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Why do Internet gamblers prefer online versus land-based venues?Some preliminary findings and implications
Abstract
Keywords: gambling, Internet, online, electronic, survey, preference,
convenience, expenditures
Since the beginning of the
widespread introduction of Internet access into homes and workplaces in the
early 1990s, Internet gambling opportunities have expanded at an
astonishingly rapid rate, and more and more people are apt to gamble their
money online. In 1995, there were only 24 Internet gambling sites accessible
online (Watson, Liddell Jr., Moore, & Eshee Jr., 2004). Just over a decade later, in 2006, that number has increased to
over 100 times that, to more than 2,500 Internet gambling Web sites, consisting
of 1,083 online casinos, 592 sports and race-books, 532 poker rooms, 224
online bingos, 49 skill game sites, 30 betting exchanges, 25 lottery sites,
and 17 backgammon sites (Casino City, 2006).[1]
It is difficult to determine
the actual number of people who gamble online, as it is certainly a figure
that has changed relatively quickly over the past decade. Current industry
estimates suggest that the worldwide number of Internet gamblers is at least
14 million and possibly as high as 23 million (American Gaming Association,
2006a; RSe Consulting, 2006), although these figures have not been investigated or
confirmed by rigorous academic research. Researchers have, however, attempted
to assess the overall
Given the relatively low
prevalence rates of Internet gambling, it is no surprise that little is
reported in the academic literature about the demographic characteristics of
Internet gamblers and how they may systematically differ from nongamblers and land-based gamblers. Recent studies,
however, are beginning to shed at least some light on the issue, suggesting
that participation in Internet gambling is indicative of a "digital
divide," with Internet gambling occurring at higher rates among skilled
professionals, whose jobs rely upon familiarity with and competent use of the
Internet (Howard, Rainie, & Jones, 2001; Woolley, 2003). Studies of Internet gambling conducted in
Australia
,
in 2001 and 2002, partly confirm this digital divide argument, finding that
rates of Internet gambling are higher among men, younger adults, people with
professional or managerial occupations, and people who earn above-average
incomes (Woolley, 2003; McMillen & Woolle, 2003). Largely confirming these
results, another online study of 552 Internet gamblers commissioned by the American
Gaming Association, in 2006, found that 68% were male, 70% were under 40
years old, 61% had at least a college degree, 41% earned more than $75,000 a
year, almost all of them used the Internet for other activities, and 70% had
only begun gambling online in the past 2 years (American Gaming Association,
2006b). In addition to these demographic characteristics, a number of studies
suggest that Internet gamblers, relative to others, are much more likely to
be problem or pathological gamblers (Griffiths, Wood, & Parke, 2006; Ladd & Petry,
2002; Wood & Williams, 2007b).
Another issue that
has received relatively little attention, and the one that is most important
for the present article, is the reasons that people might choose to gamble online.
Indeed, in most jurisdictions, land-based venues have become far more
prolific and easily accessible. Why then would someone choose to gamble on
the Internet instead of, or in addition to, gambling at a land-based venue?
Presumably, for some gamblers, the Internet affords them an overall
experience that they prefer and that land-based venues cannot provide. A
recent American Gaming Association (2006b) study found that the main reasons
people gave for gambling online were convenience (48%); fun/excitement/entertainment
(24%); greater comfort, not having to drive (24%); ability to win money (9%);
and enjoyment of the anonymity and privacy (6%). In another recent study, Derevensky, Gupta, & McBride (2006) found that
"boredom" and "for excitement" were the most common
reasons cited by Internet-gambling youth and young adults, aged 12 to 24.
Recently,
Griffiths
(2006)
has also identified multilingual service, faster play speed, and the ability
to pretend to be the opposite sex as significant advantages afforded by Internet
versus land-based gambling.[2] Wood & Williams (2007b) add
that some people may gravitate toward Internet gambling due to their
perceptions that online venues offer better payout rates.
It is encouraging to see studies emerging
that investigate the characteristics and motivations of the growing
population of Internet gamblers. Clearly, however, this population is still
lamentably understudied, and substantially more research needs to be
conducted on a wide range of topics and issues related to Internet gambling.
