Out of sports: The influence of structural and situational characteristics in online sports betting

In a paper that I recently co-wrote in the Journal of Sport and Social Issues with Hibai Lopez-Gonzalez and Ana Estevez, we argued that the growing conversion of sports betting into an online activity has prompted two types of transformations in the way companies market their betting products. Firstly, the Internet has not only extended the opportunities to bet but has also changed the characteristics of the betting practice itself. Such product characteristics can be divided into two categories, namely situational and structural characteristics, that appear to be associated with factors influencing the onset and maintaining of betting as well as the difficulty of discontinuing it (the focus of this blog). Secondly, the online dimension has also enabled the proliferation of cross-marketing strategies leading to a convergence between previously independent markets or the tightening of the relationship between those with already established synergies (which I will examine in a future blog).

The internet has substantially transformed the situational and structural characteristics of sports betting. Situational factors comprise all environmental features that might make gamblers feel comfortable (both psychologically and physically) while gambling including sensory factors like colour, music, and smell in the environment, novelty of the activity, accessibility or proximity to a gambling venue, social facilitation and intrinsic association, which is defined as ‘the degree to which gambling is associated with other interests and attractions’.

New situational factors in online sports betting include: (i) easier and faster accessibility to betting opportunities; (ii) ubiquity of bettable competitions around the globe and seamless availability of those competitions around the clock; (iii) anonymity (in terms of social stigma traditionally attached to gambling) and comfortable betting from home or elsewhere via mobile devices; (iv) greater social facilitation via online communities of bettors or betting leagues organized between groups of friends; and (v) an enhanced intrinsic association of sports betting with sporting values such as health, competition, team identification and loyalty, further facilitated by the proliferation of live sport content on television and social media.

Structural factors refer to the specific characteristics or design of the gambling activity such as win probability, sound and lighting effects of the game, bet frequency (how many bets a person can place in a given period of time), loss chasing facilitation (gambling to recover lost money), jackpot size, price structure, near-miss opportunities (the psychological bias of interpreting losses as nearly wins or anticipatory of a winning streak).

New structural factors in online betting include: (i) a greater frequency of bets, with shorter intervals between bets, and shorter event durations (e.g., virtual sports), meaning faster reward mechanisms; (ii) in-play betting, which encompasses a closer connection between watching sport and betting; (iii) contextual betting, with live markets that open after specific actions (e.g. betting on the outcome of a penalty kick seconds after being awarded by the referee); (iv) greater illusion of control over the bets with new functionalities that emphasize the skills involved and diminish the role of luck, such as cash out (the person can withdraw the bet before the end of the event at the price stipulated by the betting site), accumulators (a person can aggregate multiple events in a single bet, increasing the potential return), exchange (betting against other people instead of the bookmaker); and (v) a greater integration in the betting process of the knowledge about the sport (e.g., daily fantasy sports), resulting in the gamification of the betting experience.

In a 2013 scoping study that I published with Dr. Abby McCormack in the International Journal of Cyber Behavior, Psychology and Learning, we noted that new situational and structural factors associated with Internet gambling could influence the onset of problem gambling in non-sporting gambling contexts. The relative novelty of these situational and structural characteristics affecting the wagering on sports is reflected in the scarcity of research devoted to understanding them. However, there are a few studies.

An analysis of 47,603 Bwin betting website subscribers (by Dr. Debi LaPLante and colleagues in the journal Computers in Human Behaviors) showed some interesting results in the direction of the importance of structural factors determining excessive gambling. The most involved bettors (those comprising the most active 1% of the user sample) who gambled on final outcomes did not escalate their gambling behaviour over time whereas those who gambled in-play did so. In a 2014 follow-up study in the journal Psychology of Addictive Behaviors, LaPlante and her colleagues examined the effect of in-play betting in the development of problem gambling. The researchers expanded the sample to other forms of gambling and compared the role of breadth (i.e., many different gambling forms) and depth involvement (i.e., more frequent betting) in problem gambling onset. They hypothesised that more involved users would be more likely to become problem gamblers (which was shown to be the case). For every form and gambling, when controlling for depth and breadth involvement, the model was not able to predict gambling-related problems, with one exception: in-play betting. The study suggested that a structural characteristic of a game, the live betting action, could be a precipitant, in conjunction with other determinants, of gambling disorders.

