The second national study of interactive gambling in Australia (2019-20)

This study was commissioned by Gambling Research Australia to examine changes in interactive gambling since the first national Interactive Gambling Study (Hing et al., 2014a). The multi-stage study included: a literature review; environmental scan; National Telephone Survey (N = 15,000); National Online Survey of gamblers (N = 5,019); Longitudinal Cohort Study of respondents to both the 2012 and 2019 National Online Surveys (N = 437); interviews with 49 online gamblers; and compilation of gambling help service data. Only the National Telephone Survey was representative to the extent that it was weighted to standard population variables; all other samples were non-representative. Interactive gamblers were defined as adults (aged 18 years or over) who gambled with money or cryptocurrency online at least once in the past year, not excluding other modes of gambling, but excluding free play activities. The results of this study should be interpreted in accordance with the study’s limitations. These limitations are briefly summarised in this Abstract, with further details in the Executive Summary and the Discussion chapter. Based on the National Telephone Survey, the estimated prevalence of interactive gambling has doubled from 8.1 per cent in 2010/11 to 17.5 per cent in 2019. Estimates are highest for forms that can be legally provided – lotteries (10.1%), race betting (5.9%) and sports betting (5.8%). Nearly one-in-three gamblers (30.7%) were estimated to gamble online in 2019 compared to one-in-eight (12.6%) in 2010/11. Interactive gamblers are more likely to be male, younger, more educated and in a de facto relationship, have higher problem gambling scores, and gamble on more forms. In the non-representative National Online Survey, 47.1 per cent of interactive gamblers had used an illegal offshore gambling site in 2019, most commonly to gamble on instant scratch tickets (26.3%), EGMs (15.8%), casino games (15.7%), poker (15.0%), bingo (13.9%) and skin gambling (9.0%). Awareness of the illegality of offshore sites was low in this sample. Problem gambling amongst offshore bettors on sports, racing, novelty events, esports or daily fantasy sports (38.5%) was over three times higher than for non-offshore bettors (11.4%) in this sample. Offshore bettors reported placing about one-third of their bets offshore. Two-fifths of sports bettors (41.9%) placed in-play bets. Problem gambling amongst in-play bettors (33.8%) was nearly four times higher than non-in-play bettors (9.1%) in this sample. About half of in-play bets were reported to be placed on offshore sites. Based on the National Telephone Survey, gambling participation (all modes) has decreased from 64.3 per cent in 2010/11 to an estimated 56.9 per cent in 2019. However, there has been a statistically significant increase in problem gambling since 2010/11. The estimated prevalence of problem gambling has doubled from 0.6 per cent to 1.23 per cent in 2019, while estimates of moderate (3.1%) and low (6.6%) risk gambling rates have remained steady. Interactive gamblers are nearly three times more likely than non-interactive gamblers to be problem gamblers and about twice as likely to be at-risk gamblers. However, nearly half of interactive gamblers report that land-based gambling is the most problematic for them. Amongst interactive gamblers, higher problem gambling severity was predicted by being male, never married, of Aboriginal or Torres Strait Islander descent, speaking a non-English language at home, lower mental and physical health, participation in more gambling activities, greater exposure to wagering advertising and inducements, lower wellbeing, higher impulsivity and betting offshore. Based on the National Telephone Survey, an estimated 9.1 per cent of Australian adults reported at least one gambling-related harm to self and 6.0 per cent being harmed by another person’s gambling. Interactive gamblers were significantly more likely to experience at least one harm to self (34.0%) compared to non-interactive gamblers (15.6%). EGMs (27.5%) were reported to be the most harmful form amongst ‘harmed’ interactive gamblers, followed by race betting (17.1%), sports betting (15.3%) or lotteries (13.9%). Those identifying smartphones as their most harmful gambling mode more than doubled from 11.7 per cent in 2010/11 to 25.2 per cent in 2019. The Longitudinal Cohort Study found that the frequency of race betting and sports betting, rather than the proportion of online gambling, was the key driver of changes in harmful gambling over time in this sample. Nonetheless, increased engagement in online betting increases harmful gambling by enabling increased betting frequency. Interviewees highlighted key changes in interactive gambling, including its enhanced speed, convenience and appeal and an expansion of gambling inducements, push marketing, payment mechanisms and new betting options, as well as the banning of successful (less profitable) punters. Those who had sought gambling help reported that fast easy access, 24/7 availability, ability to gamble anywhere, the private, immersive and solitary nature of online gambling, electronic money, prolific advertising, and inducements, undermined their control. Interviewees reported no serious harm from newer products (esports betting, loot boxes, skin gambling, fantasy sports betting) but discussed how various features posed potential for harm and attracted a younger market. A minority of interactive bettors in the National Online Survey sample reported having used consumer protection tools, but most interviewees who had sought gambling help reported they had used them. They found these tools useful but could easily waive deposit limits and open new accounts. They considered it unrealistic to expect people with a gambling problem to be able to self-regulate their gambling. Instead, improved operator practices were needed. In the National Online Survey, those harmed by gambling reported mainly using informal help (25.7%), followed by online (14.3%), face-to-face (13.8%) and telephone (9.9%) help. The study’s main limitations include a low response rate and contacting only mobile phone numbers in the National Telephone Survey, a self-selecting sample in the National Online Survey, and self-report and cross-sectional data that cannot establish causality. The Longitudinal Cohort Study had a self-selecting and predominantly male sample, while the small purposive interview samples limit generalisability. Please see a fuller discussion of limitations at the end of the Executive Summary and in Chapter 11. Despite these limitations, this study is the most comprehensive recent examination of interactive gambling in Australia. Using multiple complementary research methods enabled greater insight into how interactive gambling is changing. Notable trends include growing participation, new products, the rise of smartphone betting, prolific wagering advertising and inducements, substantial use of illegal offshore operators, and limited use of consumer protection tools and help services. A statistically significant increase in problem gambling in the population, and evidence of harm to gamblers and affected others, indicate that gambling harm has not decreased in the context of current policy, practice and regulations. Stronger responses are an area for further policy consideration, including mandatory improved practices for the safer provision and consumption of gambling.