Article

The Future of Online Gambling in the United States and Elsewhere

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Abstract

This article examines the current economic characteristics of online gambling and the implications of current U.S. policies to prohibit its emergence. The author discusses online gambling's fundamental economic, political, and legal dimensions, as well as its current institutional setting. The present U.S. strategy is intended to marginalize online gambling, purportedly because of concerns about adverse social impacts. However, because of actions abroad to create legal regulatory regimes to govern online gambling, and because the Internet is becoming increasingly worldwide, U.S. attempts to prohibit online gambling are likely to be futile in the long run.

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... In most jurisdictions governments regulate access to legalised gambling by: 1) licensing operators and; 2) restricting access to gambling services by controlling numbers and distribution of venues, table games and electronic gaming machines (Delfabbro 2008;Eadington 2004). However the converging capabilities of technological devices such as personal computers (PCs) and devices (PDAs), mobile phones, interactive television, set top boxes and games platforms (PlayStation, X box, PSP) enable unlimited access to the Internet with the potential to gamble 24 h a day 7 days a week (see Griffiths 2003;Griffiths et al. 2006). ...
... The Internet has allowed the gaming industry to set up websites in unregulated or poorly regulated jurisdictions offering gambling products to consumers within and external to their jurisdiction (Parke and Griffiths 2004), circumventing any restrictions and controls (Eadington 1988(Eadington , 2004. For instance, Australian expenditure on legal forms of gambling is estimated to be AUD$19 billion dollars (Productivity Commission 2010), with a further AUD$790 million dollars estimated to be spent on illegal online gambling (Productivity Commission 2010). ...
... Although jurisdictions seek to control gambling by restricting access, digital services provide a number of technological loopholes that may sidestep existing controls (Delfabbro 2008;Eadington 2004). As people may have problems controlling their online behaviours, the present paper considered whether electronic interests and behaviours could predict the risk of developing a gambling problem. ...
Article
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Multiple computing devices continue to develop capabilities that support online gambling, resulting in the need to evaluate the extent that this trend will contribute to gambling problems. A sample of 1,141 participants completed an online survey assessing interest in and difficulties limiting use of digital services. Questionnaire items measured a range of behaviours associated with electronic service use (e.g., surfing, complaints). Results indicated that individuals utilising digital services and experiencing problems limiting their TV and Mobile phone usage were more likely to report gambling problems. These respondents were more likely to click on gambling-related links, report receiving larger amounts of spam, make more attempts to unsubscribe, and to click on links to counselling sites. Exposure and interest in electronic modes of communication can be associated with a greater risk of gambling related problems.
... It seems therefore that the creation and increasing commercialisation of the internet (Eadington 2004), coupled with its ease of access and anonymity, has provided the perfect environment for those in the gambling sector to capitalise on. Despite a fifth of 16-24 year olds spending more than 7 h a day online (The Telegraph 2018), the increased likelihood of encountering some form of OSG while surfing the web should not necessarily increase the participation of young adults in online gambling activities. ...
... This is reflected in 'millennials' accounting for the largest increase in online gambling of any age group worldwide in 2017 (Financial Times 2018). While research on the increasing tendency of young people to gamble online is available, this is mostly limited to the United States of America, and is focused around problem gamblers (Eadington 2004;Soriano et al. 2012;Floros 2018). It seems therefore that there is a gap in current research concerning gambling behaviour of young adults in the UK, and how their recreational gambling habits are influenced by the marketing efforts of online gambling companies. ...
