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Youth gambling: Technology and its impact
Jeffrey L. Derevensky, Ph.D.
International Centre for Youth Gambling Problems and High-Risk Behaviors
McGill University
www.youthgambling.com
EASG Conference Loutraki, Greece September, 2012
Technology has created an information revolution, a digital wave, a new paradigm. The Internet and interactive media have permanently changed the way we communicate with each other, perform our jobs, pay our bills, relax in our off time, and even interact with our government. Martin Owens Jr.
Internet gambling…its new face
Technology is changing society …and us. Nelson Rose
Joe Cada, age 21, Community College dropout, winner World Series of Poker, 2009, $8.55 million
Jonathan Duhamel, age 23, University dropout, winner World Series of Poker, 2010, $8.944 million
Pius Heinz, age 22, University Student, winner World Series of Poker, 2011, $8.72 million
Wagering via the Internet
• Poker/card games • Casino games • Sports wagering • Reality shows • Celebrity adoptions, arrests, etc. • Any form of contest/Political race
Internet’s impact upon gambling
• As of July, 2012 there were 2,909 online gambling sites, with 780 different owners, operating in 784 jurisdictions (Online Casino City, 2012)
• Online global market expected to exceed $43 billion (US) – approximately 34 billion euros
• A number of countries not only regulate Internet gambling but are also the owners
• United States quickly advancing into Internet gambling
Two of the most influential individuals in the
technological revolution
Think outside the box Steve Jobs
Social gaming is the next big thing in 2012
Mark Zuckerberg
Merging of social media sites
Facebook fan sites
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YouTube Product - Technology 59,412,016 362,757 Talking About
Eminem Musician 58,653,298 387,872 Talking About
Rihanna Musician 57,760,911 624,580 Talking About
The Simpsons TV Show - FOX 52,271,216 356,812 Talking About
Lady Gaga Musician 52,130,774 887,916 Talking About
Shakira Musician 51,809,207 454,280 Talking About
Michael Jackson Musician 50,001,519 405,832 Talking About
Harry Potter and the Deathly Hallows Movie 47,721,567 518,018 Talking About
Social Media
68,514,916 Fans
380,844 Talking About This
Game
62,039,451 Fans
526,058 Talking About This
#1
#2 Texas Holdem Poker
Texas Hold’em Poker Growth
# of Fans Daily Growth Weekly Growth
62,039,451 63,515 454,412
Convergence of Social Media & Gambling
• Poker/card games • Casino games • Sports wagering • Reality shows • Celebrity adoptions, arrests, etc. • Any form of contest/Political race
Casino type games have become the most popular social gaming genre.
• In 2010, 338 applications that allowed wagering using virtual credits were found on Facebook (Korn et al., 2010)
• Top 5 Facebook casino games attract almost 50 million active monthly users
• Zynga Poker alone attracts 34.8 million monthly players; 6.8 million daily players
• Of the top ten grossing iPhone apps in the US, three are currently casino games - Slotomania, Zynga Poker, and Texas Hold’em Poker
• Social media games are the new darling; their corporations are the most sought after by gaming companies
This website does not permit players to wager real money. Chips in players' accounts have no monetary value, and cannot be exchanged for anything of value. Any and all references in the website to "pots," "limits", "betting” or the like are solely for instructional or illustrative purposes and do not involve wagering real money.
www.pokerstars.net
Why are we concerned about youth gambling? Clear evidence that youth are gambling and experiencing gambling problems (Derevensky, 2012; Volberg et al., 2010; Welte et al., 2011)
Adolescent problem gambling prevalence studies
Canada Derevensky & Gupta (2001) Lussier, Derevensky, & Gupta (2007) Hardoon, Derevensky & Gupta (2002) Poulin (2000)
3.4% 3.2% 4.9% 6.4%
U.S. National Research Council (1999) Welte et al. (2008)
3.5-5.0%
2.1%
U.K. Fisher (1999) Wood et al. (2006)
5.6% 3.5%
Scotland Moodie & Finnigan (2006)
9.0%
Adolescent problem gambling prevalence studies
Iceland Olason et al. (2005a, 2006, 2008) Olason et al. (2005b) Olason et al. (2011)
1.9%/2.8% 3.2%/4.4%
2.2%
Norway Gotestam (2003) Hansen & Rossow (2008)
1.8% 3.1%
Sweden Volberg et al. (2001)
2.0% adults
15-24 151% greater risk
Spain Becona & Miguez
5.6%
Lithuania Skokauskas, (2007)
4.2%
Adolescent problem gambling prevalence studies
Romania Lupu et al. (2002)
6.8%
Australia Moore & Ohtsuka (2000) Delfabro et al. (2005)
3.8% 4.4%
What we know about the Internet
• Access is widespread • Access is inexpensive • Internet is anonymous • Internet is convenient • Internet is entertaining • Internet is used for many purposes
Prevalence Findings of Internet Wagering • Vary considerably • Dependent upon method, sampling &
date of data collection • Dependent upon population studied • Dependent upon the games studied • Internet gambling is quickly becoming
the fastest growing segment of the gaming industry
Are Internet gamblers more likely to have problems?
