Blog Archives
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/
Nag, nag, nag: Another look at horse race betting and problem gambling
Literature reviews carried out by myself and others in the gambling studies field have concluded that electronic gaming machines (EGMs such as slot machines, pokie machines, video lottery terminals [VLTs], etc.) tend to have a higher association with problem gambling than other forms of gambling. Although any form of gambling can be potentially problematic, there is surprisingly little in the academically peer-reviewed gambling literature showing that horse race betting has a high association with problem gambling, particularly in comparison to activities such as EGM gambling.
Along with individual susceptibility and risk factors of the individual gambler, the most important determinants in the development and maintenance of problem gambling are structural characteristics, particularly those relating to the speed and frequency of the game (and more specifically event frequency, bet frequency, event duration and payout interval). More specifically, I have argued that researchers in the gambling studies field need to think about game parameters rather than specific game type when it comes to any association with problem and pathological gambling and that event frequency is the single most important determinant.
A study by Dr. Debi LaPlante and colleagues in the European Journal of Public Health examining types of gambling and level of gambling involvement (using data from the 2007 British Gambling Prevalence Survey of which I was one of the co-authors) indicated that when level of gambling is accounted, no specific type of gambling was associated anymore with disordered gambling, and that level of involvement in gambling better characterizes problem gambling than individual forms of gambling. In fact, this paper also concluded that:
“Two games, private betting and betting on horses, had a reversal of association. After controlling for involvement, individuals who engaged in private betting or betting on horses were significantly less likely to have gambling-related problems than people who did not…One interesting, and perhaps unanticipated, finding was that the nature of the relationships between private betting and betting on horses and gambling problems changed when we considered the influence of involvement: engaging in these types of gambling, but not other types, seemed to protect players against developing gambling problems. This finding suggests that the apparent risk between gambling activities and developing gambling-related problems resides, perhaps primarily or even entirely, among individuals who have high rates of involvement. For others who do not have high rates of involvement, playing these types of games might reflect social setting characteristics (e.g. norms) that encourage control and preclude excessive gambling”.
Similar results were also found in an Australian study by Dr. James Phillips and his colleagues in a 2013 issues of the Journal of Gambling Studies. A 2009 study by Dr. Thomas Holtgraves in the journal Psychology of Addictive Behaviors analysed all data from population-based surveys conducted in Canada between 2001 and 2005 comprising 21,374 participants (including 12,229 who had gambled in the past year). Using the Problem Gambling Severity Index to assess problem gambling, the study found that horse race gamblers had the lowest prevalence rates of problem gambling along with those that played bingo and bought raffle tickets (3%). Some types of gambling activity such as sports betting (25%) and playing video lottery terminals (18%) were much higher.
The most recent British Gambling Prevalence Survey [BGPS] published in 2011 reported that the most popular British gambling activity was playing the National Lottery (59%), a slight increase in participation from 2007 (57%). The prevalence of past-year betting on horse races was 16%. Among past year gamblers, problem gambling prevalence rates were highest among those who had played poker at a pub/club (12.8%), online slot machine games (9.1%) and fixed odds betting terminals (8.8%). The lowest problem gambling rates were among those that played the National Lottery (1.3%) and scratchcards (2.5%). Horse race gamblers also had one of the lower prevalence rates for problem gambling (2.7%). However, problem gamblers also gamble on many different activities and problem gambling prevalence was highest among those that gambled on nine or more different activities on a regular basis (28%).
More recently in 2014, Carla Seabury and Heather Wardle published an overview of gambling behaviour in England and Scotland by combining the data from the Health Survey for England and Scottish Health Survey (n=11,774 participants). It was reported that two-thirds of the sample (65%) had gambled in the past year, with men (68%) gambling more than women (62%). The findings were similar to the previous BGPS reports and showed that in terms of past-year gambling, the most popular forms of gambling were playing the National Lottery (52%; 56% males and 49% females) and scratchcards (19%; 19% males and 20% females). One in ten people (10%) had a engaged in horse race betting (12% males and 8% females).
