Consumer engagement with and perceptions of offshore online gambling sites

Abstract

Many jurisdictions have legalised and licensed online gambling sites. Nonetheless, a notable proportion of the online gambling market operates offshore. Offshore sites pose risks for consumers in terms of unsafe and disreputable practices, compete with domestically-licensed sites, and do not participate in the economies in which they operate. This study aimed to explore the extent to which Australian online gamblers use offshore as compared to domestic gambling sites, consumer attitudes, and gambling-related harms. Participants (N=3,199) completed an online survey assessing gambling behaviour, reasons for choosing sites, awareness of and impact of online gambling legislation, and problem gambling. Results show that 25.8% of online gamblers used offshore sites, and that these were more involved gamblers overall than domestic gamblers, and had greater problem gambling severity. Most online gamblers preferred domestic sites, indicating that regulation of online gambling with associated consumer protection measures may benefit those who wish to gamble online.

Factors Influencing Internet Gamblers’ Use of Offshore Online Gambling Sites: Policy Implications

“…This may indicate that those more familiar and comfortable with Internet technology are engaging in offshore gambling. The results are consistent with an earlier Australian study of offshore Internet gamblers in terms of gender and age, however, the previous study found offshore gamblers were less educated and less likely to work full‐time or be retired, suggesting that use of offshore sites is changing over time (Gainsbury et al, ).…”

“…The claims that offshore sites pose a threat to public health may be supported by the current findings that consumers who engage with offshore sites have greater levels of problem gambling severity. Consistent with previous findings, gamblers who used offshore sites were more likely to be experiencing serious gambling‐related problems (Costes et al, ; Gainsbury et al, ; Gainsbury, Russell, Blaszczynski, & Hing, ). In jurisdictions where specific forms of gambling are prohibited there is no legal competition for use of offshore sites and more vulnerable individuals may use these, with few consumer protections in place.…”

“…Positive framing, such as highlighting the benefits of using domestic sites, may appeal to offshore gamblers’ desire for a better user experience. Nonetheless, there is some evidence that gamblers who use offshore sites have lower concerns about the risks of these, potentially suggesting that risks are overstated and offshore sites do offer a superior gambling experience (Gainsbury et al, ). If this is accurate, it further supports the strategy of policies that enable domestically licensed operators to provide services and products of a quality that enables them to successfully compete with offshore providers.…”

“…Attempts made by gambling regulators to deter consumers from accessing offshore gambling sites include publishing and maintaining blacklists of sites that must be blocked by IP providers, restricting transfer of funds to offshore sites, educating consumers of the dangers of these sites, limiting advertising, and threats of fines and sanctions against operators of offshore gambling sites. There is relatively limited evidence to support the effectiveness of these measures (Costes, Kairouz, Eroukmanoff, & Monson, ; Gainsbury, Russell, Hing, & Blaszczynski, ; Gainsbury & Wood, ; Laffey et al, ), although these have not been subjected to extensive scrutiny.…”

“…A French study found that gambling on unlicensed sites was associated with more intense gambling and more gambling‐related problems as compared to licensed sites (Costes et al, ). An Australian survey found that, compared to online gamblers using domestic sites, those using offshore sites in the last 12 months were significantly more likely to be male, younger, less educated, less likely to be working full‐time or retired, and more likely to speak a language other than English at home (Gainsbury et al, ). The offshore gamblers were also more involved in gambling in terms of frequency and expenditure, and more likely to gamble between 6 pm and 6 am, hold multiple online gambling accounts, and be influenced by gambling advertisements.…”