University study concludes that problem gambling risk is higher online

The results of the annual study of gambling by Rutgers University’s Center for Gambling Studies, conducted with responsible gambling funds from New Jersey operators, have been released and can be accessed here:

http://www.nj.gov/oag/ge/2016news/2016ResponsibleGamingInternetGamingReport.pdf

One of the potentially more controversial conclusions is that the risk of problem gambling appears to be higher online.

Basing its finding on a recent study commissioned by the New Jersey Division of Gaming Enforcement, titled “The Prevalence of Online and Land‐Based Gambling in New Jersey,” the Rutgers study suggests:

“… 4.5 percent of those who gambled only at land-based venues were in the high risk problem gambling group, which would likely meet criteria for disorder. In contrast, 14.3 percent of online-only and 36.9 percent of the mixed group were in the high risk problem group.”

A possible explanation for this apparent departure from the international norm of low online risk is that there is a strong poker-player component in the numbers – 53,950 of the 94,255 accounts Rutgers studied played poker exclusively or played poker and some combination of casino and tournament games, and this may have unbalanced the statistics.

The Rutgers report points to more facts from the earlier DGE study when it examined the extent of online gambling in New Jersey, noting that the indications are that 5.3 percent of respondents gambled exclusively online and 19.2 percent gambled both online and at land-based venues, indicating a growing cross-over between the two formats.

Rutgers observes that the registration of individual online gambling accounts has declined over the past year as the novelty factor has worn off.

The university’s study shows that over 375,000 individual online gambling accounts were created in New Jersey during 2015 vs. the 531,626 accounts created in 2014.

However, only 107,535 (28 percent) of the accounts created went on to play real-money online games. Interestingly, many of the accounts were created by persons outside New Jersey, knowing that they would not be permitted to gamble unless they were within state borders…the explanation for this may be that they were preparing accounts for a visit at some future stage to New Jersey.

Defining the Top Ten online gambler category as those placing the highest number of bets, total days gambling and amount of money wagered, the Rutgers study assessed the gaming nature and habits of a 2,959-strong sample as follows:

* Top Ten online gamblers in New Jersey tend to be older (and presumably therefore more well-heeled) and female, despite the fact that women comprise only 25 percent of the overall online gaming population in the state.

* Top Ten online gamblers are also likely to be casino game-only punters (69 percent of them) compared with the overall percentage of casino-only internet players which is just 43 percent.

* The Top Ten sample group bet an average of about $500,000 in 2015, with the lowest wager totalling just over $40,000 and the top wagering total$78.75 million.

* The average frequency of play for this group was 158 days, far more than the typical online punter.

Responsible gaming practices were also studied, with Rutgers reporting that more players are availing themselves of these facilities.

In 2014 the most-used “set deposit limit” provision was selected by around 1.3 percent of players, but in the following (2015) year only half that used the provision. However, in 2015 another provision – self-exclusion – was widely used…by 10,000 players or approximately 2.5 percent of all accounts created; a hug increase over the 742 who used that facility in 2014.

Rutgers concluded that in general players using limits setting facilities tend to have lower betting patterns, and that the range of responsible gaming options available to players is satisfactory.

Recommendations arising from the current study are:

* Improving education, access, consistency, and branding could increase the numbers of players (currently 15 percent) who decide to use responsible gaming options;

* The addition of a responsible gambling module at some point in the sign-up process and for continued usage