COMMISSIONED BY ECOGRA (E-COMMERCE and ONLINE GAMING REGULATION AND ASSURANCE)

1. ‘GLOBAL ONLINE GAMBLER SURVEY’: An Exploratory Investigation into the Attitudes and Behaviours Internet Casino and Poker Players COMMISSIONED BY ECOGRA (E-COMMERCE and ONLINE GAMING REGULATION AND ASSURANCE) AUTHORS: JONATHAN PARKE, JANE RIGBYE, ADRIAN PARKE, JACQUI SJENITZER; RICHARD WOOD; BELINDA WINDER; LEIGHTON VAUGHAN WILLIAMS

2. IntroductionInternet Gambling Behaviour • Despite the growth we know little about Internet gambling behaviour and who does it • Medium • Type of behaviour • Prevalence is difficult to estimate • Most have more than one account • There may be a reluctance to be identified (e.g. National Surveys) • Suggested profile of the Internet gambler so far: • Internet poker = 85% male (IGWB, 2004) • Internet poker = average age < 40 years old; females even younger

3. IntroductionInternet Gambling Behaviour • There is a general lack of research • Biased samples (e.g. Ladd and Petry, 2002) • Focus on “pathological gambling”. • In a period consolidation, other means of competition is now necessary (i.e. trust and brand loyalty): • Confidence and need to offer a player “shortcut” • The aims include exploring the following: • Basic dynamics of Internet poker and casino behaviour • Player protection and social responsibility • Idiosyncratic and peripheral factors

4. MethodSurvey • Internet Mediated Research (IMR) – 85 questions • Advantages and disadvantages of this approach • Collecting data on gamblers is a difficult task • Largest and most representative survey to date • Varied sources (e-mails; portals; media and eCOGRA) • Players targeted? • Ethical Clearance

5. MethodFocus Groups • Key topics arising from survey – further exploration • Advertisements were placed in a variety of sources • Sessions usually lasted 90-120 minutes • Details of participants include:

6. ResultsForms of Participation

7. ResultsGeneral Information • The majority of online play takes place at home • Most commonly in the evening, followed by late night, • women were significantly more likely to play work. • Just under half of players are influenced by the software provider when selecting sites. • Casino players were more likely • One in five players was unsure

8. ResultsMessage Boards and Forums Almost 40 per cent of respondents stated they visited message boards or forums. • mostly one to three times per day.

9. Results - Internet CasinoTypical Player Profile The typical Internet casino player is likely to: • Be female (54.8%) • Aged 46-55 (29.5%) • Play 2-3 times per week (37%) • Have visited > 6 casinos in the preceding three months (25%) • Have played for 2-3 years (22.4%) • Play for between 1-2 hours per session (26.5%) • Wager between $30-$60 (18.1%) per session • Play video slots (80.9%) of which they consider bonus games to be the most important aspect of the game

10. Results - Internet CasinoEstimated Monthly Financial Performance

11. Results - Internet CasinoMotivation • Although, money is considered to be important in making Internet casino play enjoyable, • It was often considered as a secondary intrinsic motivation • The least common motivation for gambling was to socialise • Gender differences in motivation were confirmed • Important factors in determining the where players choose to play: • Bonuses (76.6%) • Game Variety (62.1%) • Deposit Method (56.8%)

12. Results - Internet PokerTypical Player Profile The typical Internet poker player is likely to: • Be male (73.8%) • Be aged 26-35 (26.9%) • Play 2-3 times per week (26.8%) • Have visited > 6 poker sites in the preceding three months (25%) • Have played for 2-3 years (23.6%) • Play for between 1-2 hours per session (33.3%) • Play one (24.1%) or two (24%) tables at a time • Play both cash games and tournaments (34%) • Play at big-blind (minimum stake) levels of $0.50 to $2.00 (61.2%) • Play with 6-10% of their bankroll at a table at anyone time (23%)

13. Results - Internet PokerEstimated Monthly Financial Performance

14. Results - Internet PokerBankroll Management and Profitability

15. Results - Internet PokerMulti-tabling and Profitability

16. Results - Internet PokerOther Findings • Men - more likely to • play more frequently, • have longer sessions, • play with a larger percentage of their bankroll, • play higher stakes, • play at more than one table simultaneously, and • use the chat function. • Around 12% of Internet poker players gender swap • Those who “always” perform significantly worse financially • Winning money was reported as most important motivator - however, when exploring this further in focus groups, • makes the game meaningful, • money was a secondary motivator and that • many would still continue to play if losing long term

17. Results – International DifferencesMonthly Financial Performance (Casino)

18. Results – International DifferencesMonthly Financial Performance (Casino)

19. ResultsLuck, Skill and Superstition • 41% of respondents reported to have a lucky number, • more likely to be female and younger players • Women and Internet casino players were more likely have a lucky charm • Internet poker players - lucky items of clothing.

20. ResultsCognitive Biases

21. ResultsPlayer Protection and Fairness • Over a third had a dispute • Most likely older or casino • No differences • The most common problems experienced by players were being disconnected or software malfunctions. • Non-payment was the least common concern among players. • Players felt that there was a need for regulation in most areas including: transparency, uniformity and responsiveness. • Around half of all respondents felt that online gambling software was fair and random.

22. ResultsPlayer Protection and Fairness • Customer service of this industry was marginally better than other industries • women being more positive • The majority of players take action • to avoid being subjected to cheating (87%) • 88% to 91% consider 3rd party reports on payout percentage and randomness to be at least somewhat important • The body which was reported most frequently to have resolved disputes was eCOGRA (49.7%) • eCOGRA – interesting case study for importance of awareness • From 28% awareness to only 4.6% who would not look for seal

23. ResultsResponsible Gambling The players take: • Hospitality E-mails • Information Sharing • Limits • Affordability Checks • Youth Protection • Financial Statements • Source of Income • Nothing can be done Between 51% to 75% (across all five features) of players stated that they would consider some responsible gaming elements at least “quite useful”. • Regular financial statements (75%) • Self-set time limit (51%) Focus Groups: • “players own responsibility” but • “improve trust and brand”

24. Discussion • Gender differences • Growth in acceptance as a bona fide pastime • Differences in motivation • Locus of control • Age differences • A cohort or age effect? • A result of: • Social networks;Time;Media coverage • Internet casino • Draw of the bonus • Financial performance (hard to predict) • Resistant to chasing; unbiased style of betting; motivations

25. Discussion • Internet poker • Forums – outside of play but important to the game • Bankroll Management – less is more • Multi-tabling – more is more • Financial Performance: (in addition to the above) • Resistant to chasing; • More sites; • Music; • Boredom is costly • Responsible Gambling • Players do not favour restriction • Several ideas suggested for protection • Difficult to implement • Future research needed (protective but not affecting enjoyment)

26. Discussion • Fairness and Player Protection • Players characterised buy uncertainty, mistrust and a lack of understanding • till important to players nevertheless! • Evidence suggest a need to develop and maintain standards • Few bodies • Identifiable • eCOGRA as a case study • Customer service performing well • Future Research • Examine motivation further • Strategic play • Problem gambling and protective features • Prevalence

27. We now have some idea what we are talking about! • We know a lot more about who, what, where and when • We know a little more about why • We have a useful framework to guide: • Future research • Corporate strategy • Policy and regulation Conclusion