Evolution of Online Gambling Practices in France Over the Past 5 Years: Lessons for the Regulation and Prevention of Problem Gambling

Evolution of online gambling practices in France over the past 5 years: lessons for the regulation and prevention of problem gambling.

Jean-Michel Costes French Monitoring Centre on Gambling, France

6th International Conference on Pathological Gambling and Behavioral Addictions Warsaw, 19-20 November 2018 Plan

2 ü Online Introduction gambling in France ü Online gambling in France in 2017 Introduction

Online gambling in 2017

Evolutions ü Evolution 2012/2017 2017 vs 2012

Conclusions ü Conclusions and perspectives

[email protected] 19/11/2018 Legal framework before 2010

3 Gambling(legal(framework(in(France(before&2010

Online gambling in Casinos Sports( Horse( France Lotteries (Tables(games,( betting racing Slot(machines) Poker

Introduction FDJ( FDJ( PMU((Pari( Online Authorization/ gambling in Off(line (Française( (Française( mutuel( 2017 Concession des(jeux) des(jeux) urbain) Evolutions 2017 vs 2012 FDJ( Conclusions On(line (Française( des(jeux)

(=(State(monopolies (=(Private(operators (=(Prohibited [email protected] 19/11/2018 Legal framework after 2010

4 Gambling(legal(framework(in(France(after&2010

Online Casinos gambling in Sports( Horse( France Lotteries (Tables(games,( betting racing Slot(machines) Poker

Introduction FDJ( FDJ( PMU((Pari( Online Authorization/ gambling in Off(line (Française( (Française( mutuel( 2017 Concession des(jeux) des(jeux) urbain) Evolutions 90,2 % GR 2017 vs 2012 FDJ( Licensed( Licensed( Licensed( Conclusions On(line (Française( operators operators operators des(jeux) 9,8 % GR 24,5% GR 41,5% GR 9,5% GR 24,5% GR (=(State(monopolies (=(Private(operators (=(Prohibited [email protected] 19/11/2018 Gambling expenditure in France

5 Spending per capita gambling expenditure (GGR) and share of Internet spending Online 195 € 192,7 € 12% gambling in France 190 € 186,5 € 185 € 9,8% 10% 178,5 € 180 € 8,8%

175 € Introduction 167,8 € 8% 170 € Online gambling in 165 € 2017 6% 160 € Evolutions 155 € 2017 vs 2012 3,4% 4% 150 € Conclusions 145 € 1,5% 140 € 2%

135 € 133,8 € 130 € 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Share of overall gambling spending on the Internet Overall gambling spending per capita 18 years old and over (€) [email protected] 19/11/2018 Online gambling spending by games

Breakdown of online gambling spending by gaming activity Online gambling in 100% France 90% 21,1% 17,8% 17,5%

80%

Introduction 70% 23,3% 25,4% 38,4% Online 60% gambling in 2017 50% 23,8% Evolutions 40% 2017 vs 2012 37,2% Conclusions 30% 29,7%

20% 35,4%

10% 16,3% 14,1% 0% 2010 2011 2012 2013 2014 2015 2016 Sports betting Horses racing Poker Lotery [email protected] 19/11/2018 e-Games France 2017 survey, ODJ

Online • eGames international project: France, gambling in France Canada, Germany, Italy, Switzerland, Poland (gambling & related gaming)

Introduction eGames 2017 France Symposium Glücksspielforschung und Glücksspielpolitik Online •Based on “Web Users Panel - « Le Carré des Médias » Médiamétrie - nearly 1 million internet gambling in 24.03.2016, Edmund-Siemers-Allee 1, Hörsaal ESA M 2017 users 8.30Uhr Begrüßung • Evolutions Time survey: 7 weeksProfessor, fromDr. Thorsten 5 January Teichert, to Universität 24 February Hamburg 2017 2017 vs 2012 •Sample : 22,700 French Internet users aged 18 and over Conclusions 08.35Uhr Grußworte •Quotas to ensureProdekan its representativeness Professor Dr. Cord Jakobeit, (on Universität the criteria Hamburg: sex , age) based on data from the Monitoring survey of Internet use by the French population (Médiamétrie, 4th quarter 2016) 08.40Uhr Grußworte •Final sample wasDr. weightedThomas Gößl according, Vorsitzender theGlückspielkollegium initial quotas

•Scope of these analyze08.45Uhr Methodischeon gamblers Probleme’ sample bei der Wohlfahrtsbewertung: Internet users whovon Glücksspielen reported having gambled on the Internet atProf leastessor oneDr. Michael time Adams,in the Universität last 12 months Hamburg, Fachbeirat(N = 6,200 Glücksspielsucht; 6,380 weighted ) [email protected] 9.30Uhr The «responsible gambling» policy model: a strategy based on the regulation of a legal19/11/2018 supply. Jean-Michel Costes, Observatoire des Jeux

