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Remote control: ‘Cashing out’ in sports betting
“Cash Out lets you take profit early if your bet is coming in, or get some of your stake back if your bet is going against you – all before the event you’re betting on is over. Cash Out offers are made in real time on your current bets, based on live market prices. Whenever you are ready to Cash Out, simply hit the yellow button. Cash out is available on singles and multiples, on a wide range of sports, including football, tennis, horse racing, and many more! You can Cash Out of bets pre-play, in-play, and between legs” (Definition of ‘cash out’ betting on Betfair website, 2017).
Most European sports betting operators now feature ‘cash out’ functionalities in their online platforms. This means that bettors can withdraw their bets before the event bet upon has concluded, obtaining a smaller but guaranteed return if the outcome of the bet is going their way, or, conversely, cutting down the monetary impact of a foreseeable loss. The ‘cash out’ functionality has rapidly become popular among sports bettors that bet in-play (i.e., during the game on things such as soccer matches and horse races) as a way of maximising value on the bets they have made.
Industry voices such as David O’Reilly, from Colossus Bets, have identified four major benefits of cash out features for bookmakers: (i) reducing the volatility of the operator’s revenue; (ii) increasing the recycling of player returns, with more players banking smaller amounts; (iii) enabling players to avoid their ‘near miss’ frustration; and (iv) improving the player engagement with the platform by introducing a mechanism that promotes constant checking. However, for sports bettors, cashing out strategies might typically involve cutting down the profit while being ahead but rarely reducing the loss when going behind. In this regard, cashing out does not appear to differ greatly from other new internet-based betting forms (e.g. so-called ‘exotic’ or multiple bets), which have been found to possess, in general, higher expected losses for gamblers and greater profit margins for operators.
However, beyond the feature’s financial rationale, cash out affects the nature of sports betting in more meaningful ways. It is, arguably, a game-changer, that leads (along with other features such as ‘edit my acca’ features in which specific bets can be removed from ‘accumulator’ bets) to the transformation of sports betting from a discontinuous to a continuous form of gambling. Here, our contention is that cash out is a key component of the contemporary bettor-bookmaker interaction, and that the widespread adoption by devoted sports bettors merits a closer look into the implications of such an interaction from a problem gambling perspective. Such an examination also suggests that regulators and policymakers need to think about how to protect gambling consumers from the potential harm caused by this new type of betting.
Structural characteristics have been proposed as a determining factor that can influence problem gambling behaviour. Structural characteristics are those associated with the design of a gambling product that shape the way gamblers interact with it. Typical structural characteristics include, but are not limited to, bet frequency, bet duration, event frequency, near misses, stake size, jackpot size, probability of winning, and interface design (e.g., the use of music and colour stimuli in the design of slot machines).
The internet has altered significantly the structural characteristics of gambling and sports betting more specifically. For example, in a number of European countries, the football (soccer) pools used to comprise bets placed during a weekday on the outcome of a game played typically on a Saturday or Sunday (i.e., a once a week wager). This reward delay was a major protective factor against excessive gambling, which on a psychobiological level has been theorised as an imbalance in an individual’s dopamine receptors, and therefore, highly sensitive to shorter bet reward periods. Betting via the internet has reduced such delays in receiving rewards from gambling, thus modifying a major structural characteristic of betting from once a week to (in some instances) every few minutes.
In parallel to the increased uptake of Internet betting in many jurisdictions, a second dynamic, namely globalisation, has further widened the possibilities of betting across countries, sports, and time zones, ultimately transforming sports betting into a 24/7 activity where the bookmaker never closes the shop any day during the year. For the first time, if a gambler has a craving to bet, the market is able to respond to that demand anytime and anywhere via a range of Wi-Fi enabled portable devices (e.g., smartphone, tablets, laptops, etc.). Virtual sports have expanded the availability of betting options even more, eliminating the need to bet on real world sport events.
Although the time between bets (i.e., bet frequency) was effectively reduced to near zero, the time within bets (i.e., bet duration) changed little until cash out functionality was first introduced by the gaming operator William Hill in December 2012. With cash out features, sports betting has become a potentially continuous gambling activity, one that resembles the playing mechanics the stock market. As with investing in stocks, bet values in in-play sports betting are re-calculated seamlessly. The outcome of a sport event might not be as relevant for many bettors as the value their bet will acquire in the next few seconds, even if that bet turns out to be erroneous at the end of the game. As in stock market investing, betting becomes continuous because non-actions also qualify as actions in themselves. Every single second that a bettor decides not to cash out, a new bet takes place. Eventually, cash out features introduce the notion that it is the bet itself the commodity that is being traded in the sports betting market. This new continuous type of sports betting raises questions concerning the gambling-related harm that could be associated with it. It also suggests that the kinds of regulation found widely in the stock market investment sector might have some utility if applied to this new form of gambling.
From a marketing perspective, cash out functionality is often advertised as a control-enhancing mechanism for bettors. Given that cashing out is typically presented in television advertisements as a risk-free operation, the product is likely to be perceived as reimbursable if the client is not happy with it, arguably promoting less planned gambling behaviours. Some gaming operators use the alternative name of “edit my bet” to refer to cash out, focusing on the capacity of bettors to correct later possible errors of judgement. The problem is that (and as happens in stock market investing), cashing out is only possible at the current value of the stock (which may be inferior to the purchasing price). Additionally, and contrary to what happens in stock market investing, betting operators automatically devalue the bet price immediately after the purchase. For example, a bookmaker will typically offer to cash out for $0.95 or similar a $1 bet placed one second ago, a price devaluation unmotivated by any new information or event actually affecting the predicted value of such a bet.
Beyond its most apparent attributes, we have demonstrated that cash out within in-play gambling is a pivotal feature that has been introduced by the sports betting industry to transform sports betting from what was traditionally a discontinuous form of gambling into a continuous one. It is contended that, although cashing out presupposes more engaged gamblers that feel more in control of their bets, the emotionally charged context in which it is often used and the structural attributes of the product itself might actually make some bettors lose control over their gambling wagers. Consequently, gambling policymakers and regulators should be cognizant of the challenges of this transformation of sports betting and consider the implications for the protection of gambling consumers.
[Note: This article was co-written with Dr. Hibai Lopez-Gonzalez]
Dr. Mark Griffiths, Professor of Behavioural Addiction, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Betfair (2017). Sportsbook: What is cash out and how does it work? Retrieved March 1, 2017, from: https://en-betfair.custhelp.com/app/answers/detail/a_id/4/~/sportsbook%3A-what-is-cash-out-and-how-does-it-work%3F
Gainsbury, S. M. (2015). Online gambling addiction: The relationship between internet gambling and disordered gambling. Current Addiction Reports, 2(2), 185-193.
