The Next Horizon:

Social casino games & gambling

Sally Gainsbury Centre for Gambling Education and Research, Southern Cross University

New Horizons in Responsible Gambling Conference

January 29, 2014

Background

Two studies commissioned by Gambling Research Australia

Interactive gambling in Australia (2010-2013) Prof. Nerilee Hing, Dr. Sally Gainsbury, Prof. Alex Blaszczynski, Dr. Robert Wood, Prof. Daniel Lubman, Alex Russell

The use of social media in gambling (2013-2015) Dr. Sally Gainsbury, Prof. Nerilee Hing , Prof. Paul Delfabbro, Dr. Daniel King, Prof. Alex Blaszczynski, Alex Russell, Prof. Jeffrey Derevensky

Why do we need research?

Aims of research

Identify & understand emerging trends

Enable proactive responses to minimise harms

Requires cooperative stakeholder engagement

Why social casino games?

Gambling and gaming should be fun

But some people have problems

Problem gambling is influenced by:

• Early exposure

• Attitudes

• Irrational beliefs

Social casino games may play a role in problems

Social casino games may be helpful

Technology has changed the entertainment industry

1.0 2.0 3.0

Movies

Technology has changed the entertainment industry

1.0 2.0 3.0

Games

Gambling has stayed mostly the same, but access has changed

1.0 2.0 3.0

Gambling

The prevalence of gambling themes

Gambling themes in entertainment are not new,

but the access of social casino games is unprecedented

An easy step to online gambling?

Social casino games

Social casino games:

• Predominately gambling-themed

• Online through web or mobile (app)

• Connected to social media platform

Variety of social casino games Often closely resemble online gambling

All forms – not just traditional ‘casino’

Social casino games encourage connectivity

Social casino games are free to play, no real prizes

But have their own currency

Social casino games are not gambling 1. No payment required – consideration

2. No monetary rewards – prize

3. Outcomes may not be randomly determined – chance

Pick the gambling site

Social casino games are growing 180 million active monthly social casino gamers

Simulated gambling: Rated T for teens

Entertainment Software Ratings Board

666 games including gambling content rated suitable for teen or below

- 327 suitable for everyone

December 2013

Entertainment Software Ratings Board

666 games including gambling content rated suitable for teen or below

- 327 suitable for everyone

December 2013

Social casino games: Some concerns

• Inflated payouts may misrepresent gambling

• Games may increase positive impression and desire to gamble

• May not be clearly distinguished as games

• Operators may attempt to convert players to gambling

Industry self-regulation

Social casino games: Some potential?

• Games could teach responsible gambling

• Games could reduce desire to gamble

• Games could help people avoid gambling

Social casino gamers also gamble

Survey of 1,103 US social casino game players

• 68% interested in gambling

• 67% would gamble online

• 36% visited casinos SuperData, 2013

Youth surveys show correlation between playing gambling-themed games, gambling, and gambling problems

?

Will gamers gamble?

Approximately 2% of social casino gamers pay to play

“the psychographic needs that social gaming provides versus real-money gaming are completely different.”

Paul Thelen, CEO Big Fish Games

Do gamblers also use social games?

Investigation of social casino games amongst gamblers

Sally Gainsburya,b, Nerilee Hinga, Alex Russella,b, Alex Blaszczynskia,b, Rob Wood D, Dan Lubmanc aCentre for Gambling Education and Research, Southern Cross University b School of Psychology, University of Sydney c Turning Point Alcohol and Drug Centre, Eastern Health and Monash University D Department of Sociology, University of Lethbridge

This study was commissioned by Gambling Research Australia – a

partnership between the Commonwealth, State and Territory Governments

The findings presented here are preliminary and not final

Investigation of social casino games amongst gamblers

Nationally representative telephone survey (N=15,006)

2,010 adult gamblers

Nov-Dec 2011, Australia

Aim: To investigate the use of social casino games in a sample of Internet and land-based gamblers

Which gamblers play social casino games?

13% had played social casino games

Social casino gamers more likely to be:

- born in Australia

- younger

0 10 20 30 40

18-19

25-29

35-39

45-49

55-59

65 or older

%

Non-social casinogamers

Social casino gamers

How do social casino gamers gamble? Social casino gamers more likely to:

• gamble online (25% vs. 5%)

• Gamble on all forms (except lottery)

• Gamble on the same activities they play as games

0 10 20 30 40 50 60 70 80

Keno

Poker

Casino table games

Bingo

Instant scratch tickets

Horse or dog race wagering

Sports betting

Gaming machines

%

% of social gamers who also gamble on the same activity

Which social casino games do gamblers play?

0 20 40 60 80 100

Instant scratch tickets

Sports betting

Horse or dog race…

Bingo

Keno

Poker

Casino table games

Gaming machines

Female

Male

• Poker

• Slots

• Casino

Do social casino gamers have gambling problems?

Problem Gambling Severity Index (N = 1,768)

0 50 100

Non-problemgamblers

Low risk gamblers

Moderate riskgamblers

Problem gamblers

Social casinogamers

Non-social casinogamers

Is social casino game play related to gambling?

• Gender game preferences similar

• Substantial overlap between preferred gambling & social casino game activities

• Social casino gamers more similar to Internet gamblers

• Social casino gamers more involved gamblers & more likely to experience problems

But no causal inferences can be drawn

Further understanding of gamblers & gamers needed

Why play for free when I can win real

money?

Why pay when I can

play for free?

Impact of social casino games on problems may vary

Why play for free when I can win real

money?

Why pay when I can

play for free?

Conclusions

• Some gamblers also play social casino games (mostly Internet gamblers)

• Convergence between social casino games & gambling likely to continue

• Regulatory interest will continue – self-regulation preferred pathway

• Problem gamblers may use social casino games in helpful & unhelpful ways: – Clinicians need to understand

– Operators need to implement consumer protection measures

– Regulators need to understand impacts

Acknowledgments

Collaborators: Nerilee Hing, Alex Russell, Alex Blaszczynski, Dan Lubman, Robert Wood

Research commissioned by Gambling Research Australia

The views expressed in this presentation are solely those of

the author. The information, views and references material in this presentation are provided solely on the basis that the audience will be responsible for making their own assessment of the information provided

Further details

Gainsbury, S, Russell, A., & Hing, N. (In Press). When the chips are free: An investigation of social casino gaming among gamblers. Computers in Human Behavior. Accepted Jan 14, 2014

Gainsbury, S., Hing, N., Delfabbro, P., King, D. (2014). A taxonomy of gambling and casino games via social media and online technologies. Submitted manuscript.

The full Interactive Gambling in Australia research report will be released by GRA in 2014

Thank you, questions?

Dr Sally Gainsbury Postdoctoral Research Fellow, Centre for Gambling Education & Research,

Southern Cross University

Email: sally.gainsbury@scu.edu.au

Website: http://works.bepress.com/sally_gainsbury/

@DrSalGainsbury