed-odds betting terminals</a> (FOBTs). These sophisticated gaming machines, often referred to as the “crack cocaine” of gambling, are to be found in high street bookies and casinos across Britain, allowing people to bet up to £100 every 20 seconds.</p>
<p>Not only is this helping to create a huge swell in problem gambling, it is also affecting the economy, because this spend has little ripple effect, flowing directly into relatively few pockets without generating a significant number of jobs.</p>
<p>Hounslow in south-west London huddles directly beneath the planes taking off and landing at Heathrow airport. A comparatively poor area of the capital, 20% of the local population earns less than the living wage. Hounslow’s high street contains 11 bookmakers, each with four FOBTs, and each of those has a maximum gambling stake of £100. In 2015, on this one street, <a href="http://www.mirror.co.uk/news/uk-news/street-28million-lost-year-crack-7325541">£2.8m was lost to FOBTs</a>, according to the <a href="http://fairergambling.org/">Campaign for Responsible Gambling</a>.</p>
<p>Anyone walking through their local town centre will see the number of betting shops has mushroomed, often with “cash converter” type shops nearby, where people can exchange goods for money. As of March 2015, there were 34,884 FOBT gaming machines around the UK providing bookmakers with a gross gambling yield (the percentage of a bet kept by the operator) of <a href="http://researchbriefings.files.parliament.uk/documents/SN06946/SN06946.pdf">£1.7 billion</a> in 2016.</p>
<h2>Problem gambling</h2>
<p><a href="http://live-gamblecom.cloud.contensis.com/PDF/survey-data/Gambling-participation-in-2016-behaviour-awareness-and-attitudes.pdf">Research</a> shows that the number of people in the UK with a gambling problem is rising. Around 500,000 Britons are experiencing difficulties – categorised as either “problem” or “at risk” gamblers – with numbers increasing every year.</p>
<p>And for each gambler there can be up to five close family members <a href="http://usir.salford.ac.uk/2335/1/Gambling_and_Debt_Final_Report_PDF.pdf">also affected</a> through issues such as unmanageable debt, homelessness, hunger, domestic violence or having a parent or spouse in prison. Damage is not limited to families either; a significant proportion of problem gamblers commit crime such as theft and fraud to fund their habits, with some <a href="http://www.telegraph.co.uk/news/2017/01/31/ex-manager-olympian-greg-rutherford-admits-defrauding-athlete/">high-profile cases</a> hitting the headlines each year.</p>
<p>In the UK, <a href="https://www.publications.parliament.uk/pa/cm201012/cmselect/cmcumeds/writev/gambling/m39.htm">research</a> shows that poorer people are more likely to develop a problem gambling habit. Data collected by the Campaign for Responsible Gambling reveals that betting shops with FOBT machines have expanded most in <a href="http://fairergambling.org/wp-content/uploads/2016/02/The-Economic-Impact-of-Fixed-Odds-Betting-Terminals-20151.pdf">poorer areas</a>, suggesting that action needs to be taken to limit the opportunities for people to experience heavy losses in the midst of their communities.</p>
<p>Although only 3-4% of adults use these machines, FOBT players account for <a href="http://fairergambling.org/wp-content/uploads/2016/02/The-Economic-Impact-of-Fixed-Odds-Betting-Terminals-20151.pdf">66% of all gambling losses</a>. In 2015, the government rejected an attempt led by Newham Council to reduce the maximum stake from £100 to <a href="https://www.popall.co.uk/news-publications/news/government-rejects-2-cap-for-fobt-stake-limits">£2 per play</a>.</p>
<p>The wider economic impact of gambling is poorly understood because at present the only data considered are gross gambling yield, jobs and profits in the industry – plus government revenue from betting duty and taxation.</p>
<p>Taken together, these present an encouraging picture with the industry claiming betting shops contribute £3.2 billion to UK GDP, with between 55,000 people directly employed in betting shops, 100,000 jobs supported in the wider economy and around <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/24892">£1 billion paid in taxes each year</a>.</p>
<p>But this is not the full picture. Contrasting <a href="http://fairergambling.org/wp-content/uploads/2016/02/The-Economic-Impact-of-Fixed-Odds-Betting-Terminals-20151.pdf">research</a> by the Campaign for Fairer Gambling shows money spent on FOBTs does not support much in terms of jobs compared with spending in other sectors of the economy – while £1 billion of general consumer spending supports 21,000 jobs, £1 billion of spending on FOBTs only supports the equivalent of 4,500 jobs. </p>
<h2>The real cost to communities</h2>
<p>The problem with weighing up these competing claims is that no independent evaluation of costs and benefits has been developed and conducted in the UK. A more accurate calculation would need to include the social costs of gambling to affected families and communities, such as rehousing families who have lost their home to gambling debt, and the costs to the criminal justice system resulting from crime arising from problem gambling.</p>
