Problem Gambling Workshops

A Workshop Discussion on the topic:

Proactive Steps to Address Potential Problem Gambling
in Interactive Gaming
held
January 25, 2002

Hosted by:
· IGI, Interactive Gaming Institute of Nevada
· William F. Harrah College of Hotel Administration,
University of Nevada, Las Vegas

Conducted by:
· IGTF, Interactive Gaming Task Force

Facilitators:
· Dr. Pearl Brewer -- Chair of the Hotel Management Department
· Ph.D. Candidate -- Bo Bernhard - Department of Sociology

This is a summary of comments made during an IGTF Workshop looking at potential problem gambling issues within Interactive Gaming. It was held January 25, 2002 and is one in a continuing series of focused discussions on a variety of issues associated with the continuing implementation of interactive gaming. Taking part in this meeting was a diverse group of two dozen individuals with particular interest in the potential impact that the proliferation of Internet, intranet, wireless and other server-based forms of wagering may have on those who experience a tendency to abuse this opportunity.

A statement included in this document does not necessarily constitute or imply its endorsement, recommendation, or favoring by the other participants in the Workshop, the Interactive Gaming Institute or the University of Nevada, Las Vegas. All statements should be viewed as allegations, opinions, or theoretical research discussions and the Workshop participants, facilitators and sponsors make no claims for the factual accuracy of any information or statement.

The session concluded by agreeing there would be value in continuing this dialog. In addition, the decision was made to form a subcommittee to analyze specific, proactive options that regulators and public policy makers could consider. After the full group has met and reviewed those proposals, a "White Paper" will be drafted and widely distributed.

Issues Presented for Discussion

Q:What do you think is the profile of the "prototypical" problem gambler on the Internet?

The consensus was that treatment and self-help organizations are not currently seeing a significant number of problem gamblers who are utilizing the Internet; thus, there is minimal actual data on which to base assumptions. The supposition was that the profile is likely to be similar to that of the video poker problem gamblers, as the computer terminal is similar to a video poker machine. These are more often female than male, and typically are seeking escape or isolation. Views were expressed that the profile might be younger, more educated, more male, and perhaps more high-tech than video poker players. One analogy was offered that it might be analogous to a compulsive "Day Trader" of stock, in that there are similar symptoms.

It was noted that today's activity on Internet gambling sites is comprised of over 50% sports and race book wagers and that slot machine type games were the least played. It was also reported that over 50% of Internet "Game" players (not necessarily gambling) are women.

A point was made that illegal gambling in the non-Internet world was 4 to 5 times as large as legal gambling.

Q:From the perspective of a problem gambler, are there different or additional risks associated with interactive gambling?

Perhaps the most important change that might occur with the proliferation of Internet gambling is that some of the barriers to gaming that exist for the problem gambler are removed by the Internet environment. These include the need to get dressed and go out of the house to get to a gaming location, and the feelings of guilt about leaving family or other obligations in order to gamble. The escape gambler seeks isolation, and the added access and availability of gambling on the Internet better facilitates these escape seeking behaviors.

Immediacy of the game result affects the psychological motives of the problem gambler. To the extent that Internet gambling can facilitate this immediacy, there is a compelling argument that it could be problematic.

A clinician suggests that the average time for a craps or poker player to become a problem gambler is 15 to 20 years. The average time for a video poker player is 2 to 3 years. The Internet is likely to tend toward the video poker profile.

Q:Do you think there are different "subtypes" of problem gamblers who might be affected in different ways by interactive gambling?

There are two different profiles of problem gamblers. The first is one who seeks "action." The second seeks "escape." It is generally assumed that the Internet gambler will be seeking escape, and therefore be likely to play video poker or slots. The action gambler is more likely to play craps or poker or blackjack. Though the symptoms are different, the resulting disruption of other aspects of the player's life (e.g. job, family, finances) is the same.

Q:Would different types of payment strategies affect the problem gambler in different ways?

A credit card theoretically gives the game operator his money, but collection from a gambler is problematic. Some recent court cases have sided with the player - declaring gambling debts non-enforceable. Additionally, many gambling transactions are disputed. As a result, a significant number of credit card issuers are now declining Internet casino transactions, and are investigating unusual transactions that might be used to fund gambling activities. It was also noted that fraud was higher in problem gamblers, and many would find a way to gamble no matter what the barriers. Much of the rest of the world uses debit cards, rather than credit, for these types of transactions. In those cases, there cannot be any declines of how someone wishes to spend his own money. Alternative methods of funding gaming, such as PayPal, give gamblers another way around the credit card issues.

