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Commission on Crime and Problem Gambling publishes literature review

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An academic literature review has revealed a dearth of knowledge worldwide about the links between crime and problem gambling – so the Commission on Crime and Problem Gambling is to embark on a new research programme.

The Commission, set up by the Howard League for Penal Reform, began looking into the issue last year and carried out a literature review, which was published on Monday, 1st of June. The review found that, while millions of people are affected by gambling either directly or indirectly, there appear to be fewer than 50 peer-reviewed papers in the last 25 years that address the links between problem gambling and crime specifically.

In response, the Commission intends to conduct its own research, in three strands: the first project will look at the prevalence of gambling-related crime; the second will consider the lived experience of people caught up in the system; and the third will explore sentencers’ awareness of the issue.

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Chaired by Lord Goldsmith QC, the Commission seeks to establish what the links between problem gambling and crime are; what impact they have on communities and wider society; and what steps could be taken to reduce crime and make people safer.

Lord Goldsmith QC, Chair of the Commission on Crime and Problem Gambling, said: “Concern about harmful gambling activity has been growing for some time, but this is the first commission to focus specifically on the relationship between problem gambling and crime.

“From people getting into debt and defrauding family members or employers, to domestic violence and other crimes relating to gambling-related stress, we know anecdotally that police stations, courts and prisons see significant numbers of cases – but only a handful of academic studies have looked at this across the globe.

“The criminal justice system itself does very little work to capture the scale of the challenge and even less in terms of offering interventions like those we see for alcohol or drug problems. This has to change and our Commission can play a key role in improving the response to disordered gambling and crime.”

The literature review covers jurisdictions including Australasia, the US, Canada, Germany, Scandinavia and the UK. It reveals that, while the overall quantity of research is not huge, there is a consistency in findings across all jurisdictions.

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Researchers have found high prevalence rates of people committing crimes to fund their gambling. A wide variety of crimes are committed as a result of gambling addiction; not just ‘white collar’ crimes such as theft and fraud, but also offences that occur in public spaces such as street robbery. There is significant evidence of domestic abuse and child neglect linked to problem and pathological gambling.

Studies have indicated that the more complex, prolonged and persistent a gambling problem is, the more likely it is that a crime will be committed and, indeed, that many crimes may result.

Although there has been a growing understanding that gambling addiction is a behavioural disorder, little of this has been translated to sentencing; problem gambling is not considered to be a mitigating factor in sentencing in the way mental health problems or drug and alcohol addiction are.

Research suggests that, in spite of extremely high rates of gambling addiction among prisoners, prisons offer only limited treatment. There is evidence of resistance to undertaking treatment among prisoners.

Several of the studies reviewed agreed that a custodial sentence, especially when no treatment is available for gambling addiction, was not a cost-effective way of avoiding further harm to the individual or society once the sentence is completed.

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A small number of specialised gambling courts have been established in the US, with the aim of ensuring that people with gambling addictions who are in trouble with the law receive appropriate treatment. There is limited data on the success or otherwise of these initiatives.

Research is needed into the potential effect of gambling addiction treatment on the rate of recidivism, as well as more general research on how best to help vulnerable populations avoid the criminal justice system.

The literature review was written by Sarah Ramanauskas, Senior Partner at Gambling Integrity, who sits on the Commission.

 

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Compliance Updates

Gaming CEOs Optimistic on Industry Outlook, Report Evolving Industry Challenges

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Amidst an evolving economic landscape, gaming executives report a positive outlook on future industry business conditions while remaining satisfied with the current business environment, according to the American Gaming Association’s (AGA) Gaming Industry Outlook.

Nearly all gaming executives surveyed characterized the current business environment as good (44%) or satisfactory (50%), mirroring similar sentiment from Q3 2023. Meanwhile, executives are more optimistic about future conditions, with 32 percent of CEOs expecting business conditions to improve over the next six months, up from 20 percent in Q3 2023.

“Gaming’s record-setting growth over the last three years has set a new standard for industry success,” said AGA President and CEO Bill Miller. “However, as we enter a period of market normalization, continued investment and innovation in offering world-class, responsible entertainment experiences will be required to maintain industry momentum.”

Gaming Executive Panel

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Gaming executives have become more positive in their views that overall balance sheet health will improve over the next 6 months (42% net positive), but they expect the pace of revenue growth (13% net negative) and new hiring (22% net negative) to slow. These expectations for decelerating growth have influenced expectations for increases in capital investment and gaming units in operation, with smaller net positive sentiments than before.

