Convergence of gambling and gaming in digital media Dr. Sally M. Gainsbury, Dr. Daniel L. King, Dr. Brett Abarbanel, Professor Paul Delfabbro, and Professor Nerilee Hing September 2015 © Copyright Victorian Responsible Gambling Foundation, September 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: Gainsbury S., King D., Abarbanel B., Delfabbro P., and Hing N. (2015) Convergence of gambling and gaming in digital media. Victoria, Australia: Victorian Responsible Gambling Foundation. Conflict of interest declaration: Sally Gainsbury has worked with Sportsbet, Echo Entertainment, Nova Scotia Provincial Lotteries and Casino Corporation, British Columbia Lottery Corporation, Techlink Entertainment and the Gaming Technologies Association over the four years previous to this study. She has also received funding over the past four years from the Victorian Responsible Gambling Foundation, Gambling Research Australia, the New South Wales Office of Liquor Gaming and Racing, Australian Institute of Family Studies, and the Ontario Problem Gambling Research Centre. Nerilee Hing has worked with Echo Entertainment, Sportsbet and Sinapore 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). The other authors have 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 Convergence of gambling and gaming in digital media Gainsbury, King, Abarbanel, Delfabbro & Hing 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. The authors would like to acknowledge the valuable contribution of Ms. Brittany Keen who assisted with the content analysis of advertisements. Victorian Responsible Gambling Foundation Page 1 Convergence of gambling and gaming in digital media Gainsbury, King, Abarbanel, Delfabbro & Hing Victorian Responsible Gambling Foundation Page 2 Convergence of gambling and gaming in digital media Gainsbury, King, Abarbanel, Delfabbro & Hing Table of contents Acknowledgements ................................................................................................................. 1 Table of contents ..................................................................................................................... 3 List of figures ........................................................................................................................... 6 List of tables ............................................................................................................................. 9 Executive summary ............................................................................................................... 10 Overview ...................................................................................................................................................... 10 Literature review ......................................................................................................................................... 10 Are gaming and gambling converging, in what ways and to what extent? ................................................... 10 To what extent are young people being exposed to gambling-like content through games? ...................... 11 What influence do gambling-like elements and simulated gambling in games have on young people’s gambling behaviour? ..................................................................................................................................... 11 What are the likely long term consequences for young people exposed to gambling-like experiences through gaming? ........................................................................................................................................... 11 How are gambling-like games marketed and promoted to young people, and what impact does this marketing have? ........................................................................................................................................... 12 Content analysis of advertisements present in social media and general internet use ..................... 12 The technological convergence of gambling and gaming: A typology of common features ............. 13 Recommendations for policy responses ................................................................................................. 13 Gambling and gaming review ............................................................................................... 15 Literature review .................................................................................................................... 16 Methodology ................................................................................................................................................ 16 Are gaming and gambling converging, in what ways and to what extent? .......................................... 17 The definition of gambling ............................................................................................................................. 18 Online gambling ............................................................................................................................................ 19 Online gambling on games ........................................................................................................................... 20 Skill games .................................................................................................................................................... 22 Gambling-themed games.............................................................................................................................. 23 Co-ownership and partnerships between social casino games and gambling operators ............................ 26 Overlap in social casino game and gambling markets ................................................................................. 28 Legislative and regulatory issues .................................................................................................................. 29 Summary – Are gaming and gambling converging, in what ways and to what extent? ............................... 32 To what extent are young people being exposed to gambling-like content through games? ........... 33 Victorian Responsible Gambling Foundation Page 3 Convergence of gambling and gaming in digital media Gainsbury, King, Abarbanel, Delfabbro & Hing Young people’s use of technology ................................................................................................................ 33 Young people’s use of gambling-themed games ......................................................................................... 34 Advertising for gambling products within games .......................................................................................... 38 Summary – To what extent are young people being exposed to gambling-like content through games? ... 39 What influence do gambling-like elements and simulated gambling in games have on young people’s gambling behaviour? .................................................................................................................. 39 Australian study on social casino games and gambling ............................................................................... 40 Problematic gaming and disordered gambling ............................................................................................. 42 Summary – What influence do gambling-like elements and simulated gambling in games have on young people’s gambling behaviour? ...................................................................................................................... 43 What are the likely long term consequences for young people exposed to gambling-like experiences through gaming? .................................................................................................................. 44 Normalisation and increased uptake of gambling ......................................................................................... 44 Micro-transactions may encourage migration to gambling ........................................................................... 45 Development of gambling problems ............................................................................................................