The present study seeks to contribute to this much-needed body of literature
by investigating the characteristics of people who prefer Internet to
land-based gambling, as well as the reasons they provide for gambling on the
Internet. This study is largely exploratory in nature and seeks to establish
at least a small foundation from which future, more comprehensive, studies
may proceed.
Methodology
Respondents were recruited using prominent banner advertisements placed at three online gambling portals, to which we have offered anonymity, based in the United States . A portal is a type of filter site that offers links to and information about thousands of Internet gambling venues, such as casinos, bingos, and sports books. Portal sites, however, are not actual gambling sites insofar as they do not host games or betting services (they simply provide information and links). Clicking the banner advertisement immediately linked potential respondents to an online questionnaire. As a participation incentive, respondents were offered a gift valued at $5 U.S. The gift was a hand-sized plastic coin/token scooper, which is used for scooping coins or tokens out of the trough of a slot machine or similar gaming machine. Before being linked into the actual survey, all respondents encountered a home page containing information about the goals of the study, the voluntary and anonymous nature of their participation, and the contact information for the primary researcher. This recruitment strategy generated completed surveys from 1,920 Internet gamblers and was highly demographically diverse (which we discuss in a forthcoming section). Recruitment and data collection began at the beginning of October 2003 and finished at the end of January 2004.
Although our sample
was large and diverse, the sample is also self-selected. Thus, it is not
possible to ensure that it is representative of the broader population of
Internet gamblers. Unfortunately, this is simply one of the current pitfalls
of research into Internet gambling. A highly representative sample would
perhaps more likely be achieved using random-digit-dialling (RDD) techniques.
However, given the low prevalence rate of Internet gambling, tens of
thousands of screening interviews would be required to generate even a small
sample of only a few hundred (see Wood & Williams, 2007a). Such an
endeavour is potentially cost prohibitive and was certainly beyond the
resources available for the present study. In contrast, our online
recruitment technique allowed us to generate a fairly sizeable sample at
substantially lower cost, albeit with some potential compromise to
representation. Thus, we ask readers to bear this potential limitation in mind
when assessing our findings, and we strongly encourage future research into
issues associated with recruiting sufficiently large and representative
samples of Internet gamblers.
In addition to
assessing demographic characteristics and gambling behaviour, the survey
included a question asking respondents to report whether they preferred
online gambling as opposed to gambling at land-based venues. 73.8% of the
sample claimed that they preferred Internet gambling, and these people were
prompted to explain why they preferred gambling online by typing an answer in
a text-field box. This question yielded 770 open-ended explanations from 536
gamblers (individual gamblers were able to provide multiple reasons). Critics
might observe that this is a relatively low response rate, with explanations
provided by only 38% of all participants who claimed to prefer Internet
gambling. Future studies might achieve a higher response rate by providing
both fixed-choice categories (so respondents pick the reasons for their preference
from a list of choices) and open-ended text fields. Indeed, the inclusion of
fixed choices might, for some participants, reduce the perceived amount of
effort involved in providing a rationale for their preference.
All
open-ended responses were content-analyzed using both open and axial coding.
Open coding is a qualitative coding phase whereby we intensively read the 770
open-ended responses for common themes, patterns, and issues, which we
organized and labelled into preference categories. Twenty distinct preference
categories emerged from several phases of open coding, with an additional
"other" category for a small proportion of idiosyncratic responses
(see Table 1). We then used these 21 categories to construct a coding frame
and tally sheet for subsequent phases of axial, or "focussed,"
coding of the data. Axial coding entailed revisiting the data, this time
using a coding frame to systematically categorize each respondent’s
reasons for preferring Internet gambling and a tally sheet to numerically
assess the frequency of each preference. Axial coding was conducted
separately by two of the three authors. Both parties identically coded 746 of
the 770 responses, yielding a strong reliability coefficient of 0.97.[4]
Table 1.
Reasons for preferring Internet gambling versus
gambling at a land-based venue.
