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The Good, the Bad and the Ugly of
Social Casino Gaming
Hyoun S. (Andrew) Kim
2017 New Horizons Conference
February 21st, 2017
Disclosure of Potential Conflict of Interest
1
This research was funded in part by a grant from the Ontario
Problem Gambling Research Centre. In addition, my research
has been funded by the Alberta Gambling Research Institute,
Gambling Research and Exchange Ontario and the National
Center on Responsible Gaming.
Acknowledgement
2
Dr. Michael Wohl – Carleton University
Samantha Hollingshead – Carleton University
Melissa Salmon – Carleton University
Dr. Rina Gupta – Queen’s University
Dr. Jeffrey Derevensky – McGill University
Gambling Research Exchange Ontario
Outline
3
• Social Casino Games (SCGs)
• The Bad
• The Good
• The Ugly
• Future Directions
• Implications
Technology and Gambling
4
Technology and Gambling
5
Social Networking
6
7
Games on Facebook
Gamehunters.club
8
Gambling Games on Facebook
Social Networking by the Numbers
Social Networking by the Numbers
Social Networking by the Numbers
Social Networking by the Numbers
13
0
1
2
3
4
5
6
Texas Hold Em Slotomania Double Down
NumberofUsersinMillions
Popularity of Social Casino Games
Monthly Weekly Daily
Gambling Games on Facebook
Social Casino Games
14
Social Casino Games
15
• Social Casino Games are defined as games found on social
networking sites where the core gameplay is the simulation
of gambling activities.
Gainsbury, Hing, Delfabbro, & King, IGS
Social Casino Games
16
• Operate on a freemium model.
• No-real money wagered, players cannot ‘cash out’**
Gainsbury, Hing, Delfabbro, & King, IGS
Social Casino Games
17
• Operate on a freemium model.
• No-real money wagered, players cannot ‘cash out’**
• Can be played on multiple platforms (pcs, phones, tablets)
SuperData, 2016
Structural Characteristics of Social Casino Games
18
• Look and sound like gambling (Bramley & Gainsbury, 2015)
Structural Characteristics of Social Casino Games
19
• Look and sound like gambling (Bramley & Gainsbury, 2015)
• Algorithms are not based on mathematics
• Dynamic Game Balancing (Rose, 2014)
21
500 Million purchase of
Merged with
90 Million purchase of
At Issue
22
• Possible link between social casino games - gambling
• Does social casino games increase future gambling
behaviour?
• If so, should they be regulated?
• More nuanced examination of social casino games on
gambling might be needed.
• The Bad
• The Ugly
• The Good
Migration
23
Social Casino Gaming Online Gambling
Social Casino Gaming – Gambling Link
24
• Social casino gaming associated with gambling and gambling
problems (Gainsbury, Russell, & Hing, 2014).
• 13% of gamblers engage in social casino games(Gainsbury et al., 2014).
• 68% interested in gambling activities (SuperData 2013).
SuperData, 2016
STUDY 1: PLAY FOR FUN – PAY TO PLAY
FOCUS GROUPS
25
Social Casino Gaming Online Gambling
Kim, Wohl, Gupta, & Derevensky, JBA; Kim, Gupta, Wohl, & Derevensky, in prep
Method and Participants
26
Methods: Six Focus groups with social media users (3) and
online gamblers (3)
Participants: 51 University students
- 30 social media users
- 21 online gamblers
Focus Groups:
- Licensed clinical psychologist
- 60-75 minutes
Results
27
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
Social Media Users
Social Media Users: Frequency counts of statements reflected within each theme category
Results
28
0
5
10
15
20
25
30
35
40
45
Online Gamblers
Online Gamblers: Frequency counts of statements reflected within each theme category
TRAINING GROUND
29
Social Casino Gaming Online Gambling
30
“Facebook is just a place to learn. To learn how to gamble. My
friends started playing on Facebook to learn and now they are
playing on Poker Stars. It starts on Facebook”
“ … it’s a natural progression to start from social casino
games: train, learn… then you realize you are not learning
enough because people are not taking the game seriously, and
then you move onto paying”
PERCEPTION OF SKILL
31
Social Casino Gaming Online Gambling
32
“If you can play for free then you want to try it and if you
discover that you are good at it then why not just put some
money and you might win for real”
“ Once you play for fun, they sort of get people into the
gambling, you think okay, this would be great if were real
money, so you try”
MIGRATION
33
Social Casino Gaming Online Gambling
34
“ It depends on the person. Some people are more competitive
and are more likely to want to step it up, but some people are
just happy playing for fun”
“You start playing poker with friends and like you move from
that step onto other things. I don’t think you go from
Facebook to gambling. I don’t see that as a gateway at all”
35
“I didn’t understand how I got
from one place to another
place, from playing for fun to
being in trouble”
STUDY 2: PLAY FOR FUN – PAY TO PLAY
LONGITUDINAL ASSESSMENT
36
Social Casino Gaming Online Gambling
Kim, Wohl, Salmon, Gupta, & Derevensky, JoGS
Why Might Migration Occur?
