1. GAMBLIFICATION NCLGS 2014 Summer Meeting June 7, 2014 Keith Whyte, Executive Director

2. About NCPG The national advocate for programs and services to assist problem gamblers and their families. NEUTRAL on legalized gambling. Founded in 1972. Chapters in 36 of 50 states, including NJ. Work with government, gaming industry, regulators, legislators, media & community.

3. What Is Social Gaming? Gaming that doesn’t meet the legal definition of gambling. Remove prize, chance or consideration Freemium model Sweepstakes Digsogames: a recreational activity characterized by organized play, competition, 2 or more players (or player vs. a device), criteria for determining a winner, agreed upon rules using digital technology. These games are distinct from gambling games and do not have any financial or monetary payout.”

4. DSM 5 Gambling Addiction Definition 1. 1.Needs to gamble with increasing amounts of money in order to achieve the desired excitement. 2. 2.Is restless or irritable when attempting to cut down or stop gambling. 3. 3.Has made repeated unsuccessful efforts to control, cut back, or stop gambling. 4. 4.Is often preoccupied with gambling (e.g., having persistent thoughts of reliving past gambling experiences, handicapping or planning the next venture, thinking of ways to get money with which to gamble). 5. 5.Often gambles when feeling distressed (e.g., helpless, guilty, anxious, depressed). 6. 6.After losing money gambling, often returns another day to get even (“chasing” one’s losses). 7. 7.Lies to conceal the extent of involvement with gambling. 8. 8.Has jeopardized or lost a significant relationship, job, or educational or career opportunity because of gambling. 9. 9.Relies on others to provide money to relieve desperate financial situations caused by gambling.

5. “Carefully designed to take advantage of state sweepstakes laws and to avoid state antigambling laws and gambling licensing restrictions, Internet sweepstakes cafes are estimated to earn more than $10 billion a year with games that closely mimic the experience of traditional slot and video poker machines…Based on a random allocation of winning and losing entries, the customer may or may not win cash prizes through those games. According to the cafes that are reaping unregulated profits, this elaborate masquerade is not gambling, but a sweepstakes. According to every appellate court that has decided a case involving similar games, it is incontestably gambling.” AGA http://www.americangaming.org/government- affairs/priority-issues/internet-sweepstakes-cafes http://www.americangaming.org/government- affairs/priority-issues/internet-sweepstakes-cafes

6. Charitable Social Casino Gaming

10. Social Gaming Concerns Limited age or KYC verification. Video & social gaming correlated with gambling. Early onset of gambling correlated with PG. Some SG features associated with addiction. Recreational gamblers may not converge, but PGs might? Normal population prevalence of PG = 2-3 million among worldwide monthly players. Unclear oversight & no standards. Sector evolving at light speed.

11. Whale Tales “A whale is a whale,” Barden said. “We had one player that spent $13,000 over 3 months on one of our free- to-play games”.””

12. SG Fail

13. Challenging Assumptions Regulation will “kill” social gaming.   Has greatly benefited many industries, especially gaming. Monetary prizes are an essential component of gambling addiction.   For addicts, its not about the money. SG operators are not obligated or required to be responsible.   Responsible gambling is good customer service, builds public support, mitigates individual harms and ensures sustainability.

14. Social Gaming GRADE Gambling-Like Monetized Games Responsible Gaming/Consumer Protection Age Controls Data Driven Research Education Of Players

15. NCPG 730 11th Street, NW, Suite 601 Washington, DC 20001 Tel: +1.202.547.9204 Fax: +1.202.547.9206 keithw@ncpgambling.org www.ncpgambling.org