Global internet gambling revenue will approach nearly $12 billion in 2005 and will increase to more than $24 billion by 2010, according to estimates by Christiansen Capital Advisors LLC, a professional gaming and entertainment industry research firm. Given this already high level of play and a projection that the industry will double in size in five short years, it is no wonder that members of the interactive gaming (iGaming) community have begun to address potential harms related to the product they offer, in particular those related to underage and problem gambling. Two iGaming organizations, eCommerce and Online Gaming Regulation and Assurance (eCOGRA) and the Interactive Gaming Council (IGC), are leading the charge to make a case for regulation and player protection at online gaming Web sites.
An independent organization based in the United Kingdom, eCOGRA was launched in 2003 to provide online players with high levels of assurance of fair, honest and responsible gaming by setting minimum operation standards and ensuring the compliance of online gaming software suppliers and operators to those standards. eCOGRA membership is open to any reputable online gaming software supplier or operator that shares in the organization's vision of fair and responsible gaming and is able to comply with eGAP, the organization's "generally accepted practices." One section of eGAP is specifically devoted to establishing, enforcing and monitoring a responsible gaming environment.
"We're very serious about this," said eCOGRA CEO Andrew Beveridge. "Allowing or inviting underage or problem gamblers to play is morally wrong and could have industrywide commercial and legal consequences."
eCOGRA regulates the operational affairs of many of the largest international iGaming companies and handles over 80 percent of online casino action, making this commitment a tremendous step for the online industry.
"The very fact that our software members and "seal" casinos deal with such a high percentage of player activity places a serious obligation on eCOGRA to ensure that responsible gaming is a top priority," Beveridge said.
Approved gambling site operators, noted by the eCOGRA seal, must offer players links to problem gambling assistance groups and diagnostic questionnaires that players can use to gauge whether they have a problem. Because online gambling sites have no opportunity to observe a gambler's physical characteristics, eGAP requires identification of play and financial patterns that may indicate a player has a gambling problem. The sites also must offer gamblers the option of a seven-day "cooling off" period during which they will not be permitted to gamble, a six-month self-exclusion, or a limitations on the amounts of money they may deposit for gambling. Other provisions mandate the training of appropriate operator personnel, the requirement that a clock be clearly visible on the screen at all times and that appropriate action be taken should a third party apply for a player's exclusion. A number of safeguards relative to underage gambling also are in place.
"There's a lot more to this than merely putting a button on-site that sends gamblers to a help organization," Beveridge said. "It calls for financial investment in identification and verification systems, training and refresher courses for staff and creating an ongoing awareness at all personnel levels that out-of-control gambling is a serious illness that can cause acute human distress as well as damage to business and reputation. "The features that make online gambling such an appealing entertainment for the vast majority of players can unfortunately attract the problem gambler, too: accessibility, speed, autoplay, progressives, slick financial transactions, bonuses, loyalty programs and ease-of-use all constitute risk factors for the small percentage of users who are problem gamblers," Beveridge noted. "However, we are better able to identify, track, research and communicate with problem gamblers using effective self-exclusion, assistance and awareness programs. With the sort of motivation and commitment we have encountered from eCOGRA-regulated operations, online gambling has considerable potential for the proactive management of underage and problem gambling."
The IGC, a not-for-profit organization founded in 1996, also has taken an active role in developing responsible gaming programs for its companies. The IGC was established to provide a forum for interested parties to address issues and advance common interests in the global iGaming industry as well as to establish fair and responsible trade guidelines and practices that enhance consumer confidence in iGaming products and services. Since its inception, the IGC has been a consistent voice for a responsible iGaming industry, making the case for regulation and player protection to governments throughout the world.
As part of this effort, the IGC has established both a Responsible Gambling Committee within its organization and a set of responsible gambling guidelines to which its members have agreed to adhere. The responsible gambling guidelines include provisions for staff training, providing referral and direct access to help and counseling organizations, betting limits and cooling off periods, and the creation of controls to self-regulate these policies.
To assist their members in implementing these guidelines, the IGC recently revamped its widely received Helping Hand program. "The program provides users with, among other things, links to compulsive and problem gambling service providers, links to general information about the issue and filters to assist adults in blocking access to gaming sites by minors," said IGC Deputy Director Keith Furlong. "The program's scope also has been expanded to provide links covering greater geographical diversity and include links to useful tools for the operators themselves."
The IGC does not think its safeguards are the ultimate answer, however. "The IGC is committed to strong government regulation of Internet gaming," Furlong said. "To protect citizens, especially the most vulnerable, including children and compulsive gamblers, isn't a regulated Internet gaming industry a better alternative?"
The IGC contends that taking a proactive role in working cooperatively to achieve best industry practices and to protect the interests of consumers is far preferable a course of action than adopting the approach of attempting to prohibit this form of entertainment. "Until a time when government regulation can assure that games are fair and players are safe, it is vital for players to perform due diligence," Furlong pointed out. "Someone who is new to gaming should follow a few suggested guidelines to assist in identifying the more reputable sites and to help make their gaming experience safe and enjoyable."
The iGaming industry has responded to this issue, but does science exist to support their efforts? Researchers and advocates certainly are concerned about online gambling, particularly given its increased availability in recent years. Scientists are focusing on whether the increase in exposure necessarily increases gambling disorders or, as other gambling studies suggest, whether the population will adapt its behavior in response to new gaming opportunities over time, resulting in a negligent long-term effect.
"Unfortunately, there is currently very little empirical research on the prevalence of online gambling and disordered online gambling, and the few available studies are not representative of the population at-large," said Christine Reilly, executive director of the Institute for Research on Pathological Gambling and Related Disorders at the Cambridge Health Alliance's Division on Addictions. "More research clearly is needed."