Gambling KTE Policy Forum Pantages Hotel Toronto, Ontario March 10 th -11 th 2016
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1 Pantages Hotel Toronto, Ontario March 10 th -11 th 2016 When the online reality catches up with us Sylvia Kairouz, Professor Reseach Chair on Gambling Department of Sociology and Anthropology, Concordia University March 10 th 2016 Hosted by
2 Outline Quebec context Working group on online gambling Hypotheses Findings Recommendations Comparison of regulated and unregulated sites: the case of France
3 Quebec context February 10, 2010 The Government announces that the Société des loteries du Québec will be authorized to offer online gambling Public health directors Researchers Health professionnals The Quebec Ombudsman Loto-Quebec Ministry of Finance
4 July 9, 2010 MANDATE Establishment of an Online Gambling Working Group 1. Analyse the social impact of the development in Quebec of online games; 2. Analyse the regulatory, technical, economic and legal measures to counter illegal gambling; 3. Carry out necessary national and international consultations
5 APPROACH Competing and conflicting views SOCIOECONOMIC HYPOTHESIS SOCIO-HEALTH HYPOTHESIS LEGAL HYPOTHESIS
6 METHODOLOGY SUMMON THE FACTS
7 LOGIC MODEL
8 SOCIO-HEALTH HYPOTHESIS ESPACEJEUX 1) INCREASE NUMBER OF GAMBLERS 2) INCREASE NUMBER OF AT-RISK GAMBLERS AND GAMBLING-RELATED PROBLEMS
9 ONLINE GAMBLING SERVICES Several campaigns devoted to gambling were carried out between 2010 and None of them focused on online gambling; Budget allocated to information and awareness campaigns declined by 30% (1,5 M to 1 M) No campaign focused on online gambling; Helpline and online information and referral services for gamblers and close relations; Front-line services available in all regions of Québec; Public specialized treatment or accommodation services available in all regions of Québec
10 PRIMARY AND SECONDARY PREVENTION Loss Shame - Focus on pathological gamblers
11 SOCIO-HEALTH HYPOTHESIS 2009: 1.4% 2012: 1.5% 2009: 70.5% 2012: 66.7%
12 SOCIO-HEALTH HYPOTHESIS Not often, Not long, Not much Too low to estimate
13 SOCIO-HEALTH HYPOTHESIS Gambling-related problems At-moderate risk gamblers Probable pathological gamblers
14 SOCIO-HEALTH HYPOTHESIS Betting among minors
15 PREVENTION Loto-Québec Conflict of interest Responsible offering of Online Gambling VS Prevention of Gambling Problems Responsible Gambling Intelligence Division?
16 SOCIO-HEALTH HYPOTHESIS NO increase in the number of gamblers NO increase in the prevalence of gambling problems Prevention of gambling problems should be entrusted with an independent body
17 SOCIO-ECONOMIC HYPOTHESIS ESPACEJEUX 1) Channelling online gambling 2) Trustworthy offering of online gambling 3) Responsible offering of online gambling
18 SOCIO-ECONOMIC HYPOTHESIS CHANNELING ONLINE GAMBLING REVENUES 2011/12: 20.5 M$ 2012/13: 31.6 M$
19 SOCIO-ECONOMIC HYPOTHESIS Population prevalence 1.4 % 1.5 % Poker betting 0.95% Follow-up study with online gamblers 22% bet on Espacejeux exclusively
20 SOCIO-ECONOMIC HYPOTHESIS Beside Espacejeux, more than 2000 sites available
21 REASONS SOCIO-ECONOMIC HYPOTHESIS REASONS LACK OF KNOWLEDGE ABOUT ILLEGALITY OF SITES CLOSED NETWORK (QC AND BC) SMALLER POOL OF GAMBLERS SATURATION OF MARKETS - POKER
22 SOCIO-ECONOMIC HYPOTHESIS VERY FEW COMPLAINTS but Loto-Québec is self-regulated No mechanisms of surveillance nor external control Impossible to know whether Loto-Québec is better or worse than the other online operators
23 SOCIO-ECONOMIC HYPOTHESIS 50% decrease in use of responsible gambling tools Non-validated detection test for problem gambling Flashing games on the Help page Other gambling sites are not so bad!
24 SOCIO-ECONOMIC HYPOTHESIS NO channelling? Trustworthy games? Serious problems with responsible gambling Supervision and control should be entrusted with an independent body
25 LEGAL HYPOTHESIS The introduction of ESPACEJEUX will curtail the current and emerging online gambling offer from illegal operators
26 Criminal Code of Canada Only a province can Conduct and Manage online gambling. A Province cannot licence online gambling much as they do with charitable organisations. However, there are routinely over 2,000 considered illegal sites offered to Quebecers not much change since the governmental offer Unregulated sites Is it the Far West?
