It takes all sports: A brief look at sport-related betting
Over the past year I have been carrying out research with my Spanish colleague – Dr. Hibai Lopez-Gonzalez – into problematic sports betting and sports betting advertising which has already produced a number of papers (see ‘Further reading’ below) and with many more to come. One of the issues we have faced in contextualising our work is that there is no such concept as sport-related problem gambling in prevalence surveys because problem gambling is assessed on the totality of gambling experiences rather than a single activity. For instance, in the three British Gambling Prevalence Surveys (BGPSs) conducted since 1999, sport-related gambling is subsumed within a number of different gambling forms: ‘football pools and fixed odds coupons’, ‘private betting’, and ‘other events with a bookmaker’. The 2010 BGPS (which I co-authored) included ‘sports betting’ as a category, along with ‘football pools’ (no coupons), ‘private betting’, ‘spread betting’ (which can include both sports or financial trading). In addition, the 2010 BGPS added a new category under online gambling activities to include ‘any online betting’. More recently, the Health Survey for England also introduced a new category: ‘gambling on sports events (not online)’.
Despite these limitations, some evidence can be inferred from gambling activity by gambling type. In 2014, Heather Wardle and her colleagues combined the gambling data from the Health Survey for England and the Scottish Health Survey. They reported that among adult males aged 16 years and over during a 12-month period, 5% participated in offline football pools, 8% engaged in online betting (although no indication was made about whether this only involved sport), and 8% engaged in sports events (not online). The categories were not mutually exclusive so an overlapping of respondents across categories was very likely. A similar rate was found in South Australia in a 2013 report the Social Research Centre with those betting on sports over the past year accounting for 6.1% of the adult population, an increase from the 4.2% reported in 2005.
In Spain, the Spanish Gambling Commission (Direccion General de Ordenacion del Juego [DGOJ] reported that 1.5% of the adult (male and female) population had gambled online on sports in 2015. This is a significantly lower proportion compared with the British data, although the methodological variations cannot be underestimated. Spanish data also shows that, among those who have gambled online on a single gambling type only, betting on sports is the more prevalent form with up to 66% of those adults.
In France, the data on the topic only focuses on those who gamble rather than examining the general population of gamblers and non-gamblers. Among online gamblers, Dr. Jean-Michel Costes and colleagues reported in a 2011 issue of the journal Tendances that 35.1% had bet on sports during the last 12 months. In another French study by Costes and colleagues published in a 2016 issue of the Journal of Gambling Studies, sports betting represented 16.4% of the gambling cohort, although again, the representativeness of sports betting behaviour among the general gambling and non-gambling population could not be determined.
Due to the aforementioned shortcomings in the definition of sport-related gambling, there is only fragmented empirical evidence concerning the impact of sports-related problem gambling behaviour. For instance, in 2014, Dr. Nerilee Hing noted that clinical reports indicate that treatment seeking for sports-related problem gambling had grown in Australia. In British Columbia (Canada), a 2014 survey by Malatests & Associates for the Ministry of Finance reported that 23.6% of at-risk or problem gamblers had gambled on sports either offline or online. A smaller proportion (16.2%) was found in the Spanish population screened in the national gambling DGOJ survey, except this subgroup was entirely composed of online bettors.
In a 2011 study published in International Gambling Studies with patients from a pathological gambling unit within a community hospital in Barcelona, Dr. Susana Jiménez-Murcia and her colleagues found that among those who had developed the disorder gambling online only (as opposed to those who gamble both online/offline or offline only), just over half (50.8%) were sport bettors. Those who gambled online only (on any activity) and those that only gambled online on sports events represented a small minority of the total number of problem gamblers. Overall, there is relatively little research on this sub-group of gamblers therefore I and others will be monitoring the evolution of this trend as the online gambling population grows.
(Note: This blog was co-written with input from Dr. Hibai Lopez-Gonzalez).
Dr. Mark Griffiths, Professor of Behavioural Addiction, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Costes, J-M, Kairouz, S., Eroukmanoff, V., et al. (2016) Gambling patterns and problems of gamblers on licensed and unlicensed sites in France. Journal of Gambling Studies 32(1), 79–91.
Costes, J., Pousset, M., Eroukmanoff, V., et al. (2010). Gambling prevalence and practices in France in 2010. Tendances, 77, 1–8.
DGOJ (2016a) Análisis del perfil del jugador online. Madrid: Ministerio de Hacienda y Administraciones Públicas.
DGOJ (2016b) Estudio sobre prevalencia, comportamiento y características de los usuarios de juegos de azar en España 2015. Madrid: Ministerio de Hacienda y Administraciones Públicas.
Hing, N. (2014) Sports betting and advertising (AGRC Discussion Paper No. 4). Melbourne: Australian Gambling Research Centre.
Jiménez-Murcia S, Stinchfield R, Fernández-Aranda F, et al. (2011) Are online pathological gamblers different from non-online pathological gamblers on demographics, gambling problem severity, psychopathology and personality characteristics? International Gambling Studies 11(3), 325–337.
Lopez-Gonzalez, H., Estevez, A. & Griffiths, M.D. (2017). Marketing and advertising online sports betting: A problem gambling perspective. Journal of Sport and Social Issues, in press.
Lopez-Gonzalez, H. & Griffiths, M.D. (2016). Is European online gambling regulation adequately addressing in-play betting advertising? Gaming Law Review and Economics, 20, 495-503.
Lopez-Gonzalez, H. & Griffiths, M.D. (2017). Understanding the convergence of online sports betting markets. International Review for the Sociology of Sport, in press.
Lopez-Gonzalez, H. & Griffiths, M.D. (2017). ‘Cashing out’ in sports betting: Implications for problem gambling and regulation. Gaming Law Review and Economics, in press.
Malatests & Associates Ltd (2014). 2014 British Columbia Problem Gambling Prevalence Study. Victoria, Canada: Gaming policy and enforcement branch, Ministry of Finance.
The Social Research Centre (2013) Gambling prevalence in South Australia. Adelaide, Australia: Office for problem gambling. Available from: http://phys.org/news/2012-03-lung-doctors-respiratory-diseases-worsen.html.
Wardle, H., Moody. A., Spence, S., Orford, J., Volberg, R., Jotangia, D., Griffiths, M.D., Hussey, D. & Dobbie, F. (2011). British Gambling Prevalence Survey 2010. London: The Stationery Office.
Wardle H, Seabury C, Ahmed H, et al. (2014) Gambling behaviour in England & Scotland. Findings from the health survey for England 2012 and Scottish health survey 2012. London: NatCen Social Research.
Wardle, H., Sproston, K., Orford, J., Erens, B., Griffiths, M.D., Constantine, R. & Pigott, S. (2007). The British Gambling Prevalence Survey 2007. London: The Stationery Office.
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
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/