The EU’s online gambling regulatory approach and the crisis of legal modernity. EU Centre Singapore Working Paper No. 19, January 2014

Online gambling is a fast growing service activity in the world - its economic significance is clearly shown by the high level of innovation by gambling operators all over the world, as well as by the increasing amount of tax revenues generated in those States that allow this activity. Nevertheless, states face many difficulties in controlling and regulating online gambling, given the specific nature of the Internet, and the never-ending quest by gamblers for new gaming websites that offer superior odds, a wider gaming variety, and greater bets combination. In this working paper, Dr Salvatore Casabona examines the legality of online gambling in the context of the European Union (EU), and discusses the Union's regulatory approach to online gambling, the lack of harmonisation and the issue of member state sovereignty at the crossroad of European Law on online gambling, and the potential for a new regulatory paradigm to emerge.

Risk Consumption: Children and Online Gaming. The Problem of “Responsible Gambling”

Online gambling is a popular activity among adolescents. However, there has been a notable increase in the number of young people who suffer or are on the verge of pathological gambling. We review the impact of online gambling on young people and discuss the desiderability of the concept of “gambling responsibly” in order to alert of their risks and effectively prevent access to minors. The main factors associated with pathological gambling are the age of start, the family environment, the infl uence of advertising, the consumption of stimulants, and the attitudes of the peer group. Both the government and the gaming industry itself should consider these factors and develop comprehensive plans that ensure a safe and controlled model game. In this context, advertising must take into account criteria of consumer protection knowing that even if they are not allowed, children can easily have access to online gambling. All agents involved, including public and social agents, must provide mechanisms for prevention and awareness of a problem that arouses little social consciousness and excessive carelessness.

Culture, media and sport : the Gambling Act 2005: a bet worth taking? Written evidence submitted by Professor Linda Hancock

At the outset, it should be noted that under the watch of the 2005 Gambling Act, there is robust evidence of increasing harms caused by gambling. The increase in problem gambling from 0.6% (prior to the implementation of the Act) to 0.9% of the British population reported in the British Gambling Prevalence Survey (BGPS) (2010) is significant at the .05 level; which is internationally recognised as a robust significance level. This represents a 50% rise in problem gambling since the Act was implemented. It was disingenuous of the Gambling Commission to report the results as “not statistically relevant” and “at the margins of statistical relevance” in its media release concerning the study. This equates to around 451,000 adults aged 16 and over experiencing serious gambling-related problems and significant additional numbers experiencing moderate problems. Regular (approximately monthly) use of gaming machines, fixed odds betting terminals (FOBTs) in betting shops, casino games and online gambling are associated with problem gambling.

Boomerang effects of gambling warnings exposed to non-problem gamblers

Gambling is the most popular form of entertainment in most markets where it is legal. The
industry has embraced technology and is a growing category online and through mobile
platforms. Governments throughout the world worry about the product when gambling is
more widely available and more private to play. Warnings for problem gambling have long
been used in land-based gambling venues but online gambling often does not have this
remedy. In addition, non-problem gamblers make up about 99% of gamblers but little
research has tested their reaction to warnings. An online casino was developed to test
warnings and found that a significant proportion of non-problem gamblers gambled more
frequently after exposure to the warnings. Because increased frequency of gambling is one symptom of problem gambling, the implications of these findings are discussed in terms of future remedies for consumers that have problems with gambling products.

Determinantes da utilização de sites de apostas online em Portugal

Com a proliferação da internet assistiu-se desde a década de 90 a um aumento exponencial das casas de jogo online, estando muitas delas traduzidas para português e aceitando euros. Sendo este um tema pouco estudado em Portugal, pretende-se desenvolver e validar um modelo conceptual que reflita os fatores que levam o consumidor a utilizar este tipo de sites. Numa altura em que o governo p g ês p de “ eg iz ” es ivid de, é igualmente interessante perceber qual o perfil do público-alvo, as suas motivações e preferências face à oferta existente. A análise fatorial exploratória, a análise de fiabilidade e os modelos de regressão linear foram as técnicas utilizadas para validar este modelo. Com base num questionário, este estudo mostrou que a expectativa de desempenho, influência social, condições facilitadoras, motivações hedónicas, valor do preço, hábito e o risco psicológico, financeiro e de tempo são fatores determinantes da intenção de utilização de sites de jogo online. Do estudo emergem relevantes implicações académicas e para o mundo empresarial.

