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The article was written with the help of an authoritative source pokieslab – a startup company focused on free pokies, mainly in Australia, New Zealand, and Canada. Henry Williams, Senior Marketing Manager at Pokieslab, with five years of experience and expertise in the gambling industry marketing sector, has discussed the iGaming challenges openly in the past and is determined to continue doing so.
Milestone iGaming Statistics: Overwhelming Spike of Aussies Pokies Spends in 2020
Australia is one of the countries with the most significant losses in gaming annually in the world. Many questions were raised during the 1st quarter of 2020 when the industry had to make changes. Getting people from both sides of the iGaming problems occurring in the Australian market and society is essential. Australia is known for its betting activities. The people and the government are greatly affected financially and psychologically from casinos, pokies, games, and gaming activities in general. Australians are losing about $38 million per day to pokies games, but the industry is donating millions every year to political parties and campaigns about it.
Australia and iGaming: How much do we spend
Australians lose approximately $38 million on pokies every day. In Australia alone, the gaming industry was counting on $25 billion losses in 2020. Considering that during the 1st quarter of 2020, 5000 pokies venues were closed in Australia, citizens have now saved more than $800 million so far. From pokies games, the losses were estimated to reach $14 billion in 2020. The industry is now looking at less than $10 billion from pokies, depending on when the pokies venues will reopen.
From 2008 to 2018, there has been a rapid change in gambling among Australians, especially at younger ages. 51.8% of the population aged 18-24 gambled in the last three months of 2008, while in 2018, only 25.7% gambled. Aged between 25 and 34, the change in habits was the same as the percentage of the betting population dropped from 56.8% to 37.5%, during the same period. Ages 35-49 had about a 20% drop in gaming. In 2008, 68.2% of Australians gambled in the last trimester of the year, while 46.4% gambled at the same time in 2018. Research showed that ages 50-65+ did not have the same radical drop in numbers as with younger demographics. The population betting between these ages dropped only 8 to 10% from 2008 to 2018.
Source: Savings.com.au
The iGaming is NOT all about winning
The big question for every researcher of gambling activities was, and continues to be to this day, “Why do people gamble”? Even though people are losing money, they continue to gamble without doubts. The answers to this question are many and all based on psychological factors. A significant factor in gaming is the excitement of winning at some point. Pokies players especially might play for enjoyment or excitement. Since pokies are a game of pure chance with little or no skill-based gaming involved people tend to be more excited even when they win a small sum. Another incentive is socialization and escapism, which is a high motivation for pokies players. Research shows that while people start gambling with these intentions, as they keep gaming, their incentives change, and they start going after wins.
According to Mark Griffiths, a psychologist studying behavioural addictions at the Nottingham Trent University states that