Article
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In an industry that has experienced rapid growth for a number of years, where product differentiation is minimal, the marketing tactics of online sports gambling (OSG) bookmakers are likely to push the boundaries of what can be considered responsible, as companies seek to stand out from competitors and take advantage of industry growth. This research aims to explore how the marketing tactics of OSG companies shape the gambling habits of young adult consumers, and whether this demographic considers these tactics responsible. Recommendations are made on how online bookmakers can remain responsible in their marketing to young adults. Findings revealed that the primary motivation behind young adults’ recreational gambling was the excitement induced through participation. Further, young adults’ OSG bookmaker preference is influenced by promotional offers for existing customers. Results from the study indicate that in general, young adults do not deem the varied marketing techniques employed by OSG companies as irresponsible practices. However there were concerns regarding the potential impact of the continued increase in OSG marketing on problem gamblers and children (under 18).
... However, because the industry is so competitive around the world, it is very difficult to generate significant tax revenue from online gambling activities. In addition, Eadington (2004) adds that in its political and legal dimensions, online gambling has been the subject of complicated policy debates. The United States and other countries are concerned about the negative impact of online gambling on society. ...
Article
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Kemajuan teknologi membuat semakin mudah diaksesnya berbagai informasi dan hiburan, tidak terkecuali judi online. Hadirnya internet membuat judi menjadi bisa dilakukan secara digital, dengan berbagai skema dan permainan didalamnya judi online lebih mudah diakses. Kegiatan perjudian online juga membutuhkan strategi promosi yang dilakukan dalam menarik perhatian publik untuk berpartisipasi, bahaya judi online sangat perlu diperhatikan dari beberapa fondasi kebijakan komunikasi, maka dari itu kajian ini akan meneliti bagaimana kebijakan komunikasi terkait promosi judi online pada negara Indonesia, Pakistan dan Amerika. Menggunakan metodologi kualitatif dan pengumpulan data melalui kajian literatur peneliti menemukan jika Indonesia sebagai negara yang melarang judi baik konvensional maupun digital masih kesusahan dalam mengimplementasikan kebijakannya. Pakistan yang memiliki kebijakan sama dengan Indonesia terkait pelarangan judi online akibat kentalnya adat dan budaya agama Islam, serta membuat implementasi penegakan hukum, karena dasarnya penduduk Pakistan tidak memiliki kebebasan berekspresi. Sedangkan USA, beberapa negara bagian mengizinkan untuk kegiatan judi online maupun konvensional karena dianggap memberikan pemasukan yang tinggi pada pajak negara, melihat promosi judi online berbahaya jika menjangkau anak-anak dan remaja. Kemudian implementasi promosi judi online sangat ketat terutama pada judi online ilegal karena adanya dugaan subsidi dana pada kegiatan terorisme.
... The retention of players becomes more difficult because the rapid growth of the online gambling industry makes it very difficult for the player to differentiate between the many available options. The price is argued to be a very strong factor (Eadington, 2004). ...
Conference Paper
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The online services penetration rate has experienced a very positive development in recent years, particularly with regard to the use of gambling services. Modelling online services usage behavior is crucial to understanding this phenomenon. The literature reveals a gap on this point since scarce research in this area has been produced and published, in particular studies applied to the Portuguese market. This study has as main objective the construction of an explanatory model of the online betting services usage behavior, based on the incorporation of perceived risk (social, time, financial, physical, psychological, and performance) in the conceptual framework of the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2). The empirical validation of the model was performed by conducting an online survey to a convenience sample of 212 Portuguese online players. Data were processed using the PLS-SEM methodology. The results evidenced that performance expectancy, social influence, facilitating conditions, hedonic motivations, price value, habits, as well as psychological, financial and time risks influence the intention to use online betting services. As this is a new, hardly explored theme in the literature, relevant academic and managerial implications emerged from this study.
... Gambling products have arguably evolved to become socially acceptable consumer products for recreational purposes (Ma et al., 2014;Platz & Millar, 2001). After the '90s, when the internet became the primary medium for consumer goods, gambling became readily accessible from a household couch in form of an online leisure activity such as sports betting, casino or poker (Eadington, 2004). Not only does online gambling facilitates "accessibility, convenience, and anonymity" but it can also result in a "cocooning" effect among its users, where gambling harms can remain undetected for an extended time (Griffiths, 2003 p. 561). ...