Findings
Sample
characteristics
Our sample was highly
diverse in terms of its demographic composition (see Table 2 for a detailed
overview). 56% percent of respondents were men and 44% were women. This
suggests that Internet gambling is becoming a less gendered phenomenon than
has been speculated by others. However, further research, with a highly
representative sample, needs to be conducted into the gender distribution of
Internet gamblers, and particularly into potential gender differences in
experiences, perceptions, and behaviour related to Internet gambling. The
average age of respondents was 34 years, with a range of 18 to 84 years. Consistent
with other studies about the origin of online gamblers (The Wager,
1999), 87% of the sample originated from the
U.S.,
10% from
Canada,
and only 3% from all other countries combined. This distribution, which seems
biased toward
North America, is likely
partly due to the fact that our survey was only offered in English. Ideally,
in future studies, greater international representation would be desirable,
although it would require fairly costly translation of whatever survey
instruments were used.
On average, respondents
reported spending 5 hours per week gambling on the Internet. The median
weekly time reported was 2 hours. Only 4.1% claimed to gamble online in
excess of 20 hours per week. The online
game most often played was slots/VLTs (40.9%), with
cards (mostly blackjack) at 33.3%, keno/bingo at 14.4%, sports betting at
6.2%, and dice at 2.7%. A surprising 42.7% of the sample were classified as moderate (22.6%) or severe
(20.1%) problem gamblers using the Canadian Problem Gambling Index
(CPGI, Ferris & Wynne, 2001).[5]The computer most often used for online
gambling was located in their own home for 86.6%, whereas 4.3% claimed that
their primary gaming computer was located in their workplace. When asked more
specifically about workplace gambling, a total of 16.3% indicated they gamble
from the workplace either "once in a while" (13.4%) or
"often" (2.9%).
Suggesting that the sample
comprises relatively computer-savvy individuals, 71.6% either agreed or
strongly agreed with the statement, "I have a good deal of knowledge
when it comes to using computers." Furthermore, suggesting a high level
of comfort with online transactions, 65.3% either agreed or strongly agreed
with the statement, "I feel comfortable buying merchandise or other products
on the Internet." Many of the respondents reported having been active in
a number of Internet-based activities over the previous month.
Of the 1,920 people who participated in the survey, 73.8% indicated
that they preferred Internet gambling over land-based gambling. In order to
assess any relationships between particular demographic characteristics and a
preference for Internet gambling, we cross-tabulated demographic
characteristics by gambling preference (see Table 2). We conducted chi-square
tests to assess the extent to which any observed differences between
categories were statistically significant (asymmetric significance, α = 0.05). The only differences that were found to be
significant were those related to problem gambling, gender, disability, and game
preference. Given the limitations of our data set, we can only hypothesize at
this time about the reasons for these observed differences. Nonetheless, we
offer the following ideas for consideration.
Problem gamblers were significantly
less likely than non-problem gamblers to prefer Internet gambling. This
suggests that although many problem gamblers may prefer land-based gambling,
they may utilize online services when land-based ones are unavailable,
closed, or temporarily inaccessible. An alternative explanation may be that
problem gamblers simply are likely to access all forms of available gambling,
even though some forms may ideally be preferred over others.
Among male respondents,
75.6% reported that they preferred gambling on the Internet versus gambling
at a land-based venue. In comparison, 71.5% of women reported the same. While
the difference appears to be small, a marginally significant chi-square
statistic (0.046) indicated that the difference is a systematic one. It is a
fairly well-established fact that Internet use varies according to gender
(see Wasserman & Richmond-Abbott, 2005). Thus, it is possible that our
findings simply reflect broader gender differences in Internet use and
Internet communication. Alternatively, however, these findings might also be
reflective of actual gendered experiences while gambling online, suggesting
that online gambling sites are somewhat more hospitable for men than for
women. In any event, it is crucial that future research delve into the issue
of gender differences in the world of Internet gambling.
People identifying
themselves as disabled were less likely than nondisabled individuals to prefer Internet gambling. The data do not provide information
about the specific nature of respondents' disabilities, so it is difficult to
provide a nuanced interpretation of this finding. In cases where peoples'
disabilities are physical in nature, one might have expected that potential
barriers related to access and transportation might have resulted in a
preference for Internet gambling instead. However, if many of these
individuals use land-based gambling as an opportunity for social interaction
and networking, and if other such opportunities are relatively limited, then
this could account for the significant difference in disabled versus nondisabled respondents' preferences. In any case, we
encourage other researchers to further investigate this relationship.
