Category Archives: Online addictions
It takes all sports: A brief look at sport-related betting
Over the past year I have been carrying out research with my Spanish colleague – Dr. Hibai Lopez-Gonzalez – into problematic sports betting and sports betting advertising which has already produced a number of papers (see ‘Further reading’ below) and with many more to come. One of the issues we have faced in contextualising our work is that there is no such concept as sport-related problem gambling in prevalence surveys because problem gambling is assessed on the totality of gambling experiences rather than a single activity. For instance, in the three British Gambling Prevalence Surveys (BGPSs) conducted since 1999, sport-related gambling is subsumed within a number of different gambling forms: ‘football pools and fixed odds coupons’, ‘private betting’, and ‘other events with a bookmaker’. The 2010 BGPS (which I co-authored) included ‘sports betting’ as a category, along with ‘football pools’ (no coupons), ‘private betting’, ‘spread betting’ (which can include both sports or financial trading). In addition, the 2010 BGPS added a new category under online gambling activities to include ‘any online betting’. More recently, the Health Survey for England also introduced a new category: ‘gambling on sports events (not online)’.

Despite these limitations, some evidence can be inferred from gambling activity by gambling type. In 2014, Heather Wardle and her colleagues combined the gambling data from the Health Survey for England and the Scottish Health Survey. They reported that among adult males aged 16 years and over during a 12-month period, 5% participated in offline football pools, 8% engaged in online betting (although no indication was made about whether this only involved sport), and 8% engaged in sports events (not online). The categories were not mutually exclusive so an overlapping of respondents across categories was very likely. A similar rate was found in South Australia in a 2013 report the Social Research Centre with those betting on sports over the past year accounting for 6.1% of the adult population, an increase from the 4.2% reported in 2005.
In Spain, the Spanish Gambling Commission (Direccion General de Ordenacion del Juego [DGOJ] reported that 1.5% of the adult (male and female) population had gambled online on sports in 2015. This is a significantly lower proportion compared with the British data, although the methodological variations cannot be underestimated. Spanish data also shows that, among those who have gambled online on a single gambling type only, betting on sports is the more prevalent form with up to 66% of those adults.
In France, the data on the topic only focuses on those who gamble rather than examining the general population of gamblers and non-gamblers. Among online gamblers, Dr. Jean-Michel Costes and colleagues reported in a 2011 issue of the journal Tendances that 35.1% had bet on sports during the last 12 months. In another French study by Costes and colleagues published in a 2016 issue of the Journal of Gambling Studies, sports betting represented 16.4% of the gambling cohort, although again, the representativeness of sports betting behaviour among the general gambling and non-gambling population could not be determined.
Due to the aforementioned shortcomings in the definition of sport-related gambling, there is only fragmented empirical evidence concerning the impact of sports-related problem gambling behaviour. For instance, in 2014, Dr. Nerilee Hing noted that clinical reports indicate that treatment seeking for sports-related problem gambling had grown in Australia. In British Columbia (Canada), a 2014 survey by Malatests & Associates for the Ministry of Finance reported that 23.6% of at-risk or problem gamblers had gambled on sports either offline or online. A smaller proportion (16.2%) was found in the Spanish population screened in the national gambling DGOJ survey, except this subgroup was entirely composed of online bettors.
In a 2011 study published in International Gambling Studies with patients from a pathological gambling unit within a community hospital in Barcelona, Dr. Susana Jiménez-Murcia and her colleagues found that among those who had developed the disorder gambling online only (as opposed to those who gamble both online/offline or offline only), just over half (50.8%) were sport bettors. Those who gambled online only (on any activity) and those that only gambled online on sports events represented a small minority of the total number of problem gamblers. Overall, there is relatively little research on this sub-group of gamblers therefore I and others will be monitoring the evolution of this trend as the online gambling population grows.
(Note: This blog was co-written with input from Dr. Hibai Lopez-Gonzalez).
Dr. Mark Griffiths, Professor of Behavioural Addiction, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Costes, J-M, Kairouz, S., Eroukmanoff, V., et al. (2016) Gambling patterns and problems of gamblers on licensed and unlicensed sites in France. Journal of Gambling Studies 32(1), 79–91.
