hyoun s. (andrew) kim

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The Good, the Bad and the Ugly of Social Casino GamingHyoun S. (Andrew) Kim2017 New Horizons ConferenceFebruary 21st, 2017

Disclosure of Potential Conflict of Interest1

This research was funded in part by a grant from the Ontario Problem Gambling Research Centre. In addition, my research has been funded by the Alberta Gambling Research Institute, Gambling Research and Exchange Ontario and the National Center on Responsible Gaming.

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Acknowledgement2

Dr. Michael Wohl Carleton UniversitySamantha Hollingshead Carleton UniversityMelissa Salmon Carleton UniversityDr. Rina Gupta Queens UniversityDr. Jeffrey Derevensky McGill UniversityGambling Research Exchange Ontario

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Outline3Social Casino Games (SCGs)The Bad The GoodThe UglyFuture DirectionsImplications

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Technology and Gambling4

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Technology and Gambling5

One recent technological advance that has had a tremendous 5

Social Networking6

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Games on Facebook

Gamehunters.club

In addition to being able to stay in touch with friends, Facebook now allows you to play a plethora of games either on the computer or via connected to FB via your mobile device. These games have become immensely popular. For example, Candy Crush saga, and clash of clans currently boasts 10 million daily active users. 7

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Gambling Games on Facebook

In addition to the above games, you can now have a buffet menu of casino games that can be played on Social Networking Sites, called social casino games. While not as popular as their non-gambling counterparts, these simulated gambles games boasts an impressive number of users. 8

Social Networking by the Numbers

A Social Life | Award Winning Short Film | Social Media Depression

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Gambling Games on Facebook

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Social Casino Games14

172 Million Social Casino Gamers in 2013

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Social Casino Games15Social Casino Games are defined as games found on social networking sites where the core gameplay is the simulation of gambling activities.

Gainsbury, Hing, Delfabbro, & King, IGS

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Social Casino Games16Operate on a freemium model.No-real money wagered, players cannot cash out**

Gainsbury, Hing, Delfabbro, & King, IGS

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Social Casino Games17Operate on a freemium model.No-real money wagered, players cannot cash out**Can be played on multiple platforms (pcs, phones, tablets)

SuperData, 2016

In freemium models, no money is required to download the game or to initiate play. Although gaming operators provide players with free credits that are reloaded periodically, players are given the opportunity (and actively encouraged) to purchase additional credits to continue play or engage in higher stakes bets.17

Structural Characteristics of Social Casino Games18Look and sound like gambling (Bramley & Gainsbury, 2015)

Unknown whether social casino gamers are gamblers who engage in both types of activities or whether social casino games lead to engagement of gambling. 18

Structural Characteristics of Social Casino Games19Look and sound like gambling (Bramley & Gainsbury, 2015)Algorithms are not based on mathematicsDynamic Game Balancing (Rose, 2014)


These micro-transactions are a significant contributor to the estimated $3.5 billion in revenue generated by social casino games in 2015, revenues that are expected to jump to $4.4 billion in 2017 (Eilers & Krejcik Gaming, 2016).

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500 Million purchase of

Merged with

90 Million purchase of

As a result of these partnerships, the social casino version and their casino counterparts look identical. In other words, the line between social casino gaming and online gambling has become blurred. Indeed, some players have commented that it is becoming increasingly difficult to differentiate between when they are playing social casino games and when they are engaging in gambling (Parke et al., 2013). Furthermore, casino operators often imbed links directly on the social casino games. Thus, moving from play for free to pay to play is literally a simple click away.

In fact, Caesars and IGT, two of the biggest gambling operators now control 1/3rd of the entire social casino gaming market. Their aim? To convert the millions of gamers, into gamblers. 21

At Issue22Possible link between social casino games - gamblingDoes social casino games increase future gambling behaviour? If so, should they be regulated?More nuanced examination of social casino games on gambling might be needed. The BadThe UglyThe Good

Given the convergence of social casino games and gambling, researchers, regulators and policy makers have expressed concern about social casino games. At the heart of the issue is the possible link between social casino games. Simply put, does engaging in social casino games increased the risk of problematic gambling? There are some evidence to suggest a possible link, for example, a study in the UK found that in their sample, over half of gamblers in treatment reported that social casino games were their first exposure to gambling games. 22

Migration23

Social Casino GamingOnline Gambling

Concerns: 23

Social Casino Gaming Gambling Link24Social casino gaming associated with gambling and gambling problems (Gainsbury, Russell, & Hing, 2014).13% of gamblers engage in social casino games(Gainsbury et al., 2014).68% interested in gambling activities (SuperData 2013).

SuperData, 2016


Study 1: Play for Fun Pay to playFocus Groups25

Social Casino GamingOnline GamblingKim, Wohl, Gupta, & Derevensky, JBA; Kim, Gupta, Wohl, & Derevensky, in prep

Method and Participants26

Methods: Six Focus groups with social media users (3) and online gamblers (3)Participants: 51 University students - 30 social media users - 21 online gamblersFocus Groups: - Licensed clinical psychologist- 60-75 minutes

This study was part of a larger research program to understand young adults perception of social media sites, online gambling and social casino gamers. 26

Results27

Social Media Users: Frequency counts of statements reflected within each theme category

More than half 16/30 played social casino games. 27

Results28

Online Gamblers: Frequency counts of statements reflected within each theme category