Again, problem gambling rates were also examined by type of gambling activity. Results showed that among past year gamblers, problem gambling was highest among spread betting (20.9%), playing poker in pubs or clubs (13.2%), bet on events other than horse racing with a bookmaker (12.9%), gambling at a betting exchange (10.6%) and playing machines in bookmakers (7.2%). The activities with the lowest rates of problem gambling were playing the National Lottery (0.9%) and scratchcards (1.7%). Problem gambling among horse race gamblers were also among the lowest (2.3%). Problem gambling rates were highest among individuals that had participated in seven or more activities in the past year (8.6%) and lowest among those that had participated in a single activity (0.1%).
Along with Filipa Calado, I recently co-authored two reviews of problem gambling worldwide (one on adult gambling and one of adolescent gambling). None of the studies we reviewed highlighted horse racing to be of particular concern in relation to problem gambling and only two countries (France and Sweden) was horse race betting one of the most preferred and prevalent forms of gambling. Analysis of a 2011 French national prevalence survey by Dr. Jean-Michel Costes reported that horse race betting was fourth in a list of six gambling activities that were most associated with problem gambling (with Rapido [a high event frequency lottery game], sports betting, and poker being the most problematic gambling forms). There is also evidence from gambling treatment service providers that horse race betting is much less of an issue than other forms of gambling. In Finland, the national helpline for problem gamblers, [Peluuri] only 1% of the telephone calls received concern horse betting. In Germany, two studies surveying therapists that treat problem gambling found that the vast majority of treatment was for slot machine gamblers (approximately 75%-80% of clients) whereas treatment for horse race gamblers was 0.6%-1.7% of clients. Unfortunately, the UK problem gambling helpline run by GamCare does not separate horse race betting from any other sports betting in its’ annual helpline statistics. The most recent (2016) GamCare report noted that 11% of their callers concerned betting in a bookmaker’s but this figure included all betting not just horse race betting.
In 2008, I was invited to write a report for the Gambling Commission and reported that internationally, the vast majority of problem gamblers that contact helplines or seek treatment report machine gambling as their primary form of gambling. In Europe many countries report that it is problem EGM gamblers that are most likely to seek treatment and/or contact national gambling helplines (rather than other forms of gambling including horse race betting) including 60% of gamblers seeking help in Belgium, 72% in Denmark, 93% in Estonia, 66% in Finland, 49.5% in France, 83% in Germany, 75% in Spain, and 35% in Sweden.
All data collected in Great Britain and elsewhere in the world demonstrate that horse race betting has a relatively low past-year participation rate. All major literature reviews have concluded that electronic gaming machines tend to have a higher association with problem gambling than other forms of gambling including horse race betting. Although no form of gambling is immune from problem gambling, horse race betting has one of the lowest associations with problem gambling. Furthermore, some analysis of the most recent BGPS data has demonstrated that after controlling for gambling involvement, individuals who engage in horse race betting are significantly less likely to have gambling-related problems than people who did not.
For the vast majority of horse gamblers, the activity is a discontinuous form of gambling in that they make one or a few bets in a small time period but then not bet again for days or weeks. Therefore, the event frequencies for betting on horse racing are much lower than other gambling activities and helps explain why there is a low association with problem gambling compared to activities that have much higher event frequencies (e.g., slot machines, roulette, blackjack, etc.).
Dr Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Abbott, M.W. (2007). Situational factors that affect gambling behavior. In G. Smith, D. Hodgins & R. Williams (Eds.), Research and Measurement Issues in Gambling Studies. pp.251-278. New York: Elsevier.
Calado, F., Alexandre, J. & Griffiths, M.D. (2016). Prevalence of adolescent problem gambling: A systematic review of recent research. Journal of Gambling Studies. doi: 10.1007/s10899-016-9627-5
Calado, F. & Griffiths, M.D. (2016). Problem gambling worldwide: An update of empirical research (2000-2015). Journal of Behavioral Addictions, 5, 592–613.
Costes, J. M., Pousset, M., Eroukmanoff, V., Le Nezet, O., Richard, J. B., Guignard, R., … & Arwidson, P. (2011). Les niveaux et pratiques des jeux de hasard et d’argent en 2010. Tendances, 77(1), 8
Costes, J. M, Eroukmanoff V., Richard, J.B, Tovar, M. L. (2015). Les jeux de hasard et d’argent en France en 2014. Les Notes de l’Observatoire des Jeux, 6, 1-9.