10.15Uhr Kaffeepause

10.30Uhr Der Wohlfahrtseffekt von Glücksspielen: Ergebnisse für Deutschland Dr. Ingo Fiedler, Universität Hamburg

11.15Uhr Social Costs and benefits of gambling: A perspective from France Professor Sophie Massin, Université d’Artois

12.00Uhr Mittagspause

13.00Uhr Social Gambling im Jugendalter: Nutzungsmuster und Risiken Dr. Tobias Hayer, Universität Bremen

13.45Uhr Social Gam(bl)ing: Produktanalyse aus Sicht der Nachfrager Professor Dr. Thorsten Teichert, Universität Hamburg

14.30Uhr Kaffeepause

14.45Uhr Social Gam(bl)ing: Marktanalyse aus Sicht der Anbieter Dr. Ingo Fiedler, Universität Hamburg

15.30Uhr Podiumsdiskussion: Die Zukunft der Glücksspielforschung (in Deutschland) Moderation: Dr. Ingo Fiedler, Universität Hamburg

Teilnehmer: Isabella von der Decken, Bundesministerium für Gesundheit Benjamin Schwanke, Glücksspielaufsicht, Hamburger Behörde für Inneres und Sport Hans-Peter Knaack, Glücksspielaufsicht, Ministerium für Inneres und Sport Saarland Alice Schogger, Bundesministerium für Finanzen Österreich Professor Dr. Christian Pfeiffer, Kriminologisches Forschungsinstitut Niedersachsen, Fachbei- rat Glücksspielsucht Professor Dr. Michael Adams, Universität Hamburg, Fachbeirat Glücksspielsucht

16.30Uhr Ende der Veranstaltung

Online gamblers in France in 2017

Test dif. 2.4 to 2.9 million of online Internet Non- Gamblers gamblers vs Online gamblers in 2017 in France Users gamblers nongamblers gambling in France Gender man 50,2 65,4 44,3 *** woman 49,8 34,6 55,7 *** Age Introduction 1-[18-34[ 28,4 37,8 24,7 *** 2-[35-54[ 39,0 43,7 37,1 *** Online gambling in 3-[55 +[ 32,7 18,5 38,2 *** 2017 Professional activity

Evolutions No 35,7 24,0 40,3 *** 2017 vs 2012 Yes 64,3 76,0 59,7 *** Graduation Conclusions < Highschool 17,9 15,1 18,9 *** Highschool to college + 2 43,7 45,3 43,0 * At least college + 3 24,8 24,8 24,8 NS Household Financial Ressources (monthly) ≤ 1 500 € 25,2 22,4 26,4 *** [ 1 500 € ; 3 000 € ] 36,7 36,9 36,6 NS ≥ 3 000 € 38,1 40,7 37,0 *** [email protected] 19/11/2018 Activities practiced in 2017

Activities practiced online Online gambling in gambling_online_overall 100,0 France Activities practiced offline gambling_online_lottery 70,3 gambling_online_drawing_games 62,1 jah_offline_scratch_cards 42,0 gambling_online_scratch_cards 36,2 Introduction jah_offline_drawing_games 34,7

jah_offline_slot_machines 12,1 Online gambling_online_sports_betting 30,6 gambling in gambling_online_horses-racing 17,0 jah_offline_horses-racing 9,5 2017 gambling_online_poker 20,5 jah_offline_sports_betting 8,4 Evolutions 2017 vs 2012 gambling_online_casino & slot_m 13,0 jah_offline_poker 7,9

Conclusions gambling_online_slot_machines 10,0 jah_offline_casino 4,8

gambling_online_casino 6,1 jah_offline_other_games 5,1 gambling_online_e_sport 4,3 gambling_online_financial_betting 3,8 gambling_online_other_games 3,2 no offline activity 41,8

overall non regulated games 19,0 mainly online activity 59,2

0,0 20,0 40,0 60,0 80,0 100,0 120,0 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 [email protected] 19/11/2018 Intensity of practices

Online gambling in Intensity of practices according to the type of game, in France, in 2017 France Frequency (nbr of sessions p. Spending (in € per year) Playing duration (in h. per year) Type of games mean median Q90 Gini mean median Q90 Gini mean median Q90 Gini Lottery 61 26 156 0,60 494 156 1340 0,71 170 4 57 0,96 Slot machines 107 52 210 0,64 1510 451 3120 0,78 572 20 253 0,94 Introduction Poker 78 26 210 0,58 871 180 2600 0,76 313 39 315 0,86 Online gambling in Other casino games 75 26 210 0,61 1307 260 2600 0,79 697 15 227 0,96 2017 Horses racing 77 26 210 0,60 908 260 2100 0,74 57 10 130 0,82