Article
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Traditional approaches that seek to study Responsible Gambling (RG) mainly focus on evaluating platform-based intervention tools applied on gambling operator sites. This paper reports on the implementation, at the payment-solution level, of an intervention tool that gambling customers used to deposit their bets. The approach pre-commits customers to set a single-point spending limit on their payment gateway account, effectively enabling them to apply their budget setting on all gambling platforms on which they choose to play. Ten users who have used the provision for at least six months and on two different gambling platforms were selected for an in-depth interview. Based on the findings from content analysis, the article argues that payment-level intervention approach can potentially (1) provide the overall gambling population with better financial literacy regarding their gambling habits, which promotes responsible spending behaviour, (2) elevate the strain on users to set up intervention tools on every individual platform, and (3) serve as a preventive measure regardless of the existence or absence of intervention tools at gambling sites. Furthermore, the results affirm a gap in existing research and a need for comprehensive guidelines and strategies for financial institutions to positively contribute towards the agenda of RG. The findings of this study highlight the need for revisiting theoretical and philosophical foundations of intervention tool studies and gambling policymaking as well as calls for reassessing how we problematised harmful gambling. The paper contributes to the research on gambling intervention tools.
... Because of the evidence showing that gambling is a problem for many people in the United States (Welte, Barnes, Tidwell, Hoffman, & Wieczorek, 2015), many experts are concerned about the risks posed by Internet gambling (Gainsbury, Russell, Wood, et al., 2015;Wood & Williams, 2011). Many theoretical papers provide some context on the potential influence the Internet has on gambling activity (see Eadington, 2004;Griffiths, 1999Griffiths, , 2003Griffiths & Parke, 2002;Watson, Liddell, Moore, & Eshee, 2004). However, there is limited research on specific predictors of online problem gambling severity, such as gender and emotions prior to gambling experiences Wardle, Moody, Griffiths, Orford, & Volberg, 2011;Wardle, Moody, Spence, et al., 2011;Winters, Bengston, Door, & Stinchfield, 1998). ...
Thesis
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The use of the Internet to gamble has become increasingly prevalent in recent years. Although researchers have suggested that adult Internet gamblers are at high risk for developing a gambling disorder, few studies, overall, have been conducted on the effects of Internet gambling. Furthermore, conflicting research exists regarding what moderates gambling-related problems. The purpose of this quantitative study was to determine if age, gender, and emotions prior to the gambling experience are related predictors of Internet problem gambling severity. A retrospective design was used. The pathways model was used to support the belief that emotions felt before an Internet gambling session are associated with the severity of the gambling problem. Data were obtained from adult Internet gamblers who had Internet gambled in the preceding week. One hundred and fifty participants completed an online survey about the emotions they felt before an Internet-gambling session and self-reported the negative consequences of their gambling. The survey contained demographic questions, questions from the Positive and Negative Affect Schedule (to assess emotions felt before participants’ last Internet gambling session), and questions from the Problem Gambling Severity Index. The results of the multiple linear regression analysis were significant, indicating that, as a group, participants’ age, gender, and emotions felt prior to the gambling experience predicted their problem gambling severity. This study can assist with prevention, early intervention, and treatment of adult Internet gamblers.
... Researches that have examined the socio-economic consequences of the spread of on-line gambling have done so mainly by focusing on specific issues. For example, some studies have focused their attention on the examination of regulatory frameworks in the various countries, to help public institutions in the implementation of gambling policies and companies to formulate appropriate on-line gambling responses (Kairouz, Monson, & Arsenault, 2018;Ansalone & Cestari, 2013;Mataluni, 2013;Pandimiglio & Spallone, 2012;Gainsbury & Wood, 2011;Coryn, Fijnaut, & Littler, 2008;Rose, 2006;Eadington, 2004;Sbordoni, 2010). A series of research works in the economic-managerial field that were carried out, on the other hand, has deepened, under different aspects, the impact of Internet gambling on consumer behavior and on marketing strategies (Calvosa, 2016;Gainsbury et al., 2015;Ozuem & Prasad, 2015;Wiebe, 2008;Wood, Williams, & Lawton, 2007;Jolley, Mizerski, & Olaru, 2006;Woolley, 2003;Brindley, 1999). ...