Delfabbro, P.H., King, D.L & Griffiths, M.D. (2012). Behavioural profiling of problem gamblers: A critical review. International Gambling Studies, 12, 349-366.
EMPA Pari Mutuel Europe (2012). Common Position On Responsible Gambling. Brussels: EMPA.
GamCare (2016). Annual Statistics 2015/2016. London: GamCare.
Griffiths, M.D. (2004). Betting your life on it: Problem gambling has clear health related consequences. British Medical Journal, 329, 1055-1056.
Griffiths, M.D. (2007). Gambling Addiction and its Treatment Within the NHS. London: British Medical Association.
Griffiths, M.D. (2008). Impact of high stake, high prize gaming machines on problem gaming. Birmingham: Gambling Commission.
Griffiths, M.D. (2016). Problem gambling and gambling addiction are not the same. Journal of Addiction and Dependence, 2(1), 1-3.
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.
Holtgraves, T. (2009). Gambling, gambling activities, and problem gambling. Psychology of Addictive Behaviors, 23(2), 295-302.
LaPlante, D.A., Nelson, S.E., LaBrie, R.A., & Shaffer, H.J. (2009). Disordered gambling, type of gambling and gambling involvement in the British Gambling Prevalence Survey 2007. The European Journal of Public Health, 21, 532–537
Meyer, G., Hayer, T. & Griffiths, M.D. (Eds.), Problem Gaming in Europe: Challenges, Prevention, and Interventions. New York: Springer.
Parke, J. & Griffiths, M.D. (2007). The role of structural characteristics in gambling. In G. Smith, D. Hodgins & R. Williams (Eds.), Research and Measurement Issues in Gambling Studies. pp.211-243. New York: Elsevier.
Phillips, J.G., Ogeil, R., Chow, Y.W., & Blaszczynski, A. (2013). Gambling involvement and increased risk of gambling problems. Journal of Gambling Studies, 29(4), 601-611.
Seabury, C. & Wardle, H. (2014). Gambling behaviour in England and Scotland. Birmingham: Gambling Commission.
Sussman, S., Lisha, N. & Griffiths, M.D. (2011). Prevalence of the addictions: A problem of the majority or the minority? Evaluation and the Health Professions, 34, 3-56.
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., Sproston, K., Orford, J., Erens, B., Griffiths, M. D., Constantine, R., & Pigott, S. (2007). The British Gambling Prevalence Survey 2007. London: National Centre for Social Research.
It takes all sports: A brief look at sport-related betting
Over the past year I have been carrying out research with my Spanish colleague – Dr. Hibai Lopez-Gonzalez – into problematic sports betting and sports betting advertising which has already produced a number of papers (see ‘Further reading’ below) and with many more to come. One of the issues we have faced in contextualising our work is that there is no such concept as sport-related problem gambling in prevalence surveys because problem gambling is assessed on the totality of gambling experiences rather than a single activity. For instance, in the three British Gambling Prevalence Surveys (BGPSs) conducted since 1999, sport-related gambling is subsumed within a number of different gambling forms: ‘football pools and fixed odds coupons’, ‘private betting’, and ‘other events with a bookmaker’. The 2010 BGPS (which I co-authored) included ‘sports betting’ as a category, along with ‘football pools’ (no coupons), ‘private betting’, ‘spread betting’ (which can include both sports or financial trading). In addition, the 2010 BGPS added a new category under online gambling activities to include ‘any online betting’. More recently, the Health Survey for England also introduced a new category: ‘gambling on sports events (not online)’.
Despite these limitations, some evidence can be inferred from gambling activity by gambling type. In 2014, Heather Wardle and her colleagues combined the gambling data from the Health Survey for England and the Scottish Health Survey. They reported that among adult males aged 16 years and over during a 12-month period, 5% participated in offline football pools, 8% engaged in online betting (although no indication was made about whether this only involved sport), and 8% engaged in sports events (not online). The categories were not mutually exclusive so an overlapping of respondents across categories was very likely. A similar rate was found in South Australia in a 2013 report the Social Research Centre with those betting on sports over the past year accounting for 6.1% of the adult population, an increase from the 4.2% reported in 2005.