Costes, J., Pousset, M., Eroukmanoff, V., et al. (2010). Gambling prevalence and practices in France in 2010. Tendances, 77, 1–8.
DGOJ (2016a) Análisis del perfil del jugador online. Madrid: Ministerio de Hacienda y Administraciones Públicas.
DGOJ (2016b) Estudio sobre prevalencia, comportamiento y características de los usuarios de juegos de azar en España 2015. Madrid: Ministerio de Hacienda y Administraciones Públicas.
Hing, N. (2014) Sports betting and advertising (AGRC Discussion Paper No. 4). Melbourne: Australian Gambling Research Centre.
Jiménez-Murcia S, Stinchfield R, Fernández-Aranda F, et al. (2011) Are online pathological gamblers different from non-online pathological gamblers on demographics, gambling problem severity, psychopathology and personality characteristics? International Gambling Studies 11(3), 325–337.
Lopez-Gonzalez, H., Estevez, A. & Griffiths, M.D. (2017). Marketing and advertising online sports betting: A problem gambling perspective. Journal of Sport and Social Issues, in press.
Lopez-Gonzalez, H. & Griffiths, M.D. (2016). Is European online gambling regulation adequately addressing in-play betting advertising? Gaming Law Review and Economics, 20, 495-503.
Lopez-Gonzalez, H. & Griffiths, M.D. (2017). Understanding the convergence of online sports betting markets. International Review for the Sociology of Sport, in press.
Lopez-Gonzalez, H. & Griffiths, M.D. (2017). ‘Cashing out’ in sports betting: Implications for problem gambling and regulation. Gaming Law Review and Economics, in press.
Malatests & Associates Ltd (2014). 2014 British Columbia Problem Gambling Prevalence Study. Victoria, Canada: Gaming policy and enforcement branch, Ministry of Finance.
The Social Research Centre (2013) Gambling prevalence in South Australia. Adelaide, Australia: Office for problem gambling. Available from: http://phys.org/news/2012-03-lung-doctors-respiratory-diseases-worsen.html.
Wardle, H., Moody. A., Spence, S., Orford, J., Volberg, R., Jotangia, D., Griffiths, M.D., Hussey, D. & Dobbie, F. (2011). British Gambling Prevalence Survey 2010. London: The Stationery Office.
Wardle H, Seabury C, Ahmed H, et al. (2014) Gambling behaviour in England & Scotland. Findings from the health survey for England 2012 and Scottish health survey 2012. London: NatCen Social Research.
Wardle, H., Sproston, K., Orford, J., Erens, B., Griffiths, M.D., Constantine, R. & Pigott, S. (2007). The British Gambling Prevalence Survey 2007. London: The Stationery Office.
Leisure pleasure treasure: A brief look at gambling within videogames
Over the last decade, gambling and gaming technologies have begun to converge with video games featuring gambling-like elements, and gambling games featuring video gaming-like elements. Many of the newer convergent gambling-gaming convergent forms include such activities as online penny auctions and gambling-type activities on social networking sites, so-called ‘social gaming’. With regard to video gaming including gambling-like elements, a paper that I co-wrote in 2012 with Dr. Daniel King in the journal International Gambling Studies noted that simulated gambling activities and gambling themes have a substantial presence in many modern video games. We noted that gambling content in video games can be categorized according to the following three categories:
- Standard gambling simulation, a digitally simulated interactive gambling activity that is structurally identical to the standard format of an established gambling activity, such as blackjack or roulette;
- Non-standard gambling simulation, an interactive gambling activity that involves the intentional wagering of in-game credits or other items on an uncertain outcome, in an activity that may be partially modelled on a standard gambling activity but which contains distinct player rules or other structural components that differ from established gambling games;
- Gambling references, the appearance of non-interactive gambling material or gambling-related paraphernalia/materials within the context of the video game.
In regard to the second of these categories, it could be argued that some online video games feature mini-games that are non-standard gambling simulations. For instance, in February 2014, the mini-game Treasure Hunter (TH) was introduced into the online video game Runescape. To get in-game prizes, players have to get keys to open chests. Originally, to participate in TH, players had to play in a members’ world. Players that tried to play TH in a free world are given the message: “As a member, you are eligible for improved prizes, so please play Treasure Hunter on a members’ world instead.” However, in April 2014, TH was reformulated and for the first time, members’ prizes could be claimed by those playing in a free world also.