Griffiths, M.D. (1993). Fruit machine gambling: The importance of structural characteristics. Journal of Gambling Studies, 9, 101-120.
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.
Lopez-Gonzalez, H., & Griffiths, M. D. (2016). Understanding the convergence of online sports betting markets. International Review for the Sociology of Sport. http://doi.org/doi:10.1177/1012690216680602
Lopez-Gonzalez, H. & Griffiths, M.D. (2017). ‘Cashing out’ in sports betting: Implications for problem gambling and regulation. Gaming Law Review: Economics, Regulation, Compliance and Policy, 21(4), 323-326.
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.
Newall, P. W. S. (2015). How bookies make your money. Judgment and Decision Making, 10(3), 225–231.
Newall, P. W. S. (2017). Behavioral complexity of British gambling advertising. Addiction Research & Theory. http://doi.org/10.1080/16066359.2017.1287901
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.
Sports Trading Life. (2015). Is “cash out” actually BAD for betting punters? Retrieved March 1, 2017, from http://sportstradinglife.com/2015/03/is-cash-out-actually-bad-for-punters/
Ad-ding to the gambling literature: A brief overview of our recent papers on sports gambling advertising
Over the last 18 months I have been working with Dr. Hibai Lopez-Gonzalez on a project examining online sports betting and online sports betting advertising. We have already had eight papers accepted for publication and today’s blog briefly rounds up the ones that specifically relate to online sports betting. If you would like copies of them, please click on the hyperlinks. If you are unable to access them, then drop me an email and I will send you a copy (mark.griffiths@ntu.ac.uk).
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, 41, 256-272.
- In this article, online sports betting is explored with the objective of critically examining the potential impact on problem gambling of the emerging product features and advertising techniques used to market it. First, the extent of the issue is assessed by reviewing the sports betting prevalence rates and its association with gambling disorders, acknowledging the methodological difficulties of an unambiguous identification of what exactly constitutes sports-related gambling today. Second, the main changes in the marketization of online betting products are outlined, with specific focus on the new situational and structural characteristics that such products present along with the convergence of online betting with other adjacent products. Third, some of the most prevalent advertising master narratives employed by the betting industry are introduced, and the implications for problem gamblers and minors are discussed.
Guerrero-Solé, F., Lopez-Gonzalez, H., Griffiths, M.D. (2017). Online gambling advertising and the Third-Person Effect: A pilot study. International Journal of Cyber Behavior, Psychology and Learning, 7(2), 15-30.
- Gambling disorder is known to have a negatively detrimental impact on affected individual’s physical and psychological health, social relationships, and finances. Via remote technologies (e.g., Internet, mobile phones, and interactive television), gambling has come out of gambling venues and has brought the potential for online gambling to occur anywhere (e.g., the home, the workplace, and on the move). Alongside the rise of online gambling, online gambling advertising have spread throughout all type of media. In a sample of 201 Spanish university students, the present study explored the perceived influence of online gambling advertising. More specifically it examined the Third-Person Effect (TPE), and its consequences on individuals’ willingness to support censorship or public service advertising. The findings demonstrate that despite the difference on the perception of the effects of online gambling advertising, it scarcely accounts for the behavioural outcomes analysed. On the contrary, awareness of problem gambling and, above all, paternalistic attitudes appear to explain this support
Lopez-Gonzalez, H. & Griffiths, M.D. (2017). Betting, forex trading, and fantasy gaming sponsorships – A responsible marketing inquiry into the ‘gamblification’ of English football. International Journal of Mental Health and Addiction. doi: 10.1007/s11469-017-9788-1
- Environmental stimuli in the form of marketing inducements to gamble money on sports have increased in recent years. The purpose of the present paper is to tackle the extended definition of the gamblification of sport using sponsorship and partnership deals of gambling, forex trading, and fantasy gaming as a proxy for assessing its environmental impact. Using data concerning sponsorship deals from English Football Premier League, the paper builds on the evidence of English football’s gamblification process to discuss the impact that the volume, penetration, and marketing strategies of sports betting might have on public health and wellbeing. Findings demonstrate that gambling marketing has become firmly embedded in the financial practices of many English Premiership football clubs. It is argued that such associations are not trivial, and that the symbolic linkage of sport and newer gambling forms may become an issue of public health, especially affecting vulnerable groups such as minors and problem gamblers. The present study is the first to explore in-depth the relationship and potential consequences and psychosocial impacts of sports-related marketing, particularly in relation to football.
Lopez-Gonzalez, H., Guerrero-Sole, F. & Griffiths, M.D. (2017). A content analysis of how ‘normal’ sports betting behaviour is represented in gambling advertising. Addiction Research and Theory, in press.
- Previous research has suggested that motives play an important role in several potentially addictive activities including online gaming. The aims of the present study were to (i) examine the mediation effect of different online gaming motives between psychiatric distress and problematic online gaming, and (ii) validate Italian versions of the Problematic Online Gaming Questionnaire, and the Motives for Online Gaming Questionnaire. Data collection took place online and targeted Italian-speaking online gamers active on popular Italian gaming forums, and/or Italian groups related to online games on social networking sites. The final sample size comprised 327 participants (mean age 23.1 years [SD=7.0], 83.7% male). The two instruments showed good psychometric properties in the Italian sample. General psychiatric distress had both a significant direct effect on problematic online gaming and a significant indirect effect via two motives: escape and fantasy. Psychiatric symptoms are both directly and indirectly associated with problematic online gaming. Playing online games to escape and to avoid everyday problems appears to be a motivation associated with psychiatric distress and in predicting problematic gaming.
Lopez-Gonzalez, H. Estevez, A., Jimenez-Murcia, S. & Griffiths, M.D. (2017). Alcohol drinking and low nutritional value food eating behaviour of sports bettors in gambling adverts. International Journal of Mental Health and Addiction. doi: 10.1007/s11469-017-9789-0
- The prevalence of sports betting advertising has become a major concern for gambling regulators, particularly since the legalization of online gambling in many European jurisdictions. Although the composition of gambling advertisement narratives has received some limited attention, nothing is known regarding how betting advertisements (often referred to as ‘adverts’ or ‘commercials’) might be associating gambling with other potentially risky behaviors. The present paper examines the representation of alcohol drinking and low nutritional value food eating in sports betting advertising. By means of a mixed-methods approach to content analysis, a sample of British and Spanish soccer betting adverts was analyzed (N=135). The results suggest that betting advertising aligns drinking alcohol with sports culture, and significantly associates emotionally-charged sporting situations such as watching live games or celebrating goals with alcohol. Additionally, alcohol drinking is more frequent in betting adverts with a higher number of characters, linking friendship bonding and alcohol drinking (especially beer) in the context of sports gambling.