<p>To develop an effective measure of the real costs of gambling, independent research will be needed. In the UK, the gambling industry funds research, education and treatment of problem gambling under the principle of the “<a href="https://books.google.co.uk/books?id=1nFowsqApQAC&pg=RA1-PA175&lpg=RA1-PA175&dq=polluter+pays+principle+gambling&source=bl&ots=X49v7kzEVA&sig=-WS3ypP92e6kTdVPj8UN7SW_3Ho&hl=en&sa=X&ved=0ahUKEwi8_7DPifLTAhUlLcAKHYBdAesQ6AEILzAA#v=onepage&q=polluter%20pays%20principle%20gambling&f=false">polluter pays</a>”, and most of the £7m raised annually from the industry is spent on treatment.</p>
<figure class="align-right ">
<img alt="" src="https://images.theconversation.com/files/169789/original/file-20170517-9937-1apx59h.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/169789/original/file-20170517-9937-1apx59h.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/169789/original/file-20170517-9937-1apx59h.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/169789/original/file-20170517-9937-1apx59h.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/169789/original/file-20170517-9937-1apx59h.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/169789/original/file-20170517-9937-1apx59h.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/169789/original/file-20170517-9937-1apx59h.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Fixed-odds betting terminals, on which punters can blow £100 every 20 seconds, are leading to a rise in problem gambling.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-vector/online-gambling-579663841">Shutterstock</a></span>
</figcaption>
</figure>
<p>As a <a href="https://research.gold.ac.uk/17217/1/Fair%20game%20Producing%20and%20publishing%20gambling%20research.pdf">project</a> led by Goldsmiths University found, the UK funding programme for gambling research prioritises “banal” research questions that will not offend the gambling industry, with funded research often conducted by private companies or academics that have <a href="https://www.theguardian.com/society/2016/jan/06/documents-reveal-gambling-charity-chair-conflict-of-interest">close ties</a> to the industry.</p>
<p>Similarly, Tim Farron MP has raised concerns about the close relationship the industry has with <a href="https://www.begambleaware.org/">GambleAware</a> (previously known as the Responsible Gambling Trust) which manages the funds provided by the industry to pay for research about problem gambling, education to prevent problem gambling, and treatment for problem gamblers.</p>
<p>The Charity Commission was also asked to <a href="http://www.independent.co.uk/news/uk/home-news/britains-leading-gambling-charity-at-centre-of-conflict-of-interest-claims-a6885271.html">investigate allegations</a> that large research contracts were being awarded to companies with close links to senior staff at the Responsible Gambling Trust and that senior posts within it were filled without a competitive process. At the time, the Responsible Gambling Trust responded: “The Responsible Gambling Trust has robust procedures in place and we are a fully independent charity committed to minimising gambling-related harm.”</p>
<p>It also added later: “The Charity Commission dismissed as ‘unsubstantiated’ complaints about the Responsible Gambling Trust made by two lobbying groups – the Campaign for Fairer Gambling and Rethink Gambling. Correspondence from the Charity Commission, published on our website, confirms that potential ‘conflict of interest within the charity is well managed and recorded’.”</p>
<p>The whole notion of problem gambling separates and “individualises” consumers, suggesting they make a free choice to spend their leisure time and money as they wish. But, as the data on spending indicates, this is not an individual problem; it is a social problem causing real harm to individuals, to families, to communities and to the economy.</p>
<p>Unfortunately, the extent of that harm is not understood by society or policy makers because very little research is being carried out, and what research is being undertaken is focusing on the wrong topics. As the Charity Commission investigation proves, there is a potential conflict of interest between the people allocating research funds and the industry providing the money for the research.</p>
<p>A radical review of the impact of gambling, its social costs and benefits and the funding and governance structures that underpin research, education and treatment is urgently needed. But since the government’s review of FOBTs was shelved when the snap election was called, it’s not worth betting that this will happen any time soon.</p><img src="https://counter.theconversation.com/content/77663/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Carolyn Downs has received funding from European Union, National Debtline and Gamcare. She is a member of Labour Party.