“Adição ao Jogo online”

Esta dissertação visa compreender a adição ao jogo online, através de duas perspetivas complementares que se congregam num estudo de caso. Analisamos o discurso de um jogador predominantemente de Blackjack online adicto a esta prática (F.) em processo de desabituação, e desenvolvemos a mesma metodologia junto da mãe deste, enquanto fonte complementar de informação, através de entrevistas semi-estruturadas. Desta análise emergiram resultados que clarificam os fatores que funcionam como determinantes da adição, que a mantêm bem como elementos indispensáveis para compreender a decisão de paragem do jogo. Nesta dinâmica conjugamos a perspetiva de F e da sua mãe. A metodologia escolhida para análise dos dados de investigação foi a Grounded Analysis Theory, partindo das vozes dos dois participantes e tendo como objetivo a construção de uma narrativa alternativa e assim contribuir para uma melhor análise de compreensão dos dados obtidos. Através de um processo indutivo de produção de conhecimento organizado e obedecendo a uma sequência que busca uma maior complexidade de integração, tem como objetivo final gerar uma teoria sustentada nos dados recolhidos (Fernandes & Maia, 2001). Enquanto metodologia qualitativa permite-nos aceder aos significados múltiplos que emergiram da experiência destes dois participantes. O jogo online sustentado na sua fácil disponibilidade tem como consequência um maior isolamento do jogador, e uma vez que as recompensas financeiras são uma possibilidade alimenta o ciclo do comportamento aditivo. A observância de problemas físicos e psicológicos percebidos como graves, justificaram uma abordagem de tratamento multidisciplinar, envolvendo ajuda farmacológica, psicológica e social. Os estudos existentes sobre o jogo online são ainda muito escassos, justificandose o estudo qualitativo na construção do conhecimento, pela análise mais detalhada dos fatores que podem contribuir para uma melhor compreensão de todas as especificidades presentes, numa perturbação aditiva ao jogo online.

Customer Energy in Relationships

All companies have a portfolio of customer relationships. From a managerial standpoint the value of these customer relationships is a key issue. The aim of the paper is to introduce a conceptual framework for customers’ energy towards a service provider. Customer energy is defined as the cognitive, affective and behavioural effort a customer puts into the purchase of an offering. It is based on two dimensions: life theme involvement and relationship commitment. Data from a survey study of 425 customers of an online gambling site was combined with data about their individual purchases and activity. Analysis showed that involvement and commitment influence both customer behaviour and attitudes. Customer involvement was found to be strongly related to overall spending within a consumption area, whereas relationship commitment is a better predictor of the amount of money spent at a particular company. Dividing the customers into four different involvement / commitment segments revealed differences in churn rates, word-of-mouth, brand attitude, switching propensity and the use of the service for socializing. The framework provides a tool for customer management by revealing differences in fundamental drivers of customer behaviour resulting in completely new customer portfolios. Knowledge of customer energy allows companies to manage their communication and offering development better and provides insight into the risk of losing a customer.

Match-fixing and Money-laundering

his essay is premised on the following: a conspiracy to fix or otherwise manipulate the outcome of a sporting event for profitable purpose. That conspiracy is in turn predicated on the conspirators’ capacity to: (a) ensure that the fix takes place as pre-determined; (b) manipulate the betting markets that surround the sporting event in question; and (c) collect their winnings undetected by either the betting industry’s security systems or the attention of any national regulatory body or law enforcement agency.

Unlike many essays on this topic, this contribution does not focus on the “fix”– part (a) of the above equation. It does not seek to explain how or why a participant or sports official might facilitate a betting scam through either on-field behaviour that manipulates the outcome of a game or by presenting others with privileged inside information in advance of a game. Neither does this contribution seek to give any real insight into the second part of the above equation: how such conspirators manipulate a sports betting market by playing or laying the handicap or in-play or other offered betting odds. In fact, this contribution is not really about the mechanics of sports betting or match fixing at all; rather it is about the sometimes under explained reason why match fixing has reportedly become increasingly attractive as of late to international crime syndicates. That reason relates to the fact that given the traditional liquidity of gambling markets, sports betting can, and has long been, an attractively accessible conduit for criminal syndicates to launder the proceeds of crime. Accordingly, the term “winnings”, noted in part (c) of the above equation, takes on an altogether more nefarious meaning.

