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Review and Analysis of Sports and Race Betting Inducements Review and analysis of sports and race betting inducements Nerilee Hinga, Kerry Sprostonb, Richard Bradinga and Kate Brookb aCentre for Gambling Education & Research, Southern Cross University bORC International October 2015 © Copyright Victorian Responsible Gambling Foundation, October 2015 This publication is licensed under a Creative Commons Attribution 3.0 Australia licence. The licence does not apply to any images, photographs, branding or logos. For information on the Victorian Responsible Gambling Foundation Research Program visit responsiblegambling.vic.gov.au. Disclaimer: The opinions, findings and proposals contained in this report represent the views of the author and do not necessarily represent the attitudes or opinions of the Victorian Responsible Gambling Foundation or the State of Victoria. No warranty is given as to the accuracy of the information. The Victorian Responsible Gambling Foundation specifically excludes any liability for any error or inaccuracy in, or omissions from, this document and any loss or damage that you or any other person may suffer. To cite this report: Hing N., Sproston, K., Brading, R., and Brook, K. (2015) Review and analysis of sports and race betting inducements. Victoria, Australia: Victorian Responsible Gambling Foundation. Conflict of interest declaration Nerilee Hing has worked with Echo Entertainment, Sportsbet and Singapore Pools over the four years previous to the study. She has also received funding over the past four years from the Victorian Responsible Gambling Foundation, Gambling Research Australia, the Queensland Government and the National Association of Gambling Studies (NAGS). Kerry Sproston has received funding from Gambling Research Australia in the past four years. Richard Brading has worked with BetSafe Pty Ltd over the four years previous to the study. The other author has no conflicts to declare. Victorian Responsible Gambling Foundation Level 6, 14-20 Blackwood Street North Melbourne, Victoria, 3051 PO Box 2156 Royal Melbourne Hospital Victoria, 3050 Tel +61 3 9452 2600 Fax +61 3 9452 2660 ABN: 72 253 301 291 Our vision: A Victoria free from gambling-related harm Review and analysis of sports and race betting inducements Prepared by: Nerilee Hinga, Kerry Sprostonb, Richard Bradinga and Kate Brookb aCentre for Gambling Education & Research, Southern Cross University bORC International October 2015 Review and analysis of sports and race betting inducements Hing, Sproston, Brading & Brook Acknowledgements This project was funded by the Victorian Responsible Gambling Foundation. The content is solely the responsibility of the author(s) and does not necessarily represent the official views of the Victorian Responsible Gambling Foundation. Victorian Responsible Gambling Foundation Page 2 Review and analysis of sports and race betting inducements Hing, Sproston, Brading & Brook Table of Contents EXECUTIVE SUMMARY ........................................................................................................... 8 CHAPTER ONE: INTRODUCTION TO THE STUDY .............................................................. 14 1.1 Introduction ....................................................................................................................................................... 14 1.2 Project requirements and research questions .................................................................................................. 14 1.3 Project definition of wagering inducements ...................................................................................................... 15 1.4 Overview of the study’s methodology ............................................................................................................... 15 1.5 Scope of the study ............................................................................................................................................ 16 1.6 Structure of this report ....................................................................................................................................... 16 CHAPTER TWO: LITERATURE REVIEW .............................................................................. 17 2.1 Introduction ....................................................................................................................................................... 17 2.2 Overview of sports and race betting in Australia............................................................................................... 17 2.2.1 Wagering operators .................................................................................................................................... 17 2.2.2 Betting odds ................................................................................................................................................ 18 2.2.3 Types of bets .............................................................................................................................................. 18 2.2.4 Betting channels ......................................................................................................................................... 18 2.2.5 Wagering participation and expenditure ..................................................................................................... 19 2.3 Marketing of sports and race betting ................................................................................................................. 20 2.3.1 Media used for wagering marketing ........................................................................................................... 20 2.3.2 Investment in wagering marketing .............................................................................................................. 21 2.3.3 Sponsored advertising and promotion of wagering marketing ................................................................... 21 2.3.4 Target markets for wagering marketing ...................................................................................................... 22 2.3.5 Major messages conveyed in wagering marketing .................................................................................... 22 2.4 Marketing inducements ..................................................................................................................................... 23 2.4.1 Definition and purpose ................................................................................................................................ 23 2.4.2 Types of inducements................................................................................................................................. 24 2.4.3 Consumer responses to inducements ........................................................................................................ 24 2.4.4 Benefits of marketing inducements for sellers ............................................................................................ 26 2.5 How the gambling industry uses inducements to promote gambling ............................................................... 27 2.5.1 Types of gambling incentives offered ......................................................................................................... 27 2.5.2 How gambling incentives are obtained ....................................................................................................... 27 2.6 How the wagering industry uses inducements to promote gambling ............................................................... 28 2.6.1 Types of wagering incentives offered ......................................................................................................... 28 2.6.2 How wagering incentives are obtained ....................................................................................................... 28 2.7 Influence of marketing inducements on gambling behaviour............................................................................ 30 2.7.1 Influence of gambling inducements on gambling behaviour ...................................................................... 30 2.7.2 Influence of wagering inducements on betting behaviour .......................................................................... 32 2.8 Influence of wagering inducements on gambling problems .............................................................................. 33 2.8.1 Gambling problems associated with wagering ........................................................................................... 33 2.8.2 Risk factors for gambling problems associated with wagering ................................................................... 34 2.8.3 Influence of wagering marketing on gambling problems associated with wagering .................................. 35 2.8.4 Influence of gambling and wagering inducements on gambling problems ................................................. 36 2.9 Chapter summary .............................................................................................................................................. 38 CHAPTER THREE: POLICY ANALYSIS ................................................................................ 40 3.1 Introduction ....................................................................................................................................................... 40 3.2 The Legal Landscape ........................................................................................................................................ 40 3.2.1 Background
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