Wood & Williams (2007) - Sample of on-line adult gamblers
• Non-problem gamblers: 34% • At-risk gamblers: 24% • Moderate problem gamblers: 23% • Severe problem gamblers: 20% • 2/3 of those respondents gambling on the
Internet are likely to have problems
Is Internet gambling problematic for our youth?
Even when no money changes hands, young children are learning the mechanics of gambling. These games can be a gateway to more serious gambling. Mark Griffiths (2011)
Some clinical evidence
Recent Youth Internet Gambling/Simulated Gambling Studies
Frequency of Play on Internet Gambling Sites Without Money in the Past 12 Months by Gambling Severity
N = 2205
Internet Gambling Without Money1
Yes (n = 1082)
No (n = 1123)
Gambling Groups***
Non Gambler n = 726 33.9 66.1
Social Gambler n = 1278 56.6 43.4
At-Risk Gambler n = 129 74.4 25.6
Probable Pathological Gambler n = 72 80.6 19.4
Total 49.1 50.9
1Percentage. ***p<.001.
Age of Onset for Internet Gambling Without Money by Gambling Severity
1Percentage. Gambling Groups are based on DSM-IV and DSM-IV-MR scores. aDSM-IV score (0-2); DSM-IV-MR-J score (0-1). bDSM-IV score (3-4); DSM-IV-MR-J score (2-3). cDSM-IV score ( ≥5); DSM-IV-MR-J score (≥4). ***p<.001.
Gambling Groups1
Social Gamblera (n = 1333)
At-Risk Gamblerb (n = 138)
Probable Pathological
Gamblerc (n = 72)
Age***
Under 10 years 4.4 13.1 16.9
10-11 years 8.8 10.9 16.9
12-13 years 15.2 19.0 25.4
14-15 years 17.2 15.3 15.5
16-17 years 9.1 7.3 2.8
Over 18 years 2.8 0.7 2.8
Frequency of Play on Internet Gambling Sites With Money in the Past 12 Months by Gambling Severity
N = 2292
Internet Gambling With Money1
Yes (n = 183)
No (n = 2109)
Gambling Groups***
Non Gambler n = 745 0 100
Social Gambler n = 1333 9.5 90.5
At-Risk Gambler n = 139 21.6 78.4
Probable Pathological Gambler n = 75 34.7 65.3
Total 8.0* 92.0
1Percentage *13.1% males; 4.6% females are gambling on Internet
Canadian National Study (Meerkamper, 2010)
National Annenberg Survey of Youth (Romer, 2010)
N=835 (2008) N=596 (2010)
At least once per month
• Internet gambling among males 14-17 rose from 2.7% (2008) to 6.2% (2010)
• Internet gambling among males 18-22 rose from 4.4% (2008) to 16.0% (2010)
• Internet gambling among females 14-17 rose from 0.5% (2008)
to 1.5% (2010) • Internet gambling among females 18-22 rose from 0.0% (2008)
to 4.4% (2010)
Past year gambling participation (On and Off the Internet) by gender and problem gambling severity among college students (McBride & Derevensky, 2012)
N Offline gambling Practice sites Internet gambling
Gender***
Male 305 66.2 49.8 11.8 (90)
Female 160 46.9 30.0 0.6 (90)
Problem Gambling
Severity
Non gambler a 186 - 22.0 (90)*** -
Social gambler b 262 99.2 55.3 (90)*** 11.8 (90)**
Problem gambler c 17 100 82.4 (90)*** 35.3 (90)**
Total 465 59.6 (90) 43.0 (90) 8.0 (90)
1Percentage, participant numbers in parentheses. aDSM-IV score = 0, no gambling activity (on or off the Internet) in the past 12 months. bDSM-IV score (0 - 2). cDSM-IV score (≥ 3). ***p < .001 ** p < .01
U.K Gambling studies (Griffiths et al., 2009; 2011)
6% of gamblers in general (9% males; 3% females) were Internet gamblers
Internet gamblers tended to be males (74% vs 26%)
55% of Internet gamblers <age 34 Highest percentage of Internet gamblers were
between age 16-24; 25-34 Pathological gamblers (Internet 5% vs 0.5% non-
Internet gamblers) Large number of adolescents gambling via the
Internet Ipsos Mori study suggests that the best predictor
of youth gambling problems was whether they played social media gambling-simulated games
NCAA Study (Derevensky & Paskus, 2010)
Comparison between 2004 & 2008
Casino gambling via the Internet represented the largest increase
Student athletes increased sports wagering via the Internet (10.9% in 2004 to 18.8% in 2008)