• Normalization
37
Why Might Migration Occur?
38
Why Might Migration Occur?
39
SuperData, 2016
Why Might Migration Occur?
• Normalization
• Distorted perception of
skill/odds
• Enhancement
• Micro-transactions
40Griffiths, WOG; Sevigny, Cloutier, Pelletier, & Ladouceur, CiHB
42
Micro-transactions
SuperData, 2016
Method and Participants
46
Method: Longitudinal (six month).
Participants: 409 community social casino gamers who have
never gambled online (recruited via Mturk).
Predictors:
- Time spent
- Skill building
- Enhancement
- Microtransactions
26
73
Participants who migrated to
Online Gambling (Six-months)
Gambled Online Did Not Gamble Online
47
Descriptive Characteristic
48
Gender: 17 males, 9 female.
Ethnicity: 25 Caucasian, 1 South Asian (India).
Employment: 20 full-time, 4 part-time, 2 unemployed.
Marital Status: 15 in a relationship, 10 single.
Gambled: 19 yes, 6 no.
49
1.16 1.01 0.69
8.16*
0
1
2
3
4
5
6
7
8
9
TimeSpent Skill-building Enhancement Micro-transactions
OddsRatio
Predictors
Predictors of Migration
Odds Ratio
*p< .01
Who makes micro-transactions?
50Kim, Hollingshead, & Wohl, in press
51
130
58
49
27
0
20
40
60
80
100
120
140
Extend Play Access More Features Chasing Speed up Play
NumberofParticipants
Motivations
Why SCG Users Engage in Micro-Transactions
52Gainsbury, Russell, King, Delfabbro, & Hing, 2016
101
420
0
50
100
150
200
250
300
350
400
450
Gambled Not Gambled
Influence of SCGs on Gambling
53Gainsbury, Russell, King, Delfabbro, & Hing, 2016
44.5
9.9
0
5
10
15
20
25
30
35
40
45
50
% Increased % Decreased
Influence of SCGs on Gambling
STUDY 3: BRIGHT SIDE OF SOCIAL
CASINO GAMES
54Hollingshead, Kim, Wohl, & Derevensky, JGI
BRIGHT SIDE OF SOCIAL CASINO GAMES
55
• Reverse migration
• Positive impacts (e.g., lessened urge to gamble)
(Gainsbury et al., 2015)
Participants and Methods
56
Method: Cross-sectional (self-report)
Participants: 271 gamblers (who also engaged in social casino
games), were recruited from Mturk
Problem Gambling: 140 moderate/disordered gamblers
Measures:
- Motives (adapted from Stewart & Zack, 2008)
- Skill building
- Urge reduction
- Changes in gambling behaviour
Results
57
• Coping:, β = .03, t(127) = .38, p = .70.
• Enhancement: β = -.03, t(127) = -.31, p = .76.
• Social: β = .29, t(127) = 3.32, p = .001.
• Skill-Building: β = .28, t(127) = 3.35, p = .001
• Urge Reduction: β = -.41, t(127) = -5.01, p < .001.
THE UGLY
58
The Ugly
59
• Migration to gambling is not synonymous with harms
• Does SCG lead to Disordered Gambling Behaviours?
• SCG and Video Game Addiction
60
78
56
52
27 47
0
10
20
30
40
50
60
70
80
90
Mood Relief Loss of Control Preoccupation Withdrawal Harms
NumberofParticipants
Symptoms
Problematic SCG Use
CONCLUSIONS, IMPLICATIONS AND
FUTURE DIRECTIONS
61
Conclusion
62
• Social casino games influence on gambling is not straight
forward.
• Social casino games may increase or decrease gambling.
 Micro-transactions
 Skill building
 Social motives
 Urge Reduction
63
64
65
Implications
• Regulation?
