RESEARCH REPORT

Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

July 2020

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To cite this report Greer, N, Rockloff, M, Russell, Alex M. T., 2020, Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?, Victorian Responsible Gambling Foundation, Melbourne.

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responsiblegambling ResponsibleGambling Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Nancy Greer, Matthew Rockloff and Alex M. T. Russell CQUniversity Australia

July 2020 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Acknowledgements

We would like to acknowledge the grant funding received for this project from the Victorian Responsible Gambling Foundation. We greatly appreciate the many survey participants. We would also like to thank Lisa Lole, from CQUniversity’s Experimental Gambling Research Laboratory, for her work copy editing.

The content is solely the responsibility of the authors and does not necessarily represent the official views of the Victorian Responsible Gambling Foundation.

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Key terms

Acronym or term Description

EB/SG Esports bettor/skin gambler. Sample group which combines esports cash bettors (at least fortnightly), esports skin bettors (last 12 months), and skin gamblers on games of chance (last 12 months). See definitions below for these activities. EGM Electronic Gaming Machine Esports Professional video game competitions Esports cash betting Betting money or cryptocurrency on esports Esports skin betting Betting skins or skin deposits on esports EV Esports viewer. A group sampled for at least fortnightly esports viewing, but have not bet on esports or with skins in the last 12 months. Loot box A virtual item which when opened contains a randomised in-game item reward, most often a skin of varying rarity, virtual currency, or an item which assists with game play (e.g., weapon, power up). M Mean PGSI Problem Gambling Severity Index PG Problem Gambler, scoring between 8-27 on the Problem Gambling Severity Index. RQ Research question SB Sports bettor. A group sample for at least fortnightly sports betting, but have not watched or bet on esports or with skins in the last 12 months. SD Standard Deviation SE Standard Error SGHS Short Gambling Harm Screen Skins Virtual in-game items offering cosmetic alterations to a player’s weapons, avatar or equipment used within a video game (Gambling Commission, 2017, p. 17) Skin gambling Betting skins on games of chance Social casino game Games which are based on or interact with social networks and that simulate gambling activities (Gainsbury et al., 2014). Traditional gambling Includes any form of monetary gambling not related to video games. See the Methods section for the list of traditional gambling activities measured for this research. VG Video gamer. A group sampled for at least fortnightly video gaming on a video game which is also an esport, but have not watched or bet on esports or with skins in the last 12 months. Video game-related gambling Includes any form of monetary or simulated gambling related to video games. This includes esports betting, skin gambling, loot boxes, social casino games.

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Table of Contents

ACKNOWLEDGEMENTS...... II

KEY TERMS...... III

LIST OF TABLES...... V

LIST OF FIGURES...... VI

EXECUTIVE SUMMARY...... 1 Research aims...... 1 Methods...... 1 Key results...... 2 Conclusions...... 6

BACKGROUND...... 7 Scope...... 7 What are esports and skins?...... 7 Esports betting and skin gambling...... 8 The typical esports bettor or skin gambler...... 9 Engagement in traditional forms of gambling...... 10 Gambling-related harm and problem gambling...... 10 The unique risk to video gamers and esports viewers...... 11 The gateway effect: migration from video game-related to traditional gambling...... 13 Conclusion...... 14 The current study...... 15

METHODS...... 16 Design and procedure...... 16 Participants...... 18 Measures...... 20 Data analyses...... 22

RESULTS...... 24 Demographic characteristics...... 24 RQ1. What are the demographic characteristics and gambling behaviours of esports bettors and skin gamblers?...... 26 RQ2. Are esports bettors and skin gamblers uniquely engaged in these types of gambling, or are they involved in other traditional forms of gambling?...... 29 RQ3. Are esports bettors and skin gamblers more likely to engage in traditional forms of gambling and at a greater risk of gambling-related harm than people only engaged in traditional forms of gambling?...... 31 RQ4. How do the demographic characteristics of esports bettors/skin gamblers differ from esports viewers and video gamers not engaged in these video game-related gambling activities, and are esports bettors/skin gamblers more likely to gamble on traditional forms of gambling and at a heightened risk of gambling-related harm?...... 36

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RQ5. What are the migration patterns between gambling products (e.g., esports betting, skin gambling, traditional forms of gambling) and is youth involvement in the newer gambling products a pathway to gambling in adulthood?...... 40 Gambling activities as predictors of gambling problems and harm...... 44

DISCUSSION AND CONCLUSION...... 46 Discussion...... 46 Limitations...... 49 Implications and recommendations...... 49 Conclusions...... 50

REFERENCES...... 51

APPENDICES...... 56 Appendix A. Online questionnaire...... 56 Appendix B. Demographic characteristics for esports cash bettors, esports skin bettors, and skin gamblers...... 96 Appendix C. Participation in traditional gambling activities in the last 12 months for esports cash bettors, esports skin bettors, and skin gamblers...... 98 Appendix D. Gambling frequency by activities and sample group...... 99 Appendix E. Average gambling expenditure ($ last month) for gambling activities by sample group...... 102 Appendix F. Average age of first participation (years) for gambling activities, overall and by sample group...... 103 Appendix G. Video gaming, esports viewing, and esports playing frequency last 12 months, by sample group...... 104 Appendix H. Migration between esports cash betting and other gambling activities (base: esports bettors/skin gamblers, n = 744)...... 105 Appendix I. Migration between esports skin betting and other gambling activities (base: esports bettors/skin gamblers, n = 744)...... 106 Appendix J. Migration between skin gambling (games of chance) and other gambling activities (base: esports bettors/skin gamblers, n = 744)...... 107

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List of Tables

Table 1. Sample outcomes and response rate...... 18 Table 2. Final sample size by quota group...... 19 Table 3. Questionnaire sections by research question...... 20 Table 4. Demographic characteristics for esports bettors/skin gamblers, sports bettors, esports viewers, and video gamers...... 24 Table 5. Linear regression for predictors of number traditional gambling activities (scale) – gambler type, age, gender...... 32 Table 6. Problem Gambling Severity Index categories, by sample group...... 34 Table 7. Linear regression for predictors of problem gambling (log10 PSGI score) – gambler type, age, gender...... 34 Table 8. Short Gambling Harms Screen (SGHS) by sample group...... 35 Table 9. Linear regression for predictors of gambling-related harm (SGHS score) – gambler type, age, gender...... 36 Table 10. Linear regression for predictors number of traditional gambling activities – sample type (esports bettor/skin gambler, esports viewer, video gamer), age, gender...... 37 Table 11. Linear regression for predictors of problem gambling severity (PGSI) – sample type (esports bettor/skin gambler, esports viewer, video gamer), age, gender...... 39 Table 12. Linear regression for predictors of gambling-related harm (SGHS) – sample type (esports bettor/skin gambler, esports viewer, video gamer), age, gender...... 40 Table 13. Average age of first participation for gambling activities for esports bettors/skin gamblers (n = 744)...... 41 Table 14. Average gambling involvement (traditional gambling activities), problem gambling (PGSI), and gambling-related harms (SGHS) in adulthood, by underage (< 18 years) versus adult (18+ years) onset of newer gambling activities (base: esports bettors/skin gamblers, n = 744)...... 44 Table 15. Linear regressions of gambling activity predictors of problem gambling (log PGSI +1) and gambling-related harm (SGHS) (base: esports bettors/skin gamblers, n = 744)...... 45

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List of Figures

Figure 1. Overlap of esports cash betting (ECB), esports skin betting (ESB), and skin gambling on games of chance (SG) participation (base: esports bettors/skin gamblers, n = 744)...... 26 Figure 2. Esports bettors/skin gamblers’ last 12 month frequency for esports cash betting, esports skin betting, and skin gambling (games of chance) (base: esports bettors/skin gamblers, n = 744)...... 27 Figure 3. Types of esports bet on in the last 12 months, as a percentage of esports cash bettors and esports skin bettors (base: esports bettors/skin gamblers, n=744)...... 28 Figure 4. Types of games of chance bet on with skins, in the last 12 months (base: skin gamblers, n = 540)...... 29 Figure 5. Proportion of esports bettors/skin gamblers participating in traditional gambling activities in the last 12 months (Base: Esports bettors/skin gamblers, n = 744)...... 30 Figure 6. Average expenditure (last month) on gambling activities for esports bettors/skin gamblers (base: esports bettors/skin gamblers, n = 744)...... 31 Figure 7. Comparison of ‘at least fortnightly’ for gambling activities by sample group: esports bettors/skin gamblers (n = 744) versus sports bettors (n = 300)...... 33 Figure 8. Comparison of ‘at least fortnightly’ for gambling activities by sample group who engaged in gambling last 12 months: esports bettors/skin gamblers (n = 744) versus esports viewers (n = 217) and video gamers (n = 280)...... 38 Figure 9. Pre- (under 18 years) and post- (18 years or over) legal gambling age percentages for first participation by activity (Base: Esports bettors/skin gamblers, n = 744)...... 42 Figure 10. Migration patterns between esports cash betting, sports skin betting, skin gambling, and any traditional gambling activity (Base: esports bettors/skin gamblers, n = 744)...... 43

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Executive summary

This report details research funded by the Victorian Responsible Gambling Foundation’s (the Foundation) Grants for Gambling Research Program (Round 2018). It was funded as an Early Career Research (ECR) grant, under the research priority topic of ‘esports’ to build knowledge of esports consumption (betting, spectatorship) and relationship to gambling-related harm.

Research aims

The rising popularity of competitive video gaming competitions, or esports (short for electronic sports), has attracted the interest of the gambling industry, with esports cash betting available from most wagering operators. An unregulated gambling subculture around esports also exists, with virtual in-game items known as ‘skins’ being utilised to place bets on esports and games of chance. Understandably, this has raised questions as to whether video gamers and esports viewers are being exposed to gambling opportunities, potentially leading to greater gambling involvement and experiences of related harm. Little research to date has been done to examine esports betting and skin gambling in Australia.

Given the paucity of research on esports betting and skin gambling, the research, reported herein, aimed to provide a broad understanding of esports betting and skin gambling. Specifically, the research aims were to: 1. identify the typical demographic characteristics of people bet on esports, or with skins, and whether they differ from video gamers or esports viewers not engaged in these gambling activities 2. determine whether video game-related gamblers exclusively participate in esports betting and skin gambling, or are also involved in traditional forms of gambling 3. compare video game-related gamblers to sports bettors, video gamers, and esports viewers to identify whether they are more likely to engage in traditional forms of gambling or are at any greater risk for problem gambling and/or experiencing gambling-related harm 4. examine whether video game-related gambling is a gateway to traditional gambling, and to what degree this migration occurs after reaching legal gambling age (18+ years).

Methods

To address the research aims, an online survey was conducted May to July 2019. Data from a total of 1716 participants (Australian, 18+ years), sampled across four groups, was collected for between-group comparisons of demographics, gambling involvement, gambling problems, and gambling-related harm. Participants were recruited via two sources: a Qualtrics online research panel, and via social media.

In a preliminary analysis of the data, we found that esports cash bettors also often bet with skins, on either esports or games of chance. For this reason, and because both activities relate to video game gambling, analyses grouped together esports bettors and skin gamblers into a single group: esports bettors/skin gamblers (EB/SGs). Esports bettors/skin gamblers (EB/SGs, n=744) were the primary group of interest for all five research questions, since the project aimed to understand video game-related gambling as a unique activity.

Three mutually-exclusive groups were sampled, as comparisons against EB/SG, each not engaged in either esports betting or skin gambling. At least fortnightly sports bettors (SB, n = 300) were selected as a comparison

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group to determine whether EB/SG are at greater risk for gambling involvement and harm than persons similarly engaged in traditional forms of gambling. Sports bettors were selected, since betting on sport (e.g., soccer, cricket, AFL, etc.) is the most analogous traditional gambling activity to esports betting. At least fortnightly esports viewers (EV, n = 400) and video gamers (VG, n = 343) are both likely exposed to esports betting and skin gambling, but choose not to participate in these video game-related gambling activities, and were selected to serve as the other comparison groups. These two latter comparison groups allowed determination of whether there are demographic differences between esports bettors/skin gamblers and non-esports bettors/skin gamblers (i.e., esports viewers and video gamers), and whether esports bettors/skin gamblers are uniquely vulnerable to gambling problems and harm.

Key results

The key results, as they relate to each research question, from this study are summarised below.

RQ1. What are the demographic characteristics and gambling behaviours of esports bettors and skin gamblers?

Demographically, the sampled esports bettors/skin gamblers were in their early 30s (M = 32.02 years), male (67.2 per cent), university-educated (Bachelors, Masters, or Doctoral degree; 56.5 per cent), employed (90.0 per cent), and a higher proportion married (47.0 per cent) than single (33.5 per cent).

As noted previously, participation in esports cash betting, esports skin betting, and skin gambling on games of chance overlap considerably, with 41.5 per cent engaging in all three activities. In the last 12 months, EB/SG bet most often (regularly, at least fortnightly) on esports with money (65.9 per cent), followed by esports with skins (57.5 per cent), and skin gambling on games of chance (41.1 per cent).

The most common video game genres for betting on esports games were sports (e.g., FIFA), first- or third-person shooter games (e.g., Call of Duty, Counter-Strike, Fortnite, etc.), and multiplayer online battle arena (e.g., League of Legends). The top games of chance bet on with skins closely resembled traditional forms of gambling, including casino table games (roulette, blackjack, etc.), jackpot draws, and electronic gaming machines (EGMs).

RQ2. Are esports bettors and skin gamblers uniquely engaged in these types of gambling, or are they involved in other traditional forms of gambling?

The survey asked participants about their gambling participation in the last 12 months on twelve traditional forms of gambling. The results showed that esports bettors/skin gamblers: • are highly engaged in other forms of gambling, with 97.8 per cent having gambled on at least one traditional gambling activity in the last 12 months • on average gambled on 2.9 traditional gambling activities within the past year

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• gambled regularly (at least fortnightly) on sports betting (69.6 per cent) and esports cash betting (65.9 per cent), and more often than skin gambling on esports (57.5 per cent) or games of chance (41.1 per cent) • gambled less regularly other traditional gambling activities, with the next most common activity regularly engaged in being electronic gaming machines or EGMs (27.0 per cent).

Like participation rates, esports bettors/skin gamblers generally spent more money on traditional gambling products than they did on esports betting or skin gambling. Specifically: • Gambling expenditure in the last month on sports betting (M = $194.96, SD = $487.47) and casino table games (M = $186.13, SD = $784.90) was greater than what EB/SG spent on esports cash betting (M = $163.03, SD = $333.08), esports skin betting (M = $139.86, SD = $301.02), and skin gambling on games of chance (M = $130.44, SD = $216.97). • Average monthly spend for betting with skins (esports or games of chance) were similar to that of EGMs (M = $132.95, SD = $216.48), while esports cash betting was similar to horse/greyhound race wagering (M = $167.68, SD = $515.75).

RQ3. Are esports bettors and skin gamblers more likely to engage in traditional forms of gambling and at a greater risk1 of gambling-related harm than people only engaged in traditional forms of gambling?

Overall, the results show that esports bettors/skin gamblers were at greater risk for gambling problems (measured by the Problem Gambling Severity Index, PGSI2) and gambling-related harms (SGHS3) compared to traditional sports bettors, despite lower intensity involvement in traditional gambling (i.e., fewer of the 12 activities examined).

As measured by the Problem Gambling Severity Index (PGSI; Ferris & Wynne, 2001), 92.6 per cent of esports bettors/skin gamblers experienced 1 or more identifiable gambling problems in the last 12 months low( risk, LR = 10.1 per cent;, moderate risk, MR = 15.6 per cent; problem gambling, PG = 66.9 per cent), significantly greater than 66.7 per cent of sports bettors (23.7 per cent LR; 25.7 per cent MR; 17.3 per cent PG). Gambling-related harm was also measured by 10 items on the Short Gambling Harms Screen (SGHS; Browne, Goodwin, & Rockloff, 2018), with 84.0 per cent of esports bettors/skin gamblers reporting experiencing at least 1 gambling harm (M = 4.58 harms, SD = 3.13), compared to 45.3 per cent of sports bettors (M = 1.93 harms, SD = 2.90), in the past 12 months.

Demographics were compared to identify any individual differences which may account for esports bettors/skin gamblers being at greater risk for gambling problems and harms than sports bettors, such as being young and male. Results found esports bettors/skin gamblers, potentially, suffer more problems and harm by virtue of being significantly younger M( = 32.02 years; SD = 9.57) than sports bettors (M = 44.53 years; SD = 10.83). Being male is another risk factor of problem gambling and harms, and is also characteristic of both the esports bettors/skin gamblers (67.2 per cent) and sports bettor (84.7 per cent) samples. However, it is important to understand whether

1 We recognise that there is debate about the use of the terms ‘risk’ or ‘risk factors’. These terms are used in other publications in gambling research (for example: Browne et al., 2019a; Delfabbro et al., 2009; Dowling et al., 2017; Griffiths & Wood, 2000; Hing et al., 2016; Johansson et al., 2009; Miller, 2015; Scholes-Balog et al., 2016), so we have used them in this report to be consistent with other literature in this area. Note that we used the term risk for gambling involvement, as well as gambling problems and harm. This should not be taken to mean that gambling is negative, or that the researchers are anti-gambling. We simply use the terms to be consistent throughout the report.

2 Ferris & Wynne (2001). A total score between 0-27 was calculated by summing together all responses to the nine-item scale and categorised into problem gambling severity: non-problem gamblers (NPG, score 0), low-risk gamblers (LR, score 1-2), moderate-risk gamblers (MR, scores 3-7), and problem gamblers (PG, score 8+).

3 Browne, M., Goodwin, B. and Rockloff, M. (2018) Validation of the Short Gambling Harm Screen (SGHS): A Tool for Assessment of Harms from Gambling, Journal of Gambling Studies. 34:499-512. doi:10.1007/s10899-017-9698-y

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demographic factors, alone, explain the problems and harm faced by esports bettors/skin gamblers, or whether participation in video game-related gambling independently contributes to these negative outcomes.

Accordingly, three linear regressions were conducted to determine whether being an esports bettors/skin gamblers versus a sports bettor, when accounting for age and gender, predicts: 1) traditional gambling involvement (number of activities); 2) gambling problems (as measured by the PGSI); and 3) gambling-related harm (as measured by the SGHS). The results showed that: • Regarding gambling involvement, on average, sports bettors participated in more gambling activities in the last 12 months (M = 4.17, SD = 2.32) than esports bettors/skin gamblers (M = 2.94, SD = 2.22). • Being older and female were also independent predictors of greater traditional gambling involvement. • Being an esports bettor/skin gambler (as opposed to a sports bettor) was the strongest predictor of

experiencing gambling problems (M PGSI = 10.08, SD = 6.27) and gambling-related harms (M SGHS = 4.58, SD = 3.13), negating the effect of age on PGSI and SGHS.

Being male predicted gambling problems and harm, but significantly less so than being an esports bettor/ skin gambler.

RQ4. How do the demographic characteristics of esports bettors/skin gamblers differ from esports viewers and video gamers not engaged in these video game-related gambling activities, and are esports bettors/skin gamblers more likely to gamble on traditional forms of gambling and at a heightened risk of gambling-related harm?4

Results showed that esports bettors/skin gamblers differed, demographically, from esports viewers (EV) and video gamers (VG; i.e., who did not bet on esports or with skins). On average, esports bettors/skin gamblers were: • Older (M = 32.02 years, SD = 9.57) than esports viewers (M = 28.42 years, SD = 8.85) but younger than video gamers (M = 37.91 years, SD = 12.97). • Most often male (67.2%), as were esports viewers (69.5%), but video gamers were about as likely to be male as female (51.6% vs 48.4%). • More likely to be university-educated, employed full-time, and earning a high income, compared to esports viewers and video gamers.

Three regression analyses were conducted to determine if esports bettors/skin gamblers are at heightened risk for: 1) gambling involvement (number of activities); 2) gambling problems (as measured by the PGSI); and 3) gambling- related harm (as measured by the SGHS). For each regression, the principal predictor was being an esports bettors/skin gamblers, as opposed to either an esports viewer or a video gamer, who otherwise bets on traditional products (i.e., electronic gaming machines, casino games, etc.). The results showed that: • Regarding gambling involvement, on average, esports bettors/skin gamblers participated in more gambling activities in the last 12 months (M = 2.94, SD = 2.22) than esports viewers (M = 1.55, SD = 2.18), but were on par with video gamers (M = 2.87, SD = 2.38).

4 Amended from the grant application research question: ‘What are the demographic characteristics and gambling behaviours of esports viewers, and are they at heightened risk of gambling involvement and gambling related harm than video-gamers not engaged in esports viewing?’

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• Being older was a predictor of greater traditional gambling involvement. • Esports bettors/skin gamblers were more likely to experience gambling problems (M = 10.08 PGSI score) than

either esports viewers (M PGSI = 3.91, SD = 5.16) or video gamers (M PGSI = 2.26, SD = 4.07) who engaged in traditional gambling activities but esports betting or skin gambling. • Similarly, esports bettors/skin gamblers were more likely to experience a greater number of gambling harms

(M SGHS = 4.58 harms, SD = 3.13) than either esports viewers (M SGHS = 2.18 harms, SD = 2.62) or video gamers

(M SGHS = 1.33 harms, SD = 2.55).

RQ5. What are the migration patterns between gambling products (e.g., esports betting, skin gambling, traditional forms of gambling) and is youth involvement in the newer gambling products a pathway to gambling in adulthood?

To answer Research Question 5, the ‘first age’ of participation in any/all gambling activities was asked and reported on in three ways: 1) average age of first participation, 2) underage versus adult gambling onset, and 3) migration patterns between esports betting/skin gambling and traditional gambling activities. The findings showed esports bettors/skin gamblers: • on average, were younger when they first participated in a traditional gambling activity M( = 19.09 years, SD = 5.73) compared to when they first participated in video game-related gambling activities M( = 22.51 years, SD = 8.84) • were more likely to engage in underage participation in traditional forms of gambling (30.8 per cent) than video game-related gambling activities (24.1 per cent).

There was also little evidence for esports bettors/skin gamblers being subject to a ‘gateway effect’ or a pathway between esports betting/skin gambling and traditional gambling in adulthood: • Higher proportions started gambling first with traditional forms of gambling prior to esports betting/skin gambling (47.8 per cent), with another 26.7 per cent gambling video game-related and traditional gambling products within the same year. • Only just over a quarter (25.4 per cent) of esports bettors/skin gamblers started gambling on these activities prior to traditional forms of gambling. • Of the newer products, there was a stronger trend for esports betting (cash or skins) to precede traditional gambling (both 18.7 per cent), than skin gambling on games of chance (11.8 per cent).

Lastly no difference was found in gambling involvement in traditional gambling (number of games played) or experiences of gambling-related harms in adulthood between esports bettors/skins gamblers first engaging in the three newer gambling activities underage (< 18 years) compared to as an adult. However, esports bettors/ skin gamblers who engaged in underage esports cash betting, and skin gambling on games of chance, did have significantly greater levels of problem gambling severity as adults, than those first participating in these activities in adulthood.

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Gambling activities as predictors of gambling problems and harm

Given that esports bettors/skin gamblers are highly engaged in both video game-related and traditional gambling activities, we conducted analyses to determine “how much” participation (as measured by gambling frequency) in each activity uniquely predicted gambling problems and harm. The results show that, for esports bettors/skin gamblers, greater frequency of esports skin betting was the strongest predictor of gambling problems and gambling harm, while more frequent esports cash betting was predictive of harm, but not problems. However, gambling activities only explained a modest proportion of the variance in gambling problems (19.0 per cent) and harm (12.3 per cent) suggesting that other factors not measured may be involved.

Conclusions

This is one of the few studies to explore video game-related gambling in an Australian context. It found that esports betting and skin gambling mainly attract a young male demographic, who are: also engaged in many traditional forms of gambling (frequently on ‘harmful’ forms), and experience higher levels of gambling problems and harm than traditional gamblers (i.e., sports bettors), video gamers who gamble, and esports viewers who gamble. In addition, this study provides preliminary evidence that underage onset of esports cash betting and skin gambling on games of chance, along with greater frequency of esports skin betting are the factors that are most strongly associated with current gambling problems for adult esports bettors/skin gamblers. It provides preliminary evidence that may be utilised to inform on appropriate action to safeguard consumers of these products, through regulation, alongside the development of education and awareness programs, and to help with the Victorian Responsible Gambling Foundation’s mission to reduce gambling harm.

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Background

Scope

This research was designed in relation to Victorian Responsible Gambling Foundation’s (the Foundation’s) Grants for Gambling Research Program (Round 2018). It was funded as an Early Career Research (ECR) grant, under the research priority topic of ‘esports’, to build knowledge of esports consumption betting and the relationship to gambling-related harm.

The aim of this project is to examine esports betting, and the interrelated skin gambling, as two video game-related gambling products. Specifically, the research aims were to: 1. identify the typical demographic characteristics of people typically bet on esports or with skins, and whether they differ from video gamers or esports viewers not gambling not engaged in these gambling activities (research question 1) 2. determine whether video game-related gamblers exclusively participate in esports betting and skin gambling, or whether they are also involved in traditional forms of gambling (research question 2) 3. compare video game-related gamblers to sports bettors, video gamers, and esports viewers, in order to identify whether they are more likely to engage in traditional forms of gambling or are at any greater risk for problem gambling and/or experiencing gambling-related harm (research questions 3 and 4) 4. examine whether video game-related gambling is a gateway to traditional gambling, and to what degree this migration occurs after reaching legal gambling age (18+ years) (research question 5).

This current chapter reviews and discusses the current evidence surrounding esports betting and skin gambling, with specific focus on: these gamblers’ demographics; involvement and migration to traditional gambling, problem gambling, gambling-related harm; and how these factors may differ from other comparable groups.

What are esports and skins?

In the world of video gaming esports and skins are becoming increasing popular, but the general population may not be aware of their existence. So what are these video gaming activities and how popular are they in Australia? Esports are professional video gaming competitions between highly skilled video game players or teams, and like traditional sports, are: governed by organising bodies, watched by audiences, players reach celebrity status, and are financed by sponsorships, advertising, merchandising and event tickets (Jenny et al., 2016; Newzoo, 2020; Seo and Jung, 2014). In 2019 the global esports audience was estimated at 443 million and revenue $950.6 million, both seeing a substantial year on year increase showing the swift rise in the popularity of esports (Newzoo, 2020).