This essay’s attempt to review the possible links between match fixing in sport, gambling-related “winnings” and money laundering is presented in four parts.

First, some context will be given to what is meant by money laundering, how it is currently policed internationally and, most importantly, how the growth of online gambling presents a unique set of vulnerabilities and opportunities to launder the proceeds of crime. The globalisation of organised crime, sports betting and transnational financial services now means that money laundering opportunities have moved well beyond a flutter on the horses at your local racetrack or at the roulette table of your nearest casino. The growth of online gambling platforms means that at a click it is possible for the proceeds of crime in one jurisdiction to be placed on a betting market in another jurisdiction with the winnings drawn down and laundered in a third jurisdiction and thus the internationalisation of gambling-related money laundering threatens the integrity of sport globally.

Second, and referring back to the infamous hearings of the US Senate Special Committee to Investigate Organised Crime in Interstate Commerce of the early 1950s, (“the Kefauver Committee”), this article will begin by illustrating the long standing interest of organised crime gangs – in this instance, various Mafia families in the United States – in money laundering via sports gambling-related means.

Third, and using the seminal 2009 report “Money Laundering through the Football Sector” by the Financial Action Task Force (FATF, an inter-governmental body established in 1989 to promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system), this essay seeks to assess the vulnerabilities of international sport to match fixing, as motivated in part by the associated secondary criminality of tax evasion and transnational economic crime.

The fourth and concluding parts of the essay spin from problems to possible solutions. The underlying premise here is that heretofore there has been an insularity to the way that sports organisations have both conceptualised and sought to address the match fixing threat e.g., if we (in sport) initiate player education programmes; establish integrity units; enforce codes of conduct and sanctions strictly; then our integrity or brand should be protected. This essay argues that, although these initiatives are important, the source and process of match fixing is beyond sport’s current capacity, as are the possible solutions.

Le jeu en ligne : une analyse comparative du statut juridique du jeu en ligne et des cadres juridiques adoptés pour règlementer et gérer ses risques.

Le jeu a toujours été perçu comme un vice, responsable de nombreux troubles sociaux. Par conséquent, les gouvernements ont adopté divers cadres juridiques pour contrôler et gérer ses conséquences négatives. Malgré qu'il soit omniprésent, le jeu en ligne est illégal au Canada, aux États Unis et dans plusieurs autres pays. La règlementation du jeu en ligne et la gestion de ses troubles sociaux présente un plus grand défi pour les gouvernements, particulièrement en raison de sa nature technologique et extraterritoriale. Ce mémoire identifiera les risques et conséquences liés au jeu, en particulier les problèmes de jeu, ainsi que les cadres juridiques adoptés pour les règlementer et minimiser. Nous examinerons le statut juridique du jeu en ligne dans différentes juridictions, dont le Canada, les États Unis, le Royaume-Uni et ailleurs dans l'Union européenne. Ces cadres juridiques comprennent l'interdiction du jeu en ligne aux États Unis, la légalisation, l’octroi de licences et taxation du jeu en ligne au Royaume Uni et les cadres juridiques employés au Canada et ailleurs, offrant du jeu en ligne exclusivement par l’entremise de monopoles d'état pour contrôler sa disponibilité et minimiser ses conséquences néfastes. Nous tirerons des conclusions quant à l'efficacité relative des différents cadres juridiques adoptées pour règlementer le jeu en ligne.

Are the profiles of past-year internet gamblers generalizable to regular internet gamblers?

 Research generally classifies internet gamblers as those who have gambled online at least once in the previous year. This classification system has been criticised on the grounds that it fails to consider the frequency of internet gambling. This study aimed to contrast the demographic, gambling, and psychosocial profiles of regular internet gamblers (at least monthly in the previous year) with those of past-year internet gamblers. Computer-assisted telephone interviews were conducted with 4303 adult respondents from Tasmania, Australia. The findings revealed that 3.3% were past-year internet gamblers and 2.1% were regular internet gamblers. Both past-year and regular internet gambling were significantly associated with several variables (younger age, dependent children, paid employment, higher annual income, higher gambling frequency and expenditure, younger age of first gambling, challenge and positive feelings gambling motives, and positive reinforcement gambling triggers). However, several variables were significantly associated only with past-year internet gambling (male gender, living with partner, number of gambling activities, regulate internal state gambling motives, hazardous alcohol use, cannabis use, and other illicit drug use) or regular internet gambling (higher education). Only gambling for positive feelings was a significant independent predictor of both past-year and regular internet gambling. These findings suggest that the classification of past-year internet gambling that is normally employed in research produces profiles that are not fully generalizable to regular internet gamblers.