In Spain, the Spanish Gambling Commission (Direccion General de Ordenacion del Juego [DGOJ] reported that 1.5% of the adult (male and female) population had gambled online on sports in 2015. This is a significantly lower proportion compared with the British data, although the methodological variations cannot be underestimated. Spanish data also shows that, among those who have gambled online on a single gambling type only, betting on sports is the more prevalent form with up to 66% of those adults.
In France, the data on the topic only focuses on those who gamble rather than examining the general population of gamblers and non-gamblers. Among online gamblers, Dr. Jean-Michel Costes and colleagues reported in a 2011 issue of the journal Tendances that 35.1% had bet on sports during the last 12 months. In another French study by Costes and colleagues published in a 2016 issue of the Journal of Gambling Studies, sports betting represented 16.4% of the gambling cohort, although again, the representativeness of sports betting behaviour among the general gambling and non-gambling population could not be determined.
Due to the aforementioned shortcomings in the definition of sport-related gambling, there is only fragmented empirical evidence concerning the impact of sports-related problem gambling behaviour. For instance, in 2014, Dr. Nerilee Hing noted that clinical reports indicate that treatment seeking for sports-related problem gambling had grown in Australia. In British Columbia (Canada), a 2014 survey by Malatests & Associates for the Ministry of Finance reported that 23.6% of at-risk or problem gamblers had gambled on sports either offline or online. A smaller proportion (16.2%) was found in the Spanish population screened in the national gambling DGOJ survey, except this subgroup was entirely composed of online bettors.
In a 2011 study published in International Gambling Studies with patients from a pathological gambling unit within a community hospital in Barcelona, Dr. Susana Jiménez-Murcia and her colleagues found that among those who had developed the disorder gambling online only (as opposed to those who gamble both online/offline or offline only), just over half (50.8%) were sport bettors. Those who gambled online only (on any activity) and those that only gambled online on sports events represented a small minority of the total number of problem gamblers. Overall, there is relatively little research on this sub-group of gamblers therefore I and others will be monitoring the evolution of this trend as the online gambling population grows.
(Note: This blog was co-written with input from Dr. Hibai Lopez-Gonzalez).
Dr. Mark Griffiths, Professor of Behavioural Addiction, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Costes, J-M, Kairouz, S., Eroukmanoff, V., et al. (2016) Gambling patterns and problems of gamblers on licensed and unlicensed sites in France. Journal of Gambling Studies 32(1), 79–91.
Costes, J., Pousset, M., Eroukmanoff, V., et al. (2010). Gambling prevalence and practices in France in 2010. Tendances, 77, 1–8.
DGOJ (2016a) Análisis del perfil del jugador online. Madrid: Ministerio de Hacienda y Administraciones Públicas.
DGOJ (2016b) Estudio sobre prevalencia, comportamiento y características de los usuarios de juegos de azar en España 2015. Madrid: Ministerio de Hacienda y Administraciones Públicas.
Hing, N. (2014) Sports betting and advertising (AGRC Discussion Paper No. 4). Melbourne: Australian Gambling Research Centre.
Jiménez-Murcia S, Stinchfield R, Fernández-Aranda F, et al. (2011) Are online pathological gamblers different from non-online pathological gamblers on demographics, gambling problem severity, psychopathology and personality characteristics? International Gambling Studies 11(3), 325–337.
Lopez-Gonzalez, H., Estevez, A. & Griffiths, M.D. (2017). Marketing and advertising online sports betting: A problem gambling perspective. Journal of Sport and Social Issues, in press.
Lopez-Gonzalez, H. & Griffiths, M.D. (2016). Is European online gambling regulation adequately addressing in-play betting advertising? Gaming Law Review and Economics, 20, 495-503.
Lopez-Gonzalez, H. & Griffiths, M.D. (2017). Understanding the convergence of online sports betting markets. International Review for the Sociology of Sport, in press.
Lopez-Gonzalez, H. & Griffiths, M.D. (2017). ‘Cashing out’ in sports betting: Implications for problem gambling and regulation. Gaming Law Review and Economics, in press.
Malatests & Associates Ltd (2014). 2014 British Columbia Problem Gambling Prevalence Study. Victoria, Canada: Gaming policy and enforcement branch, Ministry of Finance.