Awareness and viewership of esports in Australia is rising too, but more so amongst younger, male, and video gaming populations (Brand, Todhunter, & Jervis, 2017; Brand et al., 2019; You.Gov, 2018). A panel survey conducted in 2018 with approximately 1,000 Australian adults reported a 44 per cent awareness of esports, and of those 34 per cent had watched esports (You.Gov, 2018). Esports awareness and viewership were markedly higher for males (of 58 per cent aware, 39 per cent watched) than females (of 29 per cent aware, 26 per cent watched), and younger adult Australians aged 18–24 years (of 69 per cent aware, 50 per cent watched) and 25-34 years (of 63 per cent aware, 49 per cent watched). Furthermore, more than half of Australian esports viewers watched

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esports at least monthly, and this regular esports viewership is highest for males (65 per cent), 18–24 year olds (47 per cent) and heavy gamers (65 per cent) (You.Gov, 2018). The 2020 Digital Australia Report found that of adult Australian video gamers, 41 per cent have watched esports and 30 per cent attended an esports event in person (Brand et al., 2019), up from 33 per cent and 26 per cent respectively from two years prior (Brand et al., 2017). The Australian esports market is set to grow even further. Notable developments are large esports events being held in Australia (e.g., Melbourne Esports Open), professional sporting clubs investing in esports teams, openings of dedicated esports venues, and Australian educational institutions investing in esports teams and competitions (Australian Communications Media Authority, 2020; Gibbs et al., 2018). In regard to Australian esports players, figures are hard to obtain with the only data existing from a national sample of Australian youth aged 8-17 years with 4 per cent participating in esports tournaments (amateur or professional) (Office of the eSafety Commissioner, 2018).

Video games are not also becoming increasingly monetised by esports but by the addition of in-game purchasing or microtransactions, including skins and loot boxes (King & Delfabbro, 2018). Skins are virtual in-game items that “provide cosmetic alterations to a player’s weapons, avatar or equipment used within the game” (Gambling Commission, 2017, p. 17), but otherwise provide no functional advantage to game play. The majority of skins have a monetary value in that they can be purchased, won, traded, or exchanged for money or something else of value both within and outside of the game (Gambling Commission, 2017; Grove, 2016a). A loot box is another virtual item which when opened contains a randomised in-game item reward, most often a skin of varying rarity, virtual currency, or an item which assists with game play (e.g., weapon, power up). Loot boxes are obtainable via game play, for free, purchased with money or virtual currency, or gifted by other players (King & Delfabbro, 2018). They are the most common method to obtain skins and sometimes the only way to obtain rare and valuable skins (Commonwealth of Australia, 2018; King & Delfabbro, 2018; Macey & Hamari, 2018b).

Skins, and loot boxes which often contain skins, are increasingly becoming present in video games (Zendle, Ballou, & Meyer, 2020) and purchased by video gamers (Zendle & Cairns, 2018). A review of the 463 most-played Steam desktop games from 2010 to 2019 showed that games with skins increased from 8 per cent to 86 per cent and games with loot boxes 4 per cent to 71 per cent (Zendle, Ballou, & Meyer, 2020). A large scale survey reported that over three-in-four adult video gamers have purchased either a loot box (78 per cent) or another in-game item (87 per cent) with real world money (Zendle and Cairns, 2018) although this may be an overestimate due to self-section bias during recruitment, as the sample knew this was a ‘loot box’ survey. While the prevalence of skin and loot box purchasing in Australia is unknown, a recent Australian study found that of adult video gamers 65 per cent made in-game purchases for themselves and 40 per cent for others, such as their children (Brand et al., 2019).

In the last decade as esports and skins became more popular and profitable, the gambling industry and third- party website operators started creating opportunities to gamble on esports events and with skins, blurring the boundaries between video gaming and gambling (Greer et al., 2019).

Esports betting and skin gambling

New technologies have created opportunities for gambling on a range of devices, centred in, and around, video games, including esports betting, skin gambling, loot boxes, and social casino games. While these ‘video game- related gambling’ activities obscure the line between video gaming and gambling, the majority of these are not considered to be gambling under the Australian Interactive Gambling Act, due to the utilisation of virtual currency or goods to participate and the inability to directly ‘cash out’ winnings. Some of these forms are freely available to those under 18 years of age, either because they are not legally considered gambling and are, therefore, not restricted, or because they are accessed through unregulated offshore (foreign) online operators (Greer et al., 2019; King, 2018).

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This report focuses on two interrelated video game-related gambling activities: esports betting and skin gambling. Esports betting closely resembles traditional sports betting, in that bets are made on the outcome/s of professional video game competitions between players or teams, and that it is available via regulated domestic, and illegal offshore, gambling operators (King, 2018). As mentioned previously, skins are virtual in-game items very common to video games which can be purchased with money, rewarded via game play, or obtained via loot boxes. Because some skins are rare and valuable to players, a marketplace for skins to be sold, and gambled with, for money has emerged (Gambling Commission, 2017a; Greer et al., 2019; Grove, 2016b; Holden & Ehrlich, 2017). This ‘skin gambling’ occurs on unregulated offshore websites, where skins are used as a currency to bet on esports or games of chance (e.g., roulette, jackpot), and any skins won can be exchanged for money (Greer et al., 2019; Grove, 2016b). The main skins utilised for skin gambling are accessible by third-party websites via video game developer Valve Corporation’s online marketplace Steam for these games: Counter-Strike: Global Offensive (CSGO), Defense of the Ancients (DOTA), and PlayerUnknown’s Battlegrounds (PUGB) (Greer et al., 2019). A more detailed review of esports betting and skin gambling can be found in Greer and colleagues recent paper (2019).

Esports betting and skin gambling may be particularly appealing to children, adolescents, and young adults, who frequently play video games and watch esports. The vulnerability of youth to engage in risky behaviours, coupled with exposure and the lack of restriction and adequate regulation in Australia for esports betting and skin gambling, could be a recipe for facilitating gambling involvement and later experiences of gambling-related harm (Hermant & Doman, 2016; King, 2018). Over the last few years internationally a handful of countries have made legislative changes to protect consumers from skin gambling, such as Denmark blocking access to major skin gambling websites (Danish Gaming Authority, 2018; 2019) and Norway classifying skin betting as gambling and issuing a statement to skin gambling websites operating in their country are subject to sanctions (Mitchell, 2017).

The typical esports bettor or skin gambler

Little is currently known about who engages in esports betting or skin gambling in Australia, or whether their demographics and gambling behaviours differ to those only engaged in traditional monetary forms of gambling. Demographically, esports betting and skin gambling are appealing to young males, aligning with the typical profile of traditional gamblers, such as sports bettors (Browne et al., 2019b; Gainsbury et al., 2017a; Gambling Commission, 2018, 2019a, 2019b, 2020; Rockloff et al., 2020; Wardle, 2019). However, the youth aspect to esports betting may be more pronounced than for traditional gambling activities.

Recent Australian adult population studies on gambling in the states of Victoria (Rockloff et al., 2020) and New South Wales (Browne et al., 2019b) have found low prevalence rates of 0.5 per cent and 0.6 per cent respectively for esports betting in the last 12 months. Although adult participation in esports betting appears to be rare, given the low prevalence, the New South Wales prevalence survey found rates were significantly higher for those aged 18–24 years (3.3 per cent) versus 25-34 years (1.0 per cent), and 35 years or above (< 0.1 per cent; Browne et al., 2019b). Another Australian study, that compared the demographic profiles of adult ‘last month’ esports and sports bettors, found the former group to be significantly younger (Gainsbury et al., 2017a). Esports bettors may be unique in other respects, too. For instance, Gainsbury and colleagues (2017a) found that esports bettors, compared to sports bettors, were significantly more likely to be employed, have obtained a higher education level, earn a higher income, be of an Asian versus European background, and speak a language at home other than English.

The representativeness of these findings to Australian esports bettors, in terms of gambling behaviours and harms experienced, is questionable, however, as participants were sub-sampled from a larger group of sports bettors, who do not bet exclusively on esports. The other main limitation of both these studies is that the data likely underestimates esports betting, as it was only captured for adult monetary betting on esports, thereby excluding the population of Australians using skins to bet on esports, which are most likely to be children and adolescents under the legal gambling age (< 18 years). Moreover, the gender, age, and other demographics characteristics of

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these skin gamblers in Australia is currently unreported. A handful of British studies provide evidence that skin gambling (on esports or games of chance) is higher for: males than females in adult and adolescent samples; older versus younger adolescents; and younger (18–24 years) versus older (25-34 years, 35+ years) adults (Gambling Commission, 2018, 2019a, 2019b, 2020; Wardle, 2019).

Esports betting and skin gambling have most often been researched separately, despite the overlap between the two, in the form of esports skin betting. In order to understand this issue, it is pertinent to gain an understanding of how (i.e., in terms of gambling type, frequency, and expenditure) an individual engages in the three distinct activities of esports cash betting, esports skin betting, and skin gambling on games of chance. Given that little is known about who takes part in these forms of video game-related gambling activities in Australia, this leads directly to our first research question (RQ1.): What are the demographic characteristics and gambling behaviours of esports bettors and skin gamblers?

Engagement in traditional forms of gambling

Esports betting and skin gambling, as video game-related gambling activities, likely hold a unique attraction to consumers who are already invested in video gaming or esports spectatorship, but who would, otherwise, not be interested in gambling. Theoretically as with sports betting on your favourite esports team, for instance, adds to the excitement of watching the match. In the context of skin gambling, depositing skins into a roulette game is a quick way to obtain skins of higher value or rarity, either to show off to other video gamers or for financial gain. While these examples illustrate the uniqueness of these gambling activities, they also highlight the structural similarities to traditional monetary forms of gambling (e.g., esports to sports betting; skin gambling to casino table games or EGMs; etc.), along with psychological elements (e.g., the excitement of winning, making a financial profit, etc.).

Conversely, given that esports betting is often available via regulated gambling operators, it is also feasible that people already interested in gambling could see these activities as exciting new forms of gambling to try. Research to date shows that esports bettors and skin gamblers typically participate in traditional or commercial forms of gambling, and gamble more frequently and on more activities than other types of gamblers (Gainsbury et al., 2017b; Wardle, 2019). However, the only Australian study to examine participation in traditional gambling was amongst esports bettors who bet with cash and who were sub-sampled from sports bettors (Gainsbury et al., 2017b). To our knowledge, the gambling habits of Australian skin gamblers, and whether Australian esports bettors and skin gamblers are involved in traditional gambling, remain largely unexplored. This lack of evidence, on leads us to our second research question (RQ2.): Are esports bettors and skin gamblers uniquely engaged in these types of gambling, or are they involved in other traditional forms of gambling?

Gambling-related harm and problem gambling

Decades of research into traditional gambling activities have found common risk factors which are associated with experiencing harm due to gambling include, but are not limited to being: male, young, from low socio-economic status backgrounds, impulsive and gambling with greater intensity (e.g., more activities, greater frequency, greater expenditure), as well as having an early exposure to gambling (Abbott et al., 2018; Browne et al., 2019a; Miller, 2015). Many of these factors are also associated with esports betting and skin gambling. First, these new gambling activities are popular amongst males and younger people, which both correlate highly with impulsiveness. Second, young video gamers and esports spectators are likely being exposed to these gambling products early in their development (i.e., childhood, adolescence, young adulthood), as they are primarily marketed and promoted by the presence of gambling operators’ advertising in environments they ‘frequent,’ including online streaming services (e.g., YouTube, Twitch, etc.), social influencers’ sites, social media, and esports competitions (Abarbanel & Phung,

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2019; Greer, 2018; Greer et al., 2019; Ipsos MORI and GambleAware, 2019; Johnson & Brock, 2019; King, 2018; Newzoo, 2020; Parent Zone, 2018). Last, these types of gamblers are also highly engaged in traditional forms of gambling, meaning their risk for experiencing gambling-related harm may be already elevated.

Early evidence shows a relationship between participation in video game-related gambling activities and greater gambling problems and harm (Browne et al., 2019b; Gainsbury et al., 2017b; Gainsbury et al., 2019, Rockloff et al., 2020; Wardle, 2019; Zendle, 2019). Two separate Australian population studies have found high levels of problem gambling and harm for gamblers betting on esports in the last 12 months (Browne et al., 2019b; Rockloff et al., 2020). In addition, more frequent esports betting is also associated with greater problem gambling scores in samples of Australian online gamblers (Gainsbury et al., 2019) and adults in the United Kingdom (Zendle, 2019).

While the above results suggest that esports betting is associated with gambling-harm, the main issue is that esports bettors often gamble on other activities. It is not clear to what extent esports betting uniquely contributes to harm above participation in these other gambling activities. One way to overcome this limitation is to compare the gambling harm experienced by esports bettors and/or skin gamblers against other types of gamblers not engaged in these activities. In the Australian study by Gainsbury and colleagues (2017b), esports bettors were found to gamble with greater breadth (number of activities) and intensity (frequency), and scored significantly higher for problem gambling severity (M PGSI = 9.64, SD = 6.65) than sports bettors (M PGSI = 3.44, SD = 4.90). However, as mentioned previously, this study was biased in that esports bettors were sub-sampled from a full spectrum of sports bettors, and does not provide in-depth consideration of electronic sports sub-categories (e.g., people who bet exclusively on esports, not other sports). With regards to skin gambling, only one overseas study has compared skin gambling to traditional gambling, finding that young British skin gamblers (aged 11-16 years) were at greater risk for problem gambling than ‘non-skin, but online’ gamblers in the same age group (Wardle, 2019).

To summarise, there are early indications that esports bettors and skin gamblers are more involved in traditional gambling and at risk for greater gambling harm than other types of gamblers (Gainsbury et al., 2017b; Wardle, 2019). However, further research is needed to examine the relationship between video game-related gambling and harm in an Australian sample of esports bettors and skin gamblers. This leads directly to our third research question (RQ3.): Are esports bettors and skin gamblers more likely to engage in traditional forms of gambling and at a greater risk of gambling-related harm than people only engaged in traditional forms of gambling?

The unique risk to video gamers and esports viewers

In Australia, video gaming is hugely popular, with two-thirds of the population playing video games, a participation estimate that is higher for children (5-14 years), adolescents to young adults (15-24 years), and adults 25-34 years, than older age groups (Brand et al., 2019). The culture of video gaming extends well beyond playing games. Related activities include watching video gaming content on YouTube and Twitch (e.g., game walkthroughs, following social influencers, etc.), making in-game purchases (e.g., skins, loot boxes, downloadable content, etc.), and watching esports events online or at a live event (Brand et al., 2019). As Australian video gaming youth become more deeply involved in these activities, they are potentially increasing their exposure to esports betting and skin gambling, For some, gambling on esports, or with skins, is just another strategy that allows the participant to immerse themselves more deeply into the world of video gaming. As with any other gambling activity (e.g., betting on versus only watching esports), the more engaged one is, the more likely they are to be adversely impacted by it, as more of your time, money, and emotions are invested. We now turn to a discussion about what is currently known about who engages in video gaming, esports viewing, and video game-related gambling, and how they compare to video game-related gamblers, per se.

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Demographics

There is a paucity of research that directly compares the demographic profile of Australian video gamers and esports viewers to their esports betting and skin gambling counterparts; although, there is evidence to suggest that the latter groups of gamblers have higher concentrations of younger males. The average age of the Australian adult video gamer is 34 years, with an equal gender balance of participation (Brand et al., 2019). Comparatively, Australian adult esports viewers are more heavily skewed towards males than females, but, similar to video gaming, attracts young adults 18–34 years (YouGov, 2018). In comparison, evidence suggests that esports betting and skin gambling are activities which are more likely to attract adolescent (11-16 years) and young adult (18–24 years) males (Browne et al., 2019b; Gambling Commission, 2019a; Wardle, 2019), compared to than solely playing video games or watching esports. Being young and male are two-risk factors for gambling involvement and problems (Abbott et al., 2018; Dowling et al., 2017; Miller, 2015). To date (to the author’s knowledge), how other demographic and socio-economic risk factors associated with gambling harm differ between Australian video gamers, esports viewers, and video game-related gamblers remains unexplored.

Gambling involvement, problems, and harm

The high levels of commercial gambling, gambling problems, and gambling harm seen in past research on esports bettors and skin gamblers could be due to two main pathways: 1) video gamers try these gambling activities to ‘immerse’ themselves further into the pastimes they love (watching esports, obtaining skins, etc.) and, given their youth, are more likely to try other gambling activities, subsequently experiencing issues due to gambling, or 2) gamblers already heavily engaged in gambling and experiencing harm may be drawn to try these newer gambling activities. Focusing on the first pathway of immersion in video games, one would expect that risk for gambling involvement and harm increases with greater immersion in video gaming, ranging from lower levels among video gamers and esports viewers, to higher levels for esports betting and skin gambling.

Even though video gamers don’t bet on esports, or with skins, they may still be more likely to bet on other products and experience gambling problems through the influence of: other types of video game-related gambling activities (e.g., social casino games, loot boxes, simulated non-financial gambling; Armstrong et al., 2018; King & Delfabbro, 2016); video games that generally have mechanics similar to gambling activities (King et al., 2015); and exposure to other forms of gambling via gaming (Gainsbury et al., 2015b) or social media (Gainsbury et al., 2015a). Research with adolescent and adult video gamers found a relationship between gambling participation and problem gambling, with: greater video gaming frequency (Delfabbro et al., 2009; Sanders, & Williams, 2019); gaming addiction (Karlsson, Broman, & Håkansson, 2019; Molde et al, 2019); playing social casino games (Gainsbury, Russell & Hing, 2014; Veselka et al., 2018); making microtransactions in social casino games (King et al., 2016); and purchasing loot boxes (Li, Mills, & Nower, 2019; Zendle & Cairns, 2018, 2019).

Esports viewers are likely experiencing even greater exposure to gambling content than video gamers, via the rise of gambling operators sponsoring esports teams and events (Luongo, 2020; Miceli, 2019; Newzoo, 2020; Walker, 2016). This could place such individuals in greater risk for gambling involvement and harm, but only one study has examined the relationship between watching esports, video game-related gambling, and problem gambling (Macey & Hamari, 2018). While that study found no direct effect of video gaming or watching esports on problem gambling severity (PGSI), video game-related gambling was a predictor of greater PGSI, to a greater degree than online gambling. This study indirectly supports our theory that esports betting and skin gambling are uniquely contributing to the risk for gambling involvement and harm, above that which video gamers and esports viewers are already exposed to. Research with Australian video gamers, esports viewers, and video game-related gamblers is needed to examine whether significant differences exist in their gambling involvement and, for those gambling, whether they are adversely impacted.

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Summary

As immersion in video gaming increases (i.e., playing video games, to watching esports, to betting on esports and with skins), the demographic profile of the consumer appears to skew more heavily towards males and young people—two groups that have an extant risk for gambling involvement and harm. Skin gambling on esports, or games of chance (since both are often provided by the same operators), are particularly attractive to children and adolescents, likely because skin gambling websites are unregulated and easily accessible to those under legal gambling age. Early evidence shows that esports bettors and skin gamblers are, typically, involved in traditional forms of gambling and experience high levels of gambling problems and harm. Research shows that video gamers and esports viewers are also vulnerable to gambling involvement and harm, but that this is likely to be also influenced by factors, other than betting on esports or with skins; however, to our knowledge there is no direct evidence that esports bettors, or skin gamblers, are any more heavily involved in gambling or experiencing gambling-related harm than their video gaming, or esports viewing, counterparts choosing not to engage in these newer gambling activities. This leads us to our fourth research question (RQ4.): How do the demographic characteristics of esports bettors/skin gamblers differ from esports viewers and video gamers not engaged in these video game-related gambling activities, and are esports bettors/skin gamblers more likely to gamble on traditional forms of gambling and at a heightened risk of gambling-related harm?

The gateway effect: migration from video game- related to traditional gambling

As adolescents transition into adulthood, they face many decisions on whether to engage in activities now legally available to them but, nonetheless, pose a risk to their wellbeing. Academics have posited that video game-related gambling in childhood, adolescence, and/or early adulthood may normalise gambling and act as a gateway that enables migration to commercially-available forms of gambling (Dickens and Thomas, 2016; King, 2018; King and Delfabbro, 2016; Rockloff et al., 2018; Wohl et al., 2018). Given early evidence that most esports bettors and skin gamblers participate in other forms of gambling, the question remains: which activity came first? Does early engagement in betting on esports, or with skins, act as a gateway to engagement with, and problems resulting from, other forms of gambling, or are these products simply, ‘another way to gamble’ for people who are already otherwise involved? Understandably, given the recency of appearance for these new products, and the lag in research to address this possible gateway effect, these questions remains unanswered. The only evidence comes from the latest British Youth Gambling Survey, which found 34 per cent of 11-16 year olds ‘played with in-game items’ (i.e., skin gambling or loot box opening) before they gambled with money, as opposed to 11 per cent of respondents who gambled with money first (Gambling Commission, 2019b). However, more than half (56 per cent) didn’t know, or couldn’t recall, which activity came first.

The evidence of migration between other types of video game-related gambling activities to monetary gambling may provide clues to the migration patterns between esports betting, skin gambling, and commercial forms of gambling. Social casino games (SCG) are gambling-themed games (e.g., EGMs) played via mobile applications or social media, often involving in-app purchases to progress play, but within a closed-loop economy, where money cannot be cashed out. In the last five years cross-sectional and longitudinal research on social casino games has found evidence of transition from social casino game play to monetary gambling in adolescence and adulthood (Dussault et al., 2017; Gainsbury et al., 2016; Hayer et al., 2018; Kim et al., 2017; Kim et al., 2014; King et al., 2016; Rockloff et al., 2018). Those at greater risk for transition to monetary gambling were males and younger gamers (Gainsbury et al., 2016), earlier onset of SCG play (Rockloff et al., 2018), playing SCGs more frequently (Gainsbury et al., 2016), making in-game purchases (Gainsbury et al., 2016; Kim et al., 2015), exposured to gambling advertising via these games (Hayer et al., 2018; Kim et al., 2017), and being motivated by financial gain

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(Gainsbury et al., 2016; Rockloff et al., 2018). Based on the above evidence, one might expect esports bettors and skin gamblers are more likely to migrate from these activities to traditional gambling if they are male, were younger when started gambling on these activities, gamble more frequently, and expend money or skins on gambling.

Esports skin betting could be primer for young consumers to migrate to esports cash betting—either illegally, or later, when they are of legal gambling age. Many skin gambling websites offering betting on esports or games of chance, provide the consumer with other deposit and withdrawal options than skins for betting, including money (cash, credit, online wallets, etc.), cryptocurrency, and Blockchain-based digital items that are purchased, and exchangeable, for money (Abarbanel & Macey, 2018; Greer et al., 2019). Migration between skin gambling and monetary betting on esports is also very plausible, as skin gamblers turn 18 and legal forms of esports cash betting becomes available to them. If a consumer undervalues esports skin betting as a game, and values it, instead, as a financial gambling activity, this could precipitate a move to esports cash betting. Likewise, those betting with skins on games of chance, such as roulette, slots, blackjack, and jackpots, may try monetary gambling on these games via online gambling operators or in-venue. Given the current ‘shifting availability’ of skins on third-party websites (see review by Greer et al., 2019), this marketplace disruption could prompt a migration towards monetary gambling. Finally, involvement in esports cash betting could influence a shift to monetary gambling activities, which are often provided by gambling operators alongside esports betting, such as traditional sports betting, horse or greyhound race wagering, or novelty betting.

Alternatively, it could be that people drawn to esports betting or skin gambling are those with pre-existing gambling involvement and issues. Problem gamblers generally gamble on multiple activities and these new emerging products could be just another opportunity to participate. Because new forms could act as a gateway to existing products, or could instead offer a new form of gambling to those who already gamble on traditional forms, this leads to our final research question RQ5.( ): What are the migration patterns between gambling products (e.g., esports betting, skin gambling, traditional forms of gambling) and is youth involvement in the newer gambling products a pathway to gambling in adulthood?

Conclusion

Video gaming is very popular amongst children, adolescents, and young adult Australians (18–34 years), much more so than those aged mid-30s or above. The emergence of opportunities to gamble on competitive video game events (esports) and with video game items (skins) has, justifiably, raised questions as to whether this early exposure to gambling places young, vulnerable people at risk for gambling involvement and harm. Yet, little is known about esports betting, and even less about skin gambling. A picture is starting to emerge that esports bettors and skin gamblers are principally young and male, highly engaged in other forms of gambling, harmed by their gambling (e.g., financially), and at risk for gambling problems (as a mental health condition). Skin gambling on esports, or games of chance may appeal more to adolescents under the legal gambling age (<18 years) than monetary betting on esports, attributable to skins and skin gambling being more easily accessible to them. However, little else is known of the other characteristics of esports bettors, even less about skin gamblers, and whether these demographic factors place them at even greater risk for gambling harm than other types of gamblers.

The high levels of engagement in commercial gambling, gambling problems, and gambling harm seen in past research on esports bettors and skin gamblers could be due to two main pathways: 1) video gamers may try these gambling activities to ‘immerse’ themselves further into the pastimes they love (watching esports, obtaining skins) and, given their youth, are more vulnerable to trying other gambling activities and, subsequently, start experiencing issues due to gambling, or 2) gamblers already engaged heavily in gambling and are experiencing harm may be drawn to try these newer gambling activities. The first pathway highlights how early exposure to esports betting or skin gambling could normalise gambling and act as a “gateway” to traditional gambling, as has been found for other

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video game-related gambling activities (e.g., loot boxes, social casino games). Research is required to examine who the ‘typical’ esports bettors and skin gamblers are, in terms of demographics, gambling behaviours, migration between video game-related and traditional gambling, and how much gambling harm can truly be attributed to these newer gambling products.

The current study

To determine whether video game-related gamblers are unique in their demographic composition and gambling behaviours, this research compared these gamblers with those not engaged in these gambling activities. Groups of interest for comparison included traditional gamblers (i.e., sports bettors) and those likely exposed to the potential for esports betting or skin gambling, but do not participate in it (i.e., video gamers, esports viewers).

To address the gaps in knowledge the current study aimed to answer five research questions: • RQ1. What are the demographic characteristics and gambling behaviours esports bettors and skin gamblers? • RQ2. Are esports bettors and skin gamblers uniquely engaged in these types of gambling, or are they involved in other traditional forms of gambling? • RQ3. Are esports bettors and skin gamblers more likely to engage in traditional forms of gambling and at a greater risk of gambling-related harm than people only engaged in traditional forms of gambling? • RQ4. How do the demographic characteristics of esports bettors/skin gamblers differ from esports viewers and video gamers not engaged in these video game-related gambling activities, and are esports bettors/skin gamblers more likely to gamble on traditional forms of gambling and at a heightened risk of gambling-related harm? • RQ5. What are the migration patterns between gambling products (e.g., esports betting, skin gambling, traditional forms of gambling) and is youth involvement in the newer gambling products a pathway to gambling in adulthood?

To allow comparisons between groups for Research Questions 3 and 4, the present study was conducted with 1716 Australian adults, sampled across independent groups of esports bettors and skin gamblers (n = 744), sports bettors (n = 300), esports viewers (n = 400), and video gamers (n = 343). To address the research questions, data was collected on their demographic characteristics, gambling behaviours, problem gambling severity, and gambling-related harm (see Methods section)

This research may provide valuable understanding of esports betting, and the related skin gambling products, and the impacts these products have on gambling involvement and harm. The findings have the potential to inform directions for the future of esports betting and skin gambling, including further research, harm minimisation strategies, and reviewing gambling regulation.

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Methods

Design and procedure

Recruitment

Data was collected via an online survey, conducted on the Qualtrics survey platform, between 10th May and 6th July 2019. Informed consent was obtained before the start of the survey, after respondents were provided with an information sheet outlining the research. See Appendix A for the information sheet. Non-consenting respondents were excluded from the survey (n = 842).