Lopez-Gonzalez, H., Estévez, A. & Griffiths, M.D. (2017). Controlling the illusion of control: A grounded theory of sports betting advertising in the UK. International Gambling Studies, in press.
- Sports betting advertising has arguably permeated contemporary sport consumption in many countries. Advertisements build narratives that represent situations and characters that normalize betting behaviour and raise public concerns regarding their detrimental effect on vulnerable groups. Adopting a grounded theory approach, the present study examined a British sample of sports betting advertisements (N = 102) from 2014 to 2016. The analysis revealed that individual themes aligned in a single core narrative, constructing a dual persuasive strategy of sports betting advertising: (i) to reduce the perceived risk involved in betting (with themes such as betting with friends, free money offers, humour, or the use of celebrities) while (ii) enhancing the perceived control of bettors (including themes of masculinity and sport knowledge). In addition, new technological features of sports betting platforms (e.g. live in-play betting) were used by advertisers to build narratives in which the ability to predict a sports outcome was overlapped by the ability of bettors to use such platforms, equalizing the ease of betting with the ease of winning. Based on the data analysed, it was concluded that the construction of a magnified idea of control in sports betting advertising is a cause for concern that requires close regulatory scrutiny.
Dr. Mark Griffiths, Professor of Behavioural Addiction, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Griffiths, M.D. (1997). Children and gambling: The effect of television coverage and advertising. Media Education Journal, 22, 25-27.
Griffiths, M.D. (2005). Does advertising of gambling increase gambling addiction? International Journal of Mental Health and Addiction, 3(2), 15-25.
Griffiths, M.D. (2010). Media and advertising influences on adolescent risk behaviour. Education and Health, 28(1), 2-5.
Hanss, D., Mentzoni, R.A., Griffiths, M.D., & Pallesen, S. (2015). The impact of gambling advertising: Problem gamblers report stronger impacts on involvement, knowledge, and awareness than recreational gamblers. Psychology of Addictive Behaviors, 29, 483-491.
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). ‘Cashing out’ in sports betting: Implications for problem gambling and regulation. Gaming Law Review: Economics, Regulation, Compliance and Policy, 21(4), 323-326.
Lopez-Gonzalez, H. & Griffiths, M.D. (2017). Understanding the convergence of online sports betting markets. International Review for the Sociology of Sport, in press.
Selling hope: A brief look at the advertising of online sports betting
(Please note that this article was co-written with Dr. Hibai Lopez-Gonzalez).
Marketing strategies are essential in a market environment such as online sports betting wherein product differentiation is minimal and price inelasticity robust. Business insiders widely accept that product innovation is instantly replicated across competitors, which are permanently seeking to generate, so far unfruitfully, a disruptive competitive edge. In a context where the number of licensed bookmakers is constantly growing, advertising plays a big part in luring customers who cannot tell the difference between companies. Advertising and marketing spend on sports betting has increased exponentially over the last five years in Europe and that is mirrored on the exposure to betting commercial messages of sports fans.
For instance, a 2014 report published by the Victorian Responsible Gambling Foundation estimated that viewers of the Australian Football League and the National Rugby League – the two most followed sport codes in Australia – are exposed to 10 to 15 minutes of gambling advertisements per game. Similarly, Dr. Sophie Lindsay and colleagues in a 2013 issue of BMC Public Health looked further into the environmental impact of gambling advertising in sport events. They calculated that in three rugby league matches the public had been exposed to ‘322 episodes’ of betting marketing – for example, considering an episode every time an electronic banner advertised a gambling site – which is somewhat paradoxical given in-play betting is illegal in Australia (as of mid-2016).
One of the marketing tricks is the use of the psychological bias known as the ‘representativeness heuristic’ (coined by Dr. Amos Tversky and Dr. Daniel Kahneman). Imagine the following two betting propositions concerning a soccer game: (a) FC Barcelona will lose the next match against the bottom team in the league (an extremely unlikely event, say 0.01 probability); (b) FC Barcelona will lose the next match against the bottom team in the league but (i.e. AND) Leo Messi will score at least one goal (this one an extremely likely event, for the sake of the argument, 0.99 probability). Mathematically speaking, proposition B can never be a better choice than proposition A, since P(A)=0.01 as opposed to P(B)=0.01×0.99= 0.0099. However, bookmakers understand that Messi scoring a goal is a highly representative event that can be effortlessly be retrieved from memory, transferring the representativeness to the whole betting proposition. In addition, it is plausible that representative heuristics work in conjunction with wishful thinking, overestimating the likelihood of an event based on one’s own preferences, as anecdotal evidence from betting advertisements concerning national teams participating in international competitions appear to suggest.
In a recent paper in the Journal of Sport and Social Issues, I and my colleagues (Dr. Hibai Lopez-Gonzalez and Dr. Ana Estevez) discussed two of most utilized master narratives in online betting promotions are discussed, namely skill-enhancing narratives – in which there is an overemphasis on the capacities and knowledge of the bettor – and, at the other end of the spectrum, risk-lowering narratives – which underemphasise the risks involved in betting and typically overestimate the probability of winning.
Skill-enhancing narratives: In a 2016 issue of iGaming Business magazine, Vahe Baloulian, CEO of the betting software company BetConstruct, declared that new features were there to give customers ‘a chance to feel more in control by engaging more often and making decisions’ with ‘feel’ and ‘control’ being the keywords here. The ‘feel’ component refers to a perceived non-factual sensation that lies at the heart of the advertising endeavour. The perception of control over the betting activity has been found to be a common attribute of gambling narratives in Swedish research by Dr. Per Binde, in which elements of skill have been exaggerated, as well as in televised commercials from Canada (in a 2008 paper by John McMullan and Delthia Miller in the Journal of Gambling Issues), wherein betting has been associated with the imagery of media sport communication, skills, and long-meditated strategies, while luck was downplayed.
Many betting features newly added to online platforms are said by commercials to enhance the control of the user over the outcome of the event bet upon, including more gamified experiences (where passive bettors supposedly become players), immersive betting experiences, and fantasy sports (where the player actively recruits a team). In these examples, the betting experience demands a higher involvement from the bettor, arguably resulting in a psychological transference between the active role of a bettor executing actions and the actual influence a bettor’s actions may have on the outcome of an external event. In essence, betting advertising contributes to the myth of gambling as a sport, an activity that is healthy, harmless, and that can be mastered with practice and talent.
Among the most used selling points that enhance the self-efficacy and control of the sports bettor are the narratives of masculinity. Attributes such as loyalty to the team, being a real man, and being brave enough to prove sporting knowledge have been implicit in some sports betting messages, including stereotyped gender depictions and sexualized imagery. According to recent research by Dr. Nerilee Hing and colleagues (in the International Journal of Mental Health and Addiction), the prototype sports bettor is male, young, tech-savvy, and professional, which aligns with the target audience of betting advertising. This reinforces the idea of male providers that sublimates in gambling their manly instincts for aggression, competition, and combat, as was observed in the behaviour of horserace bettors as identified in early studies.