Another study by Dr. Richard LaBrie and Dr. Howard Shaffer (in a 2011 issue of Addiction Research and Theory) found that self-limiting features – in which the bettor determines a maximum amount of money to be bet – made problem gamblers bet less frequently but, in turn, increased the stakes of the bets placed. Bettors who scored high on problem gambling scales chased their losses by implementing a risk aversion strategy, placing high bets conservatively on short odds events (i.e., events with unbalanced contenders in which the outcome can more likely be determined beforehand but with a lower monetary return).

While there has been an increasing amount of research that has examined the influence of situational and structural characteristics in gambling (particularly in relation to slot machine gambling), the impact of such characteristics on online sports betting (at present) remains largely unknown.

(Please not that this article was co-written with Dr. Hibai Lopez-Gonzalez and Dr. Ana Estevez).

Dr. Mark Griffiths, Professor of Behavioural Addiction, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK

Further reading

Griffiths, M.D. (1993). Fruit machine gambling: The importance of structural characteristics. Journal of Gambling Studies, 9, 101-120.

Griffiths, M.D. (1999). Gambling technologies: Prospects for problem gambling. Journal of Gambling Studies, 15(3), 265–283.

Griffiths, M.D. (2005). A biopsychosocial approach to addiction. Psyke & Logos, 26(1), 9–26.

Griffiths, M.D. & Auer, M. (2013) The irrelevancy of game-type in the acquisition, development and maintenance of problem gambling. Frontiers in Psychology, 3, (621). doi: 10.3389/fpsyg.2012.00621.

LaBrie, R. & Shaffer, H.J. (2011). Identifying behavioral markers of disordered Internet sports gambling. Addiction Research & Theory, 19(1), 56–65.

LaPlante, D., Nelson, S.E. & Gray, H.M. (2014). Breadth and depth involvement: Understanding Internet gambling involvement and its relationship to gambling problems. Psychology of Addictive Behaviors, 28(2), 396-403.

LaPlante, D.A., Schumann, A., LaBrie, R.A., et al. (2008). Population trends in Internet sports gambling. Computers in Human Behavior, 24(5), 2399–2414.

Leino, T., Torsheim, T., Blaszczynski, A., Griffiths, M.D., Mentzoni, R., Pallesen, S. & Molde, H. (2015). The relationship between structural characteristics and gambling behavior: A population based study. Journal of Gambling Studies, 31, 1297-1315.

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.

McCormack, A. & Griffiths, M.D. (2013). A scoping study of the structural and situational characteristics of internet gambling., 3(1), 29–49.

Parke, J. & Griffiths, M.D. (2006). The psychology of the fruit machine: The role of structural characteristics (revisited). International Journal of Mental Health and Addiction, 4, 151-179.

Parke, J. & Griffiths, M.D. (2007). The role of structural characteristics in gambling.  In G. Smith, D. Hodgins & R. Williams (Eds.), Research and Measurement Issues in Gambling Studies (pp.211-243). New York: Elsevier.

Against all odds: The rise and rise of gambling

In many areas of the world, gambling has become a popular activity. Almost all national surveys into gambling have concluded that most people have gambled at some point in their lives, there are more gamblers than non-gamblers, but that most participants gamble infrequently. Commissions and official government reviews in a number of countries including the United States, United Kingdom, Australia and New Zealand have all concluded that increased gambling availability has led to an increase in problem gambling. Estimates of the number of problem gamblers vary from country to country but most countries that have carried out national prevalence surveys suggest around 0.5%-2% of individuals have a gambling problem.

In May 2013, the new criteria for problem gambling (now called ‘Gambling Disorder’) were published in the fifth edition of the American Psychiatric Association’s Diagnostic and Statistical Manual for Mental Disorders (DSM-5), and for the very first time, problem gambling was included in the section ‘Substance-related and Addiction Disorders’ (rather than in the section on impulse control disorders). Also included in the Appendix of the DSM-5 as a potential addiction was Internet Gaming Disorder (i.e., online video game addiction). Although most of us in the field had been conceptualizing problematic gambling and video gaming as addictions for many years, this was arguably the first time that an established medical body had described them as such. For me, gambling and gaming addictions should not be considered any differently from other more traditional chemical addictions (e.g., alcohol addiction, nicotine addiction). Consequently, there is no theoretical reason why other problematic and excessive activities that do not involve the ingestion of a psychoactive substance cannot be deemed as legitimate behavioural addictions in the years to come (e.g., shopping addiction, sex addiction, work addiction, exercise addiction, etc.).