Participants were recruited via two sources: 1) a Qualtrics online research panel, and 2) via social media (detailed below). Qualtrics does not operate any panels of research participants and, instead, recruits participants for research by working with operators of existing online research panels. The exact compensation per participant was not disclosed to the research team, but it was in line with general online survey reimbursement amounts. The email invitation from Qualtrics to participate in the survey was generic with no mention of the survey topic. The recruitment via social media was conducted by the research team to gain additional esports bettors and esports viewers, who invited people to participate in the survey by clicking on the survey hyperlink provided. Online social media targeted included pages or groups on video gaming, esports, and esports betting via Facebook, Twitter, and Reddit. Participants recruited via social media were compensated with a $10 electronic shopping voucher for completing the survey, sent via email. The social recruitment text stated the researchers were seeking Australians 18+ years who were regular esports bettors or esports viewers.

Sampling criteria

The sample was screened at the beginning of the survey to meet criteria of being an Australian adult, aged 18+ years, and falling into one of 6 target groups: • Esports bettors/skin gamblers (EB/SG) - Esports cash bettors – in the last 12 months, bet at least fortnightly (regularly) on esports using money, which included debit, credit, or cryptocurrency. - Esports skin bettors – in the last 12 months, have bet on esports with skins or skin deposits. - Skin gamblers – in the last 12 months, have used skins or skin deposits to bet on games of chance (e.g., roulette, slots, jackpots). • Sports bettors (SB) - In the last 12 months, bet on sports at least fortnightly (regularly), but have not bet on esports with money or skins, or used skins to bet on games of chance. • Esports viewers (EV) - In the last 12 months, watched esports at least fortnightly (regularly), but have not bet on esports with money or skins, or used skins to bet on games of chance.

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• Video gamers (VG) - In the last 12 months, played video games at least fortnightly (regularly), but have not bet on esports with money or skins, used skins to bet on games of chance, or watched esports. At least one video game, played regularly, must also be an esport. For example, the participant played Overwatch regularly which is played professionally (is as an esport game). Whereas, popular puzzle games such as Candy Crush Saga are not played professionally (not an esport game).

The sampled groups were selected to address specific research questions. Esports bettors/skin gamblers (EB/ SGs) were the primary group of interest for all five research questions. Taking into consideration the expected low prevalence of EB/SGs in the Australian population, and that participation in the three activities (i.e., esports cash betting, esports skin gambling, and skin gambling on games of chance games) would most likely overlap considerably, people partaking in these activities were sampled as one group. Moreover, by definition all ES/ SG respondents engaged in video game-related gambling, which made the single grouping logical and natural. Frequent esports cash bettors (at least fortnightly betting) were sampled into this group for direct comparison with groups engaged, with the same frequency, on other related activities (esports viewing, video gaming, sports betting). The inclusion criteria for esports skin bettors and skin gamblers was widened to the last 12 months, due to changes to the availability of CSGO skins for gambling in March 2018 (Valve Corporation, 2018) and June 2018 (OPSkins, 2018) which affected the operation of skin betting websites (i.e., shutting down, skins taking longer to deposit/withdraw), which in turn may have impacted frequency of skin gambling. For a review of these changes see Greer and colleagues paper (2019).

RQ3 investigated whether EB/SGs were more likely to be involved in traditional forms of gambling and at greater risk to experience gambling problems and harm than people only engaged in traditional forms of gambling. Regular (at least fortnightly) sports bettors (SBs), who don’t bet on esports or with skins, were sampled as the ‘traditional forms of gambling’ comparison group. Sports bettors were selected, as sports betting is the most analogous gambling activity to esports betting, due to its focus on ‘sports’.

RQ4 aims to determine whether EB/SGs are different (in respect to demographics, traditional gambling involvement, and their risk for gambling harm) from two populations, who are most likely exposed to esports betting and/or skin gambling, but have chosen not to participate in these activities: esports viewers (EV) and video gamers (VG). Our selected EV and VG participated regularly (at least fortnightly) in their namesake activities and were sampled to be mutually exclusive to each other, such that VGs must have not watched esports and EVs must not have played video games regularly in the past year. The two groups were selected as they are considered, by different ‘degrees,’ to be removed from esports bettors/skin gamblers—the expected progression towards video game-related gambling would be from: video gaming to esports viewing to esports betting (cash or skins), or video gaming to skin gambling (esports or skins).

Data quality checks

Qualtrics employed deduplication methods to ensure that the same people were not recruited from their multiple panels. The CQU recruited sample was also checked for duplicates by Qualtrics with their panel sample and no duplicates were identified. The CQU research team deduplicated the social media recruited sample (based on IP address and demographic questions), identifying and removing n = 59 duplicate participants. A speed check was also implemented by Qualtrics to exclude respondents who completed the survey in less than 240 seconds (four minutes). One respondent was excluded based on this check.

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Sampling outcomes and response rates

The sampling outcomes are shown in Table 1, below. Of the 7344 respondents starting the survey, the achievement rate of eligible participants competing it was 23.4 per cent. The largest reason for non-response was being screened out for not meeting criteria participation in activities for any of the six target sample groups (49.9 per cent).

Table 1. Sample outcomes and response rate

Outcome N % total

Complete 1716 23.4 Screened out Ineligible activity 3666 49.9 Ineligible age 132 1.8 Ineligible consent 842 11.5 Ineligible country 307 4.2 Quota full 35 0.5 Incomplete 543 7.4 Removed after data clean Duplicate case 59 0.8 Ineligible activity 10 0.1 Poor data quality 34 0.5 Total 7344 100

Ethics

Approval was obtained from CQUniversity’s Human Research Ethics Committee (HREC clearance number: 0000021504). As a requirement of this ethics approval, respondents were presented with the phone numbers and websites for Gambler’s Help and Lifeline counselling services, were informed that these services are free and confidential, and that they operate 24 hours a day, seven days a week. The National Debt Helpline phone number and website was also provided, stating this as a free and confidential service available 9.30 am – 4.30 pm Monday–Friday.

Participants

The final total of valid completes was 1716 participants. The distribution by quota group and recruitment method is summarised in Table 2. Of the total, 43.4 per cent were esports bettors/skin gamblers, 17.5 per cent sports bettors, 23.3 per cent esports viewers, and 20.0 per cent video gamers. Of the 1716 participants, 1147 (66.8 per cent) were male and 569 (33.2 per cent) were female. Ages ranged between 18 and 77 years (M = 34.2, SD = 11.7, median = 31.0).

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Of the 1470 participants (85.7 per cent of total) who gambled on at least one activity in the last 12 months, the distribution by problem gambling status (PGSI) was: non-problem gambler (n = 357, 24.3 per cent), low-risk gambler (n = 237, 16.1 per cent), moderate-risk gambler (n = 258, 17.6 per cent), and problem gambler (n = 618, 42.0 per cent).

Table 2. Final sample size by quota group

Quota Group Description Qualtrics Social Total panel media

n n N %

Esports bettors/skin gamblers 744 43.4

Esports cash bettors Bet on esports with cash, at least 252 238 490 28.6 fortnightly Esports skin bettors Bet on esports with skins, at least 420 236 656 38.2 yearly Skin gamblers Bet on games of chance with skins, 429 111 540 31.5 at least yearly Sports bettors Bet on sports at least fortnightly, but 300 300 17.5 don’t bet on esports or with skins Esports viewers Watch esports at least fortnightly, 218 182 400 23.3 but don’t bet on esports or with skins Video gamers Play video games at least fortnightly 343 343 20.0 which are esports, but don’t bet on or watch esports Total 1296 420 1716 100

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Measures

The survey measures are detailed in Appendix A and are summarised in Table 3, below, as data relates to each research question.5

Table 3. Questionnaire sections by research question

Questionnaire Section Screening RQ1 RQ2 RQ3 RQ4 RQ5

Socio- demographics ✔ ✔ ✔

Esports consumption ✔

Video gaming ✔

Esports cash betting ✔ ✔ ✔

Esports skin betting ✔ ✔ ✔

Skin gambling (games of chance) ✔ ✔ ✔

Traditional gambling ✔ ✔ ✔ ✔ ✔

Problem gambling ✔ ✔

Gambling-related harms ✔ ✔

Socio-demographics

Socio-demographic characteristics collected included: age, gender, main language spoken at home, country of residence, residential state/territory and postcode, marital status, highest level of education completed, employment status, and annual personal income.

Esports consumption

Two types of esports consumption were collected: watching esports (viewership) and competitive play (playing). Measures collected separately for esports viewership and esports playing included: frequency of watching or playing esports in the last 12 months (at least weekly, at least fortnightly, at least monthly, not monthly but within the last 12 months, more than 12 months ago, never), age first participated in activity (years), esports (by name) watched in the last 12 months, and types of esports ever played (professional player for a financial prize, amateur player for a financial prize, player in a friendly tournament for no financial prize).

5 Some questionnaire content shown in Appendix A is not reported on, as data do not directly answer the stated research questions.

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Video gaming

Video gaming measures included: frequency of video gaming in the last 12 months by genre (at least weekly, at least fortnightly, at least monthly, not monthly but within the last 12 months, more than 12 months ago, never), age first participated in activity (years), video games played (by name) in the last 12 months, duration of video game play (typical day), and mode of play by device. Additional measures were collected on awareness and purchasing of skin and loot boxes, and whether they had a Steam account. This data was not reported on in relation to the research questions, but rather used as an additional verification check of a participants use of skins for gambling.

Gambling behaviour

Video game-related gambling

Three types of ‘video game-related gambling’ activities were measured: 1) esports cash betting, defined as using money (debit, credit, or cryptocurrency) to bet on esports, 2) esports skin betting, defined as using skins or skin deposits to bet on esports, and 3) skin gambling, defined as using skins or skin deposits to bet on games of chance (e.g., roulette, jackpot, coinflip). Skins were defined as ‘virtual game items or other tradeable items’ and participants were instructed this excluded loot box purchases. To verify legitimate participation in esports cash betting, esports skin betting, and skin gambling activities data was collected on esports (by name) bet on, betting provider used (by name), types of games of chance bet on, and methods used to be on esports with money/skins (phone call, online, mobile app, other-specify).

Gambling behaviour measures for all three video game-related gambling activities included: frequency of gambling in the last 12 months (at least weekly, at least fortnightly, at least monthly, not monthly but within the last 12 months, more than 12 months ago, never), age first participated in activity (years), for at least monthly participation the gambling expenditure ($) in the last four weeks.

Traditional gambling

Esports betting and skin gambling are emerging gambling activities, in that they have only been available to Australians in the last decade. In contrast, we measured participation in twelve ‘traditional gambling’ activities which have been available to consumers for a longer period of time. The list of traditional gambling activities was designed in line with the Victorian Population Gambling and Health Study 2018–-2019 (Rockloff et al., 2020). Traditional gambling activities included: 1) sports betting, 2) private betting for money (e.g., playing cards at home), 3) slot machines, pokies, or electronic gaming machines, 4) casino table games (e.g., blackjack, roulette, poker), 5) horse or greyhound racing – but not sweeps, 6) fantasy sports, 7) keno, 8) Australian lotteries, such as Tattslotto, Oz Lotto, Powerball or Pools, 9) scratch tickets, 10) bingo, 11) prize-draw competitions by phone where there was a phone-charge for entry, and 12) raffle tickets, sweeper, or other competitions.

Measures for all traditional gambling activities included: frequency of gambling in the last 12 months (at least weekly, at least fortnightly, at least monthly, not monthly but within the last 12 months, more than 12 months ago, never), age first participated in activity (years), for at least monthly participation the gambling expenditure ($) in the last four weeks.

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Problem gambling

Problem gambling was measured using the Problem Gambling Severity Index (PGSI: Ferris & Wynne, 2001). A total score between 0-27 was calculated by summing together all responses to the nine-items of the PGSI, and level of problem gambling severity coded into categories by risk (0 = no problems, 1-2 = low risk, 3-7 = moderate risk, 8+ problem).

Gambling-related harm

To assess harm as a result of gambling, all last-year gamblers were asked the Short Gambling Harm Screen (SGHS; Browne, Goodwin, and Rockloff, 2018). The SGHS is a 10-item screening tool developed to assess the degree of harm caused by gambling, which is distinguishable from problem gambling, which is defined as a mental health condition. The 10 gambling-related harm items cover financial, emotional/psychological, and relationship domains, the participant answering dichotomously no (0) or yes (1) to each harm item. SGHS scores is calculated by summing together the 10 items and totals range from 0-10 harms.

Data analyses

The three overlapping sample groups of esports cash bettors, esports skin bettors, and skin gamblers (games of chance) were compared on key variables prior to conducting the data analysis for the five research questions. As expected, the three groups overlapped considerably in their participation in esports cash betting (ECB), esports skin betting (ESB), and skin gambling on games of chance (SG; see Figure 1 in the results section). The overlap of ECB, ESB, and SG participants was reflected in minimal variation found between the three groups on variables identified for data analyses: demographics (RQ1, RQ3), participation in traditional forms of gambling (RQ2, RQ3, RQ4), and problem gambling severity and gambling-related harms (both RQ3, RQ4). Given this finding ECBs, ESBs, and SGs were combined for data analyses into one group of 744 ‘esports bettors/skin gamblers’ (EB/SG). Most importantly, and by definition, EB/SGs were ‘video game-related gamblers’, whereas people in the other groups are not.

PGSI score. We did a log transformation of PGSI to reduce the positive skew. We ran regression analyses on both the untransformed and transformed PGSI variables for RQ3, RQ4, and RQ5, and found that model fit was better with the log-transformed version, so have used that version of analyses.

RQ1. Descriptive analyses were conducted to report EB/SGs demographic characteristics, frequency of video game-related gambling (esports betting and skin gambling), types of esports bet on with cash and skins, and types of game of chance bet on with skins.

RQ2. EB/SGs’ gambling participation in other forms of traditional gambling was reported using descriptive analyses for twelve gambling activities (see Appendix A) for: last 12 months participation (per cent yes), average number participated in over the last 12 months, gambling frequency, and gambling expenditure.

RQ3. Independent t-tests and chi-square tests were used to compare differences between EB/SG and sports bettors (SBs) on age, gender, number of gambling activities involved in, PGSI, and SGHS. Simple linear regressions were employed to compare EB/SGs (0) with sports bettors (1) on outcome measures of: number of traditional gambling activities, problem gambling severity score (PSGI log transformation), and gambling-related harm (Short Gambling Harm Screen, SGHS). Age (years) and gender (0 = male, 1 = female) were entered into the

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regression as covariates to control for any age/gender differences between EB/SGs and SBs contributing to the outcome measures.

RQ4. Independent t-tests and chi-square tests were used to compare differences between EB/SG to two groups who don’t bet on esports/with skins, esports viewers (EV) and video gamers (VG), on demographic characteristics, number of traditional gambling activities involved in, PGSI, and SGHS. As per RQ3, simple linear regressions were run to compare EB/SGs on gambling participation (number of traditional gambling activities), problem gambling severity score (PSGI log transformation), and gambling-related harm (SGHS) to EVs and VGs. Two dummy variables were created as independent variables for analyses: 1) EB/SG (0) versus EV (1), and 2) EB/SG (0) versus VG (1). Age (years) and gender (0 = male, 1 = female) were entered into the regression as covariates to control for any age/gender differences between groups contributing to the outcome measures.

RQ5. The age of first participation for all 15 gambling activities was assessed to identify EB/SGs’ timeline of gambling (by average age and, separately, by underage, <18 years or legal age,18+ years status), and migration between video gaming-related (ECB, ESB, SG) and traditional gambling activities (TG). Descriptive analyses reported on average age of first participation for all activities, gambling onset in youth (under 18 years) versus adulthood (18 years or over), and migration patterns of ECB, ESB, and SG, relative to first participation in any traditional gambling activity (that is, EB/SG occurring before, in the same year, or after TG). Lastly, the influence of youth involvement in ECB, ESB, or SG (< 18 years, 18+ years) as a pathway to adult gambling was examined via independent t-tests with three outcome measures: number of traditional gambling activities, PSGI score (log transformation), and gambling-related harm score (SGHS).

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Results

Demographic characteristics

The demographic characteristics of the independent samples of esports bettors skin gamblers, sports bettors, esports viewers, and video gamers are shown in Table 4. Significant differences in demographic characteristics between esports bettors/skin gamblers compared to the three comparison groups are flagged in Table 4 with (*) for denoting chi-square and (^) independent t-tests where p < .05 level of significance. Descriptive analyses of demographic characteristics are presented in subsequent sections, as they address each research question. Appendix B shows the demographic characteristics of participants, separately, for the three sampled groups for newer forms of gambling products (n = 744): esports cash bettors, esports skin bettors, and skin gamblers (games of chance).

Table 4. Demographic characteristics for esports bettors/skin gamblers, sports bettors, esports viewers, and video gamers

Demographic Esports bettors/ Sports bettors Esports viewers Video gamers characteristic skin gamblers (n = 300) (n = 400) (n = 343) (n = 744)

N % n % n % n %

Age 18-24 years 172 23.1 11 3.7* 165 41.3* 67 19.5* 25-34 years 340 45.7 46 15.3* 158 39.5* 80 23.3* 35-44 years 139 18.7 88 29.3* 54 13.5* 88 25.7* 45-54 years 76 10.2 108 36.0* 15 3.8* 69 20.1* 55-64 years 13 1.7 38 12.7* 7 1.8 32 9.3* 65+ years 4 0.5 9 3.0* 1 0.3 7 2.0* Mean age (SD) 32.02 (9.57) 44.53 (10.83)^ 28.42 (8.85)^ 37.91 (12.97)^ Gender Male 500 67.2 254 84.7* 278 69.5 177 51.6* Female 244 32.8 46 15.3* 122 30.5 166 48.4* Residential State / Territory New South Wales 253 34.0 91 30.3 131 32.8 96 28.0* Victoria 188 25.3 95 31.7* 114 28.5 98 28.6 Queensland 111 14.9 56 18.7 66 16.5 59 17.2 South Australia 93 12.5 25 8.3 34 8.5 39 11.4 Western Australia 64 8.6 20 6.7 38 9.5 39 11.4 Tasmania 8 1.1 7 2.3 7 1.8 8 2.3

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Demographic Esports bettors/ Sports bettors Esports viewers Video gamers characteristic skin gamblers (n = 300) (n = 400) (n = 343) (n = 744)

N % n % n % n %

Australian Capital Territory 24 3.2 5 1.7 6 1.5 2 0.6* Northern Territory 3 0.4 1 0.3 4 1.0 2 0.6 Marital Status Single / never married 249 33.5 86 28.7 203 50.8* 142 41.4* Living with partner/ de facto 120 16.1 41 13.7 60 15.0 63 18.4 Married 350 47.0 147 49.0 128 32.0* 117 34.1* Divorced / separated 23 3.1 24 8.0* 7 1.8 20 5.8* Widowed 2 0.3 2 0.7 2 0.5 1 0.3 Main language spoken at home, other than English Yes 165 22.2 34 11.3* 76 19.0 57 16.6* No 579 77.8 266 88.7* 324 81.0 286 83.4* Education Level No education 4 0.5 0 0.0 0 0.0 2 0.6 Primary education 15 2.0 3 1.0 2 0.5* 5 1.5 Secondary education 142 19.1 103 34.3* 120 30.0* 114 33.2* Post-secondary / tertiary 163 21.9 88 29.3* 112 28.0* 114 33.2* education Bachelors / Masters / Doctoral 420 56.5 106 35.3* 166 41.5* 108 31.5* degree Employment status Employed - full-time 509 68.4 185 61.7* 211 52.8* 131 38.2* Employed - part-time or casually 161 21.6 48 16.0* 91 22.8 90 26.2 Unemployed 74 9.9 67 22.3* 98 24.5* 122 35.6* Annual personal income Negative or nil 16 2.2 3 1.0 23 5.8* 11 3.2 $1 - $20,799 94 12.6 29 9.7 70 17.5* 86 25.1* $20,800 - $41,599 141 19.0 42 14.0 110 27.5* 69 20.1 $41,600 - $77,999 227 30.5 87 29.0 99 24.8* 77 22.4* $78,000 - $155,999 226 30.4 94 31.3 59 14.8* 56 16.3* $156,000 or more 13 1.7 16 5.3* 8 2.0 11 3.2 Prefer not to say 27 3.6 29 9.7* 31 7.8* 33 9.6*

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RQ1. What are the demographic characteristics and gambling behaviours of esports bettors and skin gamblers?

Demographic characteristics

Demographically, the sample of esports bettors/skin gamblers (EB/SG) were mainly characterised as being relatively young (M = 32.02 years, SD = 9.57), male (67.2 per cent), in a relationship (married or partner/de facto), highly educated, employed (full-time or casually), and had a middle to higher range of personal income. A full description of the demographic characteristics of EB/SG is shown in Table 4. The demographic characteristics of esports bettors/skin gamblers are compared in later sections of the report with sports bettors (see RQ3 section), video gamers, and esports viewers (see RQ3 section).

Gambling behaviours

Esports betting and skin gambling

As shown in Figure 1, amongst esports bettors/skin gamblers (EB/SG) participation in newer gambling activities overlapped considerably, with 41.5 per cent engaging in all three activities: esports cash betting (ECB), esports skin betting (ESB), and skin gambling on games of chance (SG). Just under one-fifth (23.8 per cent) of the EB/SG sample only used skins for gambling on both esports and games of chance and 18.5 per cent of participants were regular (at least fortnightly) esports cash bettors, who also used skins to bet on esports.

Figure 1. Overlap of esports cash betting (ECB), esports skin betting (ESB), and skin gambling on games of chance (SG) participation (base: esports bettors/skin gamblers, n = 744)

ESB (at least yearly) ECB (at least only ECB (at least fortnightly) fortnightly) only 4.3% & SG (at least yearly) 4.6% 1.2%

SG (at least yearly) only 6.0%

ECB (at least fortnightly), ESB (at least yearly), & ECB (at least SG (at least yearly) fortnightly) & ESB 41.5% (at least yearly) 18.5%

ESB (at least yearly) & SG (at least yearly) 23.8%

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Figure 2 shows the frequency of esports betting and skin gambling in the last 12 months. Monetary betting on esports was the activity most frequently engaged in, with 65.9 per cent betting at least fortnightly. By frequency, the highest proportions of EB/SGs used skins at least fortnightly to bet on esports (57.5 per cent) or games of chance (41.1 per cent). Esports cash betting and esports skin betting were much more common than skin gambling on games of chance, with over 90 per cent of EB/SGs having used either cash (95.3 per cent) or skins (91.3 per cent) to bet on esports in their lifetime, compared to 78.2 per cent having ever used skins to bet on games of chance.

Figure 2. Esports bettors/skin gamblers’ last 12 month frequency for esports cash betting, esports skin betting, and skin gambling (games of chance) (base: esports bettors/skin gamblers, n = 744)

2.7% Esports cash betting 4.7% 12.0% 14.8% 65.9%

Esports skin betting 8.7% 3.1% 14.0% 16.7% 57.5%

Skin gambling 21.8% 5.6% 14.5% 16.9% 41.1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Never More than 12 months ago At least yearly At least monthly At least fortnightly

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Esports bet on

A wide range of esports were bet on, with similar trends shown for the esports games bet on with in-game items (skins) versus money (see Figure 3). The most common esports games bet on fell into three genres: sports (e.g., FIFA), first- or third-person shooter games (e.g., Call of Duty, Counter-Strike, Fortnite), and multiplayer online battle arena (e.g., League of Legends).

Figure 3. Types of esports bet on in the last 12 months, as a percentage of esports cash bettors and esports skin bettors (base: esports bettors/skin gamblers, n=744)

FIFA series 39.8% 36.1%

Call of Duty series 33.6% 33.4%

Counter-Strike series 30.5% 32.8%

League of Legends 29.9% 29.4%

Fortnite 26.6% 28.0%

Defense of the Ancients (DOTA) 19.0% 19.8%

Rocket League 16.3% 15.4%

Player Unknown’s Battlegrounds (PUBG) 16.1% 16.0%

Hearthstone 15.7% 17.1%

Overwatch 13.5% 11.3%

Starcraft series 10.8% 10.2%

Other esports game 1.0% 0.8%

0% 10% 20% 30% 40% 50% Esports cash bettor - last 12 months (n=688) Esports skin bettor - last 12 months (n=655)

Games of chance bet on with skins

As shown in Figure 4, the four top games bet on with skins resembled casino table games (roulette, blackjack), jackpot draws, and EGMs (i.e., pokies or slots). Other games bet on approximated other traditional gambling activities, including cards, coinflip, and dice. Some other chance-based games bet on, however, were unique to skin gambling websites. These included ‘crash’ and ‘mine’ games, where the player strategically chooses to end the game with a winning outcome, withdrawing before the game ‘crashes’ or they land on a mine. Case openings are similar to loot boxes, in that the player purchases a virtual item (the case) which, when opened, contains randomly-drawn in-game items (skins). The trade-up game involves the player placing a stake to win their selected skin, often one of relative rarity and, therefore, a greater monetary value.

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Figure 4. Types of games of chance bet on with skins, in the last 12 months (base: skin gamblers, n = 540)

Roulette 34.8%

Jackpot 34.4%

Blackjack 30.4%

Slots 28.3%

Cards 23.7%

Coinflip 20.6%

Crash game 20.4%

Dice 19.8%

Case opening 17.2%

Mines 15.0%

Tradeup 7.6%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Skin gambler last 12 months (n=540)

RQ2. Are esports bettors and skin gamblers uniquely engaged in these types of gambling, or are they involved in other traditional forms of gambling?

Participation in traditional forms of gambling

Almost all esports bettors/skin gamblers (EB/SG) are not uniquely engaged in video game-related gambling activities, with most (97.8 per cent) spending money on at least one traditional gambling activity in the last 12 months (see Figure 5). Engagement in traditional sports betting occurred for 9-in-10 of EB/SG, twofold the numbers also gambling on EGMs, and casino table games. On average, EB/SG engaged in 2.9 traditional gambling activities (SD = 2.2). A breakdown of participation in traditional gambling activities for the three sub-groups of esports cash bettors, esports skin bettors, and skin gamblers is shown in Appendix C.

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Figure 5. Proportion of esports bettors/skin gamblers participating in traditional gambling activities in the last 12 months (Base: Esports bettors/skin gamblers, n = 744)

At least one traditional gambling activity 97.8%

Sports betting 93.0%

Slot machines, pokies, or EGMs 46.0%

Casino table games 41.0%

Australian lotteries 34.7%

Private betting for money 34.4%

Scratch tickets 32.9%

Horse or greyhound racing 25.1%

Keno 20.6%

Bingo 16.9%

Raffle tickets, sweeper, other comps 16.3%

Fantasy sports 12.5%

Prize-draw competition by phone 9.0%

0% 20% 40% 60% 80% 100%

Gambling frequency

Participation in traditional gambling activities by EB/SGs usually not just a ‘one-off’ yearly event, since EB/SGs engaged frequently (at least fortnightly) in many activities. Sports betting was engaged just as regularly (69.6 per cent at least fortnightly) as esports cash betting (65.9 per cent) and more often than skin gambling on esports (57.5 per cent) or games of chance (41.1 per cent). Just over 1 in 5 EB/SG played EGMs regularly (27.0 per cent), and 1 in 4 (around 20 per cent) regularly played casino table games, Australian lotteries, private betting for money, scratch tickets, and bingo. The frequency of gambling on both newer and traditional gambling activities for EB/SG is shown in Appendix D.