Risk-lowering advertising: In parallel to the skill-enhancing strategies, advertising diminishes the harmful consequences of excessive betting by representing it as a risk-free activity. The combined narrative would be that of a safe environment where intelligent people possess the tools to succeed. In an attempt to lower the perceived risk inherently embedded in any betting activity, three major messages have been emphasized by advertisers: (i) betting is a perfectly normal activity; (ii) errors in betting predictions are not fatal; and (iii) betting is a social activity.
Advertising has been frequently proposed as a significant mechanism of gambling normalisation including new social media channels (see Dr. Sally Gainsbury and colleagues 2016 research in the Journal of Gambling Studies). The portrayal of gambling attitudes and behaviours in media representations as well as in real life environments promotes the idea of gambling as an intrinsic form of entertainment. This is true for all forms of gambling but sports betting presents some singular intensifiers. Unlike any other gambling form, sport instils in betting its health and sanitization attributes. Attributes such as fair competition, success through talent and perseverance, equal opportunities and big rewards, respect for nature, green and healthy habits are transmitted to betting behaviour. Celebrities deepen that connection as they have been proven to reduce the perceived risk by the public of the products they endorse. Sportspeople tell the story of young, talented risk-takers who challenged the odds but emerged successful in the end, arguably a perfect incarnation of the bettor’s own aspirational narrative.
Another marketing technique broadly employed by betting operators concerns the provision of risk-free bets. Advertisements typically offer welcome bonuses for new customers, free bonuses for loyal clientele, and money-back exceptions in multiple complex accumulated bets. All of these free offers pose a dual threat. On the one hand, the so-called free money requires bettors to engage in further betting in order to reclaim their benefits (leading to money losses in the process). On the other hand, even if it is a bona fide free bonus, problem gamblers might conceptualise betting as a riskless activity that entails no responsibilities even when done excessively.
A third main risk-lowering technique used in commercials is the representation of betting as a social form of entertainment to be conducted alongside other people. Solitary gambling, like solitary drinking, has been thought to be a determinant and/or consequence of problem gambling. However, some studies have raised the alarm about the misconception that gambling, when done in group, cannot be problematic (see the recent work of Emily Deans and her colleagues in ‘Further reading’ below). In fact, peer facilitation has been identified as a fundamental contributing factor to impulse betting, with excessive betting being more plausible when sport matches are viewed in the company of others (as shown by Mattew Lamont and colleagues in a 2016 qualitative study in Sport Management Review). Sport is a cultural product, socially consumed (watched, practiced, discussed, and bet upon). The social stigma attached to gambling habits might be shifting towards its naturalisation, a long-term process that advertising cannot carry out on its own but can certainly facilitate.
Dr. Mark Griffiths, Professor of Behavioural Addiction, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Binde, P. (2009). ‘You could become a millionaire’: Truth, deception, and imagination in gambling advertising. In: Kingma S (ed.), Global Gambling: Cultural Perspectives on Gambling Organizations, (pp. 171-194). London: Routledge.
Deans, E.G., Thomas, S.L,. Derevensky, J. & Daube, M. (2017) The influence of marketing on the sports betting attitudes and consumption behaviours of young men: implications for harm reduction and prevention strategies. Harm Reduction Journal, 14(5). doi:10.1186/s12954-017-0131-8.
Deans, E.G., Thomas, S.L,. Daube, M., Derevensky, J., et al. (2016) Creating symbolic cultures of consumption: an analysis of the content of sports wagering advertisements in Australia. BMC Public Health, 16(1), 208.
Deans, E.G., Thomas, S.L,. Daube, M. & Derevensky J (2016) The role of peer influences on the normalisation of sports wagering: a qualitative study of Australian men. Addiction Research & Theory. doi: 10.1080/16066359.2016.1205042.
Gainsbury, S.M., Delfabbro, P., King, D.L., et al. (2016) An exploratory study of gambling operators’ use of social media and the latent messages conveyed. Journal of Gambling Studies, 32, 125–141.
Gordon, R. & Chapman, M. (2014). Brand community and sports betting in Australia. Victoria, Australia: Victorian Responsible Gambling Foundation.
Guerrero-Solé, F., Lopez-Gonzalez, H., Griffiths, M.D. (2017). Online gambling advertising and the Third-Person Effect: A pilot study. International Journal of Cyber Behavior, Psychology and Learning, 7(2), 15-30.
Hing, N. (2014). Sports betting and advertising (AGRC Discussion Paper No. 4). Melbourne: Australian Gambling Research Centre.
Hing, N., Lamont, M., Vitartas, P., et al. (2015). Sports-embedded gambling promotions: A study of exposure, sports betting intention and problem gambling amongst adults. International Journal of Mental Health and Addiction, 13(1), 115–135.
Lamont, M., Hing, N. & Vitartas, P. (2016). Affective response to gambling promotions during televised sport: A qualitative analysis. Sport Management Review, 19(3), 319-331.
Lindsay, S., Thomas, S., Lewis, S., et al. (2013) Eat, drink and gamble: marketing messages about ‘risky’ products in an Australian major sporting series. BMC Public Health 13(1), 719.
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, 41, 256-272.
Lopez-Gonzalez, H. Estevez, A., Jimenez-Murcia, S. & Griffiths, M.D. (2017). Alcohol drinking and low nutritional value food eating behaviour of sports bettors in gambling adverts. International Journal of Mental Health and Addiction, 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.
Lopez-Gonzalez, H.. & Griffiths, M.D. (2017). Betting, forex trading, and fantasy gaming sponsorships – A responsible marketing inquiry into the ‘gamblification’ of English football. International Journal of Mental Health and Addiction, in press.
McMullan, J.L. & Miller, D. (2008). All in! The commercial advertising of offshore gambling on television. Journal of Gambling Issues, 22, 230-251.
Tversky, A. & Kahneman, D. (1983) Extensional versus intuitive reasoning: The conjunction fallacy in probability judgment. Psychological Review, 90(4), 293–315.