In TH, five chests can be opened, each containing one of five different gems (going from most common to least common – white, yellow, orange, red, or purple gem – with white being the most common and purple being the rarest). After obtaining a key, players select a chest (not knowing what gem is inside the chest), and open it. The player is then given the option of storing the prize in the bank, discarding the prize, collecting the prize later, or cashing out for a small number of coins. There are a number of different ways to gain TH keys (free daily keys, keys obtained through skilful gameplay, and buying keys). Members get two free keys a day and those playing in free worlds only get one free key a day. Those players paying to be in the silver or gold Premier Club get three free keys a day.
It should also be noted that (i) TH is reset every night at midnight, (ii) free keys have to be used on the day, (iii) one monthly free key can be earned by playing ‘Troll Invasion’, (iv) players can buy bonds for gold coins or money, and (v) a random number generator is used to determine the winners. After completing any daily challenge, players receive an extra key, and after completing any in-game quest, players receive two additional keys. Keys can be bought in bundles of 15 (€3.99), 35 (€8.00), 75 (€16.00), 200 (€39.99) or 450 keys (€79.99). The maximum number of keys that could be bought is $200 (US) a day and $500 (US) a week. Keys can also be earned by watching advertisements, buying products, and completing surveys (and accessed via the ‘Earn keys’ option). TH prizes include in-game skilling items, weapons, bonus experience stars, etc. or can be converted to coins.
The legal definition of gambling in Great Britain is contained in the Gambling Act 2005. It notes that gambling includes “gaming”, “betting” or “participating in lottery”. Gaming is defined in the 2005 Act as “playing a game of a chance for a prize” while betting involves the process of placing or accepting a bet on anything other than financial services that remains uncertain to at least one party of the transaction at the time of the bet. By this definition alone, it would appear that Treasure Hunter is a form of gambling if purchases to participate are made (rather than being given free spins or keys, or earning them through skilful gameplay).
In 2015, the UK Gambling Commission highlighted that they believe the mini-games within Runescape to be ‘social gaming’ and not a game of chance and therefore out of their jurisdiction in relation to the regulation of the game. They have also claim that RuneScape bonds have no intrinsic value outside of Runescape under the terms of the British Gambling Act and therefore is not gambling. The Gambling Commission also note on their website that:
“We are not saying there are no risks in social gaming, nor are we saying that this ends our interest in the issue. We are simply saying that our current assessment of the available evidence is that there is no persuasive reason for us to take regulatory action, in effect to change from maintaining a watching brief. We will continue to monitor emerging evidence, and we are prepared to change this position if the evidence warrants it”.
However, there are instances when the bonds and prizes won do have value outside of the game. Bonds that are purchased with real life currency can be sold to another player for an in-game sum of money. Bonds and prizes can also be redeemed within the game for real-life services. These services are not just limited to the buying of game-related merchandise, such as the buying of card games like Top Trumps, but also includes attendance at offline RuneScape events, such as RuneFest, hotel rooms, and even plane tickets. The bonds can also be used to pay for postage and packing of items bought outside the game. Players can also donate the bonds to charity (in which Jagex contributes the full value of the bond to the charity chosen by the player). These examples clearly demonstrate that the bonds do have specific financial value outside the game in some circumstances, and an impact on real-world activities. More specifically, they demonstrate that the financial value of the bonds and prizes can be used outside the game itself.
Mini-games like Treasure Hunter within the online game RuneScape are not uncommon and are another example of convergence between gambling and video gaming. These games appear to meet the criteria for gambling found in the gambling studies literature and should be regulated as such.
Dr. Mark Griffiths, Professor of Behavioural Addictions, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Gambling Commission (2015). Explaining our approach to social gaming. Located at: http://www.gamblingcommission.gov.uk/Gambling-data-analysis/Social-media/Explaining-our-approach-to-social-gaming.aspx
Griffiths, M.D. (2003). Internet gambling: Issues, concerns and recommendations. CyberPsychology and Behavior, 6, 557-568.
Griffiths, M.D. (2015). Adolescent gambling and gambling-type games on social networking sites: Issues, concerns, and recommendations. Aloma: Revista de Psicologia, Ciències de l’Educació i de l’Esport, 33(2), 31-37.