Article
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The effect of the Internet and e-commerce on industry competition has been widely discussed in economic-managerial literature. Most of the studies focused on the analysis of the impact of Internet technologies on specific industry structural factors – in particular on sectoral price levels –, but no sufficient empirical evidence based on overall industry change is yet available. The aim of this work is to analyze the influence of e-commerce on the transformation of the industrial structure and competition in a regulated market, that of Italian sports betting. This market, because the effect of a process of legalization of on-line sports betting that started in 2006, has been interested by a continuous shift of purchases of sport bets, ranging from the traditional sales channels to digital ones. This has contributed in creating an on-line gambling sector among the most developed and consolidated in the world. From a methodological point of view, firstly the data from a series of secondary sources was processed in order to examine the main changes in the Italian sports betting market induced by the legalization of on-line gambling. Secondly, the data and information collected through specific empirical investigations was used to examine the impact of Internet betting on gambling operators’ business models and on players’ gambling behavior in the Italian market. The results of the analysis has shown that the development of Internet technologies and of e-commerce has had, on the one hand, a positive influence on the growth of the sales in the Italian sports betting market; and on the other hand, has impacted on a series of structural factors in the sector – entry barriers, number of competitors, geographical opening of the market, levels of pricing, average profit margins – in such a way as to determine an increase in industry competition. In particular, use by foreign companies of the electronic distribution channel as a ‘mode of entry’ into different geographical markets is causing the development of competition that goes beyond national borders, reducing the strongly domestic oligopolistic structure that has always characterized the Italian sports betting industry.
... It is nearly impossible to effectively prohibit online gambling, because of the difficulty in blocking individual players" online access to these sites, and the difficulty in prosecuting companies that legally provide these services from other countries (e.g., Andrle, 2004;Eadington, 2004;Friedrich, 2003;Parke and Griffiths, 2004;Watson et al., 2004). As evidence of this, the rate of Internet gambling in the United States with prohibitionist legislation (2.0%) is roughly equivalent to Canada (2.1%), with more permissive legislation. ...
... Aguilo (2004), Dwyer (2000Dwyer ( , 2003Dwyer ( , 2010, Fletcher (1989Fletcher ( , 1994, Forsyth (2000), Frechtling (2001), Gartner (2010), Eadington (2004), McKercher (2009McKercher ( , 2010, Smith (1994), ), Vukonic (2006. ...
... However, it is unclear whether global legal harmonization is possible or even desirable (Riles 2014). Examples of the latter approach include US laws that ban the transfer of funds from financial institutions to offshore online gambling providers (Eadington 2004) and laws concerning the exhaustion of intellectual property rights, which limit parallel trade of pharmaceutical products (Outterson 2014). Studies that discuss regulatory arbitrage in situations where neither approach is desirable, such as when harmonization runs contrary to policy objectives (as in the case with alcohol or drugs laws) and access to outside jurisdictions cannot be prevented (e.g. ...
Article
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Businesses and consumers frequently exploit differences in laws and policies across jurisdictions to circumvent local laws, regulations, or restrictions. This practice, known as regulatory arbitrage, can have negative consequences for both business and social welfare. Although previous research examines regulatory arbitrage in specific contexts such as financial markets and the pharmaceutical industry, a general framework remains missing. Drawing on marketing systems theory, this study proposes a conceptualization that reflects the necessary conditions for regulatory arbitrage to occur across a variety of contexts. It also derives a typology of strategies to prevent and eliminate regulatory arbitrage. Using the context of alcohol policy in Finland as an illustrative example, the study applies the conceptualization to examine a situation where regulatory arbitrage has repeatedly threatened local policy. The findings illustrate how the broader perspective offered by marketing systems theory can help to more accurately predict whether businesses and consumers will pursue regulatory arbitrage in a given situation, and to select appropriate strategies for preventing and eliminating regulatory arbitrage in situations where it has negative consequences.