Gambling expenditure

The last month’s expenditure was asked for all gambling activities that EB/SGs participated in ‘at least monthly,’ and results are displayed in Figure 6. On average, monthly expenditure was the greatest for sports betting and casino table games. Average expenditure on esports cash betting was similar to that for horse/greyhound race wagering. The monetary value of skins bet on esports was similar to spend on private betting, and skins on games of chance equivalent to expenditure on EGMs.

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Figure 6. Average expenditure (last month) on gambling activities for esports bettors/skin gamblers (base: esports bettors/skin gamblers, n = 744)

Sports betting $194.96

Casino table games $186.13

Horse or greyhound racing $167.68

Esports cash betting $163.03

Private betting for money $142.67

Esports skin betting $139.86

Slot machines, pokies, or EGMs $132.95

Skin gambling $130.44

Fantasy sports $101.22

Prize-draw competitions $78.05

Scratch tickets $68.76

Keno $68.21

Bingo $62.77

Australian lotteries $60.48

Raffle tickets, sweeper, other comps $59.27

$0 $50 $100 $150 $200

RQ3. Are esports bettors and skin gamblers more likely to engage in traditional forms of gambling and at a greater risk of gambling-related harm than people only engaged in traditional forms of gambling?

The risks of video game-related gambling, relative to gambling on traditional forms, were assessed by comparing the gambling behaviours, problem gambling, and gambling-related harms experienced by esports bettors/skin gamblers (EB/SG) to regular (at least fortnightly) sports bettors (SB) who do not bet on esports or with skins.

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Gambling participation

Number of traditional gambling activities

While esports bettors/skin gamblers were highly engaged in tra onal forms of gambling in the last 12 months, on average, they participated in fewer of these gambling activities (M = 2.94, SD = 2.22) than sports bettors (M = 4.17, SD = 2.32), t(531) = -7.85, p < .001. However, differences in age and gender between the groups may partially account for this finding. EB/SGs were significantly youngerM ( = 32.02 years, SD = 9.57) than sports bettors (M = 44.53 years, SD = 10.83), and sports bettors were more likely to be male (84.7 per cent) than EB/SGs (67.2 per cent; see Table 4).

In order to better account for the potential confounds in the analysis, a linear regression was run to determine whether being an EB/SG, versus being a SB, uniquely contributes to the number of traditional gambling activities engaged in (of a total of 12 activities), independent of age or gender (see Table 5). The results showed gambler type, age, and gender explained 11.5 per cent of the variance in the number of traditional gambling activities engaged in. Being a sports bettor, older, and female were predictive of participation in a greater number of traditional gambling activities. Thus, EB/SGs were not demonstrably more involved in traditional gambling than sports bettors, but rather less involved.

Table 5. Linear regression for predictors of number traditional gambling activities (scale) – gambler type, age, gender

Outcome B (SE) Beta t Cor. sr²

Gambler type 0.747 (0.174) 0.146 4.301*** 0.241*** 1.57% (0 = EB/SG, 1 = SB) Age in years (scale) 0.048 (0.007) 0.236 7.023*** 0.296*** 4.20% Gender 0.652 (0.153) 0.126 4.258*** 0.077* 1.54% (0 = Male, 1 = Female) Obs. 1044 SUM 7.32% R² 11.5% Adj. R² 11.2% Resid. SE 2.181 F Statistic (df = 3; 1040) 44.918***

Notes: *p < .05; **p < .01; ***p < .001; Cor = Pearson correlation, 2-tailed; EB/SG = esports bettor/skin gambler; SB = sports bettor; B = unstandardized coefficient; SE = standard error; Beta = standardized coefficient, sr² = squared semi-partial correlation coefficient; t= independent t-test statistic.

Gambling frequency

The frequency of gambling on traditional gambling activities for the two groups is shown in Appendix D. Chi- square tests were run to determine which group of bettors (esports bettors/skin gamblers or sports bettors) were more likely to participate in traditional gambling activities regularly (at least fortnightly) versus less regularly (less than fortnightly). As shown in Figure 7 a significantly greater number of EB/SGs engaged in frequent gambling on several traditional gambling activities than sports bettors, including private betting for money (20.3 per cent for

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EB/SG vs 3.3 per cent for SB), EGMs (27.0 per cent for EB/SG vs 12.7 per cent for SB), and casino table games (21.2 per cent for EB/SG vs 3.0 per cent for SB). A high proportion of EB/SGs bet on sports regularly (69.6 per cent), although still significantly less than the recruited regular sports bettors (100 per cent, by definition). Sports bettors, in turn, were more likely than EB/SGs to engage in regular horse/greyhound race wagering (45.7 per cent SB vs 15.2 per cent EB/SG) and spending money on Australian lotteries (43.3 per cent for SB vs 23.3 per cent for EB/SG).

Figure 7. Comparison of ‘at least fortnightly’ for gambling activities by sample group: esports bettors/skin gamblers (n = 744) versus sports bettors (n = 300)

Sports betting 69.6% 100.0%*** Slot machines, pokies, or EGMs 27.0%*** 12.7%

Australian lotteries 23.3% 43.3%***

Casino table games 21.2%*** 3.0%

Private betting for money 20.3%*** 3.3% Esports bettor/skin gambler (n=744) Scratch tickets 19.4% 16.7% Sports bettor (n=300) Bingo 19.1% 16.7%

Gambling activity Horse or greyhound racing 15.2% 45.7%***

Keno 12.0% 8.7%

Fantasy sports 8.6% 5.3%

Raffle tickets, sweeper, other comps 6.9% 6.0%

Prize-draw competition by phone 5.2%* 2.0%

0% 20% 40% 60% 80% 100% Pearson chi-square, 2-sided sign. = *p < .05; **p < .01; ***p < .001. Percentage of total 'at least fortnightly' gambling on activity in the last 12 months

Gambling expenditure

Average gambling expenditure in the last month is summarised in Appendix E. Although the majority of EB/SGs engaged in sports betting, their monthly expenditure on sports betting was significantly lower M( = $194.96, SD = 487.48) than sports bettors (M = $342.10, SD = 1170.27), t(349) = -2.09, p = .037. Monthly expenditure on private betting and fantasy sports was, on average, greater for EB/SGs than sports bettors, however, the sample sizes for sport bettors were low (n < 25) and, therefore, the interpretation of this finding should be taken with caution.

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Gambling problems

Levels of problem gambling were compared between esports bettors/skin gamblers (EB/SGs) and sports bettors using the Problem Gambling Severity Index (PGSI: Ferris & Wynne, 2001). Table 6 shows PGSI score and category by sample group. On average, PGSI score was significantly higher for EB/SGs than sports bettors, t(698.87) = 17.46, p < .001. Meeting criteria for being a problem gambler (score 8+) was significantly greater for EB/ SGs than sports bettors, χ² (3, 1044) = 236.71, p < .001. When controlling for age and gender amongst the groups of EB/SGs and sports bettors in a linear regression, being an EB/SG presented as a significant predictor for greater problem gambling severity, accounting for 16.4 per cent of the variance in PGSI score (see Table 7).

Table 6. Problem Gambling Severity Index categories, by sample group

Problem gambling Esports Sports bettors Esports viewers Video gamers severity bettors/skin (n = 300) (n = 217) (n = 280) gamblers (n = 744)

n % n % n % n %

Non-problem gambler (0) 55 7.4 100 33.3 79 36.4 153 54.6 Low-risk gambler (1-2) 75 10.1 71 23.7 51 23.5 54 19.3 Moderate-risk gambler (3-7) 116 15.6 77 25.7 38 17.5 44 15.7 Problem gambler (8+) 498 66.9 52 17.3 49 22.6 29 10.4 PGSI score (Mean, SD) 10.08 (6.27) 3.70 (4.91) 3.91 (5.16) 2.26 (4.07)

Table 7. Linear regression for predictors of problem gambling (log10 PSGI score) – gambler type, age, gender

Outcome B (SE) Beta t Cor. sr²

Gambler type -0457 (0.031) -0.471 -14.926*** -0.469*** 16.40% (0 = EB/SG, 1 = SB) Age in years (scale) -0.001 (0.001) -0.038 -1.212 -0.260*** 0.11% Gender (0 = M, 1 = F) -0.114 (0.027) - 0.117 -4.227*** -0.030 1.32% Obs. 1044 SUM 17.82% R² 23.5% Adj. R² 23.2% Resid. SE 0.384 F Statistic (df = 3; 1040) 106.239***

Notes: *p < .05; **p < .01; ***p < .001; Cor = Pearson correlation, 2-tailed; EB/SG = esports bettor/skin gambler; SB = sports bettor; B = unstandardized coefficient; SE = standard error; Beta = standardized coefficient; sr² = squared semi-partial correlation coefficient; t = independent t-test statistic; M = male; F= female.

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In sum, EB/SGs were likely to be experiencing more gambling problems than esports viewers, video gamers (who gamble), or sports bettors. Even after controlling for differences in age and gender, EB/SGs were still experiencing more gambling-related problems than sports bettors.

Gambling-related harms

Table 8 shows the proportions of the sample groups experiencing either no harm, or at least 1 harm, due to gambling, along with the average number of gambling-related harms as measured by the Short Gambling Harm Screen (SGHS; Browne, Goodwin, and Rockloff, 2018). The percentage of EB/SGs being identifiably harmed6 (1+ harms) was significantly greater (84.0 per cent) than sports bettors (45.3 per cent; χ² (1, 1044) = 113.24, p < .001), as was the average number of harms experienced, t(593.47) = 13.07, p < .001.

In line with the results for problem gambling (PGSI), after controlling for age and gender in a linear regression, being an EB/SG (versus sports bettor) was a significant predictor of gambling-related harm (SGHS score) and accounted for 11.8 per cent of the variance in SGHS score (see Table 9).

Table 8. Short Gambling Harms Screen (SGHS) by sample group

Esports bettors/ Sports bettors Esports viewers Video gamers skin gamblers (n = 300) (n = 217) (n = 280) (n = 744)

n % n % n % n %

No harm (0) 119 16.0 164 54.7 98 45.2 196 70.0 Any harm (1+) 625 84.0 136 45.3 119 54.8 84 30.0 Mean (SD) harms 4.58 (3.13) 1.93 (2.90) 2.18 (2.62) 1.33 (2.55)

6 1+ harms from gambling on the SGHS cannot be taken as definitive evidence of being substantially harmed by gambling, but rather should be interpreted as showing evidence for experiencing at least some harm.

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Table 9. Linear regression for predictors of gambling-related harm (SGHS score) – gambler type, age, gender

Outcome B (SE) Beta t Cor. sr²

Gambler type -2.909 (0.244) -0.400 -11.947*** -0.365*** 11.81% (0 = EB/SG, 1 = SB) Age in years (scale) 0.013 (0.010) 0.047 1.407 -0.145*** 0.16% Gender (0 = M, 1 = F) -0.505 (0.215) -0.069 -2.349* -0.003 0.46% Obs. 1044 SUM 12.43% R² 13.9% Adj. R² 13.7% Resid. SE 3.059 F Statistic (df = 3; 1040) 56.133***

Notes: *p < .05; **p < .01; ***p < .001; Cor = Pearson correlation, 2-tailed; EB/SG = esports bettor/skin gambler; SB = sports bettor; B = unstandardized coefficient; SE = standard error; Beta = standardized coefficient; sr² = squared semi-partial correlation coefficient; t = independent t-test statistic; M = male; F= female.

RQ4. How do the demographic characteristics of esports bettors/skin gamblers differ from esports viewers and video gamers not engaged in these video game-related gambling activities, and are esports bettors/skin gamblers more likely to gamble on traditional forms of gambling and at a heightened risk of gambling-related harm?

Demographic differences

The demographic characteristics of esports bettors/skin gamblers (EB/SG) were compared to non-esports bettors/ skin gamblers who engaged two activities similar to EB/SGs: 1) regular (at least fortnightly) esports viewers (EV), and 2) regular (at least fortnightly) video gamers (VG), who don’t watch esports. See Table 4 for demographics by sample group.

Esports bettors/skin gamblers were significantly older M( = 32.02 years, SD = 9.57) than esports viewers (M = 28.42 years, SD = 8.85) and younger than video gamers (M = 37.91 years, SD = 12.97), t(872.77) = 3.60, p < .001 and t(520.04) = -7.53, p < .001 respectively. EB/SGs also differed from EVs demographically, in that they were more likely to be married (vs single EVs), highly educated, employed full-time, and higher income earners. Compared to video gamers who didn’t watch or bet on esports, EB/SGs were more likely to be younger, male,

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single (vs married VGs), spoke a language other than English at home, highly educated, employed full-time, and higher income earners.

Gambling participation

Number of traditional gambling activities

Overall, the proportion of EB/SG engaged in any form of traditional gambling (not including their video game- related gambling) in the last 12 months (97.8 per cent) was slightly higher than VG (81.6 per cent), and much higher than EV (54.3 per cent).

The average number of traditional gambling activities EB/SGs participated in (M = 2.94, SD = 2.22) was significantly higher than EV M( = 1.55, SD = 2.18), but on par with VG (M = 2.87, SD = 2.38). A linear regression was run to identify to what extent being an EB/SG (versus a non-EB/SG esports viewer or video gamer) explains involvement in traditional gambling, when controlling for age and gender differences between groups (see Table 10). Results showed that being older was the strongest predictive factor for gambling on a greater number of traditional gambling activities, accounting for 9.81 per cent of the variance, followed by being an EB/SG versus an EV (3.92 per cent).

Table 10. Linear regression for predictors number of traditional gambling activities – sample type (esports bettor/skin gambler, esports viewer, video gamer), age, gender

Outcome B (SE) Beta t Cor. sr²

EB/SG (0) vs esports viewer (1) -1.113 (0.132) -0.212 -8.430*** -0.260*** 3.92% EB/SG (0) vs video gamer (1) -0.599 (0.142) - 0.109 -4.212*** 0.075** 0.98% Age in years (scale) 0.071 (0.005) 0.330 13.335*** 0.347*** 9.81% Gender (0 = M, 1 = F) 0.704 (0.115) 0.145 6.110*** 0.143*** 2.06% Obs. 1487 SUM 16.77% R² 18.2% Adj. R² 18.0% Resid. SE 2.106 F Statistic (df = 4; 1482) 82.549***

Notes: *p < .05; **p < .01; ***p < .001; Cor = Pearson correlation, 2-tailed; EB/SG = esports bettor/skin gambler; EV = esports viewer; VG = video gamer, B = unstandardized coefficient; SE = standard error; Beta = standardized coefficient; sr² = squared semi-partial correlation coefficient; t = independent t-test statistic; M = male; F= female.

Gambling frequency

Frequency of gambling by activity for EB/SG, EV, and VG is shown in Appendix D. Chi-square tests were run to determine which groups were more likely to participate in traditional gambling activities regularly (at least fortnightly) versus less regularly (less than fortnightly) - comparing esports bettors/skin gamblers (EB/SG) to esports viewers (EV) and video gamers (VG) who gambled on at least 1 traditional gambling activity in the last 12 months. As shown in Figure 8 a significantly greater proportion of EB/SGs engaged in frequent gambling on the

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majority of traditional gambling activities than esports viewers who gamble, excluding scratch tickets, bingo, and fantasy sports where there was no difference. The greatest difference in regular gambling was sports betting with 69.6 per cent of EB/SG versus 11.5 per cent of esports viewers who gamble betting on sports at least fortnightly. Compared to video gamers who gamble, a significantly higher proportion of esports bettors/skin gamblers engaged frequently in a range of traditional gambling activities, excluding scratch tickets, bingo, horse/greyhound race betting, and raffles. The only activity which video gamers who gamble participated in more frequently was Australian lotteries (29.3 per cent VGs versus 23.3 per cent EB/SGs).

Figure 8. Comparison of ‘at least fortnightly’ for gambling activities by sample group who engaged in gambling last 12 months: esports bettors/skin gamblers (n = 744) versus esports viewers (n = 217) and video gamers (n = 280)

69.6% Sports betting 11.5%*** 25.4%^^^ 27.0% Slot machines, pokies, or EGMs 8.8%*** 11.1%^^^ 23.3% Australian lotteries 16.6%* 29.3%^ 21.2% Casino table games 5.5%*** 2.9%^^^ 20.3% Private betting for money 5.5%*** 2.5%^^^ Esports bettor/skin gambler (EB/SG, n=744) 19.4% Scratch tickets 14.3% 15.7% Esports viewer who gambles (EV, n=217) 19.1% Bingo 14.3% 15.7% Video gamer who gambles (VG, n=280) 15.2%

Gambling activity Horse or greyhound racing 9.7%* 14.3% 12.0% Keno 3.2%*** 7.9% 8.6% Fantasy sports 4.6% 2.1%^^^ 6.9% Raffle tickets, sweeper, other comps 1.8%** 4.6% 5.2% Prize-draw competition by phone 1.4%* 1.1%^^

0% 10% 20% 30% 40% 50% 60% 70% 80% Pearson chi-square, 2-sided sign. EB/SG vs EV = *p < .05; **p < .01; ***p < .001. EB/SG vs Percentage of total 'at least fortnightly' gambling on activity in the last 12 months VG = ^p < .05; ^^^p < .01; ^^^p < .001.

Summary

In sum, EB/SGs were more likely to participate in a range of traditional gambling games and with greater frequency, when compared to esports viewers and video gamers, even after controlling for age and gender differences.

Gambling problems and harms

The sample EB/SGs had a significantly greater proportion of individuals meeting criteria as problem gamblers (66.9 per cent), and experiencing at least one gambling-related harm (84.0 per cent), than both their non EB/SG gambler counterparts of esports viewers (22.6 per cent PG, 54.8 per cent harmed) and video gamers (10.4 per cent PG,

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30.0 per cent harmed). In line with these findings, independent t-tests revealed that EB/SGs, on average, had higher PGSI scores and experienced more gambling-related harms (SGHS score) than EV and VG who gambled (all p < .001). Please refer to Table 6 and Table 8, respectively, for PGSI and gambling-related harm figures for the three samples. There may be other risk factors which explain the differences in the levels of problem gambling and gambling- related harm for EB/SGs, EVs, and VGs—such as being male and young. To determine ‘how much’ PGSI and SGHS is attributable to being an EB/SGs, versus just being a gambler who watches esports or plays video games (accounting for potential confounds of age and gender), two linear regressions were conducted (as shown in Table 11 and Table 12). The results show that EB/SGs are at a much greater risk than VGs who gamble on traditional activities (but don’t bet or watch esports) for being a problem gambler (PG) and experiencing gambling-related harms. Likewise, EB/SGs are at a greater risk than EVs who gamble, but not on EB/SG—although to a lesser degree, compared to VGs. While being younger and male also present as risk factors for PG and gambling-related harms, these are marginal, relative to the predictor of being an EB/SG.

Table 11. Linear regression for predictors of problem gambling severity (PGSI) – sample type (esports bettor/skin gambler, esports viewer, video gamer), age, gender

Outcome B (SE) Beta t Cor. sr²

EB/SG (0) vs esports viewer (1) -0.462 (0.030) -0.366 -15.432*** -0.228*** 12.56% EB/SG (0) vs video gamer (1) -0.597 (0.029) -0.521 -20.892*** -0.458*** 23.02% Age in years (scale) -0.002 (0.001) -0.046 -1.894 -0.161*** 0.19% Gender (0 = M, 1 = F) -0.112 (0.023) - 0.112 -4.839*** -0.166*** 1.23% Obs. 1241 SUM 37.00% R² 34.8% Adj. R² 34.6% Resid. SE 0.387 F Statistic (df = 4; 1236) 165.087***

Notes: *p < .05; **p < .01; ***p < .001; Cor = Pearson correlation, 2-tailed; EB/SG = esports bettor/skin gambler; EV = esports viewer; VG = video gamer; B = unstandardized coefficient; SE = standard error; Beta = standardized coefficient; sr² = squared semi-partial correlation coefficient; t = independent t-test statistic; M = male; F= female.

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Table 12. Linear regression for predictors of gambling-related harm (SGHS) – sample type (esports bettor/skin gambler, esports viewer, video gamer), age, gender

Outcome B (SE) Beta t Cor. sr²

EB/SG (0) vs esports viewer (1) -2.410 (0.225) -0.281 -10.698*** -0.177*** 7.41% EB/SG (0) vs video gamer (1) -3.146 (0.215) -0.404 -14.619*** -0.348*** 13.83% Age in years (scale) -0.005 (0.008) -0.015 -0.565 -0.105*** 0.02% Gender (0 = M, 1 = F) -0.490 (0.174) -0.072 -2.819** -0.114*** 0.51% Obs. 1241 SUM 21.77% R² 20.0% Adj. R² 19.8% Resid. SE 2.917 F Statistic (df = 4; 1236) 77.311***

Notes: *p < .05; **p < .01; ***p < .001; Cor = Pearson correlation, 2-tailed; EB/SG = esports bettor/skin gambler; EV = esports viewer; VG = video gamer; B = unstandardized coefficient; SE = standard error; Beta = standardized coefficient; sr² = squared semi-partial correlation coefficient; t = independent t-test statistic; M = male; F= female.

In sum, EB/SGs were more likely to have gambling problems and experience gambling-related harm, in comparison to esports viewers and video gamers, independent of age and gender.

RQ5. What are the migration patterns between gambling products (e.g., esports betting, skin gambling, traditional forms of gambling) and is youth involvement in the newer gambling products a pathway to gambling in adulthood?

Age first engaged in gambling activities

The average age for first participating in all gambling activities is shown in Table 13, sorted by youngest to oldest average age. First, esports bettors/skin gamblers (EB/SG) generally began their involvement in video game- related gambling activities at a later age than traditional gambling activities—all around 23 years of age. This could be due to a few factors, including: 1) esports skin betting and skin gambling having been available since around 2013, meaning the average age of first participation would be around 23 years; 2) legalised monetary gambling on esports in Australia first appearing in 2015 and, therefore, an average of onset age of early 20s also makes sense in the timeline. The second finding is that participation on all traditional gambling activities, on average, occurred over the legal age of gambling in Australia (18 years). While out of scope for this research question, data for the average age of first participation in gambling activities for the other sampled groups of sports bettors, video gamers, and esports viewers is shown in Appendix F.

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Table 13. Average age of first participation for gambling activities for esports bettors/skin gamblers (n = 744)

Gambling activity Mean (years) SD (years)

Raffles, sweepers, other competitions 19.52 6.81 Prize-draw competitions 19.73 5.74 Private betting for money 19.99 6.48 Scratch tickets 20.42 6.46 Slots/pokies/EGMs 21.18 6.11 Casino table games 21.19 6.27 Horse or greyhound racing 21.28 6.34 Australian lotteries 21.32 5.69 Fantasy sports 21.50 7.80 Bingo 22.09 7.59 Sports betting 22.37 7.11 Keno 22.59 7.07 Esports skin betting 23.22 8.46 Esports cash betting 23.37 8.56 Skin gambling 23.73 9.38 Any traditional gambling activity 19.09 5.73 Any EB/SG activity 22.51 8.84

Underage gambling

The age at which participants first gambled was coded into dichotomous variables of illegal (underage; i.e., under 18 years) and legal (18 years or older) gambling age for Australians, for each activity (results displayed in Figure 9). Overall, a greater percentage of esports bettors/skin gamblers participated in at least one form of traditional gambling underage (30.8 per cent), compared to esports betting or skin gambling (24.1 per cent). For specific gambling activities, underage participation in private betting for money, prize-draws, raffles, and scratch tickets was the most common – arguably, all activities in which children/adolescents can engage in with gamblers close to them, such as their parents or siblings, and/or, alternatively, activities that require participants to spend very little of their own money (i.e., they are given access by adults). Underage participation in the three video game-related gambling activities followed closely behind, with higher figures shown for esports skin betting (18.4 per cent), followed marginally by skin gambling on games of chance (17.9 per cent), and esports cash betting (16.4 per cent). The rates of underage fantasy sports betting, which not only includes the creation of fantasy sports teams, but now esports teams, was 18.1 per cent, paralleling esports skin betting. Furthermore, the percentage of people first participating in esports cash betting underage was similar to gambling activities of a similar nature – sports betting and horse/greyhound race wagering.

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Figure 9. Pre- (under 18 years) and post- (18 years or over) legal gambling age percentages for first participation by activity (Base: Esports bettors/skin gamblers, n = 744)

Private betting for money 30.2% 69.8% Prize-draw competitions 27.1% 72.9% Raffle tickets, sweepers, other comps 27.0% 73.0% Scratch tickets 21.9% 78.1% Esports skin betting 18.4% 81.6% Fantasy sports 18.1% 81.9% Skin gambling 17.9% 82.1% Esports cash betting 16.4% 83.6% Sports betting 15.1% 84.9% Horse or greyhound racing 15.1% 84.9% Bingo 14.1% 85.9% Slots/pokies/EGMs 11.6% 88.4% Casino table games 10.0% 90.0% Keno 8.3% 91.7% Australian lotteries 8.0% 92.0% Any traditional gambling 30.8% 69.2% Any esports betting/skin gambling 24.1% 75.9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Under 18 years 18 years or over

In sum, EB/SGs were reasonably likely to have bet on a traditional product whilst underage. However, the traditional products most frequently betted on while underage were relatively less harmful games (e.g., competitions, raffles, scratch tickets). Meanwhile, video game-related gambling, whilst underage, was relatively frequent, in comparison to most higher-risk activities, with the exception of private betting.

Migration patterns

The migration patterns between newer and traditional gambling activities were examined to explore whether youth involvement in esports betting or skin gambling is a pathway to gambling in adulthood. The ‘first age’ of participation data for all gambling activities was used to code temporal sequence of participation (known as migration patterns) in the three video game-related gambling activities, in terms of occurring before, the same year, or after each other, as well as traditional gambling activities.

Figure 10 shows the migration patterns for esports betting and skin gambling to any traditional gambling activity. Participation in Esports cash betting, esport skin betting, and skin gambling on games of chance more often came after traditional gambling (47.8 per cent), or first occurred during the same year (26.7 per cent), with only 25.4 per cent of participants first gambling on these activities. The proportions of EB/SG using money and skin for esports betting prior to traditional gambling were similar (around 17-19 per cent), with a further 25-27 per cent starting both activities within the same year. Migration from skin gambling on games of chance to traditional gambling was less pronounced at 11.8 per cent than esports cash betting (18.7 per cent) or esports skin betting (17.1 per cent) prior to traditional gambling.

