Auer, M

Griffiths, MD

English

Nottingham Trent Institutional Repository (IRep)

   Online Gaming, Regulation, and Big Data  Michael Auer (1) and Mark D. Griffiths (2)   (1) Neccton ltd., London, UK (2) Nottingham Trent University, Nottingham, UK   In recent years, several member states of the European Union have established new online gambling               regulations. Until recently, it was sufficient to hold an operating license at the company’s headquarters               (e.g., Malta, Gibraltar). However, in the European Union, it is now required that gaming operators need to                 apply for licenses at the players’ country of origin. Furthermore, different countries require operators to               meet different measures in relation to player protection. In July 2014, the European Commission published the recommendation on principles for the protection              of consumers and players of online gambling services. These recommendations included voluntary            self-exclusion schemes, tools to allow players set voluntary limits on the amount of money they spend                gambling, and easy access to their gambling expenditure data. The recommendations also state that              players should automatically be informed about their wins, losses, and amount of time played. Some               countries have gone beyond these minimum requirements (e.g. the Netherlands) and it is likely that               future online gambling regulators will require operators to proactively screen player behaviour for signs of               harmful patterns using behavioural tracking data. All of these tasks require the analysis of large amounts of player-related data (so-called ‘Big Data’). Big                 Data can mean a variety of different things to different people. In this article we refer to it as the analysis                     of large amounts of data in order to make sense and to find patterns and correlations. Big Data has the                    potential to be very helpful in online gambling regulation because online gambling operators track each               and every players’ deposit amount, bet made, type of game played, and many other crucial aspects of                 behaviour. Behavioural tracking tools tend to be customer-centric and support players’ gambling decisions. Some of              these tools provide players with personalized information about their gambling behaviour. Such systems             typically utilize personalized behavioural tracking data in order to give personalized feedback. Here are              some of the main reasons why behavioural tracking can be important to online gaming operators. 1.​The psychology of gambling​: Players have different motivations for gambling. Some players gamble             primarily to relax, whereas other gamblers seek action and excitement. These, along with several other               motivators, lead to specific playing patterns. Behavioural tracking tools can help extract those patterns              and advise gamblers accordingly about how they can change their behaviour if they so wish.  www.lexandgaming.eu   2.​Motivational self-efficacy enhancement​: Studies have shown that messages during or after play have             beneficial harm minimization effects on gambling behaviour. The best tools should be able to personalize               communication with players. Such communication plans should be based on the concept of motivational              interviewing, which has proven to be successful in a wide range of areas for instigating behavioural                change. 3. ​Recovery in the absence of abstinence​: Studies have shown that up to 90% of recovered problem                 gamblers still occasionally gamble. Behavioural tracking tools should aim to keep gambling safe and fun.               However, such systems should also support the small percentage of gamblers who financially (or              temporally) overextend themselves. 4.​Identification of high-risk sub-groups​: Behavioural tracking tools should be able to identify subgroups             of gamblers and provide gamblers with the right information at the right point in time. Furthermore,                personalized messages should follow the concept of motivational interviewing to ensure a higher             likelihood of behavioural change. 5.​Satisfied players​: The main objective of any behavioural tracking tool should be player protection. For               most players, gambling is an enjoyable leisure activity. However, a small minority of players can               encounter problems. Behavioural tracking tools should be able to detect undesirable behavioural            tendencies and initiate personalized communication with players with the aim of preventing problematic             gambling. Consequently, players can continue to enjoy their gambling, and customer satisfaction            increases. 6.​Increased loyalty​: The gaming market – especially the online market – is a highly competitive               environment. Attracting new players can be expensive, and every customer lost impacts negatively on the               financial investment made through marketing and advertising. Loyalty is the key to repeat custom over               the player’s lifetime. The longer that players use an operator’s product, the higher the revenue per player.                 However, once players run into gambling problems, they are typically lost forever. Behavioural tracking              tools can help players to enjoy gambling within limits, while extending their lifespan as a player. This                 gives online gaming operators the opportunity to build up a stable and profitable customer relationship               (benefitting both players and operators). 7.​Increased trust​: Attracting players in a highly competitive gaming market requires extensive marketing             investment. But how can players distinguish trustworthy operators? Behavioural tracking tools indicate            both objectivity and transparency and help empower trust. It signals a strong customer-centric approach.              A high level of trust increases and strengthens existing customer relationships, and helps to attract new                customers. Behavioural tracking tools also signal transparency to regulators and the community, which in              turn increases confidence in online gaming operators. Good behavioural tracking tools can support informed player choice, and also help online gaming               operators and their regulators gain more insight into players’ behavioural patterns. Such tools have the               potential to supply gaming operators (and regulators) with valuable information through standardized             www.lexandgaming.eu   reports. This knowledge can in turn be used to optimize the player experience and keep gambling both                 safe and enjoyable. To date, many online gambling operators have implemented a variety of responsible gaming measures              that are helping to keep gambling safe. Age verification processes, player education, mandatory limits as               well as the possibility to choose voluntary limits are a few examples of commonly available responsible                gaming features. Given the protection that these measures and protocols provide to players, there is               perhaps an argument that gaming licenses should only be granted to those companies that have such tools                 in place (e.g., behavioural tracking software becoming mandatory before an operating license can be              granted). Furthermore increased regulation requires more advanced tools and scientifically sound           approaches. In order to meet regulatory requirements and help protect players, gaming operators, legal              experts, Big Data specialists, and scientists have to work together. Further reading Griffiths, M.D. & Auer, M. (2011). Approaches to understanding online versus offline gaming impacts.               Casino and Gaming International, 7(3), 45-48. Auer, M. & Griffiths, M.D. (2013). Behavioral tracking tools, regulation and corporate social              responsibility in online gambling. Gaming Law Review and Economics,17, 579-583. Auer, M. & Griffiths, M.D. (2013). Limit setting and player choice in most intense online gamblers: An                  empirical study of online gambling behaviour. Journal of Gambling Studies, 29, 647-660. Auer, M. & Griffiths, M.D. (2014). Personalised feedback in the promotion of responsible gambling: A                brief overview. Responsible Gambling Review, 1, 27-36. Auer, M. & Griffiths, M.D. (2015). Testing normative and self-appraisal feedback in an online               slot-machine pop-up message in a real-world setting. Frontiers in Psychology,6, 339. doi:            10.3389/fpsyg.2015.00339. Auer, M., Malischnig, D. & Griffiths, M.D. (2014). Is ‘pop-up’ messaging in online slot machine gambling                 effective? An empirical research note. Journal of Gambling Issues, 29, 1-10.       www.lexandgaming.eu 

Behavioral tracking tools, regulation and corporate social responsibility in online gambling. Gaming Law Review and

Data specialists, and scientists have to work together. Further reading

Is ‘pop-up’ messaging in online slot machine gambling effective? An empirical research note.

Limit setting and player choice in most intense online gamblers: An empirical study of online gambling behaviour.

Personalised feedback in the promotion of responsible gambling: A brief overview.

Testing normative and self-appraisal feedback in an online slot-machine pop-up message in a real-world setting. Frontiers

Online gaming, regulation, and big data

Online gaming, regulation, and big data

Abstract

Similar works

Full text

Available Versions

Nottingham Trent Institutional Repository (IRep)