Evolutions Sports betting 74 26 210 0,64 1145 156 2612 0,80 72 5 130 0,87 2017 vs 2012 e-sports betting 92 52 210 0,55 1205 260 3120 0,74 98 19 193 0,77

Conclusions Financial betting 110 52 210 0,53 4453 780 10463 0,80 112 34 268 0,70 Overall gambling activites 118 38 290 0,69 1483 240 3120 0,83 324 9 223 0,94 Free games 108 26 210 0,73 92 10 130 0,87 PayToWin games 415 210 1040 0,56 188 42 390 0,76 389 117 895 0,76

[email protected] 19/11/2018 Intensity of practices

Introduction Slot machines 107 52 210 0,64 1510 451 3120 0,78 572 20 253 0,94 Poker 78 26 210 0,58 871 180 2600 0,76 313 39 315 0,86 Online gambling in Other casino games 75 26 210 0,61 1307 260 2600 0,79 697 15 227 0,96 2017 Horses racing 77 26 210 0,60 908 260 2100 0,74 57 10 130 0,82

Evolutions Sports betting 74 26 210 0,64 1145 156 2612 0,80 72 5 130 0,87 2017 vs 2012 e-sports betting 92 52 210 0,55 1205 260 3120 0,74 98 19 193 0,77 Conclusions Financial betting 110 52 210 0,53 4453 780 10463 0,80 112 34 268 0,70 Overall gambling activites 118 38 290 0,69 1483 240 3120 0,83 324 9 223 0,94 Free games 108 26 210 0,73 92 10 130 0,87 PayToWin games 415 210 1040 0,56 188 42 390 0,76 389 117 895 0,76

[email protected] 19/11/2018 Free games

Online Freegames pratice among online gamblers gambling in Prevalence 42,2 France Freegames pratice among online gamblers Micro payment No 80,8 gambling_freegames_online_overall 42,2 Yes 19,2 gambling_online_e_sport 1,1 Introduction gambling_online_financial_betting 1,4 Time sequence: freegames/real gambling gambling_online_other_games 1,4 Online Before gambling 24,8 gambling_online_casino 4,0 gambling in gambling_online_horses-racing 4,2 2017 After gambling 45,6 gambling_online_sports_betting 7,8 gambling_online_slot_machines 10,5 Evolutions At the same time as gambling 29,6 gambling_online_poker 16,8 2017 vs 2012 Links: freegames lead to playing real money? gambling_online_lottery 18,3

0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0 45,0 Conclusions Yes 39,9 No 51,1 Don't know 9,0

[email protected] 19/11/2018 PayToWin gaming

Online gambling in France Pratices PayToWin games Play these games 59,2 % Spend money on these games Introduction 15,4 % Online gambling in 2017

Evolutions 2017 vs 2012 PayToWin gaming – Conclusions is a social gaming activity characterized by the possibility to make payments during the game to significantly increase players’ chances to win or to help players better progress or faster progress in the game compared to players not paying; that is, players do not have to spend money to stay in the game, but they can pay to get privileges to increase their chances to win or advance to higher levels in the game. [email protected] 19/11/2018 Legal status of activities

Gamblers activity according to the legal status of the sites practiced Online Type de jeu ** gambling in Overall France Sports Horses in % * Lottery Poker activities betting racing Play on at least one regulated site 0,0 0,0 0,0 0,0 0,0

Introduction Play on at least one unregulated site 0,0 0,0 0,0 0,0 0,0 Play on both types of sites 0,0 0,0 0,0 0,0 0,0 Online gambling in 2017 The nature of the activity is undetermined 0,0 0,0 0,0 0,0 0,0

Evolutions * % calculated on individuals for whom the nature of the activity is determined 2017 vs 2012 ** Only games for which there is a regulated offer are present: lottery, poker, sports betting or horses Conclusions Reading Guide: 90.2% of players playing lottery games play this type of game on at least one regulated racing on at least one licensed website. The other games are 100% played on unregulated websites. website (here, the website of the FDJ), 13.0% on at least one unregulated lottery website . The sum of these two figures is greater than 100 because 3.2% play on both types of site. Whatever the nature of the game played, 33.8% of players play on at least one unregulated website, including games for which there is no regulated offer.