Gambling is a multifaceted rather than unitary phenomenon. Consequently, many factors are involved in the acquisition, development and maintenance of gambling behaviour. Such factors include an individual’s biological and genetic predisposition, their social environment, psychological variables (personality characteristics, attitudes, expectations, beliefs, etc.), macro-situational characteristics (how much gambling is marketed and advertised, the number of gambling venues within a jurisdiction, where the gambling venue is located), micro-situational characteristics of the gambling environment (on-site cash machine, provision of free alcohol, floor layout etc.), and the structural characteristics of the gambling activity itself (jackpot size, stake size, the number of times a individual can gamble in a given time frame, etc.). Most research has tended to concentrate on individual characteristics (personality, genetics, family and peer influence) rather than situational and structural characteristics.

The introduction of national lotteries, the proliferation of slot machines, the expansion of casinos, and the introduction of new media in which to gamble (e.g., Internet gambling, mobile phone gambling, interactive television gambling, gambling via social networking sites), has greatly increased the accessibility and popularity of gambling worldwide, and as a result, the number of people seeking assistance for gambling-related problems. In addition, the rise of remote gambling via the internet and mobile phones has arguably changed the psychosocial nature of gambling. I have also published a number of studies showing that to vulnerable and susceptible individuals (e.g., problem gamblers, minors, the intoxicated, etc.), the medium of the internet may facilitate and fuel problematic and addictive behaviours.

There are many known factors that make online activity potentially problematic to a minority of individuals. This includes factors such as easy accessibility, affordability, anonymity, convenience, escape, and disinhibition. Some of these factors can change the psychological experience of gambling. For instance, gambling with virtual representations of money online lower the psychological value of the money and people tend to spend more with virtual representations of money than if they were gambling with physical money. Also, when people lose money online it is a different psychological experience because no-one can see anyone losing face-to-face. As a result, there is less guilt and embarrassment about losing and vulnerable individuals may be tempted to spend more time and money than they had originally intended.

One very salient trend that has implications for gambling (and arguably problem gambling) is that technology hardware is becoming increasingly convergent (e.g., internet access via smartphones and interactive television) and there is increasing multi-media integration such as gambling and video gaming via social networking sites. As a consequence, people of all ages are spending more time interacting with technology in the form of internet use, playing videogames, watching interactive television, mobile phone use, social networking, etc. In addition to convergent hardware, there is also convergent content. This includes some forms of gambling including video game elements, video games including gambling elements, online penny auctions that have gambling elements, and television programming with gambling-like elements.

One of the key drivers behind the increased numbers of people gambling online and using social networking sites is the rise of mobile gambling and gaming. Compared to internet gambling, mobile gambling is still a relatively untapped area but the functional capabilities of mobile phones and other mobile devices are improving all the time. There are now hundreds of gambling companies that provide casino-style games to be downloaded onto the gambler’s smartphone or mobile device (e.g., tablet or laptop). This will have implications for the psychosocial impact of gambling and will need monitoring. Like online gambling, mobile gaming has the capacity to completely change the way people think about gambling and betting. Mobile phones provide the convenience of making bets or gambling from wherever the person is, even if they are on the move.

One of the most noticeable changes in gambling over the last few years – and inextricably linked to the rise of mobile gaming – has been the large increase of in-play sports betting. Gamblers can now typically bet on over 60 ‘in-play’ markets while watching a sports event (such as a soccer match). For instance, during a soccer game, gamblers can bet on who is going to score the first goal, what the score will be after 30 minutes of play, how many yellow cards will be given during them game and/or in what minute of the second half will the first free kick be awarded. Live betting is going to become a critical activity in the success of the future online and mobile gambling markets.

The most salient implication of ‘in-play’ sports betting is that it has taken what was traditionally a discontinuous form of gambling – where an individual makes one bet every Saturday on the result of the game – to one where an individual can gamble again and again and again. Gaming operators have quickly capitalized on the increasing amount of televised sport. In contemporary society, where there is a live sporting event, there will always be a betting consumer. ‘In-play’ betting companies have both catered for the natural betting demand but introduced new gamblers in the process. If the reward for gambling only happens once or twice a week, it is completely impossible to develop problems and/or become addicted. ‘In-play’ has changed that because there are soccer matches on almost every day of the week making a daily two-hour plus period of betting seven days a week.

