Internet Gambling: Prevalence, Patterns, Problems, and Policy Options Robert T. Wood Associate Professor, Department of Sociology, University of Lethbridge, Lethbridge, Alberta, Canada [email protected] Robert J. Williams Professor, School of Health Sciences, and Coordinator, Alberta Gaming Research Institute University of Lethbridge, Lethbridge, Alberta, Canada [email protected] Final Report prepared for the Ontario Problem Gambling Research Centre; Guelph, Ontario January 5, 2009 2 Citation Wood, R.T. & Williams, R.J. (2009). Internet Gambling: Prevalence, Patterns, Problems, and Policy Options. Final Report prepared for the Ontario Problem Gambling Research Centre, Guelph, Ontario, CANADA. January 5, 2009. Contact Information Dr. Robert Wood Department of Sociology University of Lethbridge 4401 University Drive Lethbridge, Alberta, Canada T1K 3M4 403-329-5137 [email protected] Dr. Robert Williams Alberta Gaming Research Institute University of Lethbridge 4401 University Drive Lethbridge, Alberta, Canada T1K 3M4 403-382-7128 [email protected] Acknowledgements There are three organizations that contributed to the success of this study. We thank the Ontario Problem Gambling Research Centre for their continuing support of our research efforts and their generous funding of this project. We thank the Curriculum Development Centre and the Info Tech – Web Team at the University of Lethbridge, and particularly Trevor Flexhaug for his technical skill in developing the International Online Survey. Lastly, we thank the Institute for Social Research at York University for conducting the Canadian Telephone Survey. 3 EXECUTIVE SUMMARY…..……………………………………………………………… 6 BACKGROUND TO THE CURRENT STUDY……………………………………………. 14 History of Internet Gambling………………………………………………………… 14 Current Worldwide Situation……………………………………………………….... 17 Regulatory Framework for Internet Gambling in Different Jurisdictions………….... 20 Concerns with Internet Gambling……………………………………………………. 27 CURRENT STUDY………………………………………………………………………….. 31 Introduction…………………………………………………………………............... 31 Method……………………………………………………………………………….. 33 Canadian Telephone Survey…………………………………………………. 33 International Online Survey………………………………………………….. 35 Results: Descriptive Statistics & Cross Tabulations………………………………… 41 Prevalence of Gambling, Problem Gambling, and Internet Gambling………. 41 Demographics of Internet Gamblers…………………………………………. 45 General Internet Activity of Internet Gamblers……………………………… 50 Substance Use and Health of Internet Gamblers…………………………….. 51 Motivations for Gambling on the Internet………………………………….... 52 Game Play Patterns of Internet Gamblers……………………………………. 56 Problem Gambling among Internet Gamblers……………………………….. 68 Results: Multivariate Statistical Analysis…………………………………………… 72 Characteristics Differentiating Internet Gamblers from Non-Internet Gamblers……………………………………………………………………... 72 Characteristics Differentiating Canadian Internet Gamblers from Non- Canadian Internet Gamblers…..……………………………………………... 76 Characteristics Differentiating Internet Problem Gamblers from Internet Non-Problem Gamblers……………………………………………………… 78 Results: Impact of Providing Feedback to Participants about their Gambling……… 80 Discussion …………………………………………………………………………… 83 Prevalence……………………………………………………………………. 83 Demographic Characteristics………………………………………………… 84 Motivations…………………………………………………………………... 87 Game Play Patterns…………………………………………………………... 88 Problem Gambling…………………………………………………………… 90 Impact of Providing Feedback to Participants about their Gambling………... 91 POLICY IMPLICATIONS AND OPTIONS….…………………………………………….. 93 REFERENCES………………………………………………………………………………. 98 APPENDICES……………………………………………………………………………….. 108 Canadian Telephone Survey…………………………………………………………. 108 International Online Survey Website………………………………………………… 128 International Online Survey………………………………………………………….. 129 4 TABLES Table 1 Top 20 Online Gambling Jurisdictions in October 2008 17 Table 2 Response Rate Calculations in the Canadian Telephone Survey 35 Demographic Characteristics and Gambling Behaviour of Canadian Internet Table 3 39 Gamblers from both the Telephone and Online Surveys (Unweighted) Demographic Characteristics and Gambling Behaviour of Canadian Internet Table 4 40 Gamblers from both the Telephone and Online Surveys after Weighting Table 5 CPGI Categorizations in Canada in 2006/2007 42 Profile of Canadian Internet Gamblers with the Exclusion and Inclusion of Internet Table 6 43 Stock Market Gamblers Table 7 Prevalence of Internet Gambling among Canadian Adults 44 Past Year Prevalence of Different Forms of Gambling among Canadian Adult Table 8 44 Gamblers Comparative Demographic Characteristics of Canadian Internet and Non-Internet Table 9 45 Gamblers Comparative Demographic Characteristics of