• Age Verification? 300,000
youths aged 11-16 reported
engaging in social casino
games in the past week (Parke,
Parke, Rigby, & Wardle, 2013)
• Micro-transactions
66
The Good, the Bad and the Ugly of
Social Casino Gaming
Hyoun S. (Andrew) Kim
2017 New Horizons Conference
February 21st, 2017

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Editor's Notes

  1. One recent technological advance that has had a tremendous
  2. In addition to being able to stay in touch with friends, Facebook now allows you to play a plethora of games either on the computer or via connected to FB via your mobile device. These games have become immensely popular. For example, Candy Crush saga, and clash of clans currently boasts 10 million daily active users.
  3. In addition to the above games, you can now have a buffet menu of casino games that can be played on Social Networking Sites, called social casino games. While not as popular as their non-gambling counterparts, these simulated gambles games boasts an impressive number of users.
  4. A Social Life | Award Winning Short Film | Social Media Depression
  5. A Social Life | Award Winning Short Film | Social Media Depression
  6. A Social Life | Award Winning Short Film | Social Media Depression
  7. A Social Life | Award Winning Short Film | Social Media Depression
  8. In freemium models, no money is required to download the game or to initiate play. Although gaming operators provide players with free credits that are reloaded periodically, players are given the opportunity (and actively encouraged) to purchase additional credits to continue play or engage in higher stakes bets.
  9. Unknown whether social casino gamers are gamblers who engage in both types of activities or whether social casino games lead to engagement of gambling.
  10. Unknown whether social casino gamers are gamblers who engage in both types of activities or whether social casino games lead to engagement of gambling.
  11. These micro-transactions are a significant contributor to the estimated $3.5 billion in revenue generated by social casino games in 2015, revenues that are expected to jump to $4.4 billion in 2017 (Eilers & Krejcik Gaming, 2016).
  12. As a result of these partnerships, the social casino version and their casino counterparts look identical. In other words, the line between social casino gaming and online gambling has become blurred. Indeed, some players have commented that it is becoming increasingly difficult to differentiate between when they are playing social casino games and when they are engaging in gambling (Parke et al., 2013). Furthermore, casino operators often imbed links directly on the social casino games. Thus, moving from play for free to pay to play is literally a simple click away. In fact, Caesars and IGT, two of the biggest gambling operators now control 1/3rd of the entire social casino gaming market. Their aim? To convert the millions of gamers, into gamblers.
  13. Given the convergence of social casino games and gambling, researchers, regulators and policy makers have expressed concern about social casino games. At the heart of the issue is the possible link between social casino games. Simply put, does engaging in social casino games increased the risk of problematic gambling? There are some evidence to suggest a possible link, for example, a study in the UK found that in their sample, over half of gamblers in treatment reported that social casino games were their first exposure to gambling games.
  14. Concerns:
  15. Unknown whether social casino gamers are gamblers who engage in both types of activities or whether social casino games lead to engagement of gambling.
  16. This study was part of a larger research program to understand young adults perception of social media sites, online gambling and social casino gamers.
  17. More than half 16/30 played social casino games.
  18. 19 themes. 62% of played social casino games.
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  21. Pattern of results remained same when controlling for previous gambling experience. Limitations: did not assess current gambling behavior, don’t know what happened after they migrated Did not assess reasons for migration.
  22. It is possible that individuals who play social casino games are already interested in gambling. Given a demonstrated interest in gambling themes, social casino game users may be targeted with advertisements and promotional offers from gambling sites or directly encouraged to migrate to a gambling site based on their use of social casino games.
  23. reward sensitivity predicted making micro-transactions to win back lost credits As such, the free credits provided to the social casino gamer by the social casino gaming operators may be a reward in their own right. Interestingly, problem gambling severity did not predict making micro-transactions to chase back lost credits. This lack of an effect may suggest that problem gamblers turn to gambling activities once they have exhausted their initial seed credits on social casino games
  24. 521 of these adults Those who said it increased gambling were male, younger.
  25. Suggests that SCGs may have the potential to regulate gambling behaviors.
  26. Anedoctal evidence. Gainsbury studies 14% of adults, and 24% of adolsecents. Positive impacts, play these games without spending money. Lessend urge to gamble.
  27. Talk about hypothesis here.
  28. Talk about potential reasons for why it increased or decreased (see JGI manuscript).
  29. People can and do gamble at safe levels, the really important question here is to what degree and extent do SCGs influence the development of DGs. Are people who are exposed to SCGs proportionately more likely to develop DG than those who are not exposed? Sally,
  30. Mood Relief: Used SCGs to escape from problems or to relieve negative moods Loss of control: Unscessful efforts to cut down Preoccupation: frequent thoughts or strong urges
  31. Unknown whether social casino gamers are gamblers who engage in both types of activities or whether social casino games lead to engagement of gambling.