1. London | San Francisco | Los Angeles | New York | Singapore | Hong Kong 2cv.com Campaign for Fairer Gambling FOBT Research Report September 2014

2. 2 FOBT Research Report Methodology and Sample  Face to face interviews were conducted near to betting shops within the London Borough of Newham, Medway, Manchester, and Liverpool  Respondents were recruited at random upon exiting the betting shops across various locations and asked about their typical engagement with betting shop services  Respondents were asked to participate in a 10 min survey containing questions on the awareness, usage, and attitudes toward betting shop services, with a focus on Fixed Odds Betting Terminals (FOBTs)  Fieldwork was conducted between 2 nd and 17 th August 2014  993 interviews were conducted in total (Newham 272, Liverpool 227, Medway 242, Manchester 252)

3. 3 FOBT Research Report Problem gambling definition Throughout the report, any reference to ‘problem gambling’ is in relation to the criteria defined by the DSM-5 (Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, Published 2013): “A progressive disorder characterized by a continuous or periodic loss of control over gambling; a preoccupation with gambling and with obtaining money with which to gamble; irrational thinking; and a continuation of the behaviour despite adverse consequences.”

4. 4 FOBT Research Report Socio-Economic classification Social GradeSocial StatusOccupation AUpper Middle ClassHigher managerial, administrative or professional BMiddle Class Intermediate managerial, administrative or professional C1Lower Middle Class Supervisory or clerical, junior managerial, administrative or professional C2Skilled Working ClassSkilled manual workers DWorking ClassSemi and unskilled manual workers ELowest level of subsistence State pensioners or widows (no other earner), casual or lowest grade workers National Readership Survey (NRS) demographic categories 2CV’s classification aligns with the NRS social grade definitions – these are widely used as a generic reference series for classifying and describing social classes in the UK, especially for consumer targeting and consumer market research.

5. London | San Francisco | Los Angeles | New York | Singapore | Hong Kong 2cv.com Key Findings

6. 6 FOBT Research Report 82% of all betting shop customers perceive FOBTs as an addictive activity. This is higher still at 89% among those who play Roulette games on FOBTs 32% of Roulette players have borrowed money in order to play. A variety of sources are used to obtain cash, commonly from peers Abusive behaviour is prevalent; 72% of all betting shop customers have experienced other customers acting violently toward FOBTs

7. 1. “A continuation of the behaviour despite adverse consequences”

8. 8 FOBT Research Report Regardless of engagement with FOBTs, there is a strong perception that they are an addictive activity 82% 89% 78% All Betting Shop Customers All Roulette Players Non Roulette Players % agree ‘FOBTs are addictive’ Top 2 Box on a 5 point scale - agree/strongly agree (n=349) (n=993) (n=644)

9. 9 FOBT Research Report Roulette players on FOBTs skew toward a younger audience of lower socio-economic grade Play RouletteUK Nat Rep 18-2417% 13% 25-3433% 18% 35-5435% 39% 55+16% 30% AB5%27% C115%28% C224%22% DE55%24% All Roulette Players (n=349)

10. 10 FOBT Research Report Only 1 in every 10 players frequently ends a single roulette session with more money than they started with 10% All Roulette Players (n=349)

11. 11 FOBT Research Report A clear cycle of chasing losses means despite rarely making money in a session, winnings are often reinvested 52% All Roulette Players (n=349). 2% chose not to answer

12. 12 FOBT Research Report Paired with frequent engagement, the potential for loss is high All Roulette Players (n=349) 58% play weekly How often do you play Roulette? Those using most frequently are at the biggest risk of financial harm

13. 13 FOBT Research Report Those playing daily/almost daily account for 63% of annual FOBT session activity within our sample Frequency of Roulette play % of total Roulette session activity accounted for All Roulette Players (n=349). NB. Analysis assumes players engage in only one session each time they play, but it is likely to be more than one Reducing frequency of play is essential for limiting the harmful effects of Roulette machines

14. 14 FOBT Research Report In addition, these players account for almost 90% of the cash inserted per session Frequency of Roulette play % of total Roulette cash insertion per session accounted for Capping maximum bet per spin should help protect these players All Roulette Players (n=349). NB. Analysis assumes players engage in only one session each time they play, but it is likely to be more than one