... However, it is unclear whether global legal harmonization is possible or even desirable (Riles 2014). Examples of the latter approach include US laws that ban the transfer of funds from financial institutions to offshore online gambling providers (Eadington 2004) and laws concerning the exhaustion of intellectual property rights, which limit parallel trade of pharmaceutical products (Outterson 2014). Studies that discuss regulatory arbitrage in situations where neither approach is desirable, such as when harmonization runs contrary to policy objectives (as in the case with alcohol or drugs laws) and access to outside jurisdictions cannot be prevented (e.g. ...
... However, empirical research exploring internet gambling has been unable to keep up with the rapid increase in this activity in recent years. A number of theoretical papers published on the potential changes the internet may make to the gambling activity have provided some context (e.g., Eadington 2004;Griffiths 1999Griffiths , 2003Griffiths and Parke 2002;Shaffer 2004;Watson et al. 2004). However more empirical research is needed to determine specific predictors of online problem gambling, and whether these differ to already identified predictors of offline problem gambling, such as being male, young, single, having parents who gamble(d), smoking cigarettes, and fewer educational qualifications (Wardle et al. 2011a, b;Wardle et al. 2007;Winters et al. 1998). ...
... More specifically, it results from the investigation that the main factor influencing the decision to bet at one online site is related to the payout rates. This finding is in keeping with the literature findings (Eadington, 2004) which show that in the online gambling industry the price, in the form of payout to the player, is a very strong competitive factor. In effect, one of the main motivations which drive the consumers to utilize the Internet to carry out the bets is that usually online gambling sites offers higher payout rates with respect to the terrestrial operators (Note 9), since these sites can reverse on the player part of the savings of the cost deriving from not having to sustain the high investments necessary for managing a physical distribution network. ...
Article
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The paper analyses the loyalty typologies and consumer choice factors in the regulated online sports-betting industry. From the methodological viewpoint an empirical investigation has been carried out through the administration of a questionnaire towards customers who make sports bets on online gambling sites in the Italian regulated market. We have found that, in keeping with consumers’ behaviour “regularities” which normally characterize frequently purchased consumer goods markets, the number of customers who are exclusively loyal to one gambling website is rather limited and that, therefore, online bettors mostly adopt a “multi-brand” buying behaviour. In the markets in which this behaviour pattern emerges, customer loyalty programs appear less efficacious in increasing market penetration of the companies with respect to the firms’ decisions on marketing mix-inputs that influence consumer choice of purchasing. The empirical investigation has therefore permitted us to single out the factors that influence the decision to bet at one online gambling site over another, and to show how the importance of these factors varies in relation to the different degree of the gamblers loyalty. The results are then applied to marketing strategies of the online gambling operators.
... The retention of players becomes more difficult because the rapid growth of the online gambling industry makes it very difficult for the player to differentiate between the many available options. The price is argued to be a very strong factor (Eadington, 2004). ...
Article
Full-text available
Online gambling has skyrocketed in recent years. As such, knowing the determinants of consumer usage behavior is crucial in understanding online gambling services. This study has as main objective the construction of an explanatory model of the online gambling services usage behavior, based on the incorporation of perceived risk in the conceptual framework of the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2). The empirical validation of the model was performed by conducting an online survey to a convenience sample of 212 Portuguese online players. Data were processed using the PLS-SEM methodology. The results evidence that performance expectancy, social influence, facilitating conditions, hedonic motivations, price value, habits, as well as perceived risk influence the intention to use online gambling services.
