Problems related to Gambling Hearing of the European Economic and Social Committee on Online gambling – After the Green Paper which way forward Brussels, 6. September 2011 Prof. Dr. Gerhard Meyer University of Bremen

I believe that the game of dice has exactly the same effect than wine. (Pascasius Iustus, 1561) Gambling problems in history

Prof. Dr. Gerhard Meyer University of Bremen Frequency of gambling-related citations over time

Online gambling – Addictive potential Hayer, Bachmann & Meyer (2005); Meyer & Hayer (2008) Availability (24/7) Event frequency Anonymity Cashless money transfer Consumer-friendly offers Multiple products Extensive marketing Demosites Lowering thresholds Stimulates escapism Prof. Dr. Gerhard Meyer University of Bremen

Assessment tool: Risk potential of gambling types (I) Meyer et al. (2011)

Prof. Dr. Gerhard Meyer University of Bremen Assessment tool: Risk potential of gambling types (II) Meyer et al. (2011)

Prof. Dr. Gerhard Meyer University of Bremen Classification of gambling types Meyer et al. (2011)

Youth and online gambling -The prevalence of youth online gambling has risen noticeably in recent years (2003/04: 2 %; 2007/08: 24 %). -4 % of the sample participate at least weekly in Internet gambling (mostly boys). -Almost all adolescents with online gambling experience gamble offline simultaneously. -A relatively large number of Internet gamblers are problem gamblers (Internet gamblers: 7.7 %; non-Internet gamblers: 1.1 %) Ólason et al. (2011): Survey of 1,537 Icelandic students aged Prof. Dr. Gerhard Meyer University of Bremen

Adults and Internet gambling Wood & Williams (2009) Telephone Survey (Canada) n = 8,498 Online Survey (worldwide) n = 12,521 Internet gambling (yes) Internet gambling (no) Internet gambling (yes) Internet gambling (no) Non-problem gambling (%) At-risk gambling (%) Moderate gambling problems (%) Severe gambling problems (%) Refers to cross-sectional data Prof. Dr. Gerhard Meyer University of Bremen

Selected research findings(I) Wiebe et al. (2003) found that gamblers with severe gambling-related problems often gamble online as well. Wood & Williams (2007) verified with a sample of 1,920 online gamblers that 22.6 % of the subjects have moderate gambling-related problems and further 20.1 % have severe gambling-related problems. McBride et al. (2006) examined adolescents / young adults and realized that demo sites are visited comparatively often. A field test with a 16-year old female pupil could prove that a registration was blocked by only 7 of a total of 37 randomly selected gambling websites (GamCare, 2005). Prof. Dr. Gerhard Meyer University of Bremen

Selected research findings (II) Wood et al. (2007) demonstrated that 18 % of the interviewed online poker players (422 students) are problem gamblers. Predictors of gambling-related problems are negative emotions after gambling, giving the wrong gender identity while playing, and escaping problems while gambling. According to Tryggvesson (2007) the proportion of people with gambling- related problems among online poker players is significantly higher (26.8 %), resp. among online gamblers (8,1 %) still noticeably higher than among offline gamblers (2,1 %). Research on online slot machine gambling leads to the conclusion that the odds paid during demo sessions and real play for money differ signicantly among some providers (Sévigny et al., 2005). Prof. Dr. Gerhard Meyer University of Bremen

Internet gambling – Current knowledge (I) The theoretical analysis of structural characteristics of Internet gambling implies a high addictive potential. But: Differences between gambling forms are necessary! Online surveys with self-selected samples suggest that online gamblers are significantly more often problem gamblers. But: Generalizations are illegitimate based on self-selected samples! First epidemiological studies seem to confirm the high addictive potential associated with Internet gambling. But: Small number of cases/ cause and effect is unknown! Prof. Dr. Gerhard Meyer University of Bremen

Internet gambling – Current knowledge (II) The longitudinal analysis of actual online gambling behavior (bwin subscribers) indicates that only a small fraction of the cohort shows excessive gambling patterns. But: Analysis is restricted to a single provider of online gambling! Prof. Dr. Gerhard Meyer University of Bremen Advantages of actual Internet gambling behavior: Economics (time, effort, costs), temporal precision, large sample, objectivity of acquisition, longitudinal study Disadvantages : Lack of representativeness of sample and behavior, lack of data validity (missing information on use of other forms, on gambling motivation, on gambling-related problems etc.), prediction of behavior on restricted data base is limited

Pathological gambling – Criminal offences (I) Meyer, Althoff & Stadler (1998) Prof. Dr. Gerhard Meyer University of Bremen %

Pathological gambling – Criminal offences (II) Meyer, Althoff & Stadler (1998) Prof. Dr. Gerhard Meyer University of Bremen Pathological gamblers in treatment (n=300)

Pathological gambling – Criminal offences (III) Meyer, Althoff & Stadler (1998) Prof. Dr. Gerhard Meyer University of Bremen %

Case study Prof. Dr. Gerhard Meyer University of Bremen Banker (male, 24 years) embezzled 26,500 Euro Pathological gambler (sports betting) Gambling on 7 different sites Self-exclusion with two sites (opening a second account with one site after 3 weeks: same name, same bank account, different address Loss of 28,000 Euro in two days Conclusion: Data form a single provider dont offer sufficient information on addictive behavior. Provider certified as save and fair dont behave responsible. Cross-linking of self-exclusion data is necessary.

Early detection of gambling problems on the Internet Prof. Dr. Gerhard Meyer University of Bremen Analysis of gambling behavior (Behavior Tracking Tools) Comparison with versions that cover characteristics of problem gamblers Implicates low threshold measures Useful, innovative measures of player protection Integration in corporate culture, no lip service Politics must demand early detection and control it

… and finally 6 thesis… Growing turnover figures of online gambling are to be expected, independent of prevailing regulatory frameworks! The enforcement of a total ban of online gambling seems unrealistic and cost- intensive. Obviously, the prohibitive approach doesnt fulfill the function of averting risk! The impact of smartphones in the acceleration of online gambling servives will increase! A growing number of persons is going to develop problems related to online gambling! The Internet confronts addiciton prevention with new challenges. At the same time, however, it offers promising approaches for player protection such as early detection of at-risk behavior based on actual gambling behavior! An independent evaluation of implementations of social concepts is necessary as gambling providers get a significant proportion of revenues from gambling addicts (up to 56 %, depending on type of gambling)! Prof. Dr. Gerhard Meyer University of Bremen

Thank you for your attention! Prof. Dr. Gerhard Meyer University of Bremen