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Figure 10. Migration patterns between esports cash betting, sports skin betting, skin gambling, and any traditional gambling activity (Base: esports bettors/skin gamblers, n = 744)

Esports cash 18.7% 26.8% 54.5% betting (n=705)

Esports skin 17.1% 25.1% 57.9% betting (n=674)

Skin gambling 11.8% 27.7% 60.6% (n=578)

Any esports betting/skin 25.4% 26.7% 47.9% gambling (n=737)

0% 20% 40% 60% 80% 100% Before traditional gambling Same year traditional gambling After traditional gambling

Appendix H, Appendix I, and Appendix J show the migration patterns between the individual activities of esports cash betting, esports skin betting, and skin gambling (games of chance) with each traditional gambling activity. There doesn’t appear to be any strong trends for EB/SGs engaging in these three video game-related gambling activities prior to any specific type of traditional gambling activity. Migration patterns between the three newer activities showed esports cash betting was more likely to precede esports skin betting (32.6 per cent) and using skins to bet on games of chance (40.3 per cent) or within the same year (ESB 46.2 per cent, SG 39.2 per cent) rather than afterward (ESB 21.3 per cent, SG 20.4 per cent) (see Appendix H). Using skins to bet on esports and games of chance most often occurred for EB/SG within the same year (52.0 per cent) or esports skin betting prior to skin gambling on games of chance (31.4 per cent) (see Appendix I).

Underage gambling as a primer for greater adult gambling involvement, problems and harms

Whether underage gambling on esports, and with skins, leads to greater gambling involvement, problems, and harms in adulthood was examined in a separate analysis. This analysis was a more focused distinction than the previous analyses, which examined which type of betting came first, regardless of whether it was underaged.

As shown in Table 14, independent t-tests revealed that EB/SGs who engaged with each of the three newer products while underaged were less (and not more) involved in traditional gambling activities. Despite these findings, those who first engaged in underage esports cash betting and skin gambling (games of chance) were at greater risk for problem gambling than those first starting these newer forms of gambling in adulthood. There

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were no differences between underage- and adult-onset esports betting/skin gamblers in terms of the number of gambling-related harms currently being experienced in adulthood.

Table 14. Average gambling involvement (traditional gambling activities), problem gambling (PGSI), and gambling-related harms (SGHS) in adulthood, by underage (< 18 years) versus adult (18+ years) onset of newer gambling activities (base: esports bettors/skin gamblers, n = 744)

Esports cash Esports skin Skin gambling betting betting (games of chance)

<18 years 18+ years <18 years 18+ years <18 years 18+ years

n 116 592 125 554 104 477

Traditional gambling activities 2.23 (1.73) 3.08 (2.23) 2.15 (1.50) 3.05 (2.28) 2.23 (1.54) 3.25 (2.40) (mean, SD)

t-statistic -4.58*** -5.42*** -5.43***

Problem Gambling Severity 12.21 (5.20) 9.88 (6.33) 11.26 (5.72) 10.35 (6.25) 10.88 (5.49) 9.55 (6.53) (mean, SD)

t-statistic 4.24*** ns 2.18*

Short Gambling Harm Screen 4.82 (2.47) 4.63 (3.22) 4.59 (2.55) 4.75 (3.20) 4.38 (2.61) 4.17 (3.08) (mean, SD)

t-statistic ns ns ns

*p < .05; **p < .01; ***p < .001

Gambling activities as predictors of gambling problems and harm

Esports bettors/skin gamblers are engaged in multiple video game-related, and traditional, gambling activities, but to varying degrees of frequency, which may explain the high levels of gambling problems and harms they are experiencing. To answer the question of ‘how much’ of the negative impacts, due to gambling, can be attributed to esports bettor or skin gambling, two linear regressions were conducted (see Table 15). This analysis sought to determine which gambling activities (as measured by frequency) uniquely predict greater gambling problems (PGSI) and gambling-related harms (SGHS), while controlling for age and gender. The results show that, for esports bettors/skin gamblers, greater frequency of esports skin betting was the strongest predictor of PGSI and gambling harm, while more frequent esports cash betting was predictive of gambling-related harm only. In addition, among esports bettors/skin gamblers, being male and more frequent sports bettors were marginally predictive of greater PGSI. Frequent private betting for money was found to be predictive of greater gambling-related harm.

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Table 15. Linear regressions of gambling activity predictors of problem gambling (log PGSI +1) and gambling-related harm (SGHS) (base: esports bettors/skin gamblers, n = 744)

log(PGSI + 1) SGHS

B (SE) Beta t Cor. sr² B (SE) Beta t Cor. sr²

Age (years) 0.001 (0.001) 0.015 0.428 0.042 0.02% 0.004 (0.012) 0.011 0.308 0.041 0.01% Gender (0 = M, 1 = F) -0.086 (0.028) - 0.107 -3.104** -0.177*** 1.05% -0.265 (0.239) -0.040 -1.106 - 0.102** 0.14% ECB freq. 0.024 (0.015) 0.068 1.602 0.285*** 0.28% 0.272 (0.127) 0.095 2.144* 0.253*** 0.54% ESB freq. 0.086 (0.012) 0.291 7.183*** 0.402*** 5.63% 0.607 (0.104) 0.246 5.857*** 0.309*** 4.05% SG freq. 0.001 (0.008) 0.004 0.115 0.079* 0.00% -0.392 (0.072) - 0.198 -5.425*** - 0.102** 3.47% Sports freq. 0.037 (0.015) 0.102 2.494* 0.235*** 0.68% 0.050 (0.128) 0.017 0.390 0.157*** 0.02% Private freq. 0.012 (0.008) 0.053 1.542 0.091* 0.26% 0.142 (0.066) 0.076 2.151* 0.086* 0.55% EGM freq. -0.004 (0.007) -0.019 -0.556 -0.017 0.03% 0.039 (0.064) 0.022 0.616 0.047 0.04% Casino freq. 0.003 (0.008) 0.016 0.452 0.005 0.02% 0.077 (0.065) 0.042 1.177 0.037 0.16% Horse/dog freq. 0.001 (0.008) 0.003 0.081 0.002 0.00% 0.072 (0.073) 0.036 0.977 0.040 0.11% Lotteries freq. -0.028 (0.008) - 0.130 -3.507*** -0.135*** 1.34% -0.051 (0.069) -0.029 -0.742 0.008 0.07% Scratch freq. 0.026 (0.067) 0.116 0.392 -0.117*** 0.02% 0.313 (0.579) 0.167 0.541 0.020 0.03% Bingo freq. -0.024 (0.067) - 0.107 -0.362 - 0.116** 0.01% -0.213 (0.580) - 0.113 -0.367 0.018 0.02% Obs. 744 744 SUM 9.35% 9.22% R² 20.4% 13.9% Adj. R² 19.0% 12.3% Resid. SE 0.339 2.933 F Statistic (df = 13, 730) 14.367*** 9.036***

Note: * p < .05; ** p < .01; *** p < .001; Cor = Pearson correlation, 2-tailed; ECB = Esports Cash Betting; ESB = Esports Skin Betting; SG = Skin Gambling (games of chance); freq = gambling frequency last 12 months. Excludes: fantasy sports, keno, prize-draw competitions, and raffles/sweeps/other competitions; B = unstandardized coefficient; SE = standard error; Beta = standardized coefficient; sr² = squared semi- partial correlation coefficient; t = independent t-test statistic; M = male; F= female.

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Discussion and conclusion

Discussion

The aims of this study were to gain a greater understanding of the two overlapping ‘video game-related gambling’ products of esports betting and skin gambling. This included consideration of the profiles for those engaged in these emerging gambling products, the degree they are involved in, and migrate to, traditional forms of gambling, and whether they differ from comparable groups, demographically, and in problem gambling severity and experiences of gambling-related harm.

The current study focused on comparing engaged esports bettors and skin gamblers against two categories of respondents who did not engage these activities over the last 12 months. The first category was traditional gamblers, represented by regular sports bettors. The second category was people most likely exposed to esports betting and/or skin gambling: regular video gamers, playing games which are esports, and regular esports viewers. The findings from this study highlight several points for discussion.

Demographically, esports bettors/skin gamblers are distinct from sports bettors, video gamers, and esports viewers not engaged in esports betting or skin gambling.

The esports bettors/skin gamblers in this study were demographically characterised by being male and relatively young, with two-thirds aged between 18–34 years. The dominant attraction of males to esports betting/skin gambling, sports betting, and esports viewership was evident, with only video gamers presenting with an equal balance of males to females. The average age of esports bettors/skin gamblers differed distinctly from sports bettors, video gamers, and esports viewers. Esports bettors/skin gamblers were younger (early 30s) than sports bettors (mid 40s) and video gamers (late 30s), but older than esports viewers (late 20s). The finding that esports bettors/skin gamblers were not more heavily skewed towards the 18–24-year cohort than theorised does not mean that young people are not involved in these gambling activities. Rather, it could reflect that esports bettors/skin gamblers were purposefully sampled to be regularly engaged in these activities, which may require the skills and financial means only achievable with time, thus, being older.

In this study, Australian esports bettors/skin gamblers were more often university-educated, employed, earned a mid to high personal income, and spoke a language other than English at home – consistent with research by Gainsbury and colleagues (2017a) on Australian esports bettors. Esports bettors/skin gamblers were also ‘better off’ in their educational attainment, being employed full-time, and earning a higher income than video gamers and esports viewers not involved in these gambling activities. Without more information or context, the reasons for these socio-demographic differences is unclear and more research is required.

Esports bettors/skin gamblers are highly engaged in traditional forms of gambling.

This study found that Australian esports bettors/skin gamblers are not uniquely attracted to video game-related gambling activities, but are highly involved in traditional forms of gambling, more frequently for sports betting, EGMs, and casino table games. These findings are consistent with the few previous studies conducted with esports bettors and skin gamblers separately (Gainsbury et al., 2017b; Wardle, 2019). It could be that esports bettors/skin gamblers have been exposed to these newer gambling activities via their engagement with other types of gambling, in particular sports betting as esports betting is often provided by sports betting operators. Furthermore, EGMs and casino table games are similar to the games of chance offered in skin gambling—skin

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gamblers could become involved in these activities as a way to make ‘real money’ or as a consequence of skins becoming harder to trade for the purposes of skin gambling (Greer et al., 2019).

Esports bettors/skin gamblers were found to gamble with greater frequency on ’riskier’ traditional gambling activities than sports bettors, video gamers, and esports viewers – namely, private betting for money, EGMs, and casino table games – as well as being highly involved in sports betting, more so than video gamers and esports viewers. This is consistent with previous research showing esports bettors gambling intensity is greater than sports bettors (Gainsbury et al., 2017b) and reveals esports bettors/skin gamblers as more involved gamblers than their video gaming and esports viewing counterparts.

Esports bettors/skin gamblers experience greater levels of gambling problems and gambling-related harms than sports bettors, and esports viewers and video gamers who gamble.

This study provides evidence that Australian esports bettors/skin gamblers experience significantly high levels of gambling problems and gambling-related harms. In addition, esports bettors/skin gamblers are experiencing this at much greater levels than regular sports bettors, and their video gaming and esports viewing counterparts who gamble on other traditional gambling activities. But what is it, specifically, about an esports bettor/skin gambler, beyond their age and gender, which makes them more vulnerable to gambling problems and harms? One explanation is that esports bettors/skin gamblers are not only gambling frequently on esports and with skins, but also traditional products considered to be more ‘harmful’ or ‘risky,’ such as sports betting.

There are two main pathways that could explain how these young esports bettors/skin gamblers end up experiencing gambling problems and harms. The first is that their esports betting or skin gambling normalised gambling at a young age and led to involvement in traditional gambling, which, as they gambled more and more on multiple activities, adversely impacted them. This normalisation could occur via their actual gambling experiences (e.g., making profit, the excitement) and/or exposure to gambling (e.g., advertising and marketing via esports, promotions via esports betting or skin gambling operators), and is, perhaps, facilitated by easy access to traditional gambling forms in Australia, once they reached adulthood. The second pathway is that these esports bettors/skin gamblers were already involved in gambling and experiencing gambling problems and harms before becoming involved in esports betting or skin gambling; thus, they were already more vulnerable to uptake esports betting or skin gambling when they became available to them (over the course of the last decade). Evidence for both pathways exists, as discussed under the next point.

There is little evidence of a ‘gateway effect’ between esports betting, skin gambling, and traditional gambling for esports bettors/skin gamblers.

Our research provided little evidence for a ‘gateway effect’ between video game-related and traditional gambling activities, instead overall finding that 47.8 per cent of esports bettors/skin gamblers started gambling first with traditional forms of gambling. An additional 26.7 per cent gambled on video game-related and traditional gambling products within the same year. These finding suggest esports bettors/skin gamblers were perhaps already highly involved in gambling and experiencing harms, and then decided to try these newer forms of gambling when they emerged.

This study also provides early evidence some, just over a quarter (25.4 per cent), esports bettors/skin gamblers started gambling on these activities prior to traditional forms of gambling. This migration could have been facilitated by many factors. First, in Australia esports cash betting is primarily offered by sports betting operators who are prolific in marketing to their existing customers to engage in sports betting (i.e., direct messaging; Russell et al., 2018). Second, sports betting operators are also increasingly present in esports via sponsorship of esports teams and events, thereby marketing their brand to esports bettors (King, 2018). An Australian study found that recall of seeing, and positive perceptions of, advertising for gambling companies in esports were significantly higher for esports bettors than non-esports betting video gamers (Abarbanel & Phung, 2019). Third, esports skin bettors

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and skin gamblers may seek out monetary forms of gambling for the chance to win ‘real money,’ or in the event of their favourite skin gambling website shutting down. It makes sense they would gamble on EGMs and casino table games, which are structurally similar to skin gambling activities, such as slots, roulette, and jackpots. Fourth, fantasy sports are not only offered for traditional sports but also esports, and may be attractive to esports bettors as another way to engage in esports.

The recency of these newer activities in the last decade makes it hard to ascertain a gateway effect. Migration patterns will need to be re-evaluated to determine whether participation in these video game-related gambling activities encourage migration to commercial forms of gambling, as has been found for social casino games (Dussault et al., 2017; Gainsbury et al., 2016; Hayer et al., 2018; Kim et al., 2015, 2017; King et al., 2016; Rockloff et al., 2018).

While underage onset (< 18 years) of esports betting/skin gambling was not commonplace for these gamblers, those engaged underage were experiencing significantly greater levels of gambling problems in adulthood than those first gambling on these activities as adults.

This study found that almost one-quarter of esports bettors/skin gamblers first participated in one or more of these activities under the legal gambling age. This is not surprising, considering that some esports cash betting, and all esports skin betting and skin gambling (games of chance) websites, are easily accessible to underage gamblers. Underage esports betting (cash or skins) and skin gambling (games of chance) occurred to a higher degree than underage participation in more commonly harmful traditional gambling activities, such as sports betting, casino table games, and EGMs. Underage participation most often occurred on gambling activities parents typically engage in with their children and are considered less harmful—scratch tickets, lotteries, prize-draws, and private betting for money.

Exploring this deeper, our study found that underage onset of esports cash betting, and skin gambling on games of chance (but not esports skin betting), were associated with greater problem gambling severity in adulthood than for those first engaged in esports betting/skin gambling as adults. While this finding does not show caution, it does raise questions about the impact of skin gambling amongst youth, particularly when skin gambling websites are not only easily accessible to children and adolescents, but are not regulated under current Australian gambling laws and, therefore, lack consumer protection. Furthermore, esports betting is available via offshore and unregulated gambling operators, using monetary and which are easily accessible by underage consumers, such as giftcards, Paypal, and cryptocurrency (Greer et al., 2019). In addition, skin gambling websites are increasingly offering alternative monetary (and other deposit and withdrawal) options for betting on esports and games of chance, as video game developer Valve makes it harder to trade skins, such as currency/items using Blockchain technology (Abarbanel & Macey, 2018; Blaszczynski & Gainsbury, 2017; Greer et al., 2019).

Esports skin betting is the strongest predictor of both problem gambling and gambling-related harm, well beyond all other gambling activities.

The prolific gambling activity amongst esports bettors/skin gamblers is likely contributing to experiencing harm from gambling. But how much of this harm is attributable to video game-related versus traditional gambling participation? Gambling frequency on each activity was examined as predictors of problem gambling severity and the number of gambling-harms experienced, controlling for age and gender. Greater frequency of betting on esports with skins was the strongest predictor of both greater levels of problem gambling and gambling-related harm, accounting for 5.63 per cent and 4.05 per cent of the variance, respectively. Whereas the frequency of esports cash betting, skin gambling (games of chance), and all other traditional gambling activities accounted for less than 1 per cent of gambling problems and harms. The finding that esports skin betting is the most harmful gambling activity is of potential interest, considering it remains an unregulated gambling activity, which has been highly popular and easily-accessible to children and adolescents (Greer et al., 2019; King, 2018).

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To our knowledge, this is the first study to examine esports cash betting, esports skin betting, and skin gambling on games of chance together, amongst a range of other traditional gambling activities, to partition out how harmful each product is to the gambler. Other studies have examined these video game-related activities separately finding that while esports betting was associated with greater degrees of problem gambling amongst a general adult population of Australian gamblers (Browne et al., 2019), last month adult Australian online gamblers (Gainsbury et al., 2019), and adolescent British skin gamblers being at risk/problem gamblers (on DSM-IV-IJ, Wardle, 2019) that these activities didn’t independently predict problem gambling when factoring in participation in traditional gambling activities (Browne et al., 2019; Gainsbury et al., 2019; Wardle, 2019). We recommend future research is conducted to replicate these findings.

Limitations

The methodological limitations of this study should be kept in mind when interpreting its results. First, the majority of esports bettors/skin gamblers, and all sports bettors, gambled regularly on their namesake activities, meaning they are only representative of more-involved gamblers, who are, in turn, likely experiencing higher levels of gambling problems and harms. Likewise, video gamers and esports viewers were regularly engaged in these activities and don’t necessarily represent those more casually engaged in these activities. Second, esports bettors and skin gamblers were combined for analysis and reporting, given the overlap of participation in these activities. Future studies should look at independent samples of esports bettors and skin gamblers, if these can be recruited in large enough numbers, given the low prevalence of both gambling activities in the general population. Third, data was collected cross-sectionally and only shows correlational (not causal) evidence of migration patterns between video game-related and traditional gambling activities, and the former’s association with gambling problems and harm. A longitudinal study would best capture whether participation in esports betting and skin gambling places youth at risk for involvement in commercial forms of gambling later in life, and subsequent development of gambling problems and experiences of gambling-related harm. Fourth, our study was limited to an adult sample and, therefore, underage gambling involvement is only retrospectively reported. Research into the prevalence and impacts of esports betting and skin gambling amongst Australian children and adolescents is needed. Fifth, the sample was recruited via online panels and social media, introducing a potentially biased sample of participants more familiar with the online landscape and potentially more likely to have internet based addictions such as online gambling which may explain the high level of gambling problems and harm amongst esports bettors/skin gamblers. Sixth, this study did not consider broader psychological, environmental, or comorbid factors which may explain why esports bettors/skin gamblers participate in other forms of gambling and experience high levels of gambling problems and harm, for example impulsivity, gambling motivations, mental health issues, and substance use (cf. Browne et al., 2019a; Dowling et al., 2017; Miller, 2015; Williams et al., 2015).

Implications and recommendations

As noted, this is one of the first Australian studies to examine esports betting and skin gambling. While future research should explore these products and their impacts further, the preliminary findings of the current study have several practical implications and recommendations for action.

The results highlight that underage skin gambling (games of chance) and frequent esports skin betting are associated with greater gambling problems among adults. Websites offering skin gambling are currently easily- accessible to consumers of all ages, who can access skins via Valve’s Steam— a video game developer’s platform, that can be legally accessed by those aged 13 years and over. Skin gambling websites are not currently regulated under Australian Government gambling legislation, likely because they are not recognised as gambling operators, as they, primarily, use virtual goods as currency for gambling and not money. These websites are also

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increasingly offering monetary and Blockchain-based technology betting options, while remaining unregulated. In the 2018 inquiry into gaming micro-transactions for chance-based items (loot boxes), the Australian Government considered whether this practice: 1) constitutes a form of gambling, and 2) adequately protects consumers through a regulatory framework (Commonwealth of Australia, 2018). One of the main findings of this inquiry that is directly related to skin gambling, is that games containing loot boxes are exposing children to, and normalising gambling through, the use of in-game items from loot boxes for skin gambling. The inquiry recommended more research be conducted into loot boxes but made no specific mention of skin gambling (Commonwealth of Australia, 2018). We propose that a similar Government inquiry into skin gambling occurs, given our study’s evidence that skin gambling on esports and games of chance are harmful gambling activities. Another avenue for inquiry is a review of video game developers and skin exchanges, which facilitate skin gambling websites’ operation, to be reviewed under Australian consumer protection frameworks.

A quarter of esports bettors/skin gamblers were engaged in these activities prior to traditional forms of gambling. We speculated such a transition to traditional gambling for these gamblers could be influenced by exposure to marketing for gambling operators via esports betting and skin gambling. Future research should not only explore the impact of marketing of commercial gambling to Australian consumers via esports betting and skin gambling, but also marketing via esports and video games for esports betting and skin gambling.

Finally, with around 15 per cent of esports bettor/skin gamblers engaged in underage (<18 years) gambling on these products, there is evidence for taking action to protect future cohorts of underage gamblers. Australian parents, schools, and communities may be unaware of the existence of esports betting and skin gambling. Education programs and awareness campaigns should be directed to parents, schools, and other key stakeholders on the convergence of gambling with video gaming and esports.

Conclusions

This is one of the few studies to explore video game-related gambling in the Australian context. It found that esports betting and skin gambling mainly attract a young, male demographic, who are engaged in many traditional forms of gambling, frequently on ‘harmful’ forms, and experience higher levels of gambling problems and harm than traditional gamblers (i.e., sports bettors), video gamers who gamble, and esports viewers who gamble. In addition, this study provides preliminary evidence that the factors most strongly associated with current gambling problems for adult esports bettors/skin gamblers are underage onset of esports cash betting and skin gambling on games of chance, along with greater frequency of esports skin betting. This research provides preliminary evidence which could be utilised to inform the regulation of appropriate action to safeguard consumers of these products, alongside the development of education and awareness programs, and to help with the Foundation’s mission to reduce gambling harm.

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Abarbanel, B., & Macey, J. (2018). VGO, NFT, OMG!: Commentary on Continued Developments in Skins Wagering. https://doi.org/10.2139/ssrn.3265587 Abarbanel, B., & Phung, D. (2019). Exploring gamers’ perceptions of esports betting advertising. Gaming Law Review, 23(9), 640–644. https://doi.org/10.1089/glr2.2019.2394 Abbott, M. W., Binde, P., Clark, L., Hodgins, D. C., Johnson, M. R., Manitowabi, D., Quilty, L. C., Spångberg, J., Volberg, R. A., Walker, D. M., & Williams, R. J. (2018). Conceptual framework of harmful gambling: Third edition. Gambling Research Exchange Ontario. https://doi.org/10.33684/CFHG3.en Armstrong, T., Rockloff, M., Browne, M., & Li, E. (2018). An Exploration of How Simulated Gambling Games May Promote Gambling with Money. Journal of Gambling Studies. https://doi.org/10.1007/s10899-018-9742-6 Australian Communications and Media Authority. (2020). Communications Report 2018-19. https://www.acma.gov.au/sites/default/files/2020-02/Communications20report%202018-19.pdf Blaszczynski, A., & Gainsbury, S. (2017). Skins betting & Blockchains: A brief overview. GambleAware. https://about.gambleaware.org/media/1518/skins-betting-and-blockchain.pdf Brand, J. E., Jervis, J., Huggins, P. M., & & Wilson, T. W. (2019). Digital Australia 2020. IGEA. https://igea.net/wp-content/uploads/2019/08/DA20-Report-FINAL-Aug19.pdf Browne, M., Goodwin, B. C., & Rockloff, M. J. (2017). Validation of the Short Gambling Harm Screen (SGHS): A Tool for Assessment of Harms from Gambling. Journal of Gambling Studies. https://doi.org/10.1007/s10899-017-9698-y Browne, M., Hing, N., Rockloff, M., Russell, A. M. T., Greer, N., Nicoll, F., & Smith, G. (2019a). A Multivariate Evaluation of 25 Proximal and Distal Risk-Factors for Gambling-Related Harm. Journal of Clinical Medicine Research, 8(4). https://doi.org/10.3390/jcm8040509 Browne, M., Rockloff, M., Hing, N., Russell, A. M., Boyle, C. M., Rawat, V., Tran, K., & Brook, K. &. S. (2019b). NSW Gambling Survey 2019. NSW Responsible Gambling Fund. https://www.responsiblegambling.nsw.gov. au/__data/assets/pdf_file/0007/280537/NSW-Gambling-Survey-2019-Full-Report.PDF Commonwealth of Australia. (2018). Gaming micro-transactions for chance-based items. Parliament House, Canberra. https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Environment_and_ Communications/Gamingmicro-transactions/Report Danish Gaming Authority. (2018). Report on illegal gambling. Retrieved from https://www.spillemyndigheden.dk/ uploads/2018-12/Report%20on%20illegal%20gambling%202018.pdf Danish Gambling Authority. (2019, April 3). The Danish Gambling Authority has 25 illegal gambling websites blocked. Retrieved from https://www.spillemyndigheden.dk/en/news/danish-gambling-authority-has-25-illegal- gambling-websites-blocked Delfabbro, P., King, D., Lambos, C., & Puglies, S. (2009). Is Video-Game Playing a Risk Factor for Pathological Gambling in Australian Adolescents? In Journal of Gambling Studies (Vol. 25, Issue 3, pp. 391–405). https://doi.org/10.1007/s10899-009-9138-8 Dickens, M., & Thomas, A. (2016). Is it gambling or a game? Simulated gambling games: Their use and regulation. ARGC discussion paper no. 5. Australian Gambling Research Centre, Melbourne. Dowling, N. A., Merkouris, S. S., Greenwood, C. J., Oldenhof, E., Toumbourou, J. W., & Youssef, G. J. (2017). Early risk and protective factors for problem gambling: A systematic review and meta-analysis of longitudinal studies. Clinical Psychology Review, 51, 109–124. https://doi.org/10.1016/j.cpr.2016.10.008

