Dr Sally Gainsbury Post Doctoral Research Fellow, Southern Cross University Presentation given on 23 May 2011 at "The New Game: Emerging technology and responsible gambling" forum hosted by the Victorian Government's Office of Gaming and Racing as part of Responsible Gambling Awareness Week 2011.

1. Dr. Sally Gainsbury
Victorian Responsible
Gambling Awareness
Week Forum
centre for gambling education & research
May 23, 2011

2.  Current global state of Internet gambling and sports
betting
 Australian Internet sports betting
 Online sports betting and problem gambling
 Future trends, developments and recommendations
Centre for Gambling Education & Research

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4.  2,319 Internet gambling sites available in March
2011
 92% of English-language sites accept play from
Australia
 199 different forms of payment
 Internet gambling is highly accessible
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5. 2% 1%
17%
32%
4%
18%
21%
Casino Poker
Sports/race book Lottery
Bingo Skill game
Betting exchange
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6. Of the 79 jurisdictions the major providers – and #
of sites - are:
1. Malta – 460
2. Netherlands Antilles – 299
3. Gibraltar – 291
4. Costa Rica - 202
5. Kahnawake – 183 13th largest
6. United Kingdom – 117
7. Alderney – 104 provider
8. Antigua & Barbuda - 65
9. Cyprus - 62 worldwide
10. Italy 62
11. Isle of Man – 44
12. Panama - 38
13. Australia -32
14. United States - 29
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7.  Annual growth of10-20%
 Sports betting estimated to be 41% of total online market
 Internet gambling represents 5-10% of global gambling
market
Gross Gaming yield (US$ million)
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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8.  Bookmaker
◦ Fixed odds on bets
◦ spreadline & moneyline
 Pari-mutuel betting
◦ Proportional distribution of winning bets (less
commission)
 Exchange betting
◦ Players match each others bets (less commission)
 Gamblers transfer funds using credit card or
electronic payment to an account used to place
bets
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10.  Interactive Gambling Act (2001)
 Interactive wagering & lotteries legal
 State-based policy & regulation
 Productivity Commission recommended legalisation
 Ongoing issues for regulatory consideration
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11.  1-4% Australians gamble online each year
 30% of those with Internet access
 Sports betting is the fastest growing form of
gambling
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12. Example: Tabcorp
 AUD$678 million expenditure in Q1&2 2009
 18% annual increase
 10% of the value of all bets wagered in 2010
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13.  Industry estimates $968 million spent on
offshore casino, poker and bingo sites in 2010
◦ 1/3 on poker sites
 $611 million spent on online sports betting 2011
◦ Increase of 230% from 2006
 Considerable amounts are likely being spent on
offshore sports wagering sites
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14. Preliminary Results
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16.  95% male 40%
 67% married or living 35%
34.8% 34.4%
with partner
30%
 26% completed high
school 25%
 29% completed 1 or 20%
17.6%
more university degrees
15%
 65% employed full time
9.6%
16% earn >$150,000
Preliminary Results
10%

6.0%
5%
 74.3% have placed 0%
sports bets online 18-24 25-34 35-49 50-64 65+
(n=903)
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17. interactive tv 1%
telephone 11%
Internet - mobile 22%
Internet - computer 75%
Preliminary Results
land-based 29%
0% 20% 40% 60% 80%
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18.  More likely to be male than non-Internet sports
bettors (87% vs. 67%)
 In the general population, men are 3 times more
likely to have placed a bet online than women
(3.8% vs. 1.3%)
Roy Morgan Research
Preliminary Results
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19.  More likely to earn >$150,000
Preliminary Results
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20.  81% gamble from home
70%
61.6%
60%
50%
40%
28.7%
30%
20%
8.5%
10%
Preliminary Results
1.2%
0%
6am – 12pm – 6pm - midnight
12pm 6pm midnight – 6am
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21. Preliminary Results
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22. Preliminary Results
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23. Factor Percentage
general reputation 35
payout rates 33
monetary deposits safe and wins paid out 30
in timely fashion
bonuses/provision of monetary incentives 13
to play
legality 13
better game experience/interface 12
country the site is based in 12
Preliminary Results
recommendation from friend(s)
software used
10
10
fairness of games 6
larger range of games 6
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24. Factor Percentage
don't have to drive anywhere or leave the house 62
24 hour availability/convenience 54
no crowds 35
greater privacy/anonymity 33
no unpleasant people 33
more physically comfortable 32
higher payout rates (better odds, lower potential 27
losses)
less noise 22
interesting/exciting games) 21
less smoke
Preliminary Results
better game experience (higher speed of play, more
14
12
leisurely speed of play, more
able to smoke 7
land-based gambling unavailable or illegal 2
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25. Factors Percentage
too convenient 38
easier to spend more money 34
poorer social atmosphere (no crowds, too isolating) 20
more addictive 17
worry about monetary deposits being safe and/or having 13
wins paid out in timely fashion
poorer physical atmosphere (lacks the lights and noise of 12
a real casino, etc.)
poorer game experience (not as fun, etc.) 11
difficulty verifying fairness of games 11
lack of face-to-face contact makes betting more difficult 7
Preliminary Results
difficulty excluding underage gamblers 4
Illegality 3
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27.  Research shows higher rates of problem
gambling among Internet gamblers
 Increasing number of Internet gamblers and
sports bettors presenting for treatment
 Features that lead to problem gambling
◦ Accessibility and convenience
◦ Comfort
◦ Solitary play
◦ Affordability
◦ Anonymity
◦ Immersive interface
◦ Electronic payments
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28. Preliminary Results
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29. Wood & Williams (2009)
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30.  Internet sports gamblers more likely to report
problems with Internet gambling
◦ 33% of Internet gamblers
 Non-Internet gamblers more likely to report
problems with land-based gambling
◦ 52% of non-Internet gamblers
◦ 23% of Internet gamblers
Preliminary Results
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31.  21% admitted gambling problems
 68% had problems before gambling online
 16% had disrupted sleep
 10% had disrupted eating
Preliminary Results (credit
 19% spent more $ using electronic means
cards, bank transfers)
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33.  consolidation
 more non-traditional gambling brands entering
the market
 more land-based gaming brands entering the
market
 more targeting of growth markets
 greater efforts to hold onto existing players
 more innovation/production of offerings and
formats
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34.  more sports and types of bets
 better security
 increasing use of social media
 increasing relationship with television
 increasing use of sponsorship
 investment in better systems and platforms
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35.  Further research required
 Collaboration between industry, government and
researchers
 Responsible gambling strategies should be
developed and promoted
 Education of Australian public about potential
harm from online gambling
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36.  Menzies Foundation for supporting research
 Roy Morgan Research for sharing data
 Wood & Williams for use of online survey
 Ethel Harris (University of Sydney) for
modifications to online survey
 Prof. Alex Blaszczynski, Prof. Nerilee Hing & Dr.
Robert Wood for collaboration
 Participating organisations that host links to
survey
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37. Dr. Sally Gainsbury
Post Doctoral Research Fellow
Centre for Gambling Education & Research
Southern Cross University
Email: sally.gainsbury@scu.edu.au
Website:
http://works.bepress.com/sally_gainsbury/
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