</span></em></p>For some people, fixed-odds betting terminals are ferociously addictive, producing big profits for bookies and a rise in problem gambling. What’s the solution?Carolyn Downs, Lecturer in Leadership and Management, Lancaster UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/765142017-05-08T00:17:35Z2017-05-08T00:17:35ZLive odds ban debate exposes sport and gambling’s uncomfortable mutual dependency<figure><img src="https://images.theconversation.com/files/167112/original/file-20170428-11206-rr96fh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Logos of betting companies and the odds on sporting outcomes are now impossible to avoid, at the ground or on TV.</span> <span class="attribution"><span class="source">AAP/Julian Smith</span></span></figcaption></figure><p>Watching sport on TV may not exactly be a healthy activity, but it should at least do more good than harm. Yet viewers are exposed to all manner of advertising and promotional messages extolling the dubious-but-seductive virtues of alcohol, fatty foods and sugary drinks.</p>
<p>But it is gambling, especially online and mobile, that has come into focus as sport’s most potentially damaging byproduct. In 2013, the Gillard government <a href="https://theconversation.com/live-sports-odds-ban-does-the-governments-plan-go-far-enough-14661">banned the live spruiking of odds</a> thanks to the barefaced over-reach of Tom Waterhouse and Channel Nine. </p>
<p>Federal, state and territory governments have <a href="http://www.theaustralian.com.au/national-affairs/federal-and-state-ministers-agree-on-online-gambling-reform/news-story/fd3ea0c6e084e81c1f24a70e38072b3d">just signed up to</a> a new National Consumer Protection Framework to help online problem gamblers.</p>
<p>Now the Turnbull government, while charging the networks about A$90 million less for spectrum access, <a href="https://www.communications.gov.au/sites/g/files/net301/f/factsheet_gambling_advertising.pdf">has banned</a> gambling advertising and promotion on TV for the duration of sports contests until an 8.30pm watershed. </p>
<p>This move <a href="http://www.bandt.com.au/advertising/government-introduce-siren-siren-ban-sports-betting-ads">stimulated vigorous resistance</a> from sports, media corporations and betting companies. In doing so, they have exposed the ethically questionable foundations of their multiple mutual dependencies.</p>
<h2>How sport and TV became ‘addicts’</h2>
<p>Genuine sports lovers, and those who simply wish to protect the vulnerable from harmfully manipulative messages, may wonder how sport and TV became so dependent on gambling.</p>
<p>There has been betting and wagering on sport as long as someone kept the score. Variously, the practice has been banned, regulated, and taxed. It can be respectable, as in the case of a Melbourne Cup flutter; dodgy, when it involves unlicensed SP betting; and downright criminal, especially when syndicates manipulate results during betting plunges.</p>
<p>But what is unprecedented about gambling on sport today is its <a href="https://theconversation.com/sport-tom-waterhouse-and-the-gamblification-of-everyday-life-13170">astonishing visibility</a>. Where once the logos of betting companies and the odds on sporting outcomes could be largely confined to those interested in such things, they are now impossible to avoid.</p>
<p>Naming rights of stadiums and the surfaces within them, from corner-post flags to players’ bodies, carry gambling company logos. TV screens in and outside those stadiums promote gambling, as do streetscapes and other media.</p>
<p>A specific set of developments placed gambling at the heart of contemporary sport and media. </p>
<p>As sport became industrial and commercial in the 20th century, it had a clear interest in doing more than play the role of host to the gambling parasite. By progressively integrating sponsorship by and of gambling into its business model, professional sport made itself more attractive to its main paymaster – the media, especially TV.</p>
<p>Just as sport had become deeply dependent on the media by selling its broadcast rights for an ever more escalating cost, TV needed sport to attract advertising, sponsorship and subscription revenue. </p>
<p>Pay-TV wrested a good deal of premium sport from commercial free-to-air TV (which had previously seized it from public-service TV). It was prevented from monopolising it only by government intervention in the market through the <a href="https://www.communications.gov.au/policy/policy-listing/anti-siphoning">anti-siphoning laws</a>.</p>
<p>But as the proliferation of channels and digital platforms like Netflix fragmented free-to-air audiences and undermined broadcast pay-TV subscriber bases, sport became even more important as media content. </p>
<h2>A good first step</h2>
<p>Sport’s ever more prominent place in the media enhanced its allure for bookmakers to advertise their wares as an increasingly legitimised arm of the sports industry. This has intensified sport and media reliance on gambling revenue – and so on.</p>