Griffiths, M.D. & Carran, M. (2015). Are online penny auctions a form of gambling? Gaming Law Review and Economics, 19, 190-196.
Griffiths, M.D., King, D.L. & Delfabbro, P.H. (2009). Adolescent gambling-like experiences: Are they a cause for concern? Education and Health, 27, 27-30.
Griffiths, M.D., King, D.L. & Delfabbro, P.H. (2014). The technological convergence of gambling and gaming practices. In Richard, D.C.S., Blaszczynski, A. & Nower, L. (Eds.). The Wiley-Blackwell Handbook of Disordered Gambling (pp. 327-346). Chichester: Wiley.
Griffiths, M.D. & King, R. (2015). Are mini-games within RuneScape gambling or gaming? Gaming Law Review and Economics, 19, 64-643.
King, D.L., Delfabbro, P.H., Derevensky, J. & Griffiths, M.D. (2012). A review of Australian classification practices for commercial video games featuring simulated gambling. International Gambling Studies, 12, 231-242.
Sense and sense-ability: A brief look at ‘virtual reality addiction’
Ever since I started researching into technological addictions, I have always speculated that ‘virtual reality addiction’ was something that psychologists would need to keep an eye on. In 1995, I coined the term ‘technological addictions’ in a paper of the same name in the journal Clinical Psychology Forum. In the conclusions of that paper I asserted:
“There is little doubt that activities involving person-machine interactivity are here to stay and that with the introduction of such things [as] virtual reality consoles, the number of potential technological addictions (and addicts) will increase. Although there is little empirical evidence for technological addictions as clinical entities at present, extrapolations from research into fruit machine addiction and the exploratory research into video game addiction suggest that they do (and will) exist”.
Although I wrote the paper over 20 years ago, there is little scientific evidence (as yet) that individuals have become addicted to virtual reality (VR). However, that is probably more to do with the fact that – until very recently – there had been little in the way of affordable VR headsets. (I ought to just add that when I use the term ‘VR addiction’ what I am really talking about is addiction to the applications that can be utilized via VR hardware rather than the VR hardware itself).
VR’s potential in mass commercial markets appears to be finally taking off because of mass-produced affordable hardware such as Oculus Rift, HTC Vive, PlayStation VR and the (ultra-cheap) Google Cardboard (in which a smartphone can be inserted into cardboard VR headset frame). Last year, a report by the marketing and consulting company Tractica claimed that spending on virtual reality hardware could be as much as $21.8 billion (US) by 2020. A more recent report by online and digital market research company Juniper estimated that global sales of VR headsets would rise from 3 million in 2016 to 30 million by 2020. Three markets are likely drive sales, and they all happen to be areas that I research into from an addiction perspective – video gaming, gambling, and sex. I’ve noted in many of my academic papers over the years (particularly my early papers on online gambling addiction and online sex addiction) that when new technological advances occur, the sex and gambling industries always appear to be the first to invest and produce commercial products and services using such technologies, and VR is no different. As an online article in Wareable by Dan Sung on VR sex noted:
“What [VR] headsets offer is immersion; 180-degree (or more), stereoscopic action with you as the star of the show and the adult actors and actresses looking deep and lustfully into your eyes as they tend to your genitalia. It’s small wonder that users have been donning their headsets and earphones in numbers and praying to their god that nobody walks in. Yet gambling and porn are synonymous with addiction, and increasingly, questions are being asked about whether the VR revolution could finally ensnare us humans into virtual worlds”.
I was interviewed by Sung for the same article and I made a number of different observations about VR sex. I commented that in terms of people feeling reinforced, aroused, rewarded, sex is the ultimate in things that are potentially addictive. Sex is one of those activities that is highly reinforcing, it’s highly rewarding and how people feel is probably better than the highs and buzzes from other behaviours. Theoretically, I can see that VR sex addiction would be possible but I don’t think it’s going to be on the same scale as other more traditional addictions. The thing about VR (and VR sex) – and similarly to the internet – is that it’s non-face-to-face, it’s non-threatening, it’s destigmatising, and it’s non-alienating. VR sex could be like that whether it’s with fictitious partners, someone that you’re actually into, or someone that you’ve never met before. Where VR sex is concerned, if you can create a celebrity in a totally fictitious way, that will happen. There may be celebrities out there that will actually endorse this and can make money and commercialise themselves to do that. It can work both ways. Some people might find it creepy while others might see something they can make money from.