The Social Research Centre (2013) Gambling prevalence in South Australia. Adelaide, Australia: Office for problem gambling. Available from: http://phys.org/news/2012-03-lung-doctors-respiratory-diseases-worsen.html.
Wardle, H., Moody. A., Spence, S., Orford, J., Volberg, R., Jotangia, D., Griffiths, M.D., Hussey, D. & Dobbie, F. (2011). British Gambling Prevalence Survey 2010. London: The Stationery Office.
Wardle H, Seabury C, Ahmed H, et al. (2014) Gambling behaviour in England & Scotland. Findings from the health survey for England 2012 and Scottish health survey 2012. London: NatCen Social Research.
Wardle, H., Sproston, K., Orford, J., Erens, B., Griffiths, M.D., Constantine, R. & Pigott, S. (2007). The British Gambling Prevalence Survey 2007. London: The Stationery Office.
Cell growth: A brief look at mobile sports betting
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
Further reading
Griffiths, M.D. (2004). Mobile phone gambling: preparing for take off. World Online Gambling Law Report, 8(3), 6-7.
Griffiths, M.D. (2005). The psychosocial impact of mobile phone gambling. World Online Gambling Law Report, 4 (10), 14-15.
Griffiths, M.D. (2010). The psychology of sports betting: What should affiliates know? i-Gaming Business Affiliate, August/September, 46-47.
Griffiths, M.D. (2011). Mobile sportsbetting: A view from the social sciences. i-Gaming Business, 69, 64-65.
Griffiths, M.D. (2011). Technological trends remote gambling: A psychological perspective. i-Gaming Business, 71, 39-40.
Griffiths, M.D. (2013). Adolescent mobile phone addiction: A cause for concern? Education and Health, 31, 76-78.
Griffiths, M.D. (2007). Mobile phone gambling. In D. Taniar (Ed.), Encyclopedia of Mobile Computing and Commerce (pp.553-556). Pennsylvania: Information Science Reference.
Place your bets: Has problem gambling in Great Britain decreased?
In the summer of 2014 I was commissioned to review problem gambling in Great Britain (the fall out of which I wrote about in detail in a previous blog). Earlier last year, a detailed report by Heather Wardle and her colleagues examined gambling behaviour in England and Scotland by combining the 2012 data from the Health Survey for England (HSE; n=8,291 aged 16 years and over) and the 2012 Scottish Health Survey (SHeS; n=4,815). To be included in the final data analysis, participants had to have completed at least one of the gambling participation questions. This resulted in a total sample of 11,774 participants. So what did the research find? Here is a brief summary of the main results:
- Two-thirds of the sample (65%) had gambled in the past year, with men (68%) gambling more than women (62%). As with the British Gambling Prevalence Survey (BGPS), past year participation was greatly influenced by the playing of the bi-weekly National Lottery (lotto) game. Removal of those individuals that only played the National Lottery meant that 43% had gambled during the past year (46% males and 40% females).
- Gambling was more likely to be carried out by younger people (50% among those aged 16-24 years and 52% among those aged 25-34 years).
- The findings were similar to the previous BGPS reports and showed that the most popular forms of gambling were playing the National Lottery (52%; 56% males and 49% females), scratchcards (19%; 19% males and 20% females), other lottery games (14%; 14% both males and females), horse race betting (10%; 12% males and 8% females), machines in a bookmaker (3%; 5% males and 1% females), slot machines (7%; 10% males and 4% females), online betting with a bookmaker (5%; 8% males and 2% females), offline sports betting (5%; 8% males and 1% females), private betting (5%; 8% males and 2% females), casino table games (3%; 5% males and 1% females), offline dog race betting (3%; 4% males and 2% females), online casino, slots and/or bing (3%; 4% males and 2% females), betting exchanges (1%; males 2% and females 0%), poker in pubs and clubs (1%; 2% males and 0% females), spread betting (1%; 1% males and 0% females).
- The only form of gambling (excluding lottery games) where females were more likely to gamble was playing bingo (5%; 7% females and 3% males).
- Most participants gambled on one or two different activities a year (1.7 mean average across the total sample).
