The late 20th and early 21st centuries have seen a surge in gambling activities around the world, driven largely by online casino and sports betting sites. This increase has also been mirrored offline, as governments embrace the economic potential of such activities, and social attitudes soften.
The global gambling industry is already worth hundreds of billions of dollars, and is projected to continue its growth. In short, the level of gambling that we see today is unprecedented – a golden age.
While the majority of those who partake in gambling activities do so in a safe and unproblematic manner, a small proportion can be labelled as ‘problem gamblers’. These individuals engage in gambling in a way that is fiscally and often psychologically harmful to themselves and those around them. Although problem gamblers represent only a small percentage of the total, the increased popularity of gambling has led to a larger number of individuals who are negatively impacted by their habit.
One of the gambling industry’s biggest challenges today is the identification and mitigation of such harmful behaviours. The concept of responsible gambling is a relatively new one, with roots in the expectation that all companies must observe corporate social responsibility in their operations. Since the consequences of problem gambling can be severe, most governments have imposed requirements that compel operators to implement responsible gambling strategies to protect their customers.
Such strategies encompass almost every area of gambling, including the design of the games, advertising and messaging, promotions and loyalty schemes, as well as legal know your customer (KYC) requirements and direct mitigation methods.
What makes a problem gambler?
Although there are different levels of severity, a problem gambler can be broadly defined as one who frequently spends more than they can afford on gambling activities. Any responsible gambling policy must include support for those who have a harmful gambling habit, whilst also reducing the factors that lead to problem gambling.
In order to successfully implement the latter, it is necessary to understand some of the different elements that contribute to problem gambling. Numerous studies have been conducted on the different routes to gambling addiction, showing a complex combination of factors.
Many of these factors appear to be psychological, suggesting that certain people are more strongly susceptible to becoming problem gamblers. These characteristics include superstitious beliefs, especially in the concept of luck, as well as a conviction that they have an element of control over outcomes.
Other psychological factors are more universal, and concern how we perceive things like probability and randomness. The ‘gambler’s fallacy’ – the mistaken belief that the next outcome in a 50/50 chance event is affected by what came before – is not the result of irrational belief, but rather a misunderstanding of mathematical probability. When these psychological factors, irrational or otherwise, are combined with poor impulse control, the propensity to gamble problematically increases.
Still other factors are circumstantial, perhaps relating to peer influence or similar. Those who enjoy a big win or a favourable streak very early on in their gambling activities appear to be vulnerable to forming an unhealthy gambling habit later. This can be especially true of young people.
Crucially for casino operators and their messaging, the motivations behind gambling show a stark difference between problem and non-problem gamblers. Winning money is usually cited as the major motivator for problem gamblers, who are often found to chase their losses – betting more and more in an effort to recoup their money. Conversely, casual or non-problem gamblers appear to play largely for the fun and entertainment to be found in such activities.
How casinos apply responsible gambling strategies
There are several ways in which operators incorporate responsible gambling strategies into their activities. Measurable requirements are demanded by the licensing and regulatory bodies of various jurisdictions, and these tend to be those that are most successfully implemented.
First and foremost are the KYC requirements, covering the verification of customer identity and sometimes source of funds. This prevents underage players from making online casino accounts, as well as those who have been previously flagged as problem gamblers. This latter information is also shared between casinos.
Responsible gambling also puts some of the responsibility into the hands of the players. Casinos with robust measures in place also give their customers tools to help them regulate their own activity. For example, the casino may offer the option for players to set their own daily, weekly or monthly spending limits, or to self-exclude for a period of time. Players must always have the opportunity to permanently shut their account.
Another measure that most good casinos take is in staff training. Customer support agents are coached in how to spot problem gamblers, and these can be passed on to dedicated agents who can advise the customers where to go to seek support.
More challenging for operators is discouraging the formation of problem gambling habits. This presents something of a conflict of interest; casinos want to attract new customers and encourage existing ones to play, but this must be done in a way that doesn’t engender problematic behaviour. Casinos naturally don’t want to broadcast negative messages about gambling, so advertising must be done sensitively.
As we have seen, winning money is a major motivating factor for problem gamblers, but much less so for those who don’t have such problems. This can be seen as a dilemma for casinos, because marketing often focuses on money – jackpots and bonuses in particular – as a way to attract attention. In order to fully fulfil their responsible gambling obligations, casinos must switch their advertising and promotion away from money-focused messaging and towards the fun, social and entertainment side.
Bearing in mind what is known about certain gamblers and superstitious beliefs, any advertising and imagery should also avoid reference to luck and similar concepts – although this is a concept so entwined with gambling and casinos that it would be very difficult to expunge it altogether.
Where some casinos have been successful in helping to modify attitudes is with loyalty schemes. Returning customers represent the most valuable base, and in the long run it is also in the casino’s favour to encourage and keep players with long-term, healthy gambling habits. By focusing on physical and experience rewards – meals out, event tickets, merchandise – rather than entirely monetary prizes, casinos can help their customers to maintain a balanced outlook and avoid problem gambling.