In one of my previous blogs I looked at the area of ‘teledildonics’, a VR technology that has been around for over two decades (in fact I was first interviewed on this topic on a 1993 Channel 4 television programme called Checkout ’93). Dan Sung also interviewed Kyle Machulis who runs the Metafetish teledildonics website for his article. He said that in relation to VR sex there is a problem with haptics (i.e., the science of applying tactile sensation and control to interaction with computer applications):
“We’re good on video and audio but haptics is a really, really hard problem…A lot of toys out there right now are horrible and it’s very hard to come up with something quality. So, instead, what the porn industry is aiming for right now is immersion. It may not feel better but they’re so much closer to the action that it may be better, and I think we’re on the cusp of that right now.” First, we need consumer hardware. We need things to be released and available to customers to see if it’s really going to take off or not. But when this happens – late this year, the beginning of next – as soon as the headsets are available, the media is ready and waiting…Of course, there’s straight women, gay men and gay women to develop for too but, for a lot of people, the perfect porn experience is doing something that’s not even physically possible – either through the laws of physics or the laws of land, and that’s something that only VR can solve…Even so, what we saw in teledildonics in gaming is that people used them to begin with but there’s always a lot of fall off with new technologies like this. So, there’s going to be a hardcore set of people who stay with VR porn but it’s hard to say how popular it will be beyond that. We’re all still guessing at the moment. This time next year it will be a completely different story”.
Another area that we will need to monitor is how the gambling industry will harness VR technology. The most obvious application of VR in the gambling world is in the online gambling sector. I can imagine some online gamblers wanting their gambling experiences to be more immersive and for their online gambling sessions to be more akin to gambling offline surrounded by the sights and sounds of an offline gambling venue. There is no technical reason that I know of why people that gamble via their computers, laptops, smartphones or tablets could not wear VR headsets and be playing poker opposite a virtual opponent while still sat on the sofa at home. As Paul Swaddle (CEO of Pocket App) noted in a recent issue of Gambling Insider:
We already know that participation in online gambling is snowballing, so if the entertainment industry can use VR to simulate the experience of being inside a video game, or social media sites can give you the opportunity to not just see your friends’ pictures, but to walk through them, why shouldn’t online casinos be able to do the same? VR may actually be the hook that mobile and online casinos need to draw in more millennials, with the average age of players in mobile casinos currently being 40 [years old], and the average age of mobile gamblers in general being 35 [years old]. Millennials simply aren’t engaging with mobile and online casinos to the same extent as older generations, and I suspect that this is down to younger players being much more used to immersive and sociable gaming, as a result of the cutting-edge developments that are being constantly rolled out in the video gaming industry”.
I agree with Swaddle’s observations as the gambling industry are constantly thinking about the ways to bring in newer players. Today’s modern screenagers love technology and do not appear to have any hang-ups about using wearable technology including Fitbit and the Apple Watch. As Swaddle goes on to say:
“By using VR technology to transport players and their friends to exciting locations for their online gambling experience, such as a famous casino in Las Vegas, or a smoky basement room in 1920s New York, or even to the poker table in the James Bond film Casino Royale, mobile and online casinos may stand a better chance of drawing in younger audiences if they use VR to gamify the casino experience”.
Again, this makes a lot of sense to me and I wouldn’t bet against this happening. Swaddle thinks that such VR gambling experiences will become commonplace in the years to come and that the gambling industry needs to get on the VR bandwagon now.
Perhaps of most psychological concern is the use of VR in video gaming. There is a small minority of players out there who are already experiencing genuine addictions to online gaming. VR takes immersive gaming to the next level, and for those that use games as a method of coping and escape from the problems they have in the real world it’s not hard to see how a minority of individuals will prefer to spend a significant amount of their waking time in VR environments rather than their real life.
Dr Mark Griffiths, Professor of Behavioural Addiction, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Ashcroft, S. (2015). VR revenue to hit $21.8 billion by 2020. Wareable, July 29. Located at: http://www.wareable.com/vr/vr-revenues-could-reach-dollar-218-billion-by-2020-1451
Griffiths, M.D. (1995). Technological addictions. Clinical Psychology Forum, 76, 14-19.