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
Superdata (2016). eSports Market Report. Available at: https://www.superdataresearch.com/market-data/esports-market-brief/
Wingfield, N. (2014) In e-Sports, video gamers draw real crowds and big money. New York Times, August 30. Available from: http://www.nytimes.com/2014/08/31/technology/esports-explosion-brings-opportunity-riches-for-video-gamers.html?_r=0
Wood, J. (2016). UK Gambling Commission: We’ll work to minimize risks from emerging esports betting markets. Esports Betting Report, July 19. Available at: http://www.esportsbettingreport.com/uk-regulators-address-esports-betting/
Match.com: A brief look at gambling and spot-fixing
Match-fixing is nothing new. There’s always been big money to make on the outcome of sporting events. However, spot-fixing (i.e., the action or practice of dishonestly determining the outcome of a specific part of a match or game before it is played) is a more recent phenomenon. The situation escalated in December 2013 when six men (including Blackburn Rovers’ DJ Campbell) were arrested after an investigation into spot-fixing in football by the National Crime Agency. According to the British newspaper The Sun On Sunday, one of their undercover investigators reported that ex-Portsmouth footballer Sam Sodje could arrange for professional football league players to get themselves yellow cards in return for large amounts of money (i.e., tens of thousands of pounds). Consequently, the UK Government is believed to be considering whether match-fixing should be a criminal offence.
Over the past few years, allegations and convictions relating to spot-fixing have been made in many different sports including football, cricket, snooker and horse-racing. In all honesty, this doesn’t surprise me in the least – particularly because sport and gambling have always been inextricably linked. Matt Scott made a number of interesting observations on the issue in a December 2013 article for Inside World Football:
“Betting has a tradition of accompanying football in England in the same way custard goes with English puddings. It just adds a bit of flavour to the proceedings. It is a guilty pleasure, nothing more. No harm done…[However] now is the time to reappraise the complicated English relationship with the ‘harmless’ flutter. The ubiquity of the betting companies whose advertisements fill the half-time breaks of every match covered on television has been very lucrative for football. Figures from the website sportingintelligence.com suggest that in title sponsorships alone, Premier League clubs earn £13m a year from betting companies…Investigations by the ‘Sun on Sunday’ and the ‘Daily Telegraph’ have shown how professional footballers appear to be fixing events in matches…Whether they know it or not, players who fix matches or events within them are the foot soldiers of international match-fixing rings who, according to sports anticorruption experts, have links with serious organised crime. The fixers do not place the bulk of their bets with onshore UK bookmakers but in Asian markets where the liquidity is deeper and where the regulatory scrutiny is much lighter…As the National Crime Agency’s arrests have shown, it is high time for law makers and enforcers to act. For if not, it will be easier to deliver yellow cards to order on the football pitch than for miscreant bookmakers to be issued with cautions about their activities”.
Personally, I think the rise of match-fixing and spot-fixing has mirrored the rise in the use of betting exchanges like Betfair, and the rise of in-play betting. Back in 2005, I published an article on betting exchanges and argued that they had radically altered the shape of gambling particularly because – for the first time – gamblers could bet on individuals and/or teams losing (in contrast to traditional bookmakers that would only take bets on who was going to win). Betting shop operators got worried because their clientele could use betting exchanges to become bookmakers themselves. As a consequence, I argued that betting exchanges had potentially opened the door to fraud, corruption, and crime. As Matt Scott reported:
“In 2006 a whistleblower who had previously worked for the bookmaker Victor Chandler claimed to have data from accounts belonging to Premier League players and managers. The account holders had allegedly bet on matches in their own competitions, in breach of football’s regulations. But Victor Chandler International [VCI] obtained a high-court injunction preventing the release of information about the accounts…There is no way of knowing if the alleged breaches of regulations relating to the VCI accountholders amounted to anything more sinister. (And it is fair to say that Chandler would be unlikely to have exposed himself repeatedly to bets on matches involving account holders’ teams, given the substantial risk of manipulation)”.
More recently, in-play betting has become very popular among sports bettors and plays into the hands of the spot-fixers. As the CEO of OpenBet commented:
“The periodic ritual of predicting a daily or weekly series of events is no longer the mainstay. Today’s punter wants to be able to turn on their gadget of choice and instantly be offered an array of real-time betting opportunities with immediate results…Sports betting is growing in what is offered, how it is offered, when it is offered, where it is offered, and to whom it is offered…Like the financial markets, volatile events produce increased liquidity and increased liquidity produces greater revenue to the operator”.
We can now bet on dozens of ‘in-play’ markets while watching almost any sporting event. Should I wish to, during any football match I can bet on everything from 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, who will get a red card, and/or in what minute of the second half will the first free kick be awarded. Money talks – and there is big money to be made. Paying sports men and women relatively large amounts of money to lose a point (in tennis), get a yellow card (in football), go down in the ninth round (in boxing), or lose a frame (in snooker) can result in even more money for those paying the sports players in the first place.
But maybe technological advance will be the solution to the problem. Technology makes it easier to spot betting cheats and criminal activity. Betting exchange and in-play betting technology means that every bet made through their systems can be tracked and leave an audit trail. Unusual betting patterns can be identified and shared with the relevant sporting and criminal authorities. While prevention is better than detection, betting audit trails do at least give us the chance to crack down on the cheats – even if it’s after the fact. The more sports cheats that are caught, the bigger the deterrent. While we would never want to stop people having an enjoyable punt on their favourite team, we do need to make sure that gambling is as fraud-free as possible. In Matt Scott’s article, the English football Premier League’s general secretary, Nic Coward, summarized what is required of the UK government.
“It [is] true of any regulated sector that there need to be clear regulations in place so that the sector and stakeholders with an interest in the sector understand what they are…That they are monitored; that there is an effective compliance regime; and that there are real enforcement provisions behind it”.
Note: This blog is a much extended version of an article that first appeared in Nottingham Trent University’s Expert Opinion column
Dr Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Griffiths, M.D. (2006). All in the game. Inside Edge: The Gambling Magazine, July (Issue 28), p. 67.
Griffiths, M.D. (2010). Gambling addiction among footballers: causes and consequences. World Sports Law Report, 8(3), 14-16.
Scott, M. (2013). Time to overhaul football’s betting relationship. Inside World Football. December 12. Located at: http://www.insideworldfootball.com/matt-scott/13779-matt-scott-time-to-overhaul-football-s-betting-relationship
Mind the App: The psychosocial impact of gambling applications
Most regular gamblers will be well aware that technology is revolutionizing the way they can gamble and access gambling. One of the most notable innovations has been the proliferation of various gambling applications (‘apps’) for smartphones and computer tablets. A majority of the British bookmakers have launched sports betting apps including Betfred Mobile Sportsbook, William Hill iPhone, Ladbrokes Mobile, Betfair iPhone Client, and Paddy Power Mobile. Most of the apps allow sports bettors to gamble via their mobile phones and/or tablets (e.g., iPad) with all the same options that gamblers can get offline, and additionally keep track of the bets made. Combined with this, many operators have introduced iPhone compatible websites. Bookmakers have also launched similar apps and services for Android (i.e., non-Apple) products (e.g., Unibet’s mobile sports betting app). In short, mobile sports betting has gone mainstream.