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Dussault, F., Brunelle, N., Kairouz, S., Rousseau, M., Leclerc, D., Tremblay, J., Cousineau, M. M., & Dufour, M. (2017). Transition from playing with simulated gambling games to gambling with real money: a longitudinal study in adolescence. International Gambling Studies, 17(3), 386–400. https://doi.org/10.1080/14459795.2017.1343366 Ferris, J., & Wynne, H. (2001). The Canadian Problem Gambling Index: Final Report. Canadian Centre on Substance Abuse. Gainsbury, S. M., Abarbanel, B., & Blaszczynski, A. (2017a). Game on: comparison of demographic profiles, consumption behaviors, and gambling site selection criteria of esports and sports bettors. Gaming Law Review, 21(8), 575–587. https://doi.org/10.1089/glr2.2017.21813 Gainsbury, S. M., Abarbanel, B., & Blaszczynski, A. (2017b). Intensity and gambling harms: exploring breadth of gambling involvement among esports bettors. Gaming Law Review, 21(8), 610–615. https://doi.org/10.1089/glr2.2017.21812 Gainsbury, S. M., Angus, D. J., & Blaszczynski, A. (2019). Isolating the impact of specific gambling activities and modes on problem gambling and psychological distress in internet gamblers. BMC Public Health, 19(1), 1372. https://doi.org/10.1186/s12889-019-7738-5 Gainsbury, S. M., Delfabbro, P., King, D. L., & Hing, N. (2015a). An Exploratory Study of Gambling Operators’ Use of Social Media and the Latent Messages Conveyed. Journal of Gambling, 32(1), 125–141. https://doi.org/10.1007/s10899-015-9525-2 Gainsbury, S. M., Hing, N., Delfabbro, P. H., & King, D. L. (2014). A taxonomy of gambling and casino games via social media and online technologies. International Gambling Studies, 14(2), 196–213. https://doi.org/10.1080/14459795.2014.890634 Gainsbury, S. M., King, D. L., Abarbanel, B., Delfabbro, P., & Hing, N. (2015b). Convergence of gambling and gaming in digital media. Victorian Responsible Gambling Foundation. http://www.responsiblegambling.vic.gov. au/__data/assets/pdf_file/0003/25572/Gainsbury_convergence_of_gambling_and_gaming_2015.pdf Gainsbury, S. M., Russell, A. M. T., King, D. L., Delfabbro, P., & Hing, N. (2016). Migration from social casino games to gambling: Motivations and characteristics of gamers who gamble. Computers in Human Behavior, 63, 59–67. https://doi.org/10.1016/j.chb.2016.05.021 Gainsbury, S. M., Russell, A., & Hing, N. (2014). An investigation of social casino gaming among land-based and Internet gamblers: A comparison of socio-demographic characteristics, gambling and co-morbidities. Computers in Human Behavior, 33, 126–135. https://doi.org/10.1016/j.chb.2014.01.031 Gambling Commission. (2017). Virtual currencies, eSports and social casino gaming - position paper. United Kingdom: Gambling Commission. http://www.gamblingcommission.gov.uk/PDF/Virtual-currencies-eSports- and-social-casino-gaming.pdf Gambling Commission. (2018). Gambling participation in 2017: behaviour, awareness and attitudes. United Kingdom: Gambling Commission. https://www.gamblingcommission.gov.uk/PDF/survey-data/Gambling- participation-in-2017-behaviour-awareness-and-attitudes.pdf Gambling Commission. (2019a). Gambling participation in 2018: behaviour, awareness and attitudes. United Kingdom: Gambling Commission. https://www.gamblingcommission.gov.uk/PDF/survey-data/Gambling- participation-in-2018-behaviour-awareness-and-attitudes.pdf Gambling Commission. (2019b). Young People and Gambling Survey 2019: A research study among 11-16 year olds in Great Britain. United Kingdom: Gambling Commission. https://www.gamblingcommission.gov.uk/PDF/Young-People-Gambling-Report-2019.pdf

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Gambling Commission. (2020). Gambling participation in 2019: behaviour, awareness and attitudes. United Kingdom: Gambling Commission. https://www.gamblingcommission.gov.uk/PDF/survey-data/Gambling- participation-in-2019-behaviour-awareness-and-attitudes.pdf Gibbs, M., Carter, M., Cumming, D., Fordyce, R., & Witkowski, E. (2018). Esports spectatorship in Australia. The University of Melbourne. Retrieved from: https://networkedsociety.unimelb.edu.au/__data/assets/pdf_ file/0012/2877627/ESports-Australia-NSI.pdf Greer, N. (2018, November 21). Ready Player Won: An inside look into the experiences of esports bettors and skin gamblers. 28th National Association of Gambling Studies Conference, Brisbane, Australia. Greer, N., Rockloff, M., Browne, M., Hing, N., & King, D. L. (2019). Esports betting and skin gambling: A brief history. Journal of Gambling Issues, 43. http://jgi.camh.net/index.php/jgi/article/view/4059/4461 Griffiths, M., & Wood, R. T. (2000). Risk factors in adolescence: the case of gambling, videogame playing, and the internet. Journal of Gambling Studies, 16(2-3), 199–225. http://www.ncbi.nlm.nih.gov/pubmed/14634313 Grove, C. (2016a). Esports and gambling: where’s the action? Narus Advisors. http://naruscope.com/wp-content/uploads/2016/09/Esports-White-Paper-v2.pdf Grove, C. (2016b). Understanding Skin Gambling. Narus Advisors. http://www.esportsbettingreport.com/wp- content/uploads/2016/07/A-Guide-To-Skin-Gambling.pdf Hayer, T., Kalke, J., Meyer, G., & Brosowski, T. (2018). Do Simulated Gambling Activities Predict Gambling with Real Money During Adolescence? Empirical Findings from a Longitudinal Study. Journal of Gambling Studies, 34(3), 929–947. https://doi.org/10.1007/s10899-018-9755-1 Hermant, N., & Doman, M. (2016, May 30). Counter-Strike skins gambling: Australian teens risking thousands through video game. ABC News. https://www.abc.net.au/news/2016-05-30/australian-teens-losing-thousands- counter-strike-skins-gambling/7437990 Hing, N., Russell, A., Tolchard, B., & Nower, L. (2016). Risk factors for gambling problems: an analysis by gender. Journal of Gambling Studies, 32(2), 511–534. https://doi.org/10.1007/s10899-015-9548-8 Holden, J. T., & Ehrlich, S. C. (2017). Esports, skins betting, and wire fraud vulnerability. Gaming Law Review, 21(8), 566–574. https://doi.org/10.1089/glr2.2017.2183 Ipsos MORI and GambleAware. (2019). Interim Synthesis Report: The Effect of Gambling Marketing and Advertising on Children, Young People and Vulnerable Adults. https://www.about.gambleaware.org/ media/1962/17-067097-01-gambleaware_interim-synthesis-report-exec-summary_080719_final.pdf Jenny, S. E., Manning, R. D., Keiper, M. C., & Olrich, T. W. (2017). Virtual(ly) Athletes: Where eSports Fit Within the Definition of “Sport.” Quest , 69(1), 1–18. https://doi.org/10.1080/00336297.2016.1144517 Johansson, A., Grant, J. E., Kim, S. W., Odlaug, B. L., & Götestam, K. G. (2009). Risk factors for problematic gambling: a critical literature review. Journal of Gambling Studies, 25(1), 67–92. https://doi.org/10.1007/s10899-008-9088-6 Johnson, M. R., & Brock, T. (2019). How are video games and gambling converging? Gambling Research Exchange Ontario. https://www.greo.ca/Modules/EvidenceCentre/files/Johnson%20and%20Brock%20 (2019)%20How%20are%20video%20games%20and%20gambling%20converging.pdf Karlsson, J., Broman, N., & Håkansson, A. (2019). Associations between Problematic Gambling, Gaming, and Internet Use: A Cross-Sectional Population Survey. Journal of Addiction, 2019, 1464858. https://doi.org/10.1155/2019/1464858 Kim, H. S., Wohl, M. J. A., Gupta, R., & Derevensky, J. L. (2017). Why do young adults gamble online? A qualitative study of motivations to transition from social casino games to online gambling. Asian Journal of Gambling Issues and Public Health, 7(1), 6. https://doi.org/10.1186/s40405-017-0025-4

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Kim, H. S., Wohl, M. J. A., Salmon, M. M., Gupta, R., & Derevensky, J. (2014). Do Social Casino Gamers Migrate to Online Gambling? An Assessment of Migration Rate and Potential Predictors. Journal of Gambling Studies, 31(4), 1819–1831. https://doi.org/10.1007/s10899-014-9511-0 King, D. (2018). Online gaming and gambling in children and adolescents – Normalising gambling in cyber places. Victorian Responsible Gambling Foundation, Melbourne. https://responsiblegambling.vic.gov.au/resources/ publications/online-gaming-and-gambling-in-children-and-adolescents-normalising-gambling-in-cyber- places-479/ King, D. L., & Delfabbro, P. H. (2016). Early exposure to digital simulated gambling: A review and conceptual model. Computers in Human Behavior, 55, 198–206. https://doi.org/10.1016/j.chb.2015.09.012King, D. L., & Delfabbro, P. H. (2018). Predatory monetization schemes in video games (e.g. “loot boxes”) and internet gaming disorder. Addiction, 113(11), 1967–1969. https://doi.org/10.1111/add.14286 King, D. L., Gainsbury, S. M., Delfabbro, P. H., Hing, N., & Abarbanel, B. (2015). Distinguishing between gaming and gambling activities in addiction research. Journal of Behavioral Addictions, 4(4), 215–220. https://doi.org/10.1556/2006.4.2015.045 King, D. L., Russell, A., Gainsbury, S., Delfabbro, P. H., & Hing, N. (2016). The cost of virtual wins: An examination of gambling-related risks in youth who spend money on social casino games. Journal of Behavioral Addictions, 5(3), 401–409. https://doi.org/10.1556/2006.5.2016.067 Li, W., Mills, D., & Nower, L. (2019). The relationship of loot box purchases to problem video gaming and problem gambling. In Addictive Behaviors (Vol. 97, pp. 27–34). https://doi.org/10.1016/j.addbeh.2019.05.016 Luongo, C. (2020, January 6). GG.Bet to host CS:GO tournament at ICE London 2020. Esports Insider. https://esportsinsider.com/2020/01/gg-bet-ice-london-challenge-2020/ Macey, J., & Hamari, J. (2018). Investigating relationships between video gaming, spectating esports, and gambling. Computers in Human Behavior, 80, 344–353. https://doi.org/10.1016/j.chb.2017.11.027 Miceli, M. (2019, January 24). BIG Adds Online Gambling Company Betway as Sponsor. The Esports Observer. https://esportsobserver.com/big-betway-sponsor/ Miller, H. (2015). Risk factors for problem gambling: environmental, geographic, social, cultural, demographic, socio-economic, family and household. Victorian Responsible Gambling Foundation. Mitchell, F. (2017, March 15). Norwegian Gaming Authority to Sanction Skin Betting Operators, View Skins as Virtual Currency. https://esportsobserver.com/norwegian-gaming-authority-sanction-skin-betting-operators- view-skins-virtual-currency/ Molde, H., Holmøy, B., Merkesdal, A. G., Torsheim, T., Mentzoni, R. A., Hanns, D., Sagoe, D., & Pallesen, S. (2019). Are Video Games a Gateway to Gambling? A Longitudinal Study Based on a Representative Norwegian Sample. Journal of Gambling Studies, 35(2), 545–557. https://doi.org/10.1007/s10899-018-9781-z Newzoo. (2020). 2020 Global Esports Market Report. https://newzoo.com/insights/trend-reports/newzoo-global- esports-market-report-2020-light-version/ Office of the eSafety Commissioner. (2018). State of Play - Youth and online Gaming in Australia. Australian Government. http://esafety.gov.au/en/about-the-office/research-library/youth-online-gaming OPSkins. (2018, June 9). Official Statement Regarding Valve & OPSkins Steam Accounts. Retrieved June 19, 2018, from https://blog.opskins.com/official-statement-regarding-valve-opskins-steam-accounts/ Parent Zone. (2018). Skin gambling: teenage Britain’s secret habit. https://parentzone.org.uk/system/files/ attachments/Skin_Gambling_Report_June_2018.pdf Queensland Government. (2018). Queensland Household Gambling Survey 2016-17. https://www.publications.qld. gov.au/dataset/4d12b47b-d516-4851-82f5-65218fcaadfb/resource/4267f3c2-950b-407e-b88f-d31e116cedcb/ fs_download/queenslandhouseholdgamblingsurvey2016-17.pdf

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Rockloff, M., Browne, M., Hing, N., Thorne, H., Russell, A., Greer, N., Tran, K., Brook, K., & Sproston, K. (2020). Victorian population gambling and health study 2018–2019. Victorian Responsible Gambling Foundation, Melbourne. https://responsiblegambling.vic.gov.au/resources/publications/victorian-population-gambling-and- health-study-20182019-759/ Rockloff, M., Greer, N., Armstrong, A., Thorne, H., Langham, E., Browne, M., Moskovsky, N., & Li, E. (2018). Mobile EGMs Apps: The Perfect Substitute or the Perfect Storm? Victorian Responsible Gambling Foundation. https://responsiblegambling.vic.gov.au/resources/publications/mobile-egms-apps-the-perfect-substitute-or-the- perfect-storm-407/ Russell, A. M. T., Hing, N., Browne, M., & Rawat, V. (2018). Are direct messages (texts and emails) from wagering operators associated with betting intention and behavior? An ecological momentary assessment study. Journal of Behavioral Addictions, 7(4), 1079–1090. https://doi.org/10.1556/2006.7.2018.99 Sanders, J., & Williams, R. (2019). The Relationship Between Video Gaming, Gambling, and Problematic Levels of Video Gaming and Gambling. In Journal of Gambling Studies (Vol. 35, Issue 2, pp. 559–569). https://doi.org/10.1007/s10899-018-9798-3 Scholes-Balog, K. E., Hemphill, S. A., Toumbourou, J. W., & Dowling, N. A. (2016). Problem gambling patterns among Australian young adults: Associations with prospective risk and protective factors and adult adjustment. Addictive Behaviors, 55, 38–45. https://doi.org/10.1016/j.addbeh.2015.12.016 Seo, Y., & Jung, S. U. (2014). Beyond solitary play in computer games: The social practices of eSports. Journal of Consumer Culture. https://doi.org/10.1177/1469540514553711 Valve Corporation. (2018, March 29). Counter-Strike: Global Offensive - Adjustments to maps and trade. Retrieved July 3, 2018, from http://blog.counter-strike.net/index.php/2018/03/20308/ Veselka, L., Wijesingha, R., Leatherdale, S. T., Turner, N. E., & Elton-Marshall, T. (2018). Factors associated with social casino gaming among adolescents across game types. BMC Public Health, 18(1), 1167. https://doi.org/10.1186/s12889-018-6069-2 Walker, A. (2016, March 22). Crown Casino Extends Its Affiliation With Esports. Kotaku Australia; Kotaku Australia. https://www.kotaku.com.au/2016/03/crown-casino-extends-its-affiliation-with-esports/ Wardle, H. (2019). The Same or Different? Convergence of Skin Gambling and Other Gambling Among Children. Journal of Gambling Studies, 35(4), 1109 –1125. https://doi.org/10.1007/s10899-019-09840-5 Williams, R. J., Hann, R. G., Schopflocher, D. P., West, B. L., McLaughlin, P., White, N., King, K., & Flexhaug, T. (2015). Quinte longitudinal study of gambling and problem gambling. Ontario Problem Gambling Research Centre. http://opus.uleth.ca/handle/10133/3641 Wohl, M. J. A., Salmon, M. M., Hollingshead, S. J., & Kim, H. S. (2017). An Examination of the Relationship Between Social Casino Gaming and Gambling: The Bad, The Ugly, and The Good. Journal of Gambling Issues, 35(0). https://doi.org/10.4309/jgi.2017.35.1 YouGov. (2018). Just a game? Understanding the existing and future eSports market in Australia. https://au.yougov. com/find-solutions/reports/esports/ Zendle, D. (2019). Gambling-like video game practices: Links with problem gambling and disordered gaming in a nationally representative sample. https://doi.org/10.31234/osf.io/fh3vx Zendle, D., Meyer, R., & Ballou, N. (2020). The changing face of desktop video game monetisation: An exploration of exposure to loot boxes, pay to win, and cosmetic microtransactions in the most-played Steam games of 2010-2019. PloS One, 15(5), e0232780. https://doi.org/10.1371/journal.pone.0232780 Zendle, D., & Cairns, P. (2018). Video game loot boxes are linked to problem gambling: Results of a large-scale survey. PloS One, 13(11), e0206767. https://doi.org/10.1371/journal.pone.0206767 Zendle, D., & Cairns, P. (2019). Loot boxes are again linked to problem gambling: Results of a replication study. PloS One, 14(3), e0213194. https://doi.org/10.1371/journal.pone.0213194

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Appendices

Appendix A. Online questionnaire

Video games, esports, and gambling study

Thank you for your interest in this project examining video games, esports, and gambling.

We are interested in the experiences of a range of Australians aged 18 or over: video gamers, esports viewers, esports bettors (cash or skins), sports bettors, and skin bettors on games of chance.

If you are one of the above people, you are invited to 15-20 minute survey about you, specifically: • Video gaming • Esports– viewing, playing • Gambling – esports, with skins, sports, and other gambling activities • Basic background questions, such as your age, postcode • Your wellbeing

Display all non-Qualtrics sample: All participants receive a $10 electronic gift card for completing the survey.

If you wish to read more details about this study, please click the button below. Otherwise, please indicate your consent below to proceed with the study.

If you have any questions, please contact the project’s Chief Investigator Nancy Greer at [email protected].

Show full details about the study (optional)

Display if ‘yes’ full details about study.

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Video games, esports, and gambling study

Project team: Nancy Greer (Chief Investigator), Prof. Matthew Rockloff, and Dr. Alex Russell.

INFORMATION SHEET

Thank you for your interest in this project examining video games, esports, and gambling. Esports are professional video game competitions. This project is being conducted by CQUniversity researchers and is funded by the Victorian Responsible Gambling Foundation (VRGF).

Taking part

We are interested in the experiences of a range of Australians aged 18 or over: video gamers, esports viewers, esports bettors (cash or skins), sports bettors, and skin bettors on games of chance.

What you are invited to do

We are inviting eligible people to complete an online survey, approximately 15-20 minutes in length. The survey will ask you about your: • Video gaming • Esports– viewing, playing • Gambling – esports, with skins, sports, and other gambling activities • Basic background questions, such as your age, postcode • Your wellbeing

DISPLAY IF: Non-Qualtrics panel sample:

Compensation for your time and effort

Your time is valuable. We are offering all participants a $10 electronic gift card for completing the survey. In order to send you the gift voucher, we will collect your email address at the end of the survey.

How your confidentiality will be protected

We will protect the confidentiality of your survey data to the fullest possible extent, within the limits of the law. Your email (if provided) will be kept in a password protected computer file separate from any data you supply. Your name will not appear in the research report or any associated publications or presentations. We will also remove any references to personal information that might allow someone to guess your identity. The de-identified data will be kept securely by CQUniversity in perpetuity.

Participation will not prejudice you in any way

Please be advised that your participation in this study is completely voluntary. Should you wish to withdraw at any stage you are free to do so without prejudice or penalty. You have up to 4 weeks after the survey to request withdrawal of your survey data from the project. Unfortunately, we can’t withdraw your data after that time, because some of it may have been combined with data from other participants in our analysis.

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Requests for data withdrawal or withdrawal from future participation in the study are done by notifying the Chief Investigator, Nancy Greer, at E: [email protected]

How you will receive feedback

This research is being conducted by CQUniversity’s Experimental Gambling Research Laboratory (EGRL) and is funded by the Victorian Responsible Gambling Foundation (VRGF). The results will be available in mid-2020 after the research is completed on the VRGF website (https://responsiblegambling.vic.gov.au/resources/publications/) and a plain English summary of the results posted on CQU’s EGRL Facebook page (https://www.facebook.com/ cquegrl).

Where you can get further information

Should you require any further information or if you have some questions about participation please contact Nancy Greer on [email protected].

Please contact CQUniversity’s Research Division (Tel: +61 07 4923 2603; E-mail: [email protected]; Mailing address: Building 32, CQUniversity, Rockhampton QLD 4702, Australia) should there be any concerns about the nature and/or conduct of this research project

Some of the questions we ask will be about your past gambling behaviour. If you experience discomfort arising from your participation, you can contact the below support numbers: • Gambler’s Help on 1800 858 858 or www.gamblinghelponline.org.au. These are free and confidential telephone/online help services that operate 24 hours a day, 7 days a week. • Lifeline on 13 11 14 or www.lifeline.org.au. This a free and confidential national service which provides persons experiencing a personal crisis with access to 24 hour crisis support and suicide prevention services. • National Debt Helpline on 1800 007 007 or www.ndh.org.au. This is a free and confidential service offering financial counselling. The 1800 helpline is available from 9.30am to 4.30pm Monday to Friday.

How to participate

If you would like to participate in this research project, please indicate that you have read and understood this information by indicating your consent below and continuing with the online survey. Thank you very much for considering our invitation.

I consent to participation in this research project and agree that: • I have read and understood the Information Sheet that describes this study. • Any questions I had about the project were answered by either the Information Sheet or the researcher. • I have the right to withdraw from the project at any time without penalty, including withdrawal of my participation and/or data. • The research findings will be included in the researcher’s publication(s) on the project and this may include conference presentations and research articles as well as other media described in the Information Sheet. • To protect my privacy, my identifiable information will not be used in publication(s). • I am aware that the results will be available after the date mentioned in the Information Sheet.

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• Qualtrics sample only: The online panel provider which invited you to the survey will receive a payment for their services of inviting participants to this study. • I am providing informed consent to participate in this project. • I am 18 years of age or over.

1. Yes 2. No

If yes, continue to the online survey If no, screen-out: Thank you for your time.

ONLINE SURVEY

Screening Questions

Thank you for your interest in this project examining the convergence of video games, esports, and gambling. We would like to ask you a few questions before you can continue with the survey.

Demographics

ASK ALL [Quantity; current age calculated]

Q1a. In which month were you born? _

Q1b. In which year were you born? _

If aged < 18 years of age, screen-out: Thank you for your time, but you need to be 18 years or over to participate.

If aged 18 or over years, continue.

ASK ALL [Single Response]

Q2. In which country do you reside?

1. Australia

2. Other (please specify) ____

If not an Australian resident, screen out: Thank you for your time, but we are seeking people residing in Australia.

If an Australian resident, continue

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Participation in video gaming, esports viewing, and gambling activities

DISPLAY TO ALL: A short presentation with descriptions of esports, skins, and gambling on these. This is to quickly give everyone an understanding about the products we are about to screen them on engaging in.

ASK ALL [Single Response for all options]

Q3. In the last 12 months, on average how often did you engage in…

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At least At least At least Not More than I have weekly (1) fortnightly monthly monthly, 12 months never (2) (3) but within ago (5) engaged the last 12 in this months (4) activity (6)

Playing video games (fighting, first-person shooters, real-time strategy, sports, racing, or multiplayer online battle arena games – do not include puzzle games, card games, mobile app only games) Watching esports (professional video gaming competitions) Betting on esports with money using debit, credit, or a cryptocurrency Betting on esports with skins or skin deposits (Betting is for money or skins. Skins are virtual game items or other tradeable items. Do not include loot box purchases). Using skins or skin deposits to bet on a game of chance (e.g., roulette, jackpot, coin flip) (Betting is for money or skins. Virtual game items or other tradeable items. Do not include loot box purchases). Betting on traditional sports (e.g., AFL, cricket) for money (do not include esports or fantasy sports betting)

If haven’t engaged in any in last 12 months/fortnightly depending on sample group, screen-out: Thank you for your time, but we are seeking people who have engaged in these activities at least once in the last 12 months or fortnightly (depending on the activity).

If have engaged in last 12 months (esports skin betting, skin gambling) or fortnightly (video gaming, esports viewing, sports betting, or esports cash betting) on activities, continue.

QUOTAS

Programming for quotas. Groups 1-3 non-exclusive. Groups 4-6 exclusive. • Esports cash bettor – has bet on esports with money at least fortnightly • Esports skin bettor – has bet on esports with skins in the last 12 months

Victorian Responsible Gambling Foundation Page 61 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

• Skin gambler – has bet with skins on games of chance in the last 12 months • Esports viewer – watches esports at least fortnightly AND does not code to Quota groups 1, 2, or 3 • Video gamer – plays video games at least fortnightly AND does not code to Quota groups 1, 2, 3 or 4 • Sports bettor – bets on sports at least fortnightly AND does not code to Quota groups 1, 2, 3, or 4.

Screen-out those not falling into one of six sample groups.

Esports Consumption

This section will ask about esports viewing and competitive esports playing.

ASK IF: Have never watched or bet on esports. [Single Response]

Q4. Before taking this survey, had you heard of esports?

1. Yes 2. No

ASK IF: If have EVER watched esports [Quantity Response]

Q5. At what age did you first watch esports? If you are unsure, enter your best guess.

1. Age ____ [Range: 1 to current age]

Victorian Responsible Gambling Foundation Page 62 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Have watched esports in the last 12 months [Multiple Response] (listed alphabetically)

Q6. In the past 12 months, which esports have you watched? Select all that apply. If the esports you watch isn’t listed record it in the ‘other’ box. Reminder: esports are professional video game competitions. 1. Call of Duty series 22. Heroes of the Storm 2. Counter-Strike series 23. iRacing.com 3. Defense of the Ancients (DOTA) 24. Madden NFL (video game series) 4. FIFA (video game series) 25. Minecraft 5. Fortnite 26. Mortal Kombat 6. Hearthstone 27. Need for Speed series 7. League of Legends 28. NBA 2K (video game series) 8. Overwatch 29. Pokémon (video game series) 9. PlayerUnknown’s Battlegrounds (PUBG) 30. Quake series 10. Rocket League 31. Rainbow Six series 11. StarCraft series 32. SMITE 12. Age of Empires series 33. Street Fighter series 13. Apex Legends series 34. Super Smash Bros. 14. Arena of Valor 35. Team Fortress 2 15. Battlefield series 36. The Witcher Series (GWENT) 16. Clash Royale 37. WarCraft 17. CrossFire 38. World of Tanks 18. Formula 1 (video game) 39. World of Warcraft 19. Forza Motorsport seriesGears of War 40. Other esports game (please specify) 20. H1Z1 ____ 21. Halo series 41. None of the above – I have not watched esports in the last 12 months [Exclusive]

ASK IF: Have watched esports in the last 12 months [Multiple Response]

Q7. In the last 12 months, how have you watched esports? Select all that apply. 1. Streamed a live event online 2. Streamed a non-live event online 3. Watched an event on TV 4. Attended a live event 5. Attended an event viewing party (e.g., cinema/theatre, etc) 6. None of the above – I have not watched esports in the last 12 months [Exclusive]

Victorian Responsible Gambling Foundation Page 63 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Screen out if ESPORTS VIEWER and on Q7 = None of the above

ASK IF: If have EVER watched esports [Multiple Response]

Q8. Have you ever competed in an esports event as a… Select all that apply. 1. Professional player, for a financial prize 2. Amateur player, for a financial prize 3. Player in a friendly tournament with no financial prize (e.g., LANs) 4. None of above

ASK IF: If have played esports [Single Response]

Q9. In the last 12 months, on average how often do you compete in esports? 1. At least weekly 2. At least fortnightly 3. At least monthly 4. Not monthly, but within the last 12 months 5. I have not played esports in the last 12 months

ASK IF: If have played esports

[Quantity Response]

Q10. At what age did you first compete in an esports event? If you are unsure, enter your best guess. 1. Age ____ [Range: 1 to current age]

Victorian Responsible Gambling Foundation Page 64 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Video gaming

This section will ask about your video gaming.