19 themes. 62% of played social casino games. 28

Training Ground29


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Facebook is just a place to learn. To learn how to gamble. My friends started playing on Facebook to learn and now they are playing on Poker Stars. It starts on Facebook

its a natural progression to start from social casino games: train, learn then you realize you are not learning enough because people are not taking the game seriously, and then you move onto paying

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Perception of skill31


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If you can play for free then you want to try it and if you discover that you are good at it then why not just put some money and you might win for real

Once you play for fun, they sort of get people into the gambling, you think okay, this would be great if were real money, so you try

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Migration33


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It depends on the person. Some people are more competitive and are more likely to want to step it up, but some people are just happy playing for fun

You start playing poker with friends and like you move from that step onto other things. I dont think you go from Facebook to gambling. I dont see that as a gateway at all

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I didnt understand how I got from one place to another place, from playing for fun to being in trouble

Embed Video Here!35

Study 2: Play for Fun Pay to playLongitudinal Assessment36

Social Casino GamingOnline GamblingKim, Wohl, Salmon, Gupta, & Derevensky, JoGS

Why Might Migration Occur?Normalization

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Why Might Migration Occur?38

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Why Might Migration Occur?39

SuperData, 2016

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Why Might Migration Occur?NormalizationDistorted perception of skill/oddsEnhancementMicro-transactions

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Griffiths, WOG; Sevigny, Cloutier, Pelletier, & Ladouceur, CiHB

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Micro-transactionsSuperData, 2016

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Method and Participants46

Method: Longitudinal (six month).Participants: 409 community social casino gamers who have never gambled online (recruited via Mturk).Predictors:- Time spent- Skill building- Enhancement- Microtransactions

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Embed Video Here!47

Descriptive Characteristic48

Gender: 17 males, 9 female.Ethnicity: 25 Caucasian, 1 South Asian (India).Employment: 20 full-time, 4 part-time, 2 unemployed.Marital Status: 15 in a relationship, 10 single.Gambled: 19 yes, 6 no.

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*p< .01

Pattern of results remained same when controlling for previous gambling experience.Limitations: did not assess current gambling behavior, dont know what happened after they migratedDid not assess reasons for migration. 49

Who makes micro-transactions?

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Kim, Hollingshead, & Wohl, in press

It is possible that individuals who play social casino games arealready interested in gambling. Given a demonstrated interest ingambling themes, social casino game users may be targeted withadvertisements and promotional offers from gambling sites ordirectly encouraged to migrate to a gambling site based on their useof social casino games.50

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reward sensitivity predicted making micro-transactions to win back lost credits

As such, the free credits provided to the social casino gamer by the social casino gaming operators may be a reward in their own right. Interestingly, problem gambling severity did not predict making micro-transactions to chase back lost credits. This lack of an effect may suggest that problem gamblers turn togambling activities once they have exhausted their initial seed credits on social casino games51

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Gainsbury, Russell, King, Delfabbro, & Hing, 2016

521 of these adults Those who said it increased gambling were male, younger. 52

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Gainsbury, Russell, King, Delfabbro, & Hing, 2016

Suggests that SCGs may have the potential to regulate gambling behaviors. 53

Study 3: Bright side of social casino games54

Hollingshead, Kim, Wohl, & Derevensky, JGI

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BRIGHT SIDE OF SOCIAL CASINO GAMES

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Reverse migration Positive impacts (e.g., lessened urge to gamble) (Gainsbury et al., 2015)

Anedoctal evidence. Gainsbury studies14% of adults, and 24% of adolsecents. Positive impacts, play these games without spending money. Lessend urge to gamble. 55

Participants and Methods56

Method: Cross-sectional (self-report)Participants: 271 gamblers (who also engaged in social casino games), were recruited from MturkProblem Gambling: 140 moderate/disordered gamblersMeasures:- Motives (adapted from Stewart & Zack, 2008)- Skill building- Urge reduction- Changes in gambling behaviour

Talk about hypothesis here. 56

Results57

Coping:, = .03, t(127) = .38, p = .70.Enhancement: = -.03, t(127) = -.31, p = .76. Social: = .29, t(127) = 3.32, p = .001. Skill-Building: = .28, t(127) = 3.35, p = .001 Urge Reduction: = -.41, t(127) = -5.01, p < .001.

Talk about potential reasons for why it increased or decreased (see JGI manuscript). 57

The Ugly58

The Ugly59Migration to gambling is not synonymous with harmsDoes SCG lead to Disordered Gambling Behaviours?SCG and Video Game Addiction

People can and do gamble at safe levels, the really important question here is to what degree and extent do SCGs influence the development of DGs. Are people who are exposed to SCGs proportionately more likely to develop DG than those who are not exposed?

Sally, 59

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Mood Relief: Used SCGs to escape from problems or to relieve negative moodsLoss of control: Unscessful efforts to cut downPreoccupation: frequent thoughts or strong urges

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Conclusions, implications and future directions61

Conclusion62Social casino games influence on gambling is not straight forward.Social casino games may increase or decrease gambling.Micro-transactions Skill building Social motivesUrge Reduction

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ImplicationsRegulation?Age Verification? 300,000 youths aged 11-16 reported engaging in social casino games in the past week (Parke, Parke, Rigby, & Wardle, 2013)Micro-transactions

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The Good, the Bad and the Ugly of Social Casino GamingHyoun S. (Andrew) Kim2017 New Horizons ConferenceFebruary 21st, 2017

hyoun s. (andrew) kim

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