... As for policy makers, traditionally, the disquiet towards the social costs of gambling activity, in particular the effects on excessive gamblers and the ease of criminal involvement, has explained the regulatory role of the state in the sector as a social guardian and a consumers' protector (for an analysis of these arguments in the literature, see, among others, Eadington, 2004;Smith, 2000;Taylor & Kopp, 1991;Netemeyer et al., 1998). While proving more effective than prohibition in reducing illegal gambling, legalization and regulation have produced a base for taxation, introducing a fiscal stake of governments in the gambling industry (this ambiguity was pointed out at least since De Viti De Marco, 1936). ...
Article
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The paper analyses the differences in gambling motivations of skill and luck gamblers based on the answers to a questionnaire distributed to students from the University of Pisa (Italy). We find that the probability of playing skill rather than luck games is positively correlated to being a male, to the socialization motive and to having a planning attitude and an interest in socializing. Instead, findings show that it is negatively correlated to the money motive, the perceived risk of losing social esteem, and age. Results are then applied to marketing strategies and public policies, with particular attention to the online environment.
... The internet and mobile phone have increased consumer access to a variety of services [1,2] including products such as gambling [3][4][5], hence the internet has attracted the attention of regulators [6][7][8] over issues such as advertising [9,10]. To advise and inform policy makers and regulators, the present study considered factors such as risk and time pressure that might affect the potential influence of onscreen messaging. ...
... Today, online gambling stands as an internet application whose size and significance has yet to be definitively determined, and one that is certain to be profoundly shaped by policy, technology, and market developments. The dilemma confronting the United States with respect to online gambling is whether to pursue a strategy of prohibition, or to choose to legalize and regulate online gambling in a way that balances the public interests of key stakeholders (Eadington, 2004). These trajectories have recently been embodied in policy measures such as the prohibitionist-oriented Unlawful Internet Gambling Enforcement Act of 2006, passed by the Bill Frist-led U.S. Senate, and the counter-measure recently introduced by Barney Frank (D-MA). ...
... A wide array of lottery and casino games and events betting is available on over 1,500 Internet gambling sites (Eadington, 2004). The large and continually increasing number of Internet sites is another example of the extension of gambling to previously nongambling settings; one that takes "convenience" gambling to a new height by bringing a variety of activities directly into homes and workplaces throughout the world, 24 hours per day. ...
... Governmental control of gambling, however defined, has deep roots (Eadington 2004;Regional Review 1991;Taylor and Kopp 1991;U.S. Government Accounting Office 2002). ...
Article
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.
... Appropriate levels of taxation are particularly important for Internet gambling as some illegal online gambling operators may be based in jurisdictions that have very low tax rates, making them able to offer high returns to players (Gainsbury, 2012). There may also be a tendency for governments to "price compete" on tax rates against one another (Eadington, 2004). Therefore, a high tax rate for Internet gambling operators may result in operators being unable to offer competitive products and they may choose not to operate in the jurisdiction or players may play on offshore sites that offer fewer player protections. ...
Article
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Problem gambling represents a significant public health problem, however, research on effective gambling harm-minimisation measures lags behind other fields, including other addictive disorders. In recognition of the need for consistency between international jurisdictions and the importance of basing policy on empirical evidence, international conventions exist for policy on alcohol, tobacco, and illegal substances. This paper examines the evidence of best practice policies to provide recommendations for international guidelines for harm-minimisation policy for gambling, including specific consideration of the specific requirements for policies on Internet gambling. Evidence indicates that many of the public health policies implemented for addictive substances can be adapted to address gambling-related harms. Specifically, a minimum legal age of at least 18 for gambling participation, licensing of gambling venues and activities with responsible gambling and consumer protection strategies mandated, and brief interventions should be available for those at-risk for and experiencing gambling-related problems. However, there is mixed evidence on the effectiveness of limits on opening hours and gambling venue density and increased taxation to minimise harms. Given increases in trade globalisation and particularly the global nature of Internet gambling, it is recommended that jurisdictions take actions to harmonise gambling public health policies.