ASK IF: Ever played video games [Quantity Response]

Q11. At what age did you first play a video game? If you are unsure, use your best guess. 1. Age ____ [Range: 1 to current age]

ASK IF: Have played video games in the last 12 months. [Multiple Response]

Q12. Of the below video game categories, on average how often have you played each in the last 12 months?

At least At least At least Not monthly, but I have not played weekly fortnightly monthly within the last 12 this game months type in the last 12 months

Fighting games First-person shooter games Real-time strategy games Sports games Racing games Multiplayer online battle arena games Puzzles

Victorian Responsible Gambling Foundation Page 65 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

At least At least At least Not monthly, but I have not played weekly fortnightly monthly within the last 12 this game months type in the last 12 months

Casino games (e.g., via smartphone app, not gambling) Card games (not gambling)

ASK IF: Video gamer last 12 months [Multiple Response]

Q13. In the past 12 months, which video games have you played? Select all that apply. If the video game isn’t listed record it in ‘other’ box. 1. Call of Duty series 2. Counter-Strike series 3. Defense of the Ancients (DOTA) 4. FIFA series 5. Fortnite 6. Hearthstone 7. League of Legends 8. Overwatch 9. Player Unknown’s Battlegrounds (PUBG) 10. Rocket League 11. Starcraft series 12. Other esports game (please specify) ____

ASK IF: Have played video games in the last 12 months. [Single Response]

Q14. In the past 12 months, on a typical day in which you played video games, how much time did you spend gaming? 1. Less than 30 minutes 2. 30 minutes or more but less than 1 hour 3. 1 hour or more but less than 2 hours 4. 2 hours or more but less than 3 hours 5. 3 hours or more

Victorian Responsible Gambling Foundation Page 66 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Have played video games in the last 12 months. [Multiple Response]

Q15. Which device types do you play video games on? Select all that apply. 1. PCs or personal computers, including laptops 2. Consoles such as the Sony PlayStation 4, Microsoft Xbox One, Nintendo Switch 3. Mobile Phones, such as iOS and Android phones 4. Tablet computers, running iOS and Android systems 5. Handhelds, including dedicated devices such as the Sony PS Vita and the Nintendo 3DS

ASK IF: Have played video games in the last 12 months. [Single Response]

Q16. Do you have a Steam account?

Steam is a digital distribution platform developed by Valve Corporation for purchasing and playing video games. 1. Yes 2. No

Skins and Loot Boxes

This section will ask about purchases related to video gaming – skins and loot boxes.

ASK IF: Not an esports skin bettor, or skin gambler. [Single Response]

Q17. Before today, were you aware of “skins” (virtual game items or other tradeable graphics)? 1. Yes 2. No

Victorian Responsible Gambling Foundation Page 67 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK ALL [Single Response]

Q18. Before today, were you aware of loot boxes (or loot crates)?

A loot box refers to an in-game reward system that can be purchased repeatedly with real money to obtain a random selection of virtual items. 1. Yes 2. No

ASK IF: Esports skin bettor, skin gambler, or aware of skins [Multiple Response]

Q19. Have you ever purchased a skin via…(select all that apply) 1. Steam marketplace 2. Skin exchange for Steam skins 3. Skin exchange for VGO skins 4. On a skin gambling website via their online store 5. In a video-game (e.g., loot box opening) 7. Other (please specify) ______8. None of the above – but I have been gifted a skin [Single Exclusive] 9. None of the above – I have never purchased a skin [Single Exclusive]

ASK IF: Have purchased a skin. [Multiple Response]

Q20. What were your reasons for purchasing skins? Select all that apply. 1. Use in a video-game 2. Add to my collection 3. Skin trading (e.g., via Steam marketplace, via a skin exchange, person to person trade) 4. Gambling 97. Other reason/s (please specify) ______

Victorian Responsible Gambling Foundation Page 68 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Aware of loot boxes [Single Response, Quantity for $]

Q21. In the last 12 months, roughly how much money have you spent on purchasing loot boxes? 1. $ _____ 2. Not applicable – I have purchased a loot box, but not in the last 12 months 3. Not applicable – I have never purchased a loot box

ASK IF: Have purchased a loot box [Single Response]

Q22. At what age did you first purchase a loot box? 1. Under 12 years 2. 12-14 years 3. 14-16 years 4. 16-18 years 5. Over 18 years 6. Not applicable – I have never purchased a loot box

Esports cash betting – Participation

In this section we will ask you about esports cash betting, which includes betting on esports with money (debit, credit or cryptocurrencies).

Victorian Responsible Gambling Foundation Page 69 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Never bet on esports with cash. [Single Response]

Q23. Before today, were you aware that you could bet on esports (video game competitions) with money? 1. Yes 2. No

ASK IF: Ever bet on esports with cash [Quantity Response]

Q24. At what age did you first bet on esports (video game competitions) with money? If you are unsure, enter your best guess.

1. Age ____ [Range: 1 to current age]

ASK IF: Esports cash bettor in the last 12 months [Multiple Response]

Q25. In the past 12 months, which esports games have you bet on with money? Select all that apply. If the esports game isn’t listed record it in the ‘other’ box. 1. Call of Duty series 2. Counter-Strike series 3. Defense of the Ancients (DOTA) 4. FIFA series 5. Fortnite 6. Hearthstone 7. League of Legends 8. Overwatch 9. Player Unknown’s Battlegrounds (PUBG) 10. Rocket League 11. Starcraft series 12. Other esports game (please specify) ____

Victorian Responsible Gambling Foundation Page 70 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Esports cash bettor last 12 months [Multiple Response]

Q26. In the last 12 months, which betting providers have you used to place bets on esports (video game competitions) with money? Select all that apply. 1. ArcaneBet 16. Loot.bet 2. bet365 17. LuckBox 3. BetEasy 18. Nitrogen Sports 4. Betfair 19. OneHash 5. Betspawn 20. Pinnacle 6. Betway 21. Rivalry.gg 7. BetOnline 22. Skybet 8. Bovada 23. Sportsbet.com 9. Buff88.com 24. Thunderpick 10. CSGOFast 25. Unibet 11. Crownbet 26. Unikrn 12. EGB.com 27. William Hill 13. Esports Plus 28. Other betting providers (please specify) ______14. gg.bet 15. Ladbrokes

ASK IF: Esports cash bettor last 12 months [Grid, Single Response per item]

Q27. Which methods do you use to place bets on esports with money? Select all that apply. 1. Via a phone call 2. Online (e.g., via their website) 3. Mobile app 4. Something else (please specify) _____

ASK IF: Bets on esports with cash at least monthly [Quantity Response]

Q28. In the last 4 weeks, roughly how much money did you bet on esports? (regardless of whether you won or lost) 1. $ _____

Victorian Responsible Gambling Foundation Page 71 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Esports skin betting - Participation

In this section we will ask you about esports skin betting, which includes betting on esports with skins (directly or deposited for virtual currency).

ASK IF: Never bet on esports with skins. [Single Response]

Q29. Before today, were you aware that you could bet on esports (video game competitions) with skins? 1. Yes 2. No

ASK IF: Ever bet on esports with skins [Quantity Response]

Q30. At what age did you first bet on esports (video game competitions) using skins or skin deposits? If you are unsure, enter your best guess. 1. Age ____ [Range: 1 to current age]

ASK IF: Esports skin bettor last 12 months [Multiple Response]

Q31. In the past 12 months, which esports games have you bet on with skins or skin deposits? Select all that apply. If the esports game isn’t listed record it in the ‘other’ box. 1. Call of Duty series 2. Counter-Strike series 3. Defense of the Ancients (DOTA) 4. FIFA series

Victorian Responsible Gambling Foundation Page 72 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

5. Fortnite 6. Hearthstone 7. League of Legends 8. Overwatch 9. Player Unknown’s Battlegrounds (PUBG) 10. Rocket League 11. Starcraft series 12. Other esports game (please specify) ____

ASK IF: Esports skin bettor [Multiple Response]

Q32. In the last 12 months, which betting providers have you used to place bets on esports with skins or skin deposits? Select all that apply. 1. ArcaneBet 2. Betspawn 3. CSesports.com 4. CSGOLounge 5. CSGOFast 6. CSGOPolygon 7. CSGO Positive 8. Loot.bet 9. Thunderpick 10. VPGame 11. Other betting providers (please specify) ______

ASK IF: Esports skin bettor [Multiple Response]

Q33. Which methods do you use to place bets on esports with skins? Select all that apply. 1. Via a phone call 2. Online (e.g., via their website) 3. Mobile app 4. Something else (please specify) _____

Victorian Responsible Gambling Foundation Page 73 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Bets on esports with skins at least monthly [Quantity Response]

Q34. In the last 4 weeks, what was the approximate value of all the skins that you bet with on esports? (regardless of whether you won or lost) 1. $ _____

Skin gambling – Participation

In this section we will ask you about skin gambling, which is betting on games of chance (e.g., roulette, jackpot, coinflip) with skins (directly or deposited for virtual currency). DO NOT INCLUDE ESPORTS OR LOOT BOXES.

ASK IF: Never bet on games of chance with skins (skin gambling). [Single Response]

Q35. Before today, were you aware that you could bet on games of chance (e.g., roulette, jackpot, coinflip) with skins? 1. Yes 2. No

ASK IF: Ever bet on games of chance with skins [Quantity Response]

Q36. At what age did you first use skins to bet on games of chance? If you are unsure, enter your best guess. 1. Age ____ [Range: 1 to current age]

Victorian Responsible Gambling Foundation Page 74 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Skin gambler last 12 months [Multiple Response]

Q37. In the past 12 months, what types of games have you bet on with skins? Select all that apply. 1. Jackpot 8. Blackjack 2. Roulette 9. Tradeup 3. Coinflip 10. Slots 4. Crash game 11. Cards 5. Case opening 97. Other (please specify) ______6. Dice 98. Don’t know 7. Mines

ASK IF: Skin gambler last 12 months [Multiple Response]

Q38. In the last 12 months, which websites have you used to place bets on games of chance with skins or skin deposits?

Do not include websites only used for esports betting. Examples of games of chance include games such as roulette, jackpot, case opening, coinflip, crash, slots, dice, and cards, etc. 1. ArcaneBet 12. Hellcase 2. Betspawn 13. gg.bet 3. CSGOAtse 14. Loot.bet 4. CSGOEmpire 15. Skin Arena 5. CSGOFast 16. Skinbet.gg 6. CSGOLive 17. Skin Joker 7. CSGOPositive 18. Thunderpick 8. CSGORoll 19. VGOReaper 9. CSGOSpeed 20. VGOSkins 10. Farmskins 21. WTFSkins 11. Gamdom 22. Other website/s (please specify) ______

ASK IF: Skin gambler at least monthly [Quantity Response]

Q39. In the past 4 weeks, roughly how much money worth of skins did you bet on games? (regardless of whether you won or lost) 1. $ _____

Victorian Responsible Gambling Foundation Page 75 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Sports Betting

We would now like to ask you about sports betting.

ASK IF: Has ever bet on sports, bet on sports in the last 12 months. [Quantity Response]

Q40. At what age did you first bet on sports? If you are unsure, enter your best guess. 1. Age ____ [Range: 1 to current age]

ASK IF: Have bet on sports in the last 12 months. [Single Response]

Q41. In the past 12 months, where did you place bets on sports? Select all that apply. 1. TAB, or TAB outlet in a pub, club or casino 2. Australian-licensed bookmaker by phone call 3. Australian-licensed bookmaker online or with a mobile app 4. Overseas bookmaker online or with a mobile app 5. Overseas 6. Elsewhere (please specify) _____

ASK IF: Bets on sports at least monthly

[Quantity Response]

Q42. In the last 4 weeks, roughly how much money did you bet on sports? (regardless of whether you won or lost) 1. $ _____

Victorian Responsible Gambling Foundation Page 76 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Other Traditional Gambling

We would now like to ask you about other gambling activities.

ASK ALL [Multiple Response]

Q43. Which of these gambling activities have you bet on with money at any point in your life? Select all that apply.

DO NOT included esports cash betting, esports skin betting, skin gambling on games, or sports betting. 1. Private betting for money (e.g., playing cards at home) 2. Slot machines, pokies, or electronic gaming machines 3. Casino table games (e.g., blackjack, roulette, poker) 4. Horse or greyhound racing – but NOT sweeps 5. Fantasy sports 6. Keno 7. Australian lotteries, such as Tattslotto, Oz Lotto, Powerball or Pools 8. Scratch tickets 9. Bingo 10. Prize-draw competition by phone where there was a phone-charge for entry 11. Raffle tickets, sweeper, or other competitions 12. None of the above

Victorian Responsible Gambling Foundation Page 77 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Have ever engaged in other types of gambling. [Grid, each Single Response]

Q44. In the last 12 months, on average how often have you bet on… [Insert all activities ever bet on] 1. Private betting for money (e.g., playing cards at home) 2. Slot machines, pokies, or electronic gaming machines 3. Casino table games (e.g., blackjack, roulette, poker) 4. Horse or greyhound racing – but NOT sweeps 5. Fantasy sports 6. Keno 7. Australian lotteries, such as Tattslotto, Oz Lotto, Powerball or Pools 8. Scratch tickets 9. Bingo 10. Prize-draw competition by phone where there was a phone-charge for entry 11. Raffle tickets, sweeper, or other competitions

[Response frame] 1. At least weekly 2. At least fortnightly 3. At least monthly 4. Not monthly, but within the last 12 months 5. More than 12 months ago

ASK IF: Have ever engaged in other types of gambling. [Quantity] [Range: 1 to current age]

Q45. At what age did you first gamble on each activity? If you are unsure, enter your best guess. [Insert all activities ever bet on]

Gambling activities Age

Private betting for money (e.g., playing cards at home) Slot machines, pokies, or electronic gaming machines Casino games (e.g., blackjack, roulette, poker) Horse or greyhound racing – but NOT sweeps Fantasy sports Keno

Victorian Responsible Gambling Foundation Page 78 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Gambling activities Age

Australian lotteries, such as Tattslotto, Oz Lotto, Powerball or Pools Scratch tickets Bingo Prize-draw competition by phone where there was a phone-charge for entry Raffle tickets, sweeper, or other competitions

ASK IF: Bet at least monthly on at least 1 ‘other traditional’ gambling activity [Quantity Response]

Q46. In the last 4 weeks, roughly how much money did you bet each of the gambling activities? (regardless of whether you won or lost) [Insert all activities bet on at least monthly]

Gambling activities $

Private betting for money (e.g., playing cards at home) Slot machines, pokies, or electronic gaming machines Casino games (e.g., blackjack, roulette, poker) Horse or greyhound racing – but NOT sweeps Fantasy sports Keno Australian lotteries, such as Tattslotto, Oz Lotto, Powerball or Pools Scratch tickets Bingo Prize-draw competition by phone where there was a phone-charge for entry Raffle tickets, sweeper, or other competitions

Migration Patterns

ASK IF: Have ever engaged in more than one gambling activity of: esports cash betting, esports skin betting, or skin gambling., sports betting, top 5 ‘other traditional’ gambling activities (private betting for money, pokies, casino table games, horse/greyhound racing, or fantasy sports). OR ever engaged in esports viewing, esports playing, or video gaming.

Q47. In this section we are interested in your gambling over the last 4 years.

We will present you with up to 3 calendars showing 6-monthly time periods and for each select ‘yes’ or ‘no’ as to whether you engaged in the activity during that time. Key events will be listed based on previous responses you gave in the survey, to help with your memory.

Victorian Responsible Gambling Foundation Page 79 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

For example, the screenshot below shows the person played video games for most of the last 4 years, with the exception of Jan-June 2018. They watched esports between July 2016 to June 2019 (current), which matches the key date of first watching esports during July-Dec 2016.

Victorian Responsible Gambling Foundation Page 80 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Have ever engaged in: esports cash betting, esports skin betting, or skin gambling.

Q47. a. Earlier in the survey you indicated you that have gambled on: ${e://Field/Esports%20cash%20bettor%20-%20DYNAMIC} ${e://Field/Esports%20skin%20bettor%20-%20DYNAMIC} ${e://Field/Skin%20gambling%20DYNAMIC} For each 6-month period in the last 4 years, please select which gambling activities you engaged in. To help with your memory, key events are listed for some time periods [Gambling activities only appear if ever gambled on it]

Events Esports cash Esports skin Skin betting betting gambling

In July-Dec 2015 did you engage in.. Key events: you were aged X, events listed In Jan-June 2016, did you engage in.. Key events: you were aged X, events listed event In July-Dec 2016 did you engage in.. Key events: you were aged X, events listed, event In Jan-June 2017 did you engage in.. Key events: you were aged X, events listed, event In July-Dec 2017 did you engage in.. Key events: you were aged X, events listed, event In Jan-June 2018 did you engage in.. Key events: you were aged X, events listed, event In July-Dec 2018 did you engage in.. Key events: you were aged X, events listed, event In Jan-June 2019 did you engage in.. Key events: you were aged X, events listed, event

ASK IF: Have ever engaged in: sports betting, private betting for money, slots/pokies/EGMs, casino table games, horse/greyhound racing, fantasy sports.

Q47. b. Earlier in the survey you indicated you that have gambled on: ${e://Field/Sports%20betting%20DYNAMIC} ${e://Field/Private%20betting%20DYNAMIC} ${e://Field/Slot%20machines%20DYNAMIC} ${e://Field/Casino%20games%20DYNAMIC} ${e://Field/Horse%20greyhound%20racing%20DYNAMIC} ${e://Field/Fantasy%20sports%20DYNAMIC}

For each 6-month period in the last 4 years, please select which gambling activities you engaged in. To help with your memory, key events are listed for some time periods.

Victorian Responsible Gambling Foundation Page 81 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

[Gambling activities only appear if ever gambled on it]

Events Esports cash Esports skin Skin betting betting gambling

In July-Dec 2015 did you engage in.. Key events: you were aged X, events listed In Jan-June 2016, did you engage in.. Key events: you were aged X, events listed event In July-Dec 2016 did you engage in.. Key events: you were aged X, events listed, event In Jan-June 2017 did you engage in.. Key events: you were aged X, events listed, event In July-Dec 2017 did you engage in.. Key events: you were aged X, events listed, event In Jan-June 2018 did you engage in.. Key events: you were aged X, events listed, event In July-Dec 2018 did you engage in.. Key events: you were aged X, events listed, event In Jan-June 2019 did you engage in.. Key events: you were aged X, events listed, event

1. Sports betting 2. Private betting for money 3. Slot machines, pokies, or electronic gaming machines 4. Casino table games 5. Horse or greyhound racing 6. Fantasy sports

ASK IF: Have ever engaged in: video gaming, esports viewing, esports playing.

Q47. c. Earlier in the survey you indicated you that engaged in: ${e://Field/Video%20Gaming%20DYNAMIC} ${e://Field/Esports%20Viewer%20DYNAMIC} ${e://Field/Esports%20playing%20DYNAMIC}

Victorian Responsible Gambling Foundation Page 82 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

For each 6-month period in the last 4 years, please select which activities you engaged in. To help with your memory, key events are listed for some time periods. [Gambling activities only appear if ever gambled on it]

Events Esports cash Esports skin Skin betting betting gambling

In July-Dec 2015 did you engage in.. Key events: you were aged X, events listed In Jan-June 2016, did you engage in.. Key events: you were aged X, events listed event In July-Dec 2016 did you engage in.. Key events: you were aged X, events listed, event In Jan-June 2017 did you engage in.. Key events: you were aged X, events listed, event In July-Dec 2017 did you engage in.. Key events: you were aged X, events listed, event In Jan-June 2018 did you engage in.. Key events: you were aged X, events listed, event In July-Dec 2018 did you engage in.. Key events: you were aged X, events listed, event In Jan-June 2019 did you engage in.. Key events: you were aged X, events listed, event

1. Video gaming 2. Watching esports 3. Competing in esports

Victorian Responsible Gambling Foundation Page 83 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Problem Gambling

ASK IF: Have gambled in the last 12 months: esports cash betting, esports skin betting, skin gambling, sports betting, or other traditional gambling activities.

Problem Gambling Severity Index (PGSI; Ferris & Wynne, 2001)

[Single Response for each statement]

Q48. The next questions are about your gambling in general. Please consider all types of gambling when responding. Thinking about the last 12 months, how often….

Never Sometimes Most of the Almost time always

Have you bet more than you could really afford to lose? Have you needed to gamble with larger amounts of money to get the same feeling of excitement? When you gambled, did you go back another day to try to win back the money you lost? Have you borrowed money or sold anything to get money to gamble? Have you felt that you might have a problem with gambling? Has gambling caused you any health problems, including stress or anxiety? Have people criticized your betting or told you that you had a gambling problem, regardless of whether or not you thought it was true? Has your gambling caused any financial problems for you or your household? Have you felt guilty about the way you gamble or what happens when you gamble?

Gambling-Related Harm

Short Gambling Harm Screen (SGHS; Browne, Goodwin, & Rockloff, 2017)

ASK IF: Have gambled in the last 12 months.

Q49. These next questions are about how gambling can affect people in a negative way. In the last 12 months, have you experienced any of the following issues as a result of your gambling …

No Yes

a. reduction of your available spending money b. reduction of your savings

Victorian Responsible Gambling Foundation Page 84 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

No Yes

c. less spending on recreational expenses such as eating out, going to movies or other entertainment d. had regrets that made you feel sorry about your gambling e. felt ashamed of your gambling f. sold personal items g. increased credit card debt h. spent less time with people you care about i. felt distressed about your gambling j. felt like a failure

ASK IF: Experienced at least 1 gambling-related harm. [Single Response]

Q50. In the last 12 months, which type of gambling was the greatest cause for your negative experiences?

{Insert all gambling activities engaged in last 12 months} 1. Esports cash betting 2. Esports skin betting 3. Skin betting on games of chance 4. Sports betting 5. Private betting for money (e.g., playing cards at home) 6. Slot machines, pokies, or electronic gaming machines 7. Casino table games (e.g., blackjack, roulette, poker) 8. Horse or greyhound racing – but NOT sweeps 9. Fantasy sports 10. Keno 11. Australian lotteries, such as Tattslotto, Oz Lotto, Powerball or Pools 12. Scratch tickets 13. Bingo 14. Prize-draw competition by phone where there was a phone-charge for entry 15. Raffle tickets, sweeper, or other competitions 16. Other gambling activity (please specify) ______17. None – I have not experienced gambling harm in the last 12 months

Victorian Responsible Gambling Foundation Page 85 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Net Benefit / Harm of Gambling

ASK IF: Last 12 months - esports cash betting, esports skin betting, skin gambling, or sports betting [Grid, Single Response for each gambling activity]

Q51. Over the past year, for each gambling activity has it made your life better or worse? …. [Insert all gambling activities have gambled on in the last 12 months] 1. Esports cash betting 2. Esports skin betting 3. Skin betting on games of chance 4. Sports betting

Response frame: 1. Better 2. Worse 3. Neither

ASK IF: Any gambling activity has made their life better. [Grid, Single response for each gambling activity]

Q52. Overall, how much better has each gambling activity made your life? [Insert all “better” for their life gambling activities] 1. Esports cash betting 2. Esports skin betting 3. Skin betting on games of chance 4. Sports betting

Response frame: 1. Less than 2% better 2. Less than 5% better 3. Less than 10% better 4. Less than 20% better 5. 50% better or more

Victorian Responsible Gambling Foundation Page 86 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Any gambling activity has made their life worse. [Grid, Single response for each gambling activity]

Q53. Overall, how much worse has each gambling activity made your life? [Insert all “worse” for their life gambling activities] 1. Esports cash betting 2. Esports skin betting 3. Skin betting on games of chance 4. Sports betting

Response frame: 1. Less than 2% worse 2. Less than 5% worse 3. Less than 10% worse 4. Less than 20% worse 5. 50% worse or more

Gaming Addiction

Internet Gaming Disorder (IGD; Petry et al., 2014)

ASK IF: Has played video games in the last 12 months. [Single Response for each statement]

Q54. These questions will ask you about your gaming activity during the past 12 months.

No Yes

Did you spend a lot of time thinking about games even when you were not playing, or planning when you could play next? Did you feel restless, irritable, moody, angry, anxious or sad when attempting to cut down or stop gaming, or when you were unable to play? Did you feel the need to play for increasing amounts of time, play more exciting games, or use more powerful equipment to get the same amount of excitement you used to get? Did you feel that you should play less, but were unable to cut back on the amount of time you spent playing games? Did you lose interest in or reduce participation in other recreational activities (hobbies, meetings with friends) due to gaming? Did you continue to play games even though you were aware of negative consequences, such as not getting enough sleep, being late to school/work, spending too much money, having arguments with others, or neglecting important duties? Did you lie to family, friends or others about how much you game, or try to keep your family or friends from knowing how much you game?

Victorian Responsible Gambling Foundation Page 87 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

No Yes

Did you game to escape from or forget about personal problems, or to relieve uncomfortable feelings such as guilt, anxiety, helplessness or depression? Did you risk or lose significant relationships, or job, educational or career opportunities because of gaming?

Health and Wellbeing

Personal Wellbeing Index (International Wellbeing Group, 2013)

ASK ALL [Single Response]

Q55. a. Thinking about your own life and personal circumstances, how satisfied are you with your life as a whole?

Not satisfied Completely at all satisfied

0 1 2 3 4 5 6 7 8 9 10

[Single Response for each statement]

Q55. b-h. Turning now to various areas of your life. How satisfied are you…?

Not satisfied Completely at all satisfied

b. Your standard of living? 0 1 2 3 4 5 6 7 8 9 10 c. Your health? 0 1 2 3 4 5 6 7 8 9 10 d. What you are achieving 0 1 2 3 4 5 6 7 8 9 10 in life? e. Your personal 0 1 2 3 4 5 6 7 8 9 10 relationships? f. How safe you feel? 0 1 2 3 4 5 6 7 8 9 10 g. Feeling part of your 0 1 2 3 4 5 6 7 8 9 10 community? h. Your future security? 0 1 2 3 4 5 6 7 8 9 10

Victorian Responsible Gambling Foundation Page 88 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Kessler Psychological Distress Scale (K6; Kessler et al., 2003)

ASK ALL [Single Response for each statement]

Q56. The following questions ask about how you have been feeling during the past 30 days. For each question, select the number that best describes how often you have had this feeling.

During the past 30 days, about how often did you feel…

None of the A little of Some of Most of the All of the time the time the time time time

a. Nervous b. Hopeless c. Restless or fidgety d. So depressed that nothing could cheer you up e. That everything was an effort f. Worthless

AUDIT-C (Bush et al., 1998)

ASK ALL [Single Response]

Q57. In the last 12 months, how often do you have a drink containing alcohol?

Consider a “drink” to be a can or bottle of beer, a glass of wine, a wine cooler, or one cocktail or a shot of hard liquor (like scotch, gin or vodka). 1. Never 2. Monthly or less 3. 2-4 times a month 4. 2-3 times a week 5. 4 or more times a week

ASK AF: Drunk alcohol in the last 12 months. [Single Response]

Q58. How many standard drinks containing alcohol do you have on a typical day (in the last 12 months)? 1. 0 2. 1 or 2

Victorian Responsible Gambling Foundation Page 89 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

3. 3 or 4 4. 5 or 6 5. 7 to 9 6. 10 or more IF code 1 (no drinks): code as ‘never’ on previously question and skip next question.