- Problem gambling assessed using the Problem Gambling Severity (PGSI) criteria was reported to be 0.4%, with males (0.7%) being significantly more likely to be problem gamblers than females (0.1%). This equates to approximately 180,200 British adults aged 16 years and over.
- Problem gambling assessed using the criteria of the fourth Diagnostic and Statistical Manual of Mental Disorders (DSM-IV) was reported to be 0.5%, with males (0.8%) being significantly more likely to be problem gamblers than females (0.1%). This equates to approximately 224,100 British adults aged 16 years and over.
- Using the PGSI screen, problem gambling rates were highest among young men aged 16-24 years (1.7%) and lowest among men aged 65-74 years (0.4%). Using the DSM-IV screen, problem gambling rates were highest among young men aged 16-24 years (2.1%) and lowest among men aged over 74 years (0.4%).
- Problem gambling rates were also examined by type of gambling activity. Results showed that among past year gamblers, problem gambling was highest among spread betting (20.9%), played poker in pubs or clubs (13.2%), bet on other events with a bookmaker (12.9%), bet with a betting exchange (10.6%) and played machines in bookmakers (7.2%).
- The activities with the lowest rates of problem gambling were playing the National Lottery (0.9%) and scratchcards (1.7%).
- Problem gambling rates were highest among individuals that had participated in seven or more activities in the past year (8.6%) and lowest among those that had participated in a single activity (0.1%).
The authors also carried out a latent class analysis and identified seven different types of gambler among both males and females. The male groups comprised:
- Cluster A: non-gamblers (33%)
- Cluster B: National Lottery only gamblers (22%)
- Cluster C: National Lottery and scratchcard gamblers only (20%)
- Cluster D: Minimal, no National Lottery [gambling on 1-2 activities] (9%)
- Cluster E: Moderate [gambling on 3-6 activities] (12%)
- Cluster F: Multiple [gambling on 6-10 activities] (3%)
- Cluster G: multiple, high [gambling on at least 11 activities] (1%).
The female groups comprised:
- Cluster A: non-gamblers (40%)
- Cluster B: National Lottery only gamblers (21%)
- Cluster C: National Lottery and scratchcard gamblers only (7%)
- Cluster D: Minimal, no National Lottery (8%)
- Cluster E: moderate, less varied [2-3 gambling activities, mainly lottery-related] (8%)
- Cluster F: moderate, more varied [2-3 gambling activities but wider range of activities] (6%)
- Cluster G: multiple [gambling on at least four activities] (6%)
Using these groupings, the prevalence of male problem gambling was highest among those in Cluster G: multiple high group (25.0%) followed by Cluster F: multiple group (3.3%) and Cluster E: moderate group (2.6%). The prevalence of problem gambling was lowest among those in the Cluster B; National Lottery Draw only group (0.1%) followed by Cluster C: minimal – lotteries and scratchcards group (0.7%). The prevalence of female problem gambling was highest among those in the Cluster G: multiple group (1.8%) followed by those in Cluster F: moderate – more varied group (0.6%). The number of female gamblers was too low to carry out any further analysis. The report also examined problem gambling (either DSM-IV or PGSI) by gambling activity type.
- The prevalence of problem gambling was highest among spread-bettors (20.9%), poker players in pubs or clubs (13.2%), bettors on events other than sports or horse/dog races (12.9%), betting exchange users (10.6%) and those that played machines in bookmakers (7.2%).
- The lowest problem gambling prevalence rates were among those that played the National Lottery (0.9%) and scratchcards (1.7%).
- These figures are very similar to those found in the 2010 BGPS study although problem gambling among those that played machines in bookmakers was lower (7.2%) than in the 2010 BGPS study (8.8%).
- As with the BGPS 2010 study, the prevalence of problem gambling was highest among those who had participated in seven or more activities in the past year (8.6%) and lowest among those who had taken part in just one activity (0.1%). Furthermore, problem gamblers participated in an average 6.6 activities in the past year.