... In connection with codified gambling-related law in the EU, two provisions in the Articles of the Treaty establishing the European Community are most relevant. 4 Article 43 states: 2 Eadington (2004) and Vlaemminck and De Wael (2003 [R]estrictions on the freedom of establishment of nationals of a Member State in the territory of another Member State shall be prohibited. Such prohibition shall also apply to restrictions on the setting-up of agencies, branches or subsidiaries by nationals of any Member State established in the territory of any Member State. ...
Article
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Given its high level of regulation, the gambling industry must be able to react quickly to litigation and resulting change in policy (and enforcement thereof). Using a case study approach, this short paper highlights how the twin issues of policy and litigation have recently impacted the gambling industry in the European Union. Examples focus on recent developments in the EU that outline the relevant contours of the European Court of Justice's jurisprudence, with a special emphasis on the dynamic situation in Greece. These examples shape the ensuing discussion of the future of both the regulation and litigation of the EU's gambling industry.
... Movement toward legalized and regulated markets (with some later regrets?). Many people have pointed out that it is nearly impossible to effectively prohibit online gambling because of the difficulty in blocking individual players' online access to these sites and the difficulty in prosecuting companies that legally provide these services from other countries (e.g., Andrle, 2004; Eadington, 2004; Friedrich, 2003; Watson et al., 2004). While this is true, it is insufficient justification by itself for legalization. ...
... In connection with codified gambling-related law in the EU, two provisions in the Articles of the Treaty establishing the European Community are most relevant. 4 Article 43 states: 2 Eadington (2004) and Vlaemminck and De Wael (2003 [R]estrictions on the freedom of establishment of nationals of a Member State in the territory of another Member State shall be prohibited. Such prohibition shall also apply to restrictions on the setting-up of agencies, branches or subsidiaries by nationals of any Member State established in the territory of any Member State. ...
Article
Full-text available
Given its high level of regulation, the gambling industry must be able to react quickly to litigation and resulting change in policy (and enforcement thereof). Using a case study approach, this short paper highlights how the twin issues of policy and litigation have recently impacted the gambling industry in the European Union. Examples focus on recent developments in the EU that outline the relevant contours of the European Court of Justice’s jurisprudence, with a special emphasis on the dynamic situation in Greece. These examples shape the ensuing discussion of the future of both the regulation and litigation of the EU’s gambling industry.
... New games such as online poker have developed after television coverage and proliferated. Price, in the form of payout to the player, is argued to be a very strong factor in this environment (Eadington, 2004). ...
Article
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The ability of customer satisfaction to reliably explain and predict actual customer behavior has been an elusive objective to attain. This study tests the effects of past behavior (habit) on customer satisfaction in the prediction of actual behavior (retention). The study used an online gambling experiment accessible 24/7 to test the drivers of behavioral retention. It found that habit, not customer satisfaction, had a strong effect on a range of responses tied to retention. The implications of these findings are applied to issues for gambling managers and those developing public policy.
... Within a year, these figures had increased to 250 online casinos, 64 lotteries, 20 bingos and 139 sports books (Wood and Williams 2007). Research indicates that from 2000 to 2002 there were between 1500 and 1800 active online gambling sites (Eadington 2004; Sinclair et al. 2002; Unites States General Account-ing Office 2002), and at present between 2300 and 2500 such sites are in operation (Clark 2005; Ranade et al. 2006). This rapid growth in the number of sites in recent years may be tapering off, as the big companies buy out smaller sites (Ranade et al. 2006). ...