[email protected] 19/11/2018 Online problem gambling in 2017

PGSI overall online gamblers Online gambling in France [8 +] 13,0

[3-7] 9,4 Introduction

Online gambling in [1-2] 19,1 2017

Evolutions 2017 vs 2012 0 58,4

Conclusions 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0

[email protected] 19/11/2018 Problem gambling and intensity 16

40 Online gambling in (%) 35 France

IPGSI 8 and + Frequency

- 25 Introduction Spending Online 20 gambling in 2017 Duration 15 Evolutions 2017 vs 2012 10

Conclusions 5 Prevalence problem gambling 0 1 2 3 4 Intensity of practices (quartiles) [email protected] 19/11/2018 Problem gambling and games

PGSI and main activity played: prevalence of PGSI and main activity played: share of the total Online problem gambling (%) number of gamblers (%) gambling in lottery 8,1 32,6 France 5,9 lottery 33,2

sports betting 10,9 12,4 15,4 sports betting 24,4

10,9 horses racing horses racing 5,5 Introduction 13,5 9,5

15,6 10,2 Online poker 14,5 poker 13,3 gambling in 2017 multiactivity 19,5 multiactivity 15,7 9,5 10,6 Evolutions 36,0 2,4 2017 vs 2012 e_sport betting 19,6 e_sport betting 1,8

Conclusions 39,1 financial_betting 4,1 financial_betting 10,6 1,6

45,5 casino games 5,0 casino games 9,0 1,4

48,3 slot_machines 12,1 slot_machines 12,4 4,3

0 10 20 30 40 50 60 0 5 10 15 20 25 30 35 PGSI [8;+] PGSI [3;7] PGSI [8;+] PGSI [3;7] [email protected] 19/11/2018 Problem gambling related factors

18 Problem Problem gambling gambling Associated factors for PGSI 8 and more OR Test Associated factors for PGSI 8 and more OR Test prevalence prevalence Online (%) (%) gambling in woman 9,9 ref. - lottery 8,1 ref. - Gender France man 14,7 1,57 *** horses racing 10,9 1,39 ns 18-34 years 21,1 6,64 *** sports betting 10,9 1,39 * Age 35-54 years 10,0 2,75 *** poker 15,6 2,10 *** Main game 55 years and more 3,9 ref. - casino games 45,5 9,50 *** practiced < Highschool 10,5 ref. - slot machines 48,2 10,61 *** Introduction Education level Highschool to college + 2 15,3 1,54 *** e_sport betting 35,9 6,37 *** Online At least college + 3 13,2 1,29 * financial betting 39,1 7,31 *** gambling in Single 13,0 ref. - multiactiviy 19,5 2,76 *** 2017 Divorced or separated 14,7 1,16 ns No 9,5 ref. - Marital status Use bonus 6,4 0,45 ** 32,5 4,59 *** Evolutions Widowed Yes 2017 vs 2012 Marital Life 13,4 1,04 ns Practice No 4,6 ref. - Actifs_lower prof. 14,3 5,00 *** freegames Yes 24,5 6,71 *** Conclusions Professional Actifs_higher prof. 16,2 5,79 *** Practice offline No 10,6 ref. - activity Actifs_median prof. 14,3 5,01 *** gambling activities Yes 14,8 1,47 *** and social Inactifs_unemployed 9,2 3,03 *** Spend money on No 11,5 ref. - category Inactifs_students 21,0 7,96 *** PayToWin games Yes 27,4 2,91 *** Inactifs_retired 3,2 ref. - less than 1500 € 22,3 2,86 *** Income 1500-3000 € 14,1 1,64 *** more than 3000 € 9,1 ref. - [email protected] 19/11/2018 Evolutions on online gambling 2012-2017 19 ü Online Players' profile moves: more masculine, more active, gambling in France more privileged social backgrounds ü The activities practiced evolve: sports betting in

Introduction strong progression, unregulated activities Online gambling in 2017 ü Internet activity becomes predominant (among Evolutions 2017 vs 2012 online gamers) Conclusions ü Practices intensify, problems increase

[email protected] 19/11/2018 Evolution on PGSI 2012-2017 20

70 PGSI evolution Online gambling in 60 France 2017 2012 50

Introduction 40 Online gambling in 2017 30 58,5 59,3 Evolutions 2017 vs 2012

20 Conclusions

24,0 10 19,1 13,0 9,4 10,1 6,6 0 [0] [1-2] [3-7] [8-27] [email protected] 19/11/2018 Conclusions

Online gambling in France In 5 years, the profile of players has changed, practices have been intensifying and problems related have

Introduction been increasing Online gambling in 2017 These results question the current strategies for Evolutions 2017 vs 2012 preventing problem gambling online. We should Conclusions think about it seriously and change it deeply.

