Blurred Lines: The Convergence between Gaming and Gambling...Boundaries and lines are getting...
Transcript of Blurred Lines: The Convergence between Gaming and Gambling...Boundaries and lines are getting...
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Blurred Lines: The Convergence between Gaming and Gambling
Presented by Daniel J. Trolaro, MS
May 8th, 2019
Daniel J. TrolaroAssistant Executive [email protected](201) 316-6160
Webinar Presenter
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Webinar Learning Objectives
Analyze the connection and risk of progression from gaming to gambling
Examine issues surrounding the behavioral and psychological aspects of gaming and gambling
Assess the impact video gaming has on developing a gambling problem
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� Growing number of online women gamblers
� Increasing penetration of credit and debit cards
� eSports and Changing consumer gambling habits (social gaming, internet gambling, sports, DFS)
� Use of alternative options to cash
� Changing marketing strategies
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2015 – 40% of US women gambled
tend to prefer to gamble in private (more confident and less fear of judgment from others)
tend to prefer passive forms of gambling (i.e. slots, scratch offs, bingo)
Typically utilize personal electronic devices
Under age 35 more active than over age 35
Female centered casinos starting to emerge (Pink Casino, Maria Casino, 888ladies) ‐Made by women, for women
� Increasing use of Credit and Debit Cards
� Foreign offshore illegal accounts are accessed via proxy servers making it hard to track legality
� Allows for use of both domestic and international transactions via credit or debit
� Credit card processor has global view of consumer
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� A global industry!� IOC hosting a forum this week on adding eSports as an Olympic sport!
� Audience 225 million 2015 // 380 million 2018� Revenue $325 million 2015 // $906 million 2018
� Competitive gaming in real time� You Tube and Twitch streams tournaments live…Twitch now owned by Amazon who bought it for $1 Billion in 2014
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eSports Arena at the Luxor in Las Vegas, NV
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Polling Question 1: What are eSports?
A - Competitive video gaming in real time?B - Competitive sports betting at an event?C – ESPN broadcast of a sports event?
1) Also called a ‘Crate’ it is a consumable virtual item in a video game which can be redeemed to receive a random selection of further virtual items.
2) A loot box is typically a form of monetization, with players either buying boxes directly or receiving the boxes during play and later buying "keys" with which to redeem them.
3) Regulated under gambling law in some Asian countries.
4) Criticized for being a form of unregulated gambling, for creating situations in games that make people "pay‐to‐win.”
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� Random Reward Mechanism that requires 3 components:
� Eligibility: Requirement to trigger the random event of a loot box (i.e. accomplishment, paying $, spending time). The triggering event is done actively which perpetuates that “illusion of control.”
� Random Procedure: The randomness is the process and is what makes it feel like gambling…..the HOOK!!
� Reward: Skins, VC, Weapon, item of value, advancement
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A Video Game ‘Loot Box’ Offers Coveted Rewards, but Is It Gambling? (The New York Times – April, 2018)
Star Wars Battlefront 2 Daily Crate / Loot Box Opening just for logging in!!
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� Gambling is a ‘Variable Ratio’ Payout –You have to keep playing in order to win but you never know when you will win….so are loot boxes
� Surprise element of when you will win is the addictive quality…same in loot boxes
� You also do not know how often or when it will occur but it is that uncertainty that is the hook…..see above!
What causes people to act against what they normally otherwise would not do?
� ‘Scarcity principle’ ‐ fear of missing out since it will not be available later on.
� ‘Social Proof’ – HSN shows proof that item is being purchased and is desirable to consumers.
� In this vein, loot boxes should be viewed with caution and done responsibly due to ethics and predatory behaviors.
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� Activision continues to explore a matchmaking patent that encourages players to buy microtransactions.
� Filed in 2015 and granted in 2017.
� 2 Examples…
Example #1
� Outlines a process in which computer algorithms can match players together in order to increase the likelihood of microtransaction purchases.
� “For example, if the player purchased a particular weapon, the microtransaction engine may match the player in a gameplay session in which the particular weapon is highly effective,” the text of the patent reads. “This may encourage the player to make future purchases to achieve similar gameplay results.”
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Example #2� The matchmaking system would analyze player trends such
as latency and weapon preference in order to place them in scenarios that might lead them to buy certain items.
� “…In a particular example, the junior player may wish to become an expert sniper in a game...Microtransaction engine 128 may match the junior player with a player that is a highly skilled sniper in the game. In this manner, the junior player may be encouraged to make game‐related purchases such as a rifle or other item used by the highly skilled sniper.”
Example #3� Dynamic Pricing (Charging players more or less for the same
content) of Loot Boxes within a game based on player participation, level of skill, and time.
� Example – 2 players within a game both wish to purchase an item. Player 1, who is an experienced player, pays $10. Player 2, who is new to the game, pays $20.
� No clear disclosure
� Are their supply restrictions on virtual items that should warrant this?
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Polling Question 2: What is another name of a “Loot Box?”
A - CrateB – Random Reward MechanismC – Pirates BootyD – Answers A & B Only
� Gambling Apps
� Social Casino Games / Gambling
� Social Gaming (compete with friends, socialization, user‐friendly, tournaments)
� Free 2 Play is growing…with microtransactions embedded for virtual items
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� Virtual Currency In Game –Converts traditional cash to in game cash typically used only within the game…sometimes!
