The Influence of Online Gambling Environments on Self-Control

Abstract

Online gambling has become a fast growing but controversial industry. This article summarizes two studies that investigate characteristics of Internet gambling environments that lead to problems with self-control. In-depth interviews with both online and casino gamblers reveal that their experiences are categorized differently in an online context, causing some informants to undertake less monitoring of spending. They also use their physical environment to impose boundaries. Next, an experiment investigates two characteristics of online gambling environments: the use of intangible currency and rapid sequential choice. Both traits negatively affect people's ability to maintain an accurate, in-the-moment account balance across a sequence of gambles. These studies suggest several policy and consumer welfare implications.

Over-Indebtedness and Problem Gambling in a General Population Sample of Online Gamblers

“…Thus, the very high prevalence of PGSI-measured problem gambling and moderate-risk gambling confirm previous hypotheses of a particularly problematic picture in online gamblers (14)(15)(16)(17)36). Specifically, problem gambling has been described to be more common in online gamblers than in offline gamblers (37), and inherent characteristics of the online gambling modality may inhibit self-control during gambling (38). The fact that gambling is carried out online may not in itself cause gambling problems, but the online modality may increase the risk in some individuals (39).…”

Game of Skill or Game of Luck? Motivations for Gambling

“…In addition, the risks of losing the sense of money and time being spent, and of being victims of illegal control, are all scored more than 5.0 on average. The loss of control of "virtual" money being spent can be a reason for cooperation between gaming companies and regulators to enhance systems that allow self-exclusion and betting limits for consumers, or even systems slowing-down or even briefly stopping betting activity, once it exceeds given limits (Siemens & Kopp, 2011).…”

“…online environments may exacerbate the risk of compulsive behavior, with the connected loss of money and time, since they influence mental processes driving spending decisions and gambling experiences (Siemens & Kopp, 2011).…”

Shopping, gambling or shambling? Penny auctions

“…While internet gambling, within the US, is not illegal, banks may not legally handle any monies related to such activity. However, legislation to repeal the UIGEA is being considered as individual states entertain both the legalization and taxation of online gambling (Siemens & Kopp, 2011). The impetus of such activity is likely related to forgone revenue.…”