ASK AF: Drunk alcohol in the last 12 months. [Single Response]

Q59. How often do you have six or more drinks on one occasion (in the last 12 months)? 1. Never 2. Less than monthly 3. Monthly 4. Weekly 5. Daily or almost daily

Smoking

ASK ALL [Single Response]

Q60. Are you currently, or have you ever been, a smoker?

To be classified as a “smoker” you must have smoked at least 100 cigarettes (manufactured and/or roll- your-own) or the equivalent amount of tobacco in their life. 1. Yes – current smoker 2. Yes – ex-smoker 3. No

ASK IF: A current smoker [Single Response]

Q61. How often do you smoke? 1. Daily 2. At least weekly 3. Less than weekly

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Demographics

These next few questions are now about you. Your answers will of course be treated in the strictest of confidence.

ASK ALL [Single Response]

Q62. What is your gender? 1. Male 2. Female

[Quantity Response] [Postcode range: 0800-7999]

Q63. a. What is the postcode of the suburb/area where you live?

Postcode _____

[Single Response]

Q63. b. In which Australian state or territory do you reside? 1. New South Wales 2. Victoria 3. Queensland 4. South Australia 5. Western Australia 6. Tasmania 7. Australian Capital Territory 8. Northern Territory

ASK ALL [Single Response]

Q64. What is your marital status? 1. Single / never married 2. Living with partner/de facto 3. Married 4. Divorced or separated 5. Widowed

Victorian Responsible Gambling Foundation Page 91 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK ALL [Single Response]

Q65. Do you speak a language other than English at home? 1. Yes 2. No

ASK IF: Speak language other than English at home [Single Response]

Q66. What is the main language (other than English) you speak at home? 1. Italian 9. Punjabi 2. Greek 10. Macedonian 3. Mandarin 11. Spanish 4. Vietnamese 12. Sinhalese 5. Cantonese 13. Croatian 6. Arabic 14. German 7. Turkish 15. Other (please specify) _____ 8. Hindi

ASK ALL [Single Response]

Q67. Are you of Aboriginal origin, Torres Strait Islander origin, or both? 1. Yes, Aboriginal 2. Yes, Torres Strait Islander 3. Yes, Both Aboriginal and Torres Strait Islander 4. No

ASK ALL [Single Response]

Q68. What is the highest level of education you have completed? 1. No education 2. Primary education 3. Secondary education 4. Post-secondary / tertiary education

Victorian Responsible Gambling Foundation Page 92 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

5. Bachelor or equivalent 6. Master or equivalent 7. Doctoral or equivalent 8. Other (please specify) ______

ASK ALL [Single Response]

Q69. Which of the following categories best describes your employment status? 1. Employed - full-time 2. Employed - part-time or casually 3. Unemployed 4. Other (please specify) ______

ASK IF: Employed [Single Response]

Q70. What is your approximate total annual personal income? (before tax – including any government payments)? 1. Negative or nil income 9. $52,000 - $64,999 per year 2. $1 - $7,799 per year 10. $65,000 - $77,999 per year 3. $7,800 - $15,599 per year 11. $78,000 - $90,999 per year 4. $15,600 - $20,799 per year 12. $91,000 - $103,999 per year 5. $20,800 - $25,999 per year 13. $104,000 - $155,999 per year 6. $26,000 - $33,799 per year 14. $156,000 or more 7. $33,800 - $41,599 per year 15. Prefer not to say 8. $41,600 - $51,999 per year

ASK IF: Not Qualtrics panel sample

Recontact Future Surveys

Q71. Would you be willing to be invited to participate in any future studies we conduct, including paid surveys? This does not obligate you in any way. 1. Yes 2. No

Victorian Responsible Gambling Foundation Page 93 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

ASK IF: Yes for recontact

Contact details. Please enter your email address below. We take your confidentiality very seriously and will only use this information to invite you to future studies.

[Open Ended Response]

Email. Please enter your email address.

______

[Open Ended Response]

EmailCheck. Please confirm your email address.

______

ASK IF: Not Qualtrics panel sample

Compensation

Thank you for taking part in our research. As a thank you for your time we would like to offer you a $10 electronic gift voucher. This will be sent via email a few weeks from now.

ASK IF: Not Qualtrics panel sample [Single Response]

Q72. Please select the voucher type you would like. 1. Coles 2. Target 3. Kmart 4. Officeworks 5. None of the above - I do not want a gift voucher

Email

ASK IF: Want a gift voucher OR Yes to be contact for future research

Contact details. Please enter your email address below. We take your confidentiality very seriously and will only use this information to email the $10 gift voucher or invite you to future studies.

[Open Ended Response]

Email. Please enter your email address.

______

Victorian Responsible Gambling Foundation Page 94 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

[Open Ended Response]

EmailCheck. Please confirm your email address.

______

DISPLAY TO ALL

End Statement

Thank you for taking part in our research.

This research is being conducted by CQUniversity’s Experimental Gambling Research Laboratory (EGRL) and is funded by the Victorian Responsible Gambling Foundation (VRGF). The results will be available in mid-2020 after the research is completed, published on the VRGF website (https://responsiblegambling.vic.gov.au/resources/ publications/) and a plain English summary of the results posted on CQU’s EGRL Facebook page (https://www. facebook.com/cquegrl).

If you need to contact us about anything related to this study, you can contact the Chief Investigator (Nancy Greer): [email protected].

Feedback

If you would like to add any comments about the survey please do so below (optional).

______

Support Services

If you are seeking support the following confidential help services are available to you: • Gambler’s Help on 1800 858 858 or www.gamblinghelponline.org.au. These are free and confidential telephone/online help services that operate 24 hours a day, 7 days a week. • Lifeline on 13 11 14 or www.lifeline.org.au. This a free and confidential national service which provides persons experiencing a personal crisis with access to 24 hour crisis support and suicide prevention services. • National Debt Helpline on 1800 007 007 or www.ndh.org.au. This is a free and confidential service offering financial counselling. The 1800 helpline is available from 9.30am to 4.30pm Monday to Friday.

Victorian Responsible Gambling Foundation Page 95 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Appendix B. Demographic characteristics for esports cash bettors, esports skin bettors, and skin gamblers

Demographic characteristic Esports cash Esports skin Skin gamblers Overall EB/SG bettors bettors (n=540) (n=744) (n=490) (n=656)

n % n % n % n %

Age 18-24 years 106 21.6 149 22.7 130 24.1 172 23.1 25-34 years 240 49.0 307 46.8 251 46.5 340 45.7 35-44 years 86 17.6 125 19.1 102 18.9 139 18.7 45-54 years 49 10.0 64 9.8 44 8.1 76 10.2 55-64 years 6 1.2 8 1.2 10 1.9 13 1.7 65+ years 3 0.6 3 0.5 3 0.6 4 0.5 Mean age (years) 490 31.96 656 31.80 540 31.57 744 32.02 Gender Male 357 72.9 448 68.3 334 61.9 500 67.2 Female 133 27.1 208 31.7 206 38.1 244 32.8 Residential State / Territory New South Wales 177 36.1 227 34.6 179 33.1 253 34.0 Victoria 109 22.2 163 24.8 135 25.0 188 25.3 Queensland 72 14.7 97 14.8 74 13.7 111 14.9 South Australia 72 14.7 85 13.0 80 14.8 93 12.5 Western Australia 33 6.7 51 7.8 51 9.4 64 8.6 Tasmania 5 1.0 7 1.1 8 1.5 8 1.1 Australian Capital Territory 21 4.3 24 3.7 10 1.9 24 3.2 Northern Territory 1 0.2 2 0.3 3 0.6 3 0.4 Marital Status Single / never married 150 30.6 212 32.3 181 33.5 249 33.5 Living with partner/ de facto 67 13.7 102 15.5 92 17.0 120 16.1 Married 263 53.7 321 48.9 247 45.7 350 47.0 Divorced / separated 8 1.6 19 2.9 19 3.5 23 3.1 Widowed 2 0.4 2 0.3 1 0.2 2 0.3 Main language spoken at home, other than English Yes 92 18.8 145 22.1 137 25.4 165 22.2 No 398 81.2 511 77.9 403 74.6 579 77.8

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Demographic characteristic Esports cash Esports skin Skin gamblers Overall EB/SG bettors bettors (n=540) (n=744) (n=490) (n=656)

n % n % n % n %

Education Level No education 3 0.6 4 0.6 3 0.6 4 0.5 Primary education 8 1.6 11 1.7 12 2.2 15 2.0 Secondary education 81 16.5 117 17.8 94 17.4 142 19.1 Post-secondary / tertiary 108 22.0 146 22.3 108 20.0 163 21.9 education Bachelors / Masters / Doctoral 290 59.2 378 57.6 323 59.8 420 56.5 degree Employment status Employed - full-time 372 75.9 466 71.0 355 65.7 509 68.4 Employed - part-time or 82 16.7 135 20.6 129 23.9 161 21.6 casually Unemployed 36 7.3 55 8.4 56 10.4 74 9.9 Annual personal income Negative or nil 8 1.6 12 1.8 10 1.9 16 2.2 $1 - $20,799 51 10.4 71 10.8 69 12.8 94 12.6 $20,800 - $41,599 100 20.4 130 19.8 87 16.1 141 19.0 $41,600 - $77,999 152 31.0 201 30.6 180 33.3 227 30.5 $78,000 - $155,999 162 33.1 208 31.7 161 29.8 226 30.4 $156,000 or more 9 1.8 13 2.0 11 2.0 13 1.7 Prefer not to say 8 1.6 21 3.2 22 4.1 27 3.6

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Appendix C. Participation in traditional gambling activities in the last 12 months for esports cash bettors, esports skin bettors, and skin gamblers

Traditional gambling Esports cash Esports skin Skin gamblers Overall EB/SG activity participated in last bettors bettors (n=540) (n=744) 12 months (n=490) (n=656)

n % n % n % n %

Any gambling activity 487 99.4 645 98.3 531 98.3 728 97.8 Sports betting 480 98.0 624 95.1 501 92.8 692 93.0 Private betting for money 162 33.1 231 35.2 202 37.4 256 34.4 Slot machines, pokies, or 219 44.7 304 46.3 254 47.0 342 46.0 EGMs Casino table games 199 40.6 264 40.2 241 44.6 305 41.0 Horse or greyhound racing 124 25.3 164 25.0 138 25.6 187 25.1 Fantasy sports 65 13.3 88 13.4 71 13.1 93 12.5 Keno 88 18.0 134 20.4 126 23.3 153 20.6 Australian lotteries 159 32.4 215 32.8 179 33.1 258 34.7 Scratch tickets 141 28.8 202 30.8 180 33.3 245 32.9 Bingo 78 15.9 108 16.5 108 20.0 126 16.9 Prize-draw competitions 47 9.6 60 9.1 48 8.9 67 9.0 Raffle tickets, sweeper, or 64 13.1 95 14.5 91 16.9 121 16.3 other competitions Number traditional gambling 2.78 (2.02) 2.88 (2.16) 3.07 (2.31) 2.94 (2.22) activities (Mean, SD)

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Appendix D. Gambling frequency by activities and sample group

Gambling participation – Esports bettors/ Sports bettors Esports viewers Video gamers frequency skin gamblers (n=300) (n=400) (n=343) (n=744)

n % n % n % n %

Esports cash betting At least fortnightly 490 65.9 0 0.0 0 0.0 0 0.0 At least monthly 110 14.8 0 0.0 0 0.0 0 0.0 At least yearly 89 12.0 0 0.0 0 0.0 0 0.0 More than 12 months ago 20 2.7 11 3.7 27 6.8 13 3.8 Never 35 4.7 289 96.3 373 93.3 330 96.2 Esports skin betting At least fortnightly 428 57.5 0 0.0 0 0.0 0 0.0 At least monthly 124 16.7 0 0.0 0 0.0 0 0.0 At least yearly 104 14.0 0 0.0 0 0.0 0 0.0 More than 12 months ago 23 3.1 5 1.7 30 7.5 4 1.2 Never 65 8.7 295 98.3 370 92.5 339 98.8 Skin gambling At least fortnightly 306 41.1 0 0.0 0 0.0 0 0.0 At least monthly 126 16.9 0 0.0 0 0.0 0 0.0 At least yearly 108 14.5 0 0.0 0 0.0 0 0.0 More than 12 months ago 42 5.6 11 3.7 25 6.3 12 3.5 Never 162 21.8 289 96.3 375 93.8 331 96.5 Sports betting At least fortnightly 518 69.6 300 100.0 25 6.3 71 20.7 At least monthly 114 15.3 0 0.0 29 7.3 23 6.7 At least yearly 60 8.1 0 0.0 26 6.5 39 11.4 More than 12 months ago 21 2.8 0 0.0 32 8.0 29 8.5 Never 31 4.2 0 0.0 288 72.0 181 52.8 Private betting for money At least fortnightly 151 20.3 10 3.3 12 3.0 7 2.0 At least monthly 60 8.1 9 3.0 8 2.0 6 1.7 At least yearly 45 6.0 41 13.7 31 7.8 32 9.3 More than 12 months ago 12 1.6 65 21.7 29 7.3 57 16.6 Never 476 64.0 175 58.3 320 80.0 241 70.3

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Gambling participation – Esports bettors/ Sports bettors Esports viewers Video gamers frequency skin gamblers (n=300) (n=400) (n=343) (n=744)

n % n % n % n %

Slot machines, pokies, or electronic gaming machines At least fortnightly 201 27.0 38 12.7 19 4.8 31 9.0 At least monthly 92 12.4 38 12.7 29 7.3 25 7.3 At least yearly 49 6.6 79 26.3 32 8.0 66 19.2 More than 12 months ago 12 1.6 50 16.7 29 7.3 70 20.4 Never 390 52.4 95 31.7 291 72.8 151 44.0 Casino table games At least fortnightly 158 21.2 9 3.0 12 3.0 8 2.3 At least monthly 93 12.5 20 6.7 18 4.5 9 2.6 At least yearly 54 7.3 71 23.7 24 6.0 45 13.1 More than 12 months ago 6 0.8 69 23.0 25 6.3 58 16.9 Never 433 58.2 131 43.7 321 80.3 223 65.0 Horse or greyhound racing At least fortnightly 113 15.2 137 45.7 21 5.3 40 11.7 At least monthly 54 7.3 29 9.7 14 3.5 18 5.2 At least yearly 20 2.7 48 16.0 22 5.5 62 18.1 More than 12 months ago 5 0.7 15 5.0 18 4.5 39 11.4 Never 552 74.2 71 23.7 325 81.3 184 53.6 Fantasy sports At least fortnightly 64 8.6 16 5.3 10 2.5 6 1.7 At least monthly 25 3.4 5 1.7 5 1.3 1 0.3 At least yearly 4 0.5 6 2.0 1 0.3 5 1.5 More than 12 months ago 1 0.1 5 1.7 5 1.3 1 0.3 Never 650 87.4 268 89.3 379 94.8 330 96.2 Keno At least fortnightly 89 12.0 26 8.7 7 1.8 22 6.4 At least monthly 40 5.4 27 9.0 21 5.3 14 4.1 At least yearly 24 3.2 57 19.0 12 3.0 46 13.4 More than 12 months ago 4 0.5 42 14.0 21 5.3 38 11.1 Never 587 78.9 148 49.3 339 84.8 223 65.0

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Gambling participation – Esports bettors/ Sports bettors Esports viewers Video gamers frequency skin gamblers (n=300) (n=400) (n=343) (n=744)

n % n % n % n %

Australian lotteries At least fortnightly 173 23.3 130 43.3 36 9.0 82 23.9 At least monthly 66 8.9 50 16.7 31 7.8 36 10.5 At least yearly 19 2.6 49 16.3 32 8.0 70 20.4 More than 12 months ago 4 0.5 11 3.7 16 4.0 29 8.5 Never 482 64.8 60 20.0 285 71.3 126 36.7 Scratch tickets At least fortnightly 144 19.4 50 16.7 31 7.8 44 12.8 At least monthly 63 8.5 42 14.0 18 4.5 42 12.2 At least yearly 38 5.1 60 20.0 47 11.8 81 23.6 More than 12 months ago 6 0.8 58 19.3 23 5.8 51 14.9 Never 493 66.3 90 30.0 281 70.3 125 36.4 Bingo At least fortnightly 142 19.1 50 16.7 31 7.8 44 12.8 At least monthly 65 8.7 42 14.0 18 4.5 42 12.2 At least yearly 38 5.1 60 20.0 47 11.8 81 23.6 More than 12 months ago 6 0.8 58 19.3 23 5.8 51 14.9 Never 493 66.3 90 30.0 281 70.3 125 36.4 Prize-draw competitions At least fortnightly 39 5.2 6 2.0 3 0.8 3 0.9 At least monthly 17 2.3 4 1.3 5 1.3 2 0.6 At least yearly 11 1.5 14 4.7 6 1.5 11 3.2 More than 12 months ago 3 0.4 17 5.7 7 1.8 19 5.5 Never 674 90.6 259 86.3 379 94.8 308 89.8 Raffle tickets, sweeper, or other competitions At least fortnightly 51 6.9 18 6.0 4 1.0 13 3.8 At least monthly 40 5.4 35 11.7 22 5.5 23 6.7 At least yearly 30 4.0 81 27.0 33 8.3 82 23.9 More than 12 months ago 5 0.7 38 12.7 28 7.0 44 12.8 Never 618 83.1 128 42.7 313 78.3 181 52.8

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Appendix E. Average gambling expenditure ($ last month) for gambling activities by sample group

Gambling expenditure Esports Sports bettors Esports viewers Video gamers bettors/skin ($ last month) gamblers

n M (SD) n M (SD) n M (SD) n M (SD)

Esports cash betting 163.03 592 ------(333.08) Esports skin betting 139.86 546 ------(301.02) Skin gambling 130.44 426 ------(216.97) Sports betting 194.96 342.10 90.31 231.93 625 300 52 94 (487.48) (1170.27) (98.80) (1043.15) Private betting for money 142.67 34.47 51.60 32.38 207 19 20 13 (229.85) (30.10) (88.51) (33.56) Slot machines, pokies, or EGMs 132.95 159.84 162.30 166.50 287 75 47 56 (216.48) (255.26) (322.96) (295.27) Casino table games 186.13 471.34 148.67 141.00 248 29 30 17 (784.90) (1854.56) (222.47) (352.81) Horse or greyhound racing 167.68 293.25 119.49 183.60 164 165 35 58 (515.75) (696.31) (194.20) (668.56) Fantasy sports 101.22 34.43 69.71 30.14 87 21 14 7 (168.31) (31.20) (102.18) (19.75) Keno 68.21 65.51 31.00 80.56 129 53 28 36 (105.28) (279.34) (49.20) (337.28) Australian lotteries 60.48 67.21 44.72 57.17 238 179 67 118 (74.85) (115.82) (63.15) (73.00) Scratch tickets 68.76 35.22 30.63 20.90 205 91 48 86 (185.48) (72.99) (56.31) (28.27) Bingo 62.77 22.14 22.28 55.61 96 7 27 18 (69.82) (15.77) (24.92) (116.75) Prize-draw competitions 78.05 28.40 22.88 28.76 55 10 8 5 (110.83) (38.14) (32.66) (40.40) Raffle tickets, sweeper, or other 59.27 19.51 21.04 15.89 89 53 26 36 competitions (126.71) (24.34) (20.85) (24.10)

Victorian Responsible Gambling Foundation Page 102 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Appendix F. Average age of first participation (years) for gambling activities, overall and by sample group

Gambling activity Overall Esports Sports Esports Video gamers sample bettors/skin bettors viewers (n=343) (n=1716) gamblers (n=300) (n=400) (n=744)

Mean SD Mean SD Mean SD Mean SD Mean SD

Esports cash betting 23.65 9.02 23.37 8.56 45.00 8.77 24.07 10.01 26.08 17.23 Esports skin betting 23.16 8.70 23.22 8.46 34.20 19.69 20.53 10.49 26.25 15.20 Skin gambling 23.85 9.71 23.73 9.38 38.36 14.61 20.56 10.00 29.58 15.51 Sports betting 22.96 8.28 22.37 7.11 24.81 10.64 21.81 7.39 24.22 9.44 Private betting for money 18.75 5.98 19.99 6.48 18.39 6.01 16.55 4.47 18.19 5.65 Slots/pokies/EGMs 20.86 5.77 21.18 6.11 20.75 5.48 20.06 4.46 20.87 5.91 Casino table games 21.64 6.58 21.19 6.27 22.44 7.29 21.33 5.74 22.39 6.96 Horse or greyhound 20.81 6.65 21.28 6.34 20.54 6.85 20.47 6.03 21.24 7.41 racing Fantasy sports 23.65 9.54 21.50 7.80 33.16 11.12 19.90 4.75 26.23 10.30 Keno 23.96 8.24 22.59 7.07 25.94 9.41 22.34 6.62 24.58 8.59 Australian lotteries 21.09 5.43 21.32 5.69 21.54 5.66 20.17 4.38 20.92 5.32 Scratch tickets 20.53 6.81 20.42 6.46 22.03 7.59 19.51 6.48 20.18 6.59 Bingo 21.76 7.87 22.09 7.59 22.98 9.17 20.05 5.96 20.89 7.85 Prize-draw competitions 21.95 8.43 19.73 5.74 24.46 10.84 21.52 7.15 25.57 10.44 Raffles, sweepers, other 18.77 6.82 19.52 6.81 18.82 7.20 18.71 6.81 18.25 6.04 comps Any EB/SG activity 22.64 9.37 22.51 8.84 37.94 15.51 20.40 9.28 24.71 14.58 Any traditional 18.45 5.72 19.09 5.73 18.13 5.49 17.65 5.58 18.03 5.94 gambling activity

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Appendix G. Video gaming, esports viewing, and esports playing frequency last 12 months, by sample group

Activity frequency – Esports bettors/ Sports bettors Esports viewers Video gamers last 12 months skin gamblers (n=300) (n=400) (n=343) (n=744)

n % n % n % n %

Video gaming frequency At least fortnightly 645 86.7 111 37.0 376 94.0 343 100.0 At least monthly 66 8.9 32 10.7 5 1.3 0 0.0 At least yearly 21 2.8 22 7.3 4 1.0 0 0.0 More than 12 months ago 4 0.5 57 19.0 5 1.3 0 0.0 Never 8 1.1 78 26.0 10 2.5 0 0.0 Esports viewing frequency At least fortnightly 533 71.6 0 0.0 400 100 0 0.0 At least monthly 116 15.6 16 5.3 0 0 3 0.9 At least yearly 58 7.8 41 13.7 0 0 2 0.6 More than 12 months ago 13 1.7 26 8.7 0 0 52 15.2 Never 24 3.2 217 72.3 0 0 286 83.4 Esports playing frequency At least fortnightly 344 46.3 3 1.0 112 28 1 0.3 At least monthly 113 15.2 2 0.7 25 6.3 0 0.0 At least yearly 64 8.6 4 1.3 54 13.5 7 2.0 More than 12 months ago 8 1.1 3 1.0 22 5.5 4 1.2 Never 214 28.8 288 96.0 187 46.8 331 96.5

Victorian Responsible Gambling Foundation Page 104 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Appendix H. Migration between esports cash betting and other gambling activities (base: esports bettors/skin gamblers, n = 744)

Any traditional gambling (n=705) 18.7% 26.8% 54.5%

Sports betting (n=692) 37.6% 33.4% 29.0%

Fantasy sports (n=89) 33.7% 33.7% 32.6%

Bingo (n=126) 31.7% 23.8% 44.4%

Horse/greyhound racing (n=185) 31.4% 27.6% 41.1%

Slots/pokies/EGMs (n=339) 30.7% 26.5% 42.8%

Keno (n=148) 29.1% 19.6% 51.4%

Casino tables games (n=297) 28.3% 27.3% 44.4%

Private betting for money (n=255) 27.8% 17.3% 54.9%

Prize-draws (n=65) 27.7% 20.0% 52.3%

Australian lotteries (n=250) 21.6% 19.2% 59.2%

Scratch tickets (n=237) 19.8% 19.0% 61.2%

Raffles, sweeper, other comps (n=113) 17.7% 17.7% 64.6%

Skin gambling (n=553) 40.3% 39.2% 20.4%

Esports skin betting (n=663) 32.6% 46.2% 21.3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Esports cash betting before Esports cash betting same year Esports cash betting after

Victorian Responsible Gambling Foundation Page 105 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Appendix I. Migration between esports skin betting and other gambling activities (base: esports bettors/ skin gamblers, n = 744)

Any traditional gambling (n=674) 17.1% 25.1% 57.9%

Sports betting (n=660) 31.8% 35.6% 32.6%

Prize-draws (n=62) 30.6% 16.1% 53.2%

Keno (n=143) 30.1% 16.1% 53.8%

Horse/greyhound racing (n=171) 29.8% 24.6% 45.6%

Casino tables games (n=279) 27.2% 26.5% 46.2%

Fantasy sports (n=89) 27.0% 37.1% 36.0%

Slots/pokies/EGMs (n=320) 26.6% 25.6% 47.8%

Bingo (n=121) 25.6% 22.3% 52.1%

Private betting for money (n=247) 21.9% 23.1% 55.1%

Scratch tickets (n=214) 20.6% 19.2% 60.3%

Australian lotteries (n=226) 19.9% 18.6% 61.5%

Raffles, sweeper, other comps (n=106) 17.9% 20.8% 61.3%

Skin gambling (n=542) 31.4% 52.0% 16.6%

Esports cash betting (n=663) 21.3% 46.2% 32.6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Esports skin betting before Esports skin betting same year Esports skin betting after

Victorian Responsible Gambling Foundation Page 106 Gambling and video games: are esports betting and skin gambling associated with greater gambling involvement and harm?

Appendix J. Migration between skin gambling (games of chance) and other gambling activities (base: esports bettors/skin gamblers, n = 744)

Any traditional gambling (n=578) 11.8% 27.7% 60.6%

Keno (n=138) 27.5% 15.2% 57.2%

Casino tables games (n=266) 25.6% 25.9% 48.5%

Sports betting (n=560) 24.6% 37.3% 38.0%

Bingo (n=121) 24.0% 28.9% 47.1%

Horse/greyhound racing (n=153) 23.5% 24.8% 51.6%

Fantasy sports (n=77) 23.4% 35.1% 41.6%

Slots/pokies/EGMs (n=278) 21.9% 25.9% 52.2%

Prize-draws (n=56) 21.4% 25.0% 53.6%

Private betting for money (n=223) 19.3% 20.6% 60.1%

Australian lotteries (n=196) 17.9% 24.5% 57.7%

Raffles, sweeper, other comps (n=104) 14.4% 21.2% 64.4%

Scratch tickets (n=195) 13.3% 24.1% 62.6%

Esports cash betting (n=553) 20.4% 39.2% 40.3%

Esports skin betting (n=542) 16.6% 52.0% 31.4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Skin gambling before Skin gambling same year Skin gambling after

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