Griffiths, M.D. (1996). Gambling on the internet: A brief note. Journal of Gambling Studies, 12, 471-474.
Griffiths, M.D. (2001). Sex on the internet: Observations and implications for sex addiction. Journal of Sex Research, 38, 333-342.
Griffiths, M.D. (2003). Internet gambling: Issues, concerns and recommendations. CyberPsychology and Behavior, 6, 557-568.
Griffiths, M.D. (2012). Internet sex addiction: A review of empirical research. Addiction Research and Theory, 20, 111-124.
Griffiths, M.D., Király, O., M. Pontes, H.M. & Demetrovics, Z. (2015). An overview of problematic gaming. In Starcevic, V. & Aboujaoude, E. (Eds.), Mental Health in the Digital Age: Grave Dangers, Great Promise (pp.27-55). Oxford: Oxford University Press.
Juniper Research (2016). White paper: The rise of virtual reality. Available from: http://www.juniperresearch.com/document-library/white-papers/the-rise-of-virtual-reality
Király, O., Nagygyörgy, K., Koronczai, B., Griffiths, M.D. & Demetrovics, Z. (2015). Assessment of problematic internet use and online video gaming. An overview of problematic gaming. In Starcevic, V. & Aboujaoude, E. (Eds.), Mental Health in the Digital Age: Grave Dangers, Great Promise (pp.46-68). Oxford: Oxford University Press.
Stables, J. (2016). Gambling, gaming and porn: Research says VR is set to blast off. Wareable, September 15. Located at: http://www.wareable.com/vr/gaming-gambling-and-porn-research-says-vr-is-set-to-blast-off-1682
Swaddle, P. (2016). Is virtual reality the future of mobile and online gambling? Gambling Insider, 23, June 3, p.9
Sung, D. (2015). VR and vice: Are we heading for mass addiction to virtual reality fantasies? Wareable, October 15. Located at: http://www.wareable.com/vr/vr-and-vice-9232
Tractica (2015). Virtual reality for consumer markets. Available at: https://www.tractica.com/research/virtual-reality-for-consumer-markets/
Game on: A brief look at gambling on eSports
Like daily fantasy sports, betting on eSports (i.e., professional video gaming) has increased in popularity over the last few years and has given rise to allegations of unregulated and underage gambling. The eSports market is large. According to a 2016 report by Superdata, professional eSports is growing exponentially and is worth an estimated $612 (US) million a year. Furthermore, Eilers and Krejcik Gaming estimate that real money betting on eSports betting will reach $10 billion (US) by 2020. The professionalization and sportification of this entertainment form has brought sports-world elements to it: stadium-like facilities, cheering stands, sponsors, big rewards, and competition. Instant replays, jumbotrons (i.e., super-huge television screens), and referees add to the sport dramatisation. In some notorious cases, prizes have gone beyond the $10 million [US] threshold in a packed arena housing 73,000 fans. According to by John McMullan and Delthia Miller in a 2008 issue of the Journal of Gambling Issues, sportification is the process of incorporating the logics of sport to non-sporting contexts (e.g., poker, eSports. This can materialise in many ways but most commonly occurs when (i) other industries capitalise on the positive attributes of sport (e.g., popularity, engagement, or sanity and health inferences); and (ii) non-sport fields try to increase the entertainment and playability of their products and their association with joy and excitement.
Twitch, an online platform that streams live video gaming, informs its’ advertisers that it has 100 million monthly viewers, who watch for an average of 106 minutes a day. Betting on eSports presents new challenges. As a news report in Bloomberg news observed in relation to betting on the game Counterstrike: Global Offensive (CSGO):
“Gambling – licensed, regulated, and by adults – is generally accepted in eSports. There is growing concern, though, that teenagers are being attracted to different forms of betting facilitated by third-party providers. One such platform is CSGO Lounge (an independent site not affiliated with Valve Software, which develops the game itself). The site allows spectators to bet in-game add-ons known as skins – weapons, tools and the like – on the results of matches. Not all skins are created equal, and the rarity of some means they can cost hundreds of real dollars on marketplace sites like SkinXchange.com. The temptation is too much for some”.