  • In contrast to past Outlooks, gaming equipment suppliers are slightly pessimistic about the sale of gaming units for replacement use and new or expansion use (both 13% net negative). However, they remain optimistic about the pace of capital investment (38% net positive).
  • Half of operator CEOs expect capital investments in hotels over the next year to be higher than normal, and compared to last fall, more also expect higher than normal levels of capital investment in meetings and conventions and table games (28%). Meanwhile, 44 percent of CEOs expect increases in food and beverage investment, down from 67 percent in Q3 2023.

These expectations are also informed by evolving macroeconomic challenges. Executives report that inflationary or interest rate concerns continue to be a major factor limiting operations (28%), but these have been overtaken by geo-political risk (34%) and uncertainty of the economic environment (34%) as the biggest limiting factors in the most recent Gaming Executive Panel.

Current Conditions Index
The Current Conditions Index of 102.8 for Q1 indicates solid annualized real economic growth in the industry of 2.8%. This includes gaming revenue, employment and employee wages and salaries. Notably, the Current Conditions Index shows gaming expanding faster than the overall U.S. economy which last week reported 1.6 percent GDP growth in Q1 2024.

Future Conditions Index

The Future Conditions Index stands at 102.2, indicating annualized industry economic activity, after controlling for underlying inflation, is expected to moderately increase over the next six months. This outlook reflects Oxford Economics’ forecast that the U.S. economy will slow during 2024 but avoid recession. Despite a projected economic slowdown, consumer survey results continue to indicate that more than one-third of adults expect to visit a casino during the next 12 months, consistent with prior quarter results.

About the Outlook

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The AGA Gaming Industry Outlook is prepared biannually by Oxford Economics. It provides a timely measure of recent industry growth and future expectations. The Q1 2024 survey was conducted between March 28 – April 10, 2024. A total of 32 executives responded, including executives at the major international and domestic gaming companies, tribal gaming operators, single-unit casino operators, major gaming equipment suppliers, and major iGaming and/or sports betting operators.

 

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Compliance Updates

Arizona Department of Gaming Releases February Sports Betting Figures

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PHOENIX – Bettors in Arizona wagered approximately $637.5 million on sports in February of 2024, according to a new report by the Arizona Department of Gaming. This represents an approximate 4.6% increase when compared to February of 2023.

The state collected approximately $2.8 million in privilege fees in the month. You can view the full February report on the ADG website: LINK.

 

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New Hampshire Lottery Joins Mega Money Jackpots

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Follows multi-state eInstant record jackpot award of $5.8 million

Instant Win Gaming (IWG), a leading supplier of eInstant games to NASPL and WLA-member lotteries, congratulates the New Hampshire Lottery on joining the Company’s multi-state eInstant progressive, Mega Money Jackpots.

The New Hampshire Lottery launched Jackpot Spectacular, its first game in the Mega Money Jackpots linked progressive pool, for players in the Granite State on April 24th. New Hampshire joins Pennsylvania and Virginia in offering Mega Money Jackpots linked games.

Additionally, IWG congratulates the Virginia Lottery along with its Mega Money Jackpots player who won a record-setting $5.8 million prize. The win sets another new U.S. iLottery record for the largest eInstant prize.

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Mega Money Jackpots launched in July 2023, and over the past nine months the game has created eight millionaires. Since launch, more than 240 players across the participating lotteries have won Mega and Minor jackpots totaling more than $20 million.

The amount and frequency of these prizes showcases the excitement of IWG’s Mega Money Jackpots. To achieve this, select eInstants from participating lotteries each contribute a small percentage of the sales to fund the two progressive prize tiers, with IWG administering the settlement of jackpot prize monies on a turnkey basis.

The multi-state eInstant progressive jackpot is powered by IWG’s InstantJackpots. Since all functionality is contained within IWG’s InstantRGS (remote game server), no development support is required by a lottery’s iLottery platform provider. Additionally, new lotteries can join the system regardless of their iLottery platform provider.

Charlie McIntyre, Executive Director at New Hampshire Lottery, said: “Our industry has a proud track record of collaborating across state lotteries. We’re excited to join Mega Money Jackpots and to bring the excitement of it outsized prizes to our players. We know that our contribution will further enhance the game for everyone involved, and we look forward to creating some new millionaires here in New Hampshire.”

Rhydian Fisher, CEO at IWG, said: “Kudos to the team at New Hampshire Lottery. By joining Mega Money Jackpots, collectively we can award even more million dollar prizes to lottery players. Not only is the game frequently creating new millionaires, but it has also been a leading catalyst for new player signups. Fingers crossed that some new millionaires will be created in New Hampshire very soon.”

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