Given that the same instruments were used to assess problem gambling, the results of the most recent surveys using data combined from the Health Survey for England (HSE) and Scottish Health Survey (SHeS) compared with the most recent British Gambling Prevalence Survey (BGPS) do seem to suggest that problem gambling in Great Britain has decreased over the last few years (from 0.9% to 0.5%). However, Seabury and Wardle again urged caution and noted:
“Comparisons of the combined HSE/SHeS data with the BGPS estimates should be made with caution. While the methods and questions used in each survey were the same, the survey vehicle was not. HSE and SHeS are general population health surveys, whereas the BGPS series was specifically designed to understand gambling behaviour and attitudes to gambling in greater detail. It is widely acknowledged that different survey vehicles can generate different estimates using the same measures because they can appeal to different types of people, with varying patterns of behaviour…Overall, problem gambling rates in Britain appear to be relatively stable, though we caution readers against viewing the combined health survey results as a continuation of the BGPS time series”.
There are other important caveats to take into account including the differences between the two screen tools used in the BGPS, HSE and SHeS studies. Although highly correlated, evidence from all the British surveys suggests that the PGSI and DSM-IV screens capture slightly different groups of problem gamblers. For instance, a 2010 study that I co-authored with Jim Orford, Heather Wardle, and others (in the journal International Gambling Studies) using data from the 2007 BGPS showed that the PGSI may under-estimate certain forms of gambling-related harm (particularly by women) that are more likely to be picked up by some of the DSM-IV items. Our analysis also suggested that the DSM-IV appears to measure two different factors (i.e., gambling-related harm and gambling dependence) rather than a single one. Another important distinction is that the two screens were developed for very different purposes (even though they are attempting to assess the same construct). The PGSI was specifically developed for use in population surveys whereas the DSM-IV was developed with clinical populations in mind. Given these differences, it is therefore unsurprising that national surveys that utilize the screens end up with slightly different results comprising slightly different groups of people.
It also needs stressing (as noted by the authors of most of the national gambling surveys in Great Britain) that the absolute number of problem gamblers identified in any of the surveys published to date has equated to approximately 60 people. To detect any significant differences statistically between any of the studies carried out to date requires very large sample sizes. Given the very low numbers of problem gamblers and the tiny number of pathological gamblers, it is hard to assess with complete accuracy whether there have been any significant changes in problem and pathological gambling between all the published studies over time. Wardle and her colleagues concluded that:
“Overall, based on this evidence, it appears that problem gambling rates in England and Scotland are broadly stable. Whilst problem gambling rates according to either the DSM-IV or the PGSI were higher in 2010, the estimate between 2007 and the health surveys data were similar. Likewise, problem gambling rates according to the DSM-IV and the PGSI individually did not vary statistically between surveys, meaning that they were relatively similar” (p.130).
Dr. Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Griffiths, M.D. (2014). Problem gambling in Great Britain: A brief review. London: Association of British Bookmakers.
Orford, J., Wardle, H., Griffiths, M.D., Sproston, K. & Erens, B. (2010). PGSI and DSM-IV in the 2007 British Gambling Prevalence Survey: Reliability, item response, factor structure and inter-scale agreement. International Gambling Studies, 10, 31-44.
Seabury, C. & Wardle, H. (2014). Gambling behaviour in England and Scotland. Birmingham: Gambling Commission.
Wardle, H. (2013). Gambling Behaviour. In Rutherford, L., Hinchliffe S., Sharp, C. (Eds.), The Scottish Health Survey: Vol 1: Main report. Edinburgh.
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. (2013). Gambling Behaviour. In Craig, R., Mindell, J. (Eds.) Health Survey for England 2012 [Vol 1]. Health, social care and lifestyles. Leeds: Health and Social Care Information Centre.
Wardle, H., Seabury, C., Ahmed, H., Payne, C., Byron, C., Corbett, J. & Sutton, R. (2014). Gambling behaviour in England and Scotland: Findings from the Health Survey for England 2012 and Scottish Health Survey 2012. London: NatCen.
Wardle, H., Sproston, K., Orford, J., Erens, B., Griffiths, M. D., Constantine, R., & Pigott, S. (2007). The British Gambling Prevalence Survey 2007. London: National Centre for Social Research.
Wardle, H., Sutton, R., Philo, D., Hussey, D. & Nass, L. (2013). Examining Machine Gambling in the British Gambling Prevalence Survey. Report by NatCen to the Gambling Commission, Birmingham.