“Internet (and mobile gambling) will become particularly problematic for this group [student athletes] and need to be carefully monitored”
Our current knowledge
Characteristics of Internet Gamblers Predominantly male (number of
females growing) Dependent upon type of game
Age Most under age 40 Vast majority young adults
Socio-demographic characteristics Better educated Higher salaries
Most have played on free sites Increasing use of social media sites Most Internet gamblers wager on
multiple sites Much of Internet gambling typically
occurs in the evenings Vast majority of Internet gamblers
play for short periods (less than 2 hours each time
Some reports suggest that they gamble $30-$60 per session
Often solitary activity but can also be used as way of socializing
Internet wagers for money increases with severity of gambling problems
Most money won and lost increases by gambling severity
Playing on Internet gambling sites without money is a common practice amongst adolescents and young adults
At-Risk and PPGs play on Internet with and without money more often than non-gamblers and social gamblers
Why is Internet gambling potentially problematic for youth?
• Increased accessibility & availability • Convenience • Similarity with video-game technology • Can gamble for small amounts of money • Play in comfortable, non-intrusive environments often
results in longer play • Anonymity • No travel barriers • Psychologically, youth perceive themselves as
invincible and smarter than adults
Facts & Concerns
Internet Gambling • Provides a form of entertainment • Enhances levels of excitement and arousal • Provides an opportunity to win money • Younger generation of teens very attracted to Internet
gambling sights • Practice sights are exceedingly popular amongst
problem gamblers-age of onset is before 13 • Adolescents are gambling on the net, occasionally • Over 10% of problem gamblers spent over $500 on
Internet gambling • Sites are widely advertised
Internet Gambling
• Offers free games and trial (practice) sites • Incorporates video-game technology • Reward and loyalty programs • Initial deposit bonuses • Bettor’s Insurance • Graphics add to the excitement of the game • Perceived elements of skill • Convenience and ease of access • Allows individuals to lie about their age • Allows underage youth to gamble on prohibited
activities • Reinforcement schedules are quick
Parental behaviors….
40%
60%
64%
64%
66%
66%
73%
75%
81%
81%
82%
87%
Gambling (13)
Depression (12)
Excessive video game playing (10)
Negative body image (10)
Spending too much time online (8)
Obesity, eating disorders (8)
Smoking (7)
Violence in schools, bullying (6)
Unsafe sexual activities (3)
Drinking and driving (3)
Alcohol use (2)
Drug use (1)
Parental perceptions: Serious youth issues (Campbell, Derevensky, Meerkamper & Cutajar, 2011)
Social media simulated “gambling” games originally played for virtual money are now being played for real money
A number of gaming companies have spent hundreds of millions of dollars on social gaming for one reason..because there is a solid business case behind it. Rob Wheeler, 2012
Mobile wagering
A growing number of companies are developing apps for smart phones and Tablets
Social Policy Implications
• Need to continue to monitor changes in gambling behaviors as new technologies develop
• Need to help protect vulnerable populations • Need to help educate youth about the warning signs
associated with problem gambling • Greater need for prevention/education initiatives • Greater public and parental awareness • Greater funding for research, prevention and treatment
programs • Greater need for collaboration between policy makers,
the industry and researchers