It is often claimed by marketeers that remote gambling makes commercial sense (i.e., the combining of gambling and remote technologies such as the internet and mobile phones into one convenient package). Mobile phone betting and gambling not only provides convenience and flexibility, but perhaps more importantly from a gaming operator’s perspective, provides gambling on the move, whenever and wherever. Since it is somewhat unnatural to always be near a computer, it could be argued that mobile phones are an ideal medium for betting and gambling. Whenever gamblers have a few minutes to spare (at the airport, commuting to work, waiting in a queue, etc.), they can occupy themselves by gambling.
Conventional wisdom says that two things have the power to drive any new consumer technology – pornography and gambling. These activities helped satellite and cable television, video, and the Internet and provide adult entertainment in a convenient and guilt-free environment. Betting via mobile phone is no different. Along with pornography, gambling should have little trouble reaching profitability – especially if this is combined with sports events. Sports interest is huge. There are thousands of communities (including those online). The most successful of those communities will look to ‘mobilize’ and then ‘monetize’.
The mobile phone industry has grown rapidly in the last decade. Market research highlights that mobile phone revenues from mobile gambling and gaming is increasingly rapidly. Although mobile gaming revenues are increasing, it is estimated that less than 2% of mobile industry revenue is generated by gaming and gambling. It is generally thought that lottery gambling will make most money for mobile gambling operators because governments are generally less censorious about lotteries than other forms of gambling. They are also easy to play and relatively low cost compared to other types of gambling.
To some extent, the majority of gamblers are risk-takers to begin with. Therefore, they may be less cautious with new forms of technology. For every day gamblers, mobile phones are ideal for bet placing, and gamblers will be able to check on their bets, and place new ones. Furthermore, it is anonymous, and can provide immediate gratification, anytime, anywhere. Anonymity and secrecy may be potential benefits of mobile gambling as for a lot of people there is still stigma attached to gambling in places like betting shops and casinos. Mobile sports betting is also well suited to personal (i.e., one-to-one) gambling, where users bet against each other rather than bookies. Online betting exchanges demonstrate that people bet on anything and everything to do with sport (with each other).
Although mobile phone technology has improved exponentially over the last decade, it is unlikely that mobile phone graphics and technology will ever truly compete with Internet web browsers (although I am happy to be proved wrong). Intuitively, mobile phone gambling is best suited for sports and event betting. With mobile phone betting, all that is required is real-time access to data about the event to be bet on (e.g., a horse race, a football match), and the ability to make a bet in a timely fashion.
These basic requirements are, of course, easily be provided by the current generation of mobile phones, and the appropriate software. The placing of the bet is not the driving motivation in event wagering. Since being the spectator is what sports fans are really interested in, the sports gambler does not need fulfillment from the process of gambling. People betting on sports will use mobile phones because they are easy, convenient and take no time to boot up. Once they have their sports book registered as a bookmark on their phone, they can access it and place a bet within a very short space of time.
As I have noted in previous blogs, all forms of gambling lie on a chance-skill dimension. Neither games of pure skill nor games of pure chance are particularly attractive to sports bettors. Games of chance (like lotteries) offer no significant edge to sports bettors and are unlikely to be gambled upon. Serious punters gravitate towards types of gambling that provide an appropriate mix of chance and skill. This is one of the reasons why sports betting – and in particular activities like horse race betting – is so popular for gamblers. The edge available in horse race gambling can be sufficient to fully support professional gamblers as they bring their wide range of knowledge to the activity. There is the complex interplay of factors that contributes to the final outcome of the race. However, in the mobile sports betting market, it is likely to be football that will make the big money for sports betting agencies.
Consider the following scenario. A betting service that knows where you are and/or what you are doing has the capacity to suggest something context-related to the mobile user to bet on. For instance, if the mobile phone user bought a ticket for a soccer match using an electronic service, this service may share this information with a betting company. If in that match the referee gives a penalty for one team, a person’s mobile could ring and give the user an opportunity (on screen) to bet whether or not the penalty will be scored. On this type of service, the mobile phone user will only have to decide if they want to bet, and if they do, the amount of money. Two clicks and the bet will be placed. Context, timeliness, simplicity, and above all user involvement look like enough to convince also people that never entered a bet-shop.
Many football clubs are turning themselves into powerful media companies. They have their own digital TV channel and signed up a host of big-name technology partners. Such companies will get the chance to develop co-branded mobile services with the club. This offers users access to content similar to their website (receiving real-time scores and team news via SMS). While watching matches, users will be able to view statistics, player biographies, and order merchandise. Such mobility will facilitate an increase in ‘personalized’ gambling where bettors gamble against each other, rather than the house.
Gambling will (if it is not already) become part of the match day experience. A typical scenario might involve a £10 bet with a friend on a weekend football match. The gambler can text their friend via SMS and log on to the betting service to make their gamble. If the friend accepts, the gambler has got the chance to win (or lose). Football clubs will get a share of the profits from the service. Clubs are keen to get fans using branded mobile devices where they can simply hit a ‘bet’ button and place a wager with the club’s mobile phone partner.
As with all new forms of technological gambling, ease of use is paramount to success. Mobile phones have become more user-friendly. Pricing structures are also important. Internet access and mobile phone use that is paid for by the minute produces very different customer behavior to those that have one off payment fees (e.g., unlimited use and access for a monthly rental fee). The latter payment structure facilitates leisure use, as punters would not be worried that for every extra minute they are online, they are increasing the size of their phone bills. For me, mobile sports betting is where the future of mobile gambling is likely to be.
Dr Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
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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
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