Preference for Internet versus land-based
gambling also varied significantly by the specific game respondents reported
playing most often. Those who most often played VLT or slot-type games, often
called electronic gaming machines (EGMs), were the
most likely to prefer Internet gambling. Those who most often played keno or
bingo were the
Table 2
*Indicates significant chi-square statistic
(asymmetric significance, α = 0.05).
least likely. The relationship between EGMs and preference for Internet gambling may be due to the similarities that
online EGMs share with land-based ones. The
interfaces are either identical or highly similar, and playing EGMs in either type of venue is likely a fairly solitary
or socially insular experience (insofar as EGMs do
not promote interaction with other people). Online EGMs,
however, may offer added advantages or conveniences (e.g., they never close)
that land-based ones do not. The finding that bingo/keno players were less
likely to prefer Internet gambling could be a function of the fact that these
are traditionally fairly social games, which for some people might even form
the basis of a particular subculture (e.g., a bingo subculture). Thus,
playing these games at land-based venues may offer some gamblers social
benefits not easily available online.
Reasons for preferring Internet gambling
Convenience, ease, and comfort
The reasons
respondents gave for preferring Internet gambling were numerous, spanning 20
distinct themes and categories (see Table 1). Percentages reported in the
charts and in the text refer to the percentage of all reasons given (536
people provided 770 reasons). The most common reasons pertained to the
relative convenience (12.9%), ease (12.2%), and comfort (11.7%) of Internet
gambling. Convenience refers to the idea that Internet gambling opportunities
are accessible at any time of the day and with minimal effort. Ease is a
related concept, but refers to the idea that the sites and games are easy to
find, easy to join, and relatively easy to play. Comfort refers to the theme
that Internet gambling affords the benefit of playing from the comfort of
one's own home. A number of people, for example, referred in colloquial
language to the comfort of "being able to gamble in my pyjamas."
Another commonly stated reason, which is related to convenience, is the
distance that many respondents lived from a land-based gambling venue
(10.0%). Thus, a number of people explained how they do not live within a
reasonable driving distance of a casino, and so Internet gambling was the
most viable option for them. This, however, does not clarify whether these
people would still choose to gamble on the Internet if they did indeed live
closer to a land-based venue.
Aversion
to land-based gambling venues
Other reasons were
related to people's perceptions of the ambience and clientele characteristic
of land-based venues. A small proportion of people (0.7%)
made the very general statement that they simply "don't like
casinos." Others, however, were more specific. A sizeable proportion
(9.8%) felt that they had far more privacy when gambling online. Others
claimed to dislike land-based venues for a number of additional reasons,
including an aversion to smoke (3.9%), an aversion to the usual noise (4.1%),
and an aversion to crowded environments (4.7%). Still others (5.1%)
explicitly claimed to dislike the "sorts of people" one often
encounters in casinos and other land-based venues.
On a related theme,
1.6% of respondents claimed to feel unsafe in land-based venues.
Online
gaming experience
Other reasons were
related to the intrinsic nature of the online gaming experience. These people
often mentioned the ability to control or customize the rate of play. 3.8% of
respondents, for example, preferred gambling online since it allowed them to
play at a relatively fast pace. These people typically referred to the
potentially short amount of time between games, spins, and rolls. Others
reported a preference for Internet gambling as it afforded a more leisurely
pace of play (3.1%). These people typically appreciated being able to
"take their time" when gambling online. 2.5% made comments suggesting
that they simply "like the Internet," further saying that Internet
gambling is more immersing (e.g., they are able to focus better without
distractions), as well as conducive to multitasking (e.g., gambling while
surfing the Web). A further 3.0% simply claimed that gambling on the Internet
is "more fun."
Wins
and expenditures
Some observers
might be quick to speculate that Internet gamblers are largely attracted by
the perception of potentially larger wins and lower overall expenditures when
gambling online. Our results, however, would not strongly support such
predictions. Only 1.8% of our respondents identified higher potential
winnings as their reason for gambling online. Similarly, only 3.0% mentioned
smaller losses as the reason. An additional 1.0% referred to lower secondary
costs, such as travel and meal expenses, as the reason they gamble online
rather than in a land-based venue.
Other
reasons
Given the
substantial number of respondents who identified themselves as living with a
disability (12.3%), we were surprised to find that disability was not often
reported as a reason for gambling online, as opposed to gambling at a
land-based venue (which could potentially pose problems of access and
mobility for some disabled persons). Only three people, or 0.4% of the sample, reported disability as a reason for their online
gambling preference.