� Prizes paid out at VC or items which can be converted to cash. Also allows vendor to track spend history and consumer habits
� Digital Payment Third Party sites to buy and trade VC and cosmetic items
� Bitcoin or other non‐regulated currency’s
� Direct Mail historically best for brick and mortar gamblers with comps
� Mobile apps used to tap online market
� Attract viewers and users through popular gaming sites or in non‐intrusive ways
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� Path and route of sports betting info and media??� Live streaming of video games, eSports contests, music
broadcasts (recent)� Purchased by Amazon in 2014 for just under $1 Billion
� Integrated with ‘Prime’ to form ‘Twitch Prime’
� over 100 million visitors per month!
� Leading Live stream video service as of September 30th , 2017 in the world.
� Bigger than YouTube Gaming
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� A condition for further study in DSM‐5 (APA 2013)� Not an “official” disorder in the DSM but one in which the American
Psychiatric Association wants additional research done.� Often called ‘video game addiction’
Polling Question 3: True or False, the DSM-5 recognizes ‘Gaming’ as a formal disorder?
A – TrueB - False
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A: RECOGNIZE THE WARNING SIGNS OF PROBLEM GAMBLING:‐ Neglecting family and work‐ Loss of reliability‐ Picking fights more often at school‐ Increased levels of anxiety or depression‐ Lies or evasiveness around time and money‐ Secretive, controlling family finances‐ Decrease in grades or interest in activities previously enjoyed
� Can lead to Problem Gambling.� Bigger concern among the youth.� The earlier one starts, the higher likelihood to develop a
problem.� The brain develops the “gas pedal” faster than the
“braking system.”� Inability to control impact on time or money.� Illusions of Control� Sense of identity and belonging.
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� Allows the behaviors to hang around longer� No amount of time spent is ever enough� Continue until a level, reward, or feature is completed
� Gaining power and status through the game� Escaping the real world� The computer or console is an “electronic friend.”
While prevalence is relatively low, participation is increasing:
�Convenience and Accessibility�Greater value for dollar spent (i.e. payout rates and bonuses)�Speed and Ease of Betting�Variability and Robust Selection�Comfort and lack of stigma
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� Difficulty in differentiation between “Gaming” and “Gambling” activities in addiction research
� Many common features in terms of speed, aesthetics, and structure� Both can create harm through excessive involvement� Boundaries and lines are getting blurred (digital games with free and paid
virtual currencies or items, as well as the capacity for wagering)� Delay of gratification
� Social Casino Games: Easy, short duration, multiple devices, fun or competitive, isolation or social.
� Constant exposure normalizes the experiences� Availability and Supply� Positive experience + social interaction� In game purchasing normalizes the habit of spending money on
games….may carry to adulthood.� Rewards (loot boxes and skins) and leveling up carries may carry over to
comps in adulthood.
Gainsbury, Sally. “Gambling and Gaming are Converging” Editorial. The Basis. Feb. 2017
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� Excitement!� Entertainment!� Escape life’s problems or pain� Economics….It’s all about the Benjamin’s!� Ego….Pride, reputation, or identity
1) Illusion of Control – skill vs. luck
2) Intermittent Reinforcement – every so often win
3) Social Proofing – others are doing it
4) Scarcity Principle – act now; act Fast!
5) “Near Miss” is a Hook – Sooooo close, do it again!
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� http://www.pacouncil.com/� http://www.deproblemgambling.org� http://www.ncpgambling.org� http://www.problemgambling.ca/EN/ResourcesForProfessionals/Pages/GamblingandSubst
anceAbuseAComparison.aspx� http://dbhids.org/gambling� https://www.hbo.com/addiction/understanding_addiction/142_co‐
occurring_disorders.html� http://gamingcontrolboard.pa.gov/?p=67� http://www.albertahealthservices.ca/Researchers/if‐res‐problem‐gambling‐mental‐health‐
suicide.pdf � American Psychiatric Association: Diagnostic and Statistical Manual of Mental Disorders,
Fifth Edition. Arlington, VA, American Psychiatric Association, 2013.� http://www.pbs.org/wgbh/pages/frontline/shows/gamble/etc/cron.html� Gainsbury, S. M. (2015). Online gambling addiction: The relationship between internet
gambling and disordered gambling. Current addiction reports, 2(2), 185‐193.� California Council on Problem Gambling 2. National Council on Problem Gambling 3. Prof.
John Warren Kindt Bankruptcy Developments Journal, volume 19, No.1 4. National Research Council ,The Guardian 5. Atlantic City Rescue Mission and Association of Gospel Rescue Missions in Kansas 6. National Opinion Research Center survey 7. CT Department of Mental Health
� http://www.gamblingcommission.gov.uk/pdf/Social‐gaming‐‐‐January‐2015.pdf
Daniel J. TrolaroAssistant Executive [email protected](201) 316-6160
Thank You!
SUPPORT. TREATMENT. HOPE.
Visit www.800gambler.orgOR
Phone: 1-800-GAMBLEROR
Send a Text to ‘800GAMBLER’
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