International Internet and Non- Table 10 48 Internet Gamblers Table 11 Comparative Internet Activity of Canadian Internet and Non-Internet Gamblers 50 Table 12 Substance Use and Health among Canadian Internet and Non-Internet Gamblers 51 Substance Use and Health among International Internet and Non-Internet Table 13 52 Gamblers Advantages of Gambling at Internet versus Land-Based Venues (Canadian Table 14 53 Internet Gamblers) Disadvantages of Gambling at Internet versus Land-Based Venues (Canadian Table 15 53 Internet Gamblers) Reasons Influencing Decision to Gamble at one Internet Site over Another Table 16 54 (Canadian Internet Gamblers) Advantages of Gambling at Internet Versus Land-Based Venues (International Table 17 55 Internet Gamblers) Disadvantages of Gambling at Internet Versus Land-Based Venues (International Table 18 55 Internet Gamblers) Reasons Influencing Decision to Gamble at one Internet Site over Another Table 19 56 (International Internet Gamblers) Table 20 Gambling Behavioral Patterns of Canadian Internet Gamblers 57 Use of Alcohol and Drugs while Gambling in Canadian Internet and Non-Internet Table 21 58 Gamblers Past Year Involvement in Various Forms of Gambling among Canadian Internet Table 22 59 and Non-Internet Gamblers Past Year Weekly Involvement in Various Forms of Gambling among Canadian Table 23 60 Internet and Non-Internet Gamblers Table 24 Types of Games Played over the Internet among Canadian Internet Gamblers 60 Average Percentage of Gambling, by Game Type, Conducted on the Internet by Table 25 61 Canadian Internet Gamblers (for Gamblers who engage in that Type) 5 Table 26 Comparative Net Monthly Gambling Expenditure of Canadian Internet and Non- 61 Internet Gamblers (for Gamblers who engage in that Type) Table 27 Gambling Behavioral Patterns of International Internet Gamblers 62 Table 28 Use of Alcohol and Drugs while Gambling in International Internet and Non- 63 Internet Gamblers Table 29 Past Year Involvement in Various Forms of Gambling among International 64 Internet and Non-Internet Gamblers Table 30 Past Year Weekly Involvement in Various Forms of Gambling among 64 International Internet and Non-Internet Gamblers Table 31 Types of Games Played over the Internet among International Internet Gamblers 65 Table 32 Average Percentage of Gambling, by Game Type, Conducted on the Internet by 66 International Internet Gamblers (for Gamblers who engage in that Type) Table 33 Comparative Net Monthly Gambling Expenditure of International Internet and 67 Non-Internet Gamblers (for Gamblers who engage in that Type) Table 34 Comparative Net Monthly Gambling Expenditure of International Internet and 67 Non-Internet Gamblers as a Function of Country Table 35 Rates of Problem Gambling among Canadian Internet and Non-Internet Gamblers 68 Table 36 Types of Gambling that have Contributed Most to Problems Among Canadian 69 Internet and Non-Internet Problem Gamblers Table 37 Help Seeking for Problem Gambling among Canadian Internet and Non-Internet 69 Problem Gamblers Table 38 Rates of Problem Gambling among International Internet and Non-Internet 70 Gamblers Table 39 Types of Gambling that have Contributed Most to Problems among International 70 Internet and Non-Internet Problem Gamblers Table 40 Help Seeking for Problem Gambling Among International Internet and Non- 71 Internet Problem Gamblers Table 41 Logistic Regression of Characteristics Differentiating Canadian Internet Gamblers 73 from Canadian Non-Internet Gamblers Table 42 Logistic Regression of Characteristics Differentiating International Internet 75 Gamblers from International Non-Internet Gamblers Table 43 Logistic Regression of Characteristics Differentiating Canadian Internet Gamblers 77 from Non-Canadian Internet Gamblers Table 44 Logistic Regression of Characteristics Differentiating Problem International 78 Internet Gamblers from Non-Problem International Internet Gamblers Table 45 Perceived Usefulness of Normative Feedback (International Sample) 81 Table 46 Expected Future Changes in Gambling Behaviour (International Sample) 81 Table 47 Prevalence of Internet Gambling in Different Jurisdictions 83 6 EXECUTIVE SUMMARY Beginning in the early to mid-1990s, as Internet access expanded into workplaces and private residences, gamblers in Western societies were introduced to a new realm of gambling opportunities, based on the Internet. Each of the traditional forms of gambling, widely available in land-based venues, soon appeared in electronic format over the Internet, and have since been easily accessible to any person with an Internet connection and means of electronically transferring money. Virtually mediated casino games, slot machines, bingos, lotteries, sports wagering, horse race betting, and skill games are all now