Dispute resolution across platforms : offshore gambling industry & EVE online

Contemporary online environments suffer from a regulatory gap; that is there are few options for participants between customer service departments and potentially expensive court cases in foreign jurisdictions. Whatever form of regulation ultimately fills that gap will be charged with determining whether specific behavior, within a specific environment, is fair or foul; whether it’s cheating or not. However, cheating is a term that, despite substantial academic study, remains problematic. Is anything the developer doesn’t want you to do cheating? Is it only if your actions breach the formal terms of service? What about the community norms, do they matter at all? All of these remain largely unresolved questions, due to the lack of public determination of cases in such environments, which have mostly been settled prior to legal action. In this paper, I propose a re-branding of participant activity in such environments into developer-sanctioned, advantage play, and cheating. Advantage play, ultimately, is activity within the environment in which the player is able to turn the mechanics of the environment to their advantage without breaching the rules of the environment. Such a definition, and the term itself, is based on the usage of the term within the gambling industry, in which advantage play is considered betting with the advantage in the players’ favor rather than that of the house. Through examples from both the gambling industry and the Massively Multiplayer Role-Playing Game Eve Online, I consider the problems in defining cheating, suggest how the term ‘advantage play’ may be useful in understanding participants behavior in contemporary environments, and ultimately consider the use of such terminology in dispute resolution models which may overcome this regulatory gap.

PokerMapper: : mapping executive functions, poker playing ability and responsible gambling in online environments

Research objectives Poker and responsible gambling both entail the use of the executive functions (EF), which are higher-level cognitive abilities. The main objective of this work was to assess if online poker players of different ability show different performances in their EF and if so, which functions are the most discriminating ones. The secondary objective was to assess if the EF performance can predict the quality of gambling, according to the Gambling Related Cognition Scale (GRCS), the South Oaks Gambling Screen (SOGS) and the Problem Gambling Severity Index (PGSI). Sample and methods The study design consisted of two stages: 46 Italian active players (41m, 5f; age 32±7,1ys; education 14,8±3ys) fulfilled the PGSI in a secure IT web system and uploaded their own hand history files, which were anonymized and then evaluated by two poker experts. 36 of these players (31m, 5f; age 33±7,3ys; education 15±3ys) accepted to take part in the second stage: the administration of an extensive neuropsychological test battery by a blinded trained professional. To answer the main research question we collected all final and intermediate scores of the EF tests on each player together with the scoring on the playing ability. To answer the secondary research question, we referred to GRCS, PGSI and SOGS scores.  We determined which variables that are good predictors of the playing ability score using statistical techniques able to deal with many regressors and few observations (LASSO, best subset algorithms and CART). In this context information criteria and cross-validation errors play a key role for the selection of the relevant regressors, while significance testing and goodness-of-fit measures can lead to wrong conclusions.   Preliminary findings We found significant predictors of the poker ability score in various tests. In particular, there are good predictors 1) in some Wisconsin Card Sorting Test items that measure flexibility in choosing strategy of problem-solving, strategic planning, modulating impulsive responding, goal setting and self-monitoring, 2) in those Cognitive Estimates Test variables related to deductive reasoning, problem solving, development of an appropriate strategy and self-monitoring, 3) in the Emotional Quotient Inventory Short (EQ-i:S) Stress Management score, composed by the Stress Tolerance and Impulse Control scores, and in the Interpersonal score (Empathy, Social Responsibility, Interpersonal Relationship). As for the quality of gambling, some EQ-i:S scales scores provide the best predictors: General Mood for the PGSI; Intrapersonal (Self-Regard; Emotional Self-Awareness, Assertiveness, Independence, Self-Actualization) and Adaptability  (Reality Testing, Flexibility, Problem Solving) for the SOGS, Adaptability for the GRCS. Implications for the field Through PokerMapper we gathered knowledge and evaluated the feasibility of the construction of short tasks/card games in online poker environments for profiling users’ executive functions. These card games will be part of an IT system able to dynamically profile EF and provide players with a feedback on their expected performance and ability to gamble responsibly in that particular moment. The implementation of such system in existing gambling platforms could lead to an effective proactive tool for supporting responsible gambling.