Put simply, skin gambling is the use of virtual goods and items (typically cosmetic elements that have no direct influence on gameplay) as virtual currency to bet on the outcome of professional matches. The Bloomberg article also claims on the basis of interviews with industry insiders that underage skin gambling is a “huge problem”. Justin Carlson (lead developer of SkinXchange) claims there are “countless” parents whose children have used their credit cards without their knowledge to buy skins and bet on gaming on other sites. Although anecdotal, Carlson claims that some minors have “racked up hundreds or thousands of dollars in skins on ‘SkinXchange’ just to lose them all on some betting or jackpot site”. It’s clear that people trading skins in eSports has grown over the last few years and various regulators around the world – such as the UK Gambling Commission (UKGC) – are considering regulation and says it is an “emerging product” and an “area for continuing future focus”. More specifically, the UKGC’s 2016 Annual Report notes:
“The growing market in esports and computer gaming has scope to present issues for regulation and player protection – issues which are being examined by gambling regulators in other international markets…These issues range from the emergence of real money esports betting markets, to trading in-game items which blur the lines between gambling and social gaming. Our focus will be to understand developments, including engaging with key stakeholders, and we will work wherever we can to ensure the risks associated with these, particularly to children and young people, are minimised”.
One of the complicating factors for eSports gambling is that while cash is the currency for many gamblers, there is a growing trend towards the use of virtual currencies, or ‘in-game items’ which, according to the UKGC, can be “won, traded, sold or used as virtual currency to gamble with and converted into money or money’s worth”. These, according to the UKGC, “include digital commodities (such as ‘skins’) which can be won or purchased within the confines of computer games and can then be used as a form of virtual currency on a growing number of gambling websites”. No academic research has examined underage skin gambling but this is an issue that is unlikely to diminish over the coming years.
It is also worth noting that this massive interest in eSports followed by a massive audience has led most major betting operators to include eSports in their daily gambling offer. However, the singularities of eSports market pose new challenges that conventional online betting sites struggle to address. Suraj Gosai, co-founder of Blinkpool, an eSports dedicated betting platform, laid out two main problems: in-play betting limitations and odds algorithmic programming. For in-play betting to be viable, companies need to get access to reliable, instantaneous, and unambiguous data that can settle bets and separate winners from losers. Data companies like Perform do that in sport, and betting operators rely on their data to offer in-play action to gamblers. The problem in eSports is that actions are not as quantified and standardised as in real-life sports. To counteract that, Blinkpool created a computer vision technology that extracts data from real-time action and promotes hyper-contextual opportunities, that is, 10- to 45-second in-play betting mini-markets concerning very specific developments in the narrative of the games.
Odds programming in sports betting is fundamentally based on historical data from hundreds of thousands of games, from which each factor (home advantage, table position, head-to-head, etc.) is weighted in to determine the probability of an event occurring. In the fixed-odds betting market, the bookmaker makes available to bettors that probability plus a benefit margin. When placing a bet, an individual bets against the probability that the house has predicted. This is not yet feasible in eSports because the historical data are scarce and the modelling is complex. Companies are circumventing this problem by offering exchange betting rather than fixed-odds. This method comprises peer betting, that is, bettors do not bet against the house but between one another. This way, the house gets a commission from winning bets and operates a much less risky business.
Dr. Mark Griffiths, Professor of Behavioural Addictions, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Bracken, G. (2016). We hope to be the home of eSports betting. Gambling Insider. Available from: https://www.gamblinginsider.com/in-depth/1909/we-hope-to-be-the-home-of-esports-betting
Gambling Commission (2015). Explaining our approach to social gaming. Located at: http://www.gamblingcommission.gov.uk/Gambling-data-analysis/Social-media/Explaining-our-approach-to-social-gaming.aspx
Gambling Commission (2016). Annual Report 2015/16. Birmingham: Gambling Commission.
McMullan, J. L., & Miller, D. (2008). All in! The commercial advertising of offshore gambling on television. Journal of Gambling Issues, 22, 230-251.
Melbourne, K. & Campbell, M. (2015). Professional gaming may have an underage gambling problem. Bloomberg, September 7. Available at: http://www.bloomberg.com/news/articles/2015-09-07/professional-video-gaming-has-an-underage-gambling-problem
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