There are also apps for games like Fantasy Football (such as the one offered by Betfred) but most gambling operators are moving into the mobile social betting market because it provides greater flexibility in predicting score lines and by making it easier to share the result outcomes with friends. Such services include Unibet Social Betting, SideBets Social BETworking, Bodugi Social Betting, King of Predictions, and Bet Tracker Pro. Gamblers also have access to a wide range of betting tips and betting odds apps via both iPhone and Android handsets. Gambling apps can also provide access to potentially useful information for the player (e.g., tips, strategy articles, the latest updates, etc.). In addition to he bookmaking industry, casino operators have followed suit and have also moved into the gambling app market on both iPhone and Android.
Once casino apps have been installed, players can instantly access their favourite casinos and casino games without searching for them via a web browser. A quick look at the commercially available gambling apps shows that almost all gaming operators offer attractive bonuses in an attempt to attract new clientele to download their gambling app software and spend some money (e.g., first deposit bonuses, reload bonuses, and various other seasonal promotions). The psychosocial impact of real money gambling apps is likely become a hot topic among those of us who carry out research in the gambling studies field.
As with online gambling more generally, the introduction of gambling apps and mobile gambling eliminates time and place constraints, allows 24/7 access all year round, provides convenience and flexibility, provides a wide range of games (e.g., slots, blackjack, video poker, roulette, etc.) and potentially increased gambling opportunities, and means that anyone can gamble anywhere at anytime providing there is network connection. Real money gambling apps arguably make gambling even easier for players. Whilst there are clearly many advantages for gamblers, these advantages may have a negative psychosocial impact on a small minority of gamblers.
The gambling app market is likely to be very lucrative for both game developers and gaming operators. In a recent report by Juniper Research, it was estimated that users of smartphones and tablets are expected to wager $100 billion annually on the devices by 2017, up from about $20 billion in 2011. However, Juniper Networks’ Mobile Threat Centre also reported that gambling apps pose the biggest security risk to smartphone users after over 1.7 million apps on the Google Play Store were analyzed between March 2011 and September 2012. Another study by German researchers at the Leibniz University (Hannover) and the Philipps University (Marburg) found that apps (including gambling apps) were leaking personal data, including bank account information. The study tested the 13,500 most popular free apps from the Google Play Store and found that 1074 of them (8%) used incorrect or inadequate coding. These studies also found that the gambling apps “blatantly overstepped permissions that were more than adequate for normal use” and that with malware they accessed a number of features of the users’ smartphones and tablets without justification. Racing apps were reported as causing the most concern with 99% of paid racing apps and 92% of free racing game apps being able to send SMS; half of free downloaded apps were able to use the camera; and 94 per cent of free games could make outgoing phone calls.
From a psychosocial impact perspective, one of the areas where gambling apps appear to be having most impact currently is in relation to in-play betting. For instance, Bet365 (the most successful gaming operator in the in-play market) have a free betting app that players can use for any of their ‘in-play’ markets (most notably football) from a smartphone. I argued in a previous blog that what the ‘in-play’ markets have done is take what was traditionally a discontinuous form of gambling like football betting – where gamblers made one bet every Saturday on the result of a football game – to one where consumers can gamble again and again and again. What’s more, 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 using gambling apps have catered for both the natural betting demand and have initiated new clientele in the process.
If the reward for gambling only happens once or twice a week, it is almost completely impossible for a gambler to develop problems and/or become addicted. ‘In-play’ betting using gambling apps has changed that because we now have football matches on almost every day of the week making a daily 2-hour plus period of betting seven days a week. ‘In-play’ has fundamentally changed the way that people view and bet on sporting events. The speed of a game also influences the prevalence of problem gambling. Based on the relationship between event duration, event frequency, bet frequency, and payout interval, empirical research has consistently shown that games that offer a fast, arousing span of play, frequent wins, and the opportunity for rapid replay are those most frequently cited as being associated with problem gambling. These potentially problem-inducing structural characteristics have the capacity to be enhanced via gambling apps and in-play betting. The actual prevalence rate of problem gambling will of course depend on many factors other than speed of the game alone, but games with high and rapid event frequencies are most likely to impact on increased rates of problem gambling. ‘In-play’ betting via gambling apps appears to be an activity that is starting to blur the lines between continuous and discontinuous forms of gambling.
Frequency of opportunities to gamble (i.e., event frequency) appears to be a major contributory factor in the development of gambling problems. The general rule is that the higher the event frequency, the more likely it is that the activity will result in gambling problems for vulnerable and susceptible gamblers. Gambling addiction has been shown to be associated with the rewards, the speed of rewards, and payout rates. Therefore, the more potential rewards there are, and the higher the amount of the rewards, the more problematic the activity is likely to be. Given the time, money and resources, a vast majority of gambling activities are now ‘continuous’ in that people have the potential to gamble again and again. Therefore, in relation to problem gambling, ‘in-play’ betting via gambling apps is an activity that we really need to keep an eye on.
Dr Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Griffiths, M.D. (2012). Gambling on Facebook? A cause for concern? World Online Gambling Law Report, 11(9), 10-11.
Griffiths, M.D. (2012b). Mind games (A brief psychosocial overview of in-play betting). i-Gaming Business Affiliate, June/July, 44.
Griffiths, M.D. & Auer, M. (2013). The irrelevancy of game-type in the acquisition, development and maintenance of problem gambling. Frontiers in Psychology, in press.
MacMillan, D. (2012). IPhones Become Mobile Casinos by Adding Real-Money Bets. Bloomberg Business Week, August 16. Located at: http://www.businessweek.com/news/2012-08-16/iphones-become-mobile-casinos-by-adding-real-money-bets
Manning, J. (2012). Android apps leaking personal, banking details. Stuff, October 23. Located at: http://www.stuff.co.nz/technology/digital-living/7852719/Android-apps-leaking-personal-banking-details
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.
Sharma, M. (2012). Free gambling apps top security risk list. Stuff, November 4. Located at: http://www.stuff.co.nz/technology/digital-living/7904180/Free-gambling-apps-top-security-risk-list
Play’s cool? Is the type of game played important in the development of gambling addictions?
Earlier today, I (and my research colleague Michael Auer) had a paper published in the journal Frontiers in Psychology arguing that the type of game that people gamble on is irrelevant in the acquisition, development, and maintenance of pathological gambling. We noted that anyone coming into the gambling studies field from a psychological perspective would probably conclude from reading the literature that problem and pathological gambling is associated with particular game types. More specifically, there appears to be a line of thinking in the gambling studies field that casino-type games (and particularly slot machines) are more likely to be associated with problem gambling than lottery-type games.