A very small
proportion (0.5%) claimed to gamble online because land-based gambling is
illegal and therefore unavailable in their particular jurisdiction. Again, as
with people who live long distances from land-based venues, it is unclear
whether this 0.5% would prefer to gamble in a land-based venue if one was
actually available.
Conclusion
Summary
and suggestions for future research
It is clear that
the population of Internet gamblers is a relatively demographically diverse
group. It is also clear that some characteristics seem to be associated with
a higher or lower likelihood of preferring Internet versus land-based
opportunities. Disabled individuals were significantly less likely than nondisabled individuals to prefer Internet gambling.
Problem gamblers versus non-problem gamblers were likewise less likely to
prefer Internet gambling. People who most often played slots or VLTs were significantly more likely than players who
preferred other games to prefer Internet over land-based gambling. Finally,
men were significantly more likely than women to prefer Internet gambling.
Unfortunately, the limitations of our data set (which we explain in the
following section of this article) do not allow us to explore conclusively
the causes or reasons for these systematic differences. Thus, we offer to
future research the task of not only exploring the reasons some people prefer
to gamble online but also effecting a more nuanced
understanding of how and why those reasons might vary according to
demographic categories and preferred game.
When given the
opportunity in an open-ended question to explain why they preferred Internet
versus land-based gambling, people offered several general types of reasons.
Most common was to refer to the greater convenience, ease, and comfort of
Internet gambling. Second was an aversion to the atmosphere, crowds, and
clientele of land-based venues. Third was a preference for the nature of the
online gaming experience. Finally, there were a few people who indicated they
gambled on the Internet because of the potential for better odds, higher
wins, and smaller losses. Given these stated preferences, Internet gambling sites
may be offering clientele a range of potential experiences and benefits that
are perceived to be unavailable in land-based venues. It is possible that
these unique attributes and advantages help Internet gambling sites carve out
a competitive niche that allows them to compete successfully with land-based
venues. The present study, however, is not able to determine the extent to
which Internet gambling sites are taking business away from land-based
venues. It is indeed possible that each sort of opportunity serves a distinct
market, and that many Internet gamblers simply would not gamble at all if no
Internet-based opportunities were available. In any case, future research
should be conducted into competition between Internet and land-based venues.
If Internet gambling does in
fact possess a potentially competitive edge, or if it attracts many people
who otherwise would not gamble, there may be important and concerning
consequences with respect to the prevalence of problem gambling. Recent
research suggests that the convenience of Internet gambling, coupled with its
immersive qualities, may lead to much higher than normal levels of game-play.
This, for some people, may facilitate the emergence of a gambling problem
(see
Griffiths
, 2003;
Griffiths
,
1999;
Limitations
There are a number of
limitations inherent to the present study, and we feel it is important to
clearly acknowledge them, not only to ensure that our study is transparent to
the critical observer but also to offer whatever additional lessons we can
for future research. The most serious limitation to this study is the
potentially nonrepresentative nature of the sample.
Indeed, since the sample was self-selected at only a few Internet gambling
portals, it is not possible to gauge the extent to which the sample reflects
the broader population of Internet gamblers. It is at very least biased
toward English-speaking North Americans. Thus, while we feel the study has
merit, insofar as it offers some insight into the preferences of Internet
gamblers, our results concerning Internet gamblers' demographic and game-play
characteristics cannot be generalized to the broader population. Moreover,
our typology of the reasons people prefer Internet gambling over land-based
gambling is not necessarily exhaustive, insofar as it may be omitting reasons
that could have been offered by groups of people who did not select
themselves into the sample.
Another limitation is that
we did not define "Internet gambling" for our participants,
assuming instead that they would understand its meaning. The portals where
participants were recruited included links to typical forms of Internet
gambling, including casinos, bingos, and sports books. However, most gambling
sites offer free demo sessions, during which people can play games without
betting real money. It is possible that some of the people who selected
themselves into our sample only play the demo or practice versions of games,
and so in actuality are not Internet gamblers. It is difficult to know how
many, if any, of these false positives are present in our sample, although we
would speculate that the proportion is relatively small. In any case, we note
that it is wise to clearly define Internet gambling for participants in order
to sample only those who actually wager money in the course of their gaming
activity.