<p>There is no end to this logic of accumulation from the viewpoint of those who benefit from it. The sport-media-gambling triumvirate will push it to its limits.</p>
<p>Mandatory mantras to <a href="https://vimeo.com/201433881">“please gamble responsibly”</a>, squeezed in at the end of cleverly targeted messages, are ritual box-ticking gestures at their ineffective worst. Industry bodies like the recently founded <a href="http://responsiblewagering.com.au/">Responsible Wagering Australia</a>, led by former federal Labor minister Stephen Conroy, offer limited concessions while trying to consolidate their prime position. </p>
<p>I heard a <a href="http://journals.sagepub.com/doi/abs/10.1177/1012690216641147">clear sense of public disquiet</a> about sport-related gambling when researching the place of sport in the lives of residents of greater western Sydney. Several people I interviewed raised it unprompted as a topic of concern.</p>
<p>It is ironic that at a time when the federal government is trying to restrict the advertising of gambling during sport on TV, it is simultaneously trying to assert its vision of <a href="https://theconversation.com/government-to-lengthen-permanent-residency-period-for-aspiring-citizens-76424">Australian values and culture</a>.</p>
<p>The advertisers who urge sport’s ready use as a vehicle for gambling artfully harness traditional Australian characteristics to home in on their most promising targets. They appreciate that many young men like to see themselves as larrikins who laugh off attempts by social engineers to control them. So, they infuse their advertisements and promotional videos with the intoxicating flavour of youthful resistance.</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/Q3D4vnkHG84?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">A Sportsbet ad.</span></figcaption>
</figure>
<p>The children who are repetitively exposed to those same messages will not have missed the invitation, when their time comes, to join this expensive club for irreverent smart alecs. </p>
<p>Knowing that association with sport clubs is widely celebrated in Australia, in a perverse distortion of sport club identification online sport betting agencies present signing on with them as membership.</p>
<p>In a rearguard action against tightening controls on gambling during sport broadcasts, sports with billion-dollar turnovers <a href="http://www.theaustralian.com.au/national-affairs/federal-and-state-ministers-agree-on-online-gambling-reform/news-story/fd3ea0c6e084e81c1f24a70e38072b3d">offer up community sport</a> as the sacrificial Australia Day lamb if their earnings are curtailed. But there is little appreciation of the damage done to those same communities when wages, rent and food are charred on the problem gambling BBQ.</p>
<p>TV networks <a href="http://www.aph.gov.au/DocumentStore.ashx?id=91722c25-3146-45d4-a7b5-66628bfd695f&subId=408957">protest</a> that restricting the bird’s-eye view they afford to gambling products sold mainly by overseas betting corporations will impair their capacity to tell local stories. They do not seem concerned that their actions will help produce more narratives of the human troubles and tragedies of too many gamblers.</p>
<p><a href="http://www.afr.com/business/media-and-marketing/tv/sports-gambling-ad-ban-would-cost-broadcasters-millions-in-advertising-revenue-20170420-gvogjt">TV companies complain</a>, with some justification, that they are sitting ducks for national regulation when compared with the global online and social media free-for-all. But they, too, have a major presence there through their own websites, Facebook pages and Twitter handles.</p>
<p>TV may be easier to regulate than some other media, but it is still the <a href="http://journals.sagepub.com/doi/abs/10.1177/1329878X15616515">dominant sport medium</a>. It is the most important place to start when controlling the advertising of gambling through sport, but it is not the end game.</p>
<p>A more comprehensive system of gambling advertising control across media is imperative to prevent current and future generations seeing sport as a medium for gambling.</p><img src="https://counter.theconversation.com/content/76514/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>David Rowe has received funding from the Australian Research Council to support research relating to this article: Struggling for Possession: The Control and Use of Online Media Sport (with Brett Hutchins, DP0877777); 'A Nation of "Good Sports"? Cultural Citizenship and Sport in Contemporary Australia' (DP130104502), and 'Australian Cultural Fields: National and Transnational Dynamics' (with Tony Bennett et al, DP140101970).</span></em></p>It is gambling, especially online and mobile, that has come into focus as sport’s most potentially damaging byproduct.David Rowe, Professor of Cultural Research, Institute for Culture and Society, Western Sydney UniversityLicensed as Creative Commons – attribution, no derivatives.