[email protected] 19/11/2018 Why is our strategy not more effective?

Online ü Current system is based on the goodwill of the gambling in France operators, these are only means obligations Share of revenues and PGSI Introduction 90 Online 80 gambling in 2017 70 60 Evolutions 2017 vs 2012 50 40 77,6 Conclusions 30 20 38,6 41,6 10 19,9 9,4 13,0 0 [1-2] [3-7] [8 +]

Share of revenues (%) % of gamblers [email protected] 19/11/2018 Why is our strategy not more effective?

Online ü Current system is based on the goodwill of the gambling in France operators, these are only means obligations ü If certain measures, which have proved their Introduction

Online effectiveness, have been deployed gambling in 2017

Evolutions ü However, others which are equally effective, have 2017 vs 2012

Conclusions not been implemented ü And, some measures with weak effectiveness or ineffectiveness have been widely deployed [email protected] 19/11/2018 Effectiveness and efficacy of problem gambling prevention measures 24

Online gambling in Information, risk France awareness Staff training on responsible gambling Cost of the game Health messages (payout rate) Introduction Restricted alcohol or Restricted access Online tobacco consumption gambling in Access forbidden to Less addictive gambling 2017 minors games design Gambling moderators Evolutions Self-exclusion 2017 vs 2012 Early detection and

Effectiveness ++ Conclusions brief intervention Restricted publicity Limitations for Restricted commercial spending and losses relaunches -- [email protected] - efficacy ++ 19/11/2018 How to improve our regulation?

Online 1) A strong regulation / limitation of gambling advertising. gambling in France 2) A regulation based on an obligation of results. The digitized data of gaming activities offer us very good indicators of the

Introduction results of the strategies "responsible game" of the operators Online gambling in 3) 2017 More restrictive devices of limitations of bets or time spent

Evolutions 4) 2017 vs 2012 The systematic provision when opening a tracking tools

Conclusions account of his gaming behaviour 5) The systematic detection of excessive players to offer relevant help and effective evidence based.

[email protected] 19/11/2018 References

Survey ü Tovar, Marie-Line, Jean-Michel Costes, et Vincent Eroukmanoff. « Les jeux d’argent et de hasard sur Internet en France en 2012 ». OFDT, Online Tendances, no 85 (2013). gambling in ü Costes, J.-M., Eroukmanoff (2017). Evolution des dépenses aux jeux d’argent et de hasard sur la période 2000 - 2016. Observatoire des jeux, France note ODJ n°8. ü Costes, J.-M., Eroukmanoff (2018).Les pratiques de jeux d’argent en France en 2017 . Observatoire des jeux, note ODJ n°9. Efficacité ü Anderson, P., & Baumberg, B. (2006). Alcohol in Europe: a public health perspective: a report for the European Commission (p. 432). Luxembourg: Institute of Introduction Alcohol Studies (Great Britain). ü Babor, T. (Éd.). (2003). Alcohol: no ordinary commodity: research and public policy. Oxford; New York: Oxford University Press. Online ü Babor, T. (Éd.). (2010). Drug policy and the public good. Oxford; New York: Oxford University Press. gambling in ü Edwards, G., & Weltgesundheitsorganisation (Éd.). (1995). Alcohol policy and the public good. Oxford: Oxford University Press. 2017 ü Gilbert, A., & Cornuz, J. (2003). Which are the most effective and cost-effective interventions for tobacco control? Copenhagen: WHO Regional Office for Europe Evolutions (Health Evidence Network). 2017 vs 2012 ü McNeill, A., Ross, H., Joossens, L., Hastings, G., & Godfrey, F. (2004). Tobacco or health in the European Union: past, present and future. Report for European Commission. (Office for Official Publications of the European Communities). Luxembourg: Office for Official Publications of the European Communities. Conclusions ü Organisation mondiale de la Santé. (2003). Convention-cadre de l’OMS pour la lutte antitabac. Genève. ü Ősterberg, E. (2004). What are the most effective and cost-effective interventions in alcohol control? (p. 14). WHO Regional Office for Europe (Health Evidence Network). ü Strang, J., Babor, T., Caulkins, J., Fischer, B., Foxcroft, D., & Humphreys, K. (2012). Drug policy and the public good: evidence for effective interventions. The Lancet, 379(9810), 71‑83. ü Williams, R. J., West, B. L., & Simpson, R. I. (2012). Prevention of problem gambling: A comprehensive review of the evidence and identified best practices. Ontario Problem Gambling Research Centre and the Ontario Ministry of Health and Long Term Care.

[email protected] 19/11/2018