A professional view was stated that mechanisms that create barriers, such as time outs, loss limits, etc. can be effective in breaking the impulse of problem gamblers, but they perhaps should not be applied universally.

It is important for the regulated jurisdiction to avoid creating an environment where the funding is so difficult that it would drive problem gamblers to illegal sites. It was noted that even regulated sites would be illegal if they accepted bets from within jurisdictions in which Internet gambling was prohibited. The mixture of "legal" and "illegal" gambling is now being clouded with legalized interactive gaming in many jurisdictions, primarily in race betting.

A question was raised as to whether allowing gambling to be done without issuing credit was a sociological scientific solution or merely a moral and ethical judgment.

Q:How important should issues surrounding problem gambling in the interactive environment be to gaming companies?

Most current Internet Casino companies do not care about the issue. There are few disclosures or links to Problem Gambling sites, etc.

Nevada operators have programs in place, and would continue to do so in an interactive environment. They are concerned for business reasons as well as for their customers. They do not want to have regulations imposed on them, and want to attack the issue themselves.

Waiting periods, etc. could become negative competitive issues with other jurisdictions.

Q:Do you think there are differences between brick and mortar casinos and the interactive environment in the ability to identify problem gamblers?

Activity levels and frequency are difficult to track in the Brick and Mortar world, while this is easily achieved in the interactive environment, where every player must be identified at login, and every transaction can be recorded.

Identification of problem gamblers is not the issue, but rather education of all gamblers, and the promotion of "Responsible Gaming". Identification is problematic, but trends can be identified and reported back to an educated gambler. Those with gambling problems must identify themselves before any action or treatment becomes effective.

Those problem gamblers that impose self-restrictions are far greater in number than those that join self help groups.

It was suggested that a "Responsible Gaming" brand (like the Good Housekeeping seal) be created and links be placed on each interactive gambling site.

It was also noted that laws for alcohol addiction are not meant to treat the addiction but rather to establish public safety (such as DUI, etc.) Laws will not solve the individual's problems. Court required treatment is far less effective than voluntary treatment.

Q:Do you think that steps taken to identify problem gamblers impose a burden on recreational gamblers?

Notification made to a gambler might trigger some other life events, and should be avoided. For example, a letter sent to the home address or office address might alert others and cause marital or job issues to be exacerbated, in some cases threatening an otherwise normal situation.

Identification is not 100% accurate, but some obvious discrepancies should be investigated. A high loss by someone whose data does not show the income or assets to stand that level should trigger an investigation, but not necessarily be cause for identification as a problem gambler. Other factors, such as inheritance, lottery winnings, etc. could be the answer.
ü Should gamblers be able to set financial limits before they begin to play?

A gambler should be able to set loss limits at the beginning of a session, or for all their play. They must identify themselves, but these limits should not be required of all players. Typically, problem gamblers claim to have a clear head when they begin to gamble, but their thinking is clouded as they begin to play and lose. Allowing and implementing self-imposed loss limits does not appear to be a problem for the casino operators.

Global Cash Access is seen as a standard-bearer for these types of programs in the brick and mortar environment, and many of their findings and solutions could apply to interactive gaming.

To be effective, any database must apply to all gaming environments, not just to one casino or Internet gaming site. It was suggested that a statewide database could be implemented, and that its use be required as part of any regulations for Internet gaming. In that way, a problem gambler can set his or her limit and be assured that simply changing venue does not permit additional play. As issue was raised as to the security and privacy of such a database.

Q:How should funds that might be collected in support of these issues be spent or funneled?

The starting point is research, with implementation following. The thought was expressed that if gaming companies knew that effective strategies and programs existed, the funding would be easily attained.

A statement was made that the ultimate fantasy of a problem gambler is to control their gambling.

The focus should be on education.

The impact of Internet gaming is unknown and the research must be done quickly. Internet and wireless race betting is now legal in California, and its impact affects 20% of the population of the U.S.

There are possible chemical issues in addictions, such as a deficiency of neuro transmitters, but the solution can be medical, behavioral, or environmental.

There will be trial and error for some time, but that is the process of science.

IGTF will conduct the next workshop on problem gambling in the first quarter 2002.

IGI is conducting a Show & Tell Technology Forum February 13, 2002, on Player ID, Age Verification and Border Control issues.