We argued that the most important factors along with individual susceptibility and risk factors of the individual gambler are the structural characteristics relating to the speed and frequency of the game (and more specifically event frequency, bet frequency, event duration and payout interval) rather than the type of game. Event frequency refers to the number of events that are available for betting and gambling within any given time period. For example, a lottery draw may occur once a week but a slot machine may allow 15 chances to gamble inside one minute. In this example, slot machine gambling has a higher event frequency than lottery gambling. Bet frequency refers to the number of bets or gambles placed in any given time period. Using lottery playing as example, Dr. Jonathan Parke and I noted in a 2007 book chapter on structural characteristics, that multiple tickets (e.g., 10 tickets) can usually be purchased as frequently as desired before any single lottery draw. In this instance, bet frequency would be equal to 10 but event frequency would be equal to 1. Therefore, event frequency can often be much lower than bet frequency and it is possible for players to spend more than they can afford even with a low event frequency.
Dr. Parke and I have stated that further empirical research is needed into the relationship between event frequency and bet frequency. This is because researchers often assume that event frequency and bet frequency have a strong relationship (i.e., the higher number of betting/gambling events – the higher the frequency of betting/gambling). However, this may not be the case.
Another important gaming parameter is event duration. This refers to how fast the event in question is (e.g., a reel spin on a slot machine might last three seconds). Here, it is important to note that duration of the betting/gambling event is different from event frequency (although they may be inextricably linked in so much as the length of a betting event will obviously limit the frequency with which they can take place). Again, Dr Parke and I noted that a betting event lasting two hours (e.g., a soccer game) could not have an event frequency greater than one in any 2-hour period but could have a betting frequency of over 100 with the advent of in-play betting.
In-play betting and gambling (which I examined in a previous blog) refers to the wagering on an event that has started but has not yet finished. This means gamblers can continue to bet on an event (e.g., a soccer or cricket match) and perhaps more importantly, adapt their bets according to how the event is progressing. For instance, in the UK, during the playing of almost any soccer match, a gambler can bet on everything from 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 the game and/or in what minute of the second half will the first free kick be awarded. What I argued in a previous blog is that ‘in-play’ gambling activities have taken what was traditionally a discontinuous form of gambling – where a gambler made one bet every weekend on the result of the game – to one where a player can gamble continuously again and again. In short, the same game has been turned from what was a low event frequency gambling activity into a potentially high frequency one (and gone from an activity that had little association with problem gambling to one where problem gambling is far more likely among excessive in-play gamblers).
Another important (and related) structural characteristic is payout interval. This is the time between the end of the betting event (i.e., the outcome of the gamble) and the winning payment (if there is one). The frequency of playing when linked with two other factors – the result of the gamble (win or loss) and the actual time until winnings are received – exploits the psychological principles of learning. This process of operant conditioning conditions habits by rewarding (i.e., reinforcing) behaviour (i.e., through presentation of a reward such as money). To produce high rates of response, those schedules which present rewards intermittently (random and variable ratio schedules) have shown to be most effective. Since a number of gambling activities (most notable slot machines) operate on random and variable ratio schedules it is unsurprising that excessive gambling can occur.
To highlight the irrelevance of game type, consider the following two examples that demonstrate that it is the structural characteristics rather than the game type that is critical in the acquisition, development and maintenance of problem and pathological gambling for those who are vulnerable and/or susceptible. A “safe” slot machine could be designed in which no-one would ever develop a gambling problem. The simplest way to do this would be to ensure that whoever was playing the machine could not press the ‘play button’ or pull the lever more than once a week. An enforced structural characteristic of an event frequency of once a week would almost guarantee that players could not develop a gambling problem. Alternatively, a problematic form of lottery could be designed where instead of the draw taking place weekly, bi-weekly or daily, it would be designed to take place once every few minutes. Such an example is not hypothetical and resembles lottery games that already exist in the form of rapid-draw lottery games like keno.
The general rule is that the higher the event frequency, the more likely it is that the gambling activity will cause problems for the individual (particularly if the individual is susceptible and vulnerable). Problem and pathological gambling are essentially about rewards, and the speed and frequency of those rewards. Almost any game could be designed to either have high event frequencies or low event frequencies. Therefore, the more potential rewards there are, the more problematic and addictive an activity is likely to be and this is irrespective of game type as games such as diverse as lotteries and slot machines could have identical event frequencies and event durations.
Dr Mark Griffiths, Professor of Gambling Studies, 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. (1994). The role of cognitive bias and skill in fruit machine gambling. British Journal of Psychology, 85, 351-369.
Griffiths, M.D. (1999). The psychology of the near miss (revisited): A comment on Delfabbro and Winefield. British Journal of Psychology, 90, 441-445.
Griffiths, M.D. (2008). Impact of high stake, high prize gaming machines on problem gaming. Birmingham: Gambling Commission.
Griffiths, M.D. (2012). Mind games (A brief psychosocial overview of in-play betting. i-Gaming Business Affiliate, June/July, 44.
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.
Griffiths, M.D. & Wood, R.T.A. (2001). The psychology of lottery gambling. International Gambling Studies, 1, 27-44.
Meyer, G., Hayer, T. & Griffiths, M.D. (2009). Problem Gaming in Europe: Challenges, Prevention, and Interventions. New York: Springer.
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.
The ‘In’ Crowd: Is there a relationship between ‘in-play’ betting and problem gambling?
For those of us who watch football on the television in the UK, it is almost impossible to watch a game without seeing the many gambling adverts alerting us to the fact we can now bet on over 60 ‘in-play’ markets while watching the game. Should I wish to, I can bet on everything from 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 the first free kick will be awarded.
‘In-play’ betting is arguably the fastest growing form of gambling in the UK and the UK’s leading ‘in-play’ bookmaker Bet 365 made over £500 million last year. One of the issues I have been asked by the press is to what extent ‘in-play’ betting can be problematic. One of the interviews I did recently was with the Mail on Sunday who published some of my comments yesterday in an article entitled ‘Risky business: With the advent of online gambling, are we creating an epidemic of addiction? ’I was quoted as saying:
‘What the in-play markets have done is take what was traditionally a discontinuous form of gambling – where you make one bet every Saturday on the result of the game – to one where you can gamble again and again and again. You cannot become addicted to something unless you are constantly being rewarded. If the reward only happens once or twice a week, it’s impossible to become addicted. In-play has changed that”
This indeed was a good summary of the interview I did. In-play betting is something that many of us in the problem gambling field are keeping an eye on because it’s taken something that has traditionally been a non-problem form of gambling to something that is more akin to betting on horse racing. At a typical Gamblers Anonymous group, you will get horse racing addicts, slot machine addicts, casino addicts, but it was rare that you got anyone ever having problems with things like football betting, mainly because football betting opportunities were once a week on the pools or betting before the match on a Saturday afternoon.