New technologies in the form of behavioural tracking have helped online gambling companies keep track of players by noting (among many other things) what games they are playing, the time spent playing, the denomination of the gambles made, and their wins and losses. Although such technologies can potentially be used to exploit gamblers (e.g., targeting the heaviest spenders with direct marketing promotions to gamble even more), such technologies can also be used to help gamblers that may have difficulties stopping and/or limiting their gambling behaviour. Over the past few years, innovative social responsibility tools that track player behaviour with the aim of preventing problem gambling have been developed. These new tools are providing insights about problematic gambling behaviour. A number of European jurisdictions (such as Germany and The Netherlands) are now considering whether such tools should be mandatory for gaming operators to use especially as such tools are already being used in Sweden, Norway, Finland and Austria.

Although gamblers are ultimately responsible for their own behaviour, gambling can be minimised via both governmental policy initiatives (age restrictions, marketing and advertising restrictions, no gaming licenses unless operators display the highest standards of social responsibility to their clientele, etc.) and gaming operator initiatives (self-exclusion programs, information about games so gamblers can make informed choices, limit-setting tools that allow gamblers to set time and money loss limits, staff training on responsible gambling, referral to gambling treatment providers, etc.). Problem gambling can never be totally eliminated but harm minimisation practices can be put in place to keep the problem to a minimum. Treatment for gambling addiction should be free and paid for by gambling industry profits (either in the form of voluntary donations to a charitable trust or – if that doesn’t work – a statutory levy). In short, any jurisdiction that has legalised and liberalised gambling has a duty of care to put a national social responsibility infrastructure in place to prevent, minimise, and treat problem gambling as they would with any other consumptive and potentially addictive behaviour (e.g., drinking alcohol, smoking cigarettes, etc.)

Please note: A version of this article first appeared in Science and Technology (Pan European Networks) magazine (Volume 15, pages 153-155).

Dr. Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK

Further reading

Griffiths, M.D. (2003). Internet gambling: Issues, concerns and recommendations. CyberPsychology and Behavior, 6, 557-568.

Griffiths, M.D. (2005). A ‘components’ model of addiction within a biopsychosocial framework. Journal of Substance Use, 10, 191-197.

Griffiths, M.D. (2011). Gaming convergence: Further legal issues and psychosocial impact. Gaming Law Review and Economics, 14, 461-464.

Griffiths, M.D. (2012). Mind games (A brief psychosocial overview of in-play betting). i-Gaming Business Affiliate, June/July, 44.

Griffiths, M.D. (2012). Internet gambling, player protection and social responsibility. In R. Williams, R. Wood & J. Parke (Ed.), Routledge Handbook of Internet Gambling (pp.227-249). London: Routledge.

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. & Parke, J. (2003). The environmental psychology of gambling. In G. Reith (Ed.), Gambling: Who wins? Who Loses? (pp. 277-292). New York: Prometheus Books.

Kuss, D.J. & Griffiths, M.D. (2012).  Internet gambling behavior. In Z. Yan (Ed.), Encyclopedia of Cyber Behavior (pp.735-753). Pennsylvania: IGI Global.

McCormack, A. & Griffiths, M.D. (2013). A scoping study of the structural and situational characteristics of internet gambling. International Journal of Cyber Behavior, Psychology and Learning, 3(1), 29-49.

Meyer, G., Hayer, T. & Griffiths, M.D. (2009). Problem Gaming in Europe: Challenges, Prevention, and Interventions. New York: Springer.

Parke, J. & Griffiths, M.D. (2007). The role of structural characteristics in gambling. In G. Smith, D. Hodgins & R. Williams (Eds.), Research and Measurement Issues in Gambling Studies (pp.211-243). New York: Elsevier.

Pontes, H. & Griffiths, M.D. (2014). The assessment of internet gaming disorder in clinical research. Clinical Research and Regulatory Affairs, 31(2-4), 35-48.

Zangeneh, M., Griffiths, M.D. & Parke, J. (2008). The marketing of gambling. In Zangeneh, M., Blaszczynski, A., and Turner, N. (Eds.), In The Pursuit Of Winning (pp. 135-153). New York: Springer.