British Gambling Commission Report

The Report, published yesterday (Wednesday), contains the findings of the National Centre for Social Research (NatCen) who was commissioned to study prevalence rates within the community and to gauge the possible level of problem gambling.

The Manx Herald has studied the Report for its findings in respect of online gambling, an industry the IOM Government is actively chasing. Currently there are 12 online gambling licensees listed on the Government’s gambling & e-gaming website.

NatCen estimate that approximately two thirds (68%) of the British population gambled in the last year, with the National Lottery being the most likely choice for people to have a flutter; and that men are more likely to gamble than women.

NatCen also estimate that 6% of the population use the internet to gamble, which is a similar proportion that go to a casino.

The Report differentiates between placing a bet online and gambling on poker, bingo or casino type sites. NatCen estimate that 3% of the population are visiting gambling websites; an activity that wasn’t available when the survey was last conducted in 1999.

The study found that among the people participating in a wide range of gambling activities (more than 6) 33% of them would be gambling online and 38% placing a bet online.

The study also found that the group participating in online gambling, which tended to be men, were more likely to gamble more frequently; and interestingly were more likely to claim, that in the week before the survey, to have made a small profit.

The Report says this is an example of where people, again mostly men, not necessarily deliberately, under-estimate their level of expenditure and ‘exaggerate’ the level of winnings. NatCen point out that the gaming industry makes ‘considerable profits’ and that, as predicted, gamblers kid themselves they are doing better than they really are. An explanation is that people tend to more easily recall ‘winning’ and block out losses.

In activities where it is possible to claim a ‘skill’ is used, such as online poker, the amount of net expenditure tends to be greater, and the Report finds that with these activities, which currently have lower numbers participating, the greater the claims are for winning.

The Report concedes that it is possible that some players do genuinely win more than they lose, but says they will be few in number, as overall there are always more losers than winners.

Perhaps unsurprisingly the age of people participating online tend to be in the younger age brackets, and single, with very few people over 50 currently using this method. However, participation rates in gambling decreases with age.

The study highlights that ethnic minorities have lower participation rates but feature more as problem gamblers. There is a fairly even participation in online activities across the ethnic range.

Online gambling is most likely to be the preserve of the unemployed and students so says the study, groups not necessarily associated with high levels of disposable income. People with degrees were also more likely to gamble online than people with lower educational qualifications, yet overall they were likely to participate less in gambling activities.

Cigarette smokers are more likely to participate in gambling overall, as well as online, than non-smokers which, when they are already gambling with their health, does not seem too unexpected.

There also appears to be a correlation between the more alcohol you drink and the likelihood of gambling. There is a very clear increase in the participation rate for online gamblers who have drunk most heavily in the previous year.

Controversially, the study concluded that the prevalence rate for problem gambling is the same as in 1999, approximately 0.6% of the population; which equates to about 250,000 people.

The UK Conservative Party believes that the numbers are under-estimated and that the new forms of gambling, like online sites, are creating more addicts; and that, under the new UK Gambling Act, these are the most likely forms of gambling soon to be advertized on television.

The Report states that the activities with the highest prevalence rates for problem gambling are the newer forms of gambling introduced since the last report in 1999. Online gambling and betting between then account for 13.4% of the problem; marginally below spread betting which at 14.7% tops the list.

NatCen included within its study some research on the public’s attitude towards gambling and they have concluded that there is a moderately negative view. If this is true then it seems some what perverse for the UK and Manx Governments to be promoting the industry.

Here on the IOM government officials and several politicians claim that the IOM regulatory framework is such that the IOM does not contribute to problem gambling and is very much at the forefront of the ‘responsible’ section of the industry – what ever that might mean.

Certainly there are regulations in place that are supposed to prevent people under 18 from opening online gambling/betting accounts, and which also set limits to the amount that can be gambled in a given period.

Helpfully the IOM Government’s gambling & e-gaming website includes a page that lists contacts for when an individual has got in to debt due to gambling and may even be feeling suicidal. That’s a relief then.