15. 15 FOBT Research Report Summary “A continuation of the behaviour despite adverse consequences” 82% of betting shop customers (both players and non-players) perceive FOBTs as an addictive activity Potential for loss is high; only 10% of players claim they frequently end a session with more money than they started with, and at least a proportion of any additional earnings are re-invested back into the machines Despite this, Roulette play remains frequent - over half of users play at least weekly making the potential for loss even greater This is particularly the case for those using Roulette on FOBTs most frequently; those playing weekly or more account for 63% of session activity and 90% of cash inserted

16. 2. “A preoccupation with gambling and with obtaining money with which to gamble”

17. 17 FOBT Research Report A third of players have experienced a negative financial impact or spent beyond their means Playing Roulette has impacted on personal/family finances 36% Playing Roulette has impacted on personal/family finances 36% I have borrowed money to play Roulette 32% I have borrowed money to play Roulette 32% Those borrowing money acknowledge difficulty controlling their spending on Roulette machines 91% “Sometimes I spend more than I plan to on Roulette machines” 95% “They are addictive” All Roulette Players (n=349) Vs. those who have not borrowed money 75% “Whatever I win I put back into the gambling machines” Vs. 54% Vs. 31% Vs. 86%

18. 18 FOBT Research Report Those borrowing money to play Roulette turn to peers and personal credit Family / Friends 79% Family / Friends 79% Personal Credit 68% Personal Credit 68% Payday Loan / Pawn Broker 45% Payday Loan / Pawn Broker 45% Borrowers use multiple sources but rely heavily on family and friends, credit cards, and overdrafts Avg. No. of borrowing sources 3 Avg. No. of borrowing sources 3 Sources ever borrowed from (All borrowed n=121)

19. 19 FOBT Research Report The most financially impacted customers tend to be younger, of a lower social grade, and playing Roulette most frequently There is high overlap between those experiencing financial difficulty and those borrowing money Impact on FinancesBorrowed Money BASE 131121 18-2413%16% 25-3440%42% 35-5434%31% 55+13%11% AB6% C123%20% C226% DE45%48% Play Roulette at least weekly70%75%

20. 20 FOBT Research Report Those borrowing money hold attitudes indicative of problem gambling This particular audience should benefit from a reduction in maximum bet per spin How much do you agree with the following statements? (Top 2 Box of a 5 point scale – agree/strongly agree) 44%pts 47%pts49%pts Borrowed money (n=121), Not Borrowed Money (n=228)

21. 21 FOBT Research Report Higher cash insertion is also linked to stronger problem gambling traits Base: Play Roulette (349), Not Roulette (536) This highlights a need to help players control the amount of cash they are inserting How much do you agree with the following statements? (Top 2 Box of a 5 point scale – agree/strongly agree) Under £20 (n=129), £20-£100 (n=70), Over £100 (n=120)

22. 22 FOBT Research Report Summary “A preoccupation obtaining money with which to gamble”  One third of Roulette players have borrowed money in order to play  Peers are the main source relied upon to borrow, with personal credit options and pay day loans / pawn brokers also used  Younger players (18-34), those in the lower social grades, and the most frequent Roulette players are most likely to borrow money to play Roulette “A preoccupation with gambling”  Those borrowing money and investing higher stakes are most likely to show a preoccupation with gambling; over 80% have gambled for longer than planned, and over 70% need to keep increasing stakes for the same enjoyment  These players should be protected by a reduction in maximum bet per spin

23. 23 FOBT Research Report The high pressure betting shop environment holds ramifications for both customers and staff Abuse to staff 56% Abuse to staff 56% Abuse between customers 36% Abuse between customers 36% Attacks on FOBTs 72% Attacks on FOBTs 72% Which of the following have you experienced? (All customers n=993) Aggressiveness toward FOBTs is highly prevalent

24. 24 FOBT Research Report Summary FOBTs are perceived as an addictive activity by all betting shop customers, regardless of engagement with the machines With higher frequency of play comes higher engagement and cash insertion; those playing weekly or more account for 63% of annual session activity and 90% of cash inserted, highlighting evidence of problem gambling behaviour FOBTs have a negative financial effect on players, with one third of Roulette players spending beyond their means and borrowing money in order to play Whilst borrowing from a multitude of sources, family and friends are relied upon heavily, indicating the wider social impact of FOBT problem gambling Those borrowing money and investing higher stakes exhibit stronger problem gambling traits and behaviours than other FOBT players and betting shop customers. These players should benefit the most from a reduction in maximum bet per spin The potential for loss is high, with only 1 in 10 players regularly ending a session with more cash than they started, and frequently reinvesting any winnings back into the machines Despite this, FOBT engagement is frequent with over half of players using the machines at least weekly