Article
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With the development of new information and communication technologies (ICT), above all computers and the internet, new forms of online commerce have emerged. The gambling industry began using the power of the rapidly developing virtual market by offering its services in online casinos. The phenomenon of online gambling has encouraged researchers to direct their work into various areas, including the characteristics or profile of online gamblers. In light of the data on the growth of the market for online gambling it is evident that, in the relation between the many types of traditional and online gambling, visits to traditional casinos predominate, as do predictions about the development of the internet. We therefore decided to examine the characteristics of gamblers in traditional casinos and to determine what percentage of them also gamble online, as well as to establish their profile. The aim of the research was to determine how their characteristics in respect of the development of the internet and the growth of the market have influenced the subsequent development of traditional and internet casinos. We predict that both types of gambling, each in its own way, will compete for gamblers. For traditional casinos the best solution seems to be opening their own online casinos; online casinos will have to remain abreast of the development of the internet and communication technology.
Article
Purpose The study aims to integrate the insights gained from the gambling industry into a value creation conceptual framework for analyzing the influence of digital technology application. Both primary and secondary data from industry practitioners are examined and discussed. Design/methodology/approach In-depth interviews covering top management from six major casinos in Macau were conducted with industry experts, who provided the pioneering feedback on digitalization technology implemented with examples from major casino cities, including Macau, Las Vegas, Monte Carlo, Singapore, Seoul and some others. Findings The study provides an overview of the current status of the application of digital technology in the gambling industry and the level of the feasibility, practicability and profitability of this development on the casino floor. Digital technologies are found to augment the gambling industry in aspects of the product, service and operational structure. Research also discovers that benefits and values gained by the casino can be categorized in three dimensions: (1) value perceived by the customer, (2) value obtained from the customer and (3) value gained by the firm. Originality/value The research serves as a reference for Macau policymakers regarding regulations on emerging digital technologies in the gambling industry, as well as for casino management seeking to understand new potential business opportunities and future developments in digitalization.
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Purpose The aim of this paper is to examine how money laundering occurs through electronic gaming devices, the regulatory requirements for operators of electronic gaming machines, the issues of on-line versus land-based gambling and a discussion about ethics and social responsibility. Design/methodology/approach This is primarily a conceptual paper which includes an identification of several theories relevant to money laundering. Primary data were obtained from one respondent through a face-to-face meeting and another through a telephone conversation. Findings A strong, globally co-ordinated effort is required to fight against the increasingly “dark side” of money laundering. The tenets of corporate social responsibility (CSR), including a strong focus on ethics, is vitally important in the gambling industry in helping to wipe out money laundering, which is used to make “dirty” money “clean” and in some instances, used to fund terrorism. Research limitations/implications Further studies could be conducted incorporating a sample of primary data within, and between, jurisdictions. Further work is recommended for developing a form of global collective targeted practical deterrents, supported by technology including artificial intelligence as identified to some degree in this paper. Whilst this paper has included a discussion on CSR, moral management and ethics as a means of arbitrating money laundering, future research could put this idea to the test. Practical implications Efforts (including technological) to combat money laundering at the venue level continue to be developed. Further, regulations could include mandatory training in CSR and ethics for all employees in organisations identified by regulators as being particularly susceptible to money laundering. Social implications Terrorist actions have gained increasing attention as various countries have had to endure seemingly escalating atrocities in their jurisdictions. Government has an important role to take the necessary steps to strike out terrorism to protect its citizens. Originality/value No peer-reviewed academic articles could be identified using a Google Scholar search on money laundering and/or marketing and or CSR. A limited number of articles were identified using the search terms “money laundering and gambling”.
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It has been noted that adolescents may be more susceptible to pathological gambling. Not only is it usually illegal, but it appears to be related to high levels of problem gambling and other delinquent activities such as illicit drug taking and alcohol abuse. This paper examines risk factors not only in adolescent gambling but also in videogame playing (which shares many similarities with gambling). There appear to be three main forms of adolescent gambling that have been widely researched. Adolescent gambling activities and general risk factors in adolescent gambling are provided. As well, the influence of technology on adolescents in the form of both videogames and the Internet are examined. It is argued that technologically advanced forms of gambling may be highly appealing to adolescents.
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Joint Scrutiny Report into the Draft Gambling Bill
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