As I noted in my published quote above, if the reward for gambling only happens once or twice a week, it is completely impossible to become addicted. In-play has changed that because we now have football matches on almost every day of the week making a daily 2-hour plus period of betting seven days a week. As a psychologist who has researched problem gambling for over 25 years, I would assess the structural characteristics of this type of activity and associate it with the type that causes problem gambling for those that are vulnerable and susceptible. So why do I think this?
When considering speed and frequency of gambling in relation to problem gambling, concepts such as event duration, event frequency and payout interval can often be misunderstood and applied in the wrong context. Often, these are mistaken for having the same meaning. Furthermore, concepts such bet frequency and event duration are often ignored despite their importance of their role in the speed and frequency of betting. All of these terms refer to slightly different aspects of gambling although they are all implicated factors that affect speed and frequency.
Event duration essentially refers to how fast the “event” is (i.e., the speed of a gambling activity such as a reel spin on a slot machine that typically lasts for a few seconds). Professor Alex Blaszczynski and his colleagues at the University of Sydney (Australia) noted that gamblers prefer faster speeds and find fast speeds while playing more enjoyable. Therefore, they argued that gamblers’ motivation to play could encourage more persistent gambling activity. Another study by Professor Ladouceur and Dr. Serge Sevigny at the University of Laval (Quebec, Canada) investigated the effects of slot machine game speed on concentration, motivation to play, loss of control, and number of games played on people randomly assigned to either a high-speed (5 seconds) or a low-speed (15 seconds) gambling condition. Their results showed that high-speed gamblers played more games and underestimated the number of games played more than low-speed gamblers. However, speed didn’t influence concentration, motivation, or loss of control over time or money. Despite many methodological limitations they concluded that speed had limited impact on occasional slot machine gamblers.
A paper by Dr Kevin Harrigan and Dr. Mike Dixon (University of Waterloo, Canada) estimated the speed of slot machine play on slot machines. On a machine with a reel spin of every six seconds, players can play 10 times per minute, (i.e., 600 spins per hour) whereas those on a machine with a reel spin of every three seconds, players can play 20 times a minute (i.e., 1200 spins per hour). I also found similar results in research I carried out on British slot machines in the late 1980s and early 1990s.
It is important to acknowledge that duration of the betting event is different from event frequency. However, they may be inextricably linked in so much as the length of a betting event will obviously limit the frequency with they can take place. For example, a betting event lasting two hours (e.g., wagering only on the final outcome of a football game) could not have an event frequency greater than one in any 2-hour period, but a roulette spin (lasting approximately 5-6 seconds) may have an event frequency of several hundred in the same two-hour period. Furthermore, as a result of the introduction of in-running or situational betting (i.e., ‘in-play betting’) this relationship is even less clear.
Event frequency refers to the number of events that are available for betting in any given time period. For example, a lottery draw may occur twice a week but an electronic keno lottery draw may occur 100 times per hour. In this example, a keno lottery draw has a higher event frequency. Bet frequency, on the other hand, refers to the number of bets or wagers placed in any given time period. Using the lottery again as an example, multiple tickets (e.g., 10 tickets) can usually be purchased as frequently as desired before any single lottery draw. So here bet frequency would be equal to 10 but event frequency would be equal to 1. Therefore, bet frequency can often be higher than event frequency and hence, it is possible to spend more than one can afford even with a low event frequency.
The relationship between bet frequency and event frequency needs further empirical investigation. As researchers and clinicians, we often make the assumption the two have a strong relationship; the higher number of betting events – the higher the frequency of betting. Until more research is forthcoming a definitive answer is currently not available. Although, players can place many bets on just one gambling event, the outcome of this event can influence future betting activity. By outcomes, we are essentially referring to winning or losing. Losing can often create financial and emotional motivation to continue betting (i.e. chasing). It could be speculated that the satisfaction from winning may reduce motivation for further betting in the short-term, or it may increase betting as a result of increased bankroll, illusions of control and/or cognitive biases. Therefore, a higher event frequency not only offers more opportunity and choice for betting, but also affects motivation for betting through revealing consequential wins and losses at the end of each event. However, it should also be noted that betting frequency is also impacted by other factors (e.g., peer pressure, time constraints to gamble, etc.).
So does the speed of a game influence the prevalence of problem and pathological gambling? Based on the relationship between event duration, event frequency, bet frequency, and payout interval, empirical research has consistently shown that games that offer a fast, arousing span of play, frequent wins, and the opportunity for rapid replay are those most frequently cited as being associated with problem gambling. The actual prevalence rate of problem and pathological gambling will of course depend on many other factors than speed of the game alone, but games with high and rapid event frequencies such as slot machines are most likely to impact on increased rates of problem and pathological gambling. In-play betting appears to be an activity that is starting to blur the lines between continuous and discontinuous forms of gambling.
Frequency of opportunities to gamble (i.e., event frequency) also appears to be a major contributory factor in the development of gambling problems. The general rule is that the higher the event frequency, the more likely it is that the activity will result in gambling problems. Addictive behaviours have been shown to be associated with the rewards and the speed of rewards and payout rates. Therefore, the more potential rewards there are, and the higher the amount of the rewards, the more problematic the activity is likely to be. Given the time, money and resources, a vast majority of gambling activities are “continuous” in that people have the potential to gamble again and again. Therefore, in relation to problem gambling, in-play betting is an activity that we really need to keep an eye on.
Dr Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Additional input by Dr. Jonathan Parke (Salford University, UK)
Further reading
Blaszczynski, A, Sharpe, L., & Walker, M. (2001). The Assessment of the Impact of the Reconfiguration on Electronic Gaming Machines as Harm Minimization Strategies for Problem Gambling. Report for the Gaming Industry Operators Group, University of Sydney Gambling Research Group, Sydney
Griffiths, M.D. (1993). Fruit machine gambling: The importance of structural characteristics. Journal of Gambling Studies, 9, 101-120.
Griffiths, M.D. (1994). The role of cognitive bias and skill in fruit machine gambling. British Journal of Psychology, 85, 351-369.
Griffiths, M.D. (1999a). Gambling technologies: Prospects for problem gambling. Journal of Gambling Studies, 15, 265-283.
Griffiths, M.D. (2008). Impact of high stake, high prize gaming machines on problem gaming. Birmingham: Gambling Commission.
Harrigan, K. & Dixon, M. (2009). PAR Sheets, probabilities, and slot machine play: Implications for problem and non-problem gambling. Journal of Gambling Issues, 23, 81-110.
Ladouceur. R., & Sévigny, S. (2005a). The impact of video lottery game speed on gamblers. Journal of Gambling Issues, 17.
Loba, P., Stewart, S. H., Klein, R. M. & Blackburn, J. R. (2002). Manipulations of the features of standard Video Lottery Terminal (VLT) games: Effects in pathological and non-pathological gamblers. Journal of Gambling Studies, 17, 297-320.
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.
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