The final noteworthy
limitation is related to the pitfalls we encountered with online survey
methodology, and the attendant implications for the depth of analysis we were
able to achieve. The survey used for the present study collected both
quantitative data (gathered via fixed-choice items) and qualitative data
(gathered using text fields where respondents could type a response or a
number of responses). Unfortunately, due to problems and oversights in the
programming of the questionnaire, it was not possible to analyze the
qualitative responses to the open-ended question about Internet gambling
preference in relation to the quantitative demographic and game-play
characteristics gathered using the fixed-choice survey items. Thus, we can
offer a demographic and game-play profile using the quantitative data, and we
can also offer a preference typology using the qualitative data. However, we
cannot integrate the two data sets in order to compare the qualitative
reasons for preferring Internet gambling offered by one group of people
(e.g., men) to the reasons offered by another (e.g., women). We were
therefore unable to use our typology in any sort of statistical analysis,
which could have given us a more nuanced understanding of how and why reasons
for preferring Internet gambling varied among different categories of people.
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*******
Manuscript history:
submitted June 19, 2006; accepted April 26, 2007. This paper was
peer-reviewed. All URLs were available when the paper was submitted.
For
correspondence: Robert T. Wood, PhD, Associate Professor, Department of
Sociology, University of Lethbridge, 4401
University Drive, Lethbridge, AB, T1K 3M4, Canada. Phone: 403-329-5137, fax: 403-329-2085,
e-mail: robert.wood@uleth.ca
Contributors: RTW was the principal
author of the research design, participated in the data analysis, and took a
lead role in writing and revising the manuscript. RJW advised on the research
design and had a supporting role in writing and revising this manuscript. PKL
provided research assistance and led the content analysis on which this
article is based.
Competing interests: Robert T. Wood and Paul K. Lawton: None declared. Robert J. Williams is a node coordinator for the Alberta Gaming Research Institute, which provided funding for this project.
Ethics approval: The University of Lethbridge Human Subjects Research Committee provided
written approval for a broader project, of which this is a part, in 2003. The
reviewed project was entitled "Using online survey techniques to profile
the Internet gambler: A pilot study."
Funding: Robert T. Wood,
Robert J. Williams, and Paul K. Lawton were all employed at the
Robert T. Wood, PhD, is an
associate professor in the Department of Sociology at the
Robert J. Williams, PhD, CPsych, is a professor in the
Paul K. Lawton, MA, is
currently working on a PhD in the Department of Sociology at the
[1] Past studies, when examined chronologically, offer a more detailed
picture of the expansion of Internet gambling Web sites. In 1995, there were
only 24 Internet gambling sites accessible online (Watson et al., 2004). By
May 1998, that figure had increased to 190, including 90 online casinos, 39
lotteries, 8 online bingos, and 53 sports books (Basham & White, 2002).
Within a single year, those figures had more than doubled, with 250 online
casinos, 64 lotteries, 20 bingos, and 139 sports books (Auriemma & Lahey, 1999; Basham & White, 2002). In
2001, it was estimated that hundreds of millions of people had convenient
Internet access to upward of 1,400 different online gambling sites (Kelly, Todosichuk, & Azmier, 2001). By 2002, the
number of accessible Internet gambling sites was estimated to be
approximately 2,000 in total (Watson et al., 2004), confirming experts'
earlier predictions of a continued rapid increase in the number of gambling
Web sites (Abbot & Volberg, 1999; Hammer, 2001;
Turner, 2002). In October, 2006, there were over 2,500 Internet gambling Web
sites owned by 465 different companies listed at
http://www.online.casinocity.com.
[2] Studies conducted in 2006 were not available when the present study
was being designed. Thus, findings of these studies were not used to
construct categories or questions in the survey the present authors used to
assess gambling preference.
[3] An in-depth presentation of our findings related to problem gambling
may be accessed in this alternative publication.
[4] Following standard procedure in social scientific research, the
coefficient of reliability was computed simply by dividing the number of
identically coded units by the total number of units.
[5] Moderate problem gamblers
are people who score between 3 and 7 on the CPGI. Severe problem gamblers are
people who score 8+ on the CPGI.
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