27 AVALABILITY OF ONLINE SITES
28 VISIBILITY
29 VISIBILITY
30 ACCESSIBILITY
31 ACCESSIBILITY
32 LEGAL HYPOTHESIS NO Diminution of what is considered the illegal online gambling offer Modification to the Criminal Code should be done to provide for proper and effective regulation
33 RECOMMENDATIONS The working group formulated FIVE recommendations stemming from: Monitoring system, consultation and readings Theoretical perspectives Online gambling must remain accessible for Quebecers prohibition State corporation is a sound societal choice but online gambling requires major adaptation Ethical approach centered on the common good
34 Bases for recommendations Prevention and treatment Common good Economy and taxation Regulation and legislation (offerings and promotion)
35 RECOMMENDATION 1 Limit Loto-Québec social responsibility mandate to the management of online gambling offerings; Establish an independent, autonomous and permanent foundation whose prevention mission will encompass: Public health questions Socioeconomic questions Legal questions
36 RECOMMENDATION 2 Adapt and treatment and support available to individuals to take into account the other mental health needs of such individuals
37 RECOMMENDATION 3 Create and mandate an independent regulatory body or broaden the mandate of the Régie des alcools, des courses et des jeux to regulate and monitor the online gambling sector in Québec: Regulation and monitoring of promotion & advertisement; Regulation and monitoring of responsible offerings; Regulation and monitoring of security and integrity of online offerings
38 RECOMMENDATION 4 The Québec government takes the necessary steps to amend the Criminal Code to enable the Canadian provinces to issue online gambling licenses to private operators; Establish and mandate an independent regulatory body or broaden the mandate of the Régie des alcools, des courses et des jeux to establish and administer a self-financing system to issue licenses to private operators; Implement subsidiary measures to the sustainability of a licensing system.
39 RECOMMENDATION 4 (cont d) Explore the possibility of offering games of private operators through a government website; Implement subsidiary short-termed measures to help curb illegal offerings: Internet filtering Formal notice to cease activities Restrictions of public contracts Law Enforcement Population sensibilisation
40 RECOMMENDATION 5 Pursue the monitoring system elaborated by the working Group through an expert panel to follow-up socio-sanitary, socioeconomic and legal challenges.
41 Online gambling marginal Gamification of gambling market change Concern for future generations General international movement towards licencing systems Better control and regulate Channel revenues Protect gamblers
42 Long process High media coverage following the report release Four pages of the government budget devoted to information from the report December 2013 Minister of Finance distributed electronic copies of the report to all Canadian Ministers of Finance
43 Comparison of regulated and unregulated sites: the case of France
44 Context Regulating sites and gambling problems Few studies explored the associations between regulation of online gambling and gambling problems. Gap: studies of national policies concerning online gambling and rates of problem gamblers EU Court of Justice hypothesis: protecting the consumer with a public monopoly operator Alternative hypothesis: Licensing system
45 Context Regulation of online gambling in the European Union (EU) European tendency to implement licensing systems under national regulation authorities In France, an independent administrative authority (ARJEL) grants licences and monitors website activity. What are the optimal forms of regulations? Are regulated sites really safer?
46 Methodology Sample N = 3,860 online gamblers, years Data from the 2012 survey conducted by government research agencies Measures Set of questions Game-play patterns Regulatory status of gambling activities Self-report gambling related problems Demographic characteristics
47 Results Profile of online gamblers on licensed and unlicensed sites More likely to be men, younger, higher level of education and higher socio-professional category Bet on regulated activities on unlicensed sites: more female, younger, less educated, inactive in the labour market Most popular activities: lottery, scratch card games: 46.3% gambled on at least one unlicensed site. 12.1% gambled exclusively on unlicensed sites.
48 Results Participation to regulated and unregulated activities Lottery and instant scratch cards (68%) more on regulated sites Poker (19%) more on unregulated sites Horse racing (16%) Sports betting (14%) Slot machines (7%) Casino games (4%)
49 Results Gambling patterns and related problems among gamblers on licensed and unlicensed sites Gamblers on unlicensed sites: a) gamble more frequently (except for poker) b) spend greater amounts c) include a higher proportion of problem gamblers
50 Results 6 Gambling patterns and related problems among gamblers on licensed and unlicensed sites Gamblers who bet on regulated activities on unlicensed sites are more likely to report a) intense gambling patterns b) gambling-related problems c) negative impact on other lifestyle behaviours (sleep, eating) d) increased concern about tobacco use
51 Results Sport betting: Lottery: those using licensed sites more likely to be problem gamblers. those using unlicensed sites more likely to report negative impact on lifestyle behaviours (sleep, eating) those using unlicensed sites more likely to report negative impact on lifestyle behaviours (sleep, eating) and an increased concern about tobacco use Horse betting: those using unlicensed sites more likely to report negative impact on lifestyle behaviours (sleep, eating)
52 Conclusion A significant proportion of gamblers continue using unlicensed sites. Example: The case of poker France need to be more inclusive of players from other EU nations. Slot machines and some casino games are not regulated. This might be a reason for the sustained activity on unlicensed sites. Need to examine the potential benefits and pitfalls of expanding online licensing. Support the theory that gambling activities carried out on state regulated sites cause less damage to gamblers.
53 Conclusion Triangulation of data (population surveys, activity data from operators and regulators) to gain a more comprehensive understanding of the effectiveness of regulating gambling activities. Combining multiple data source allow to begin identifying potential thresholds for risk factors that can be used to develop responsible gambling tools. BIG DATA!!!!
54 Acknowledgment Working group on online gambling: Louise Nadeau, Magali Dufour, Richard Guay, Jean-Marc Ménard. Ministry of Health, Ministry of Finance, Loto-Québec French Observatory on Gambling (Jean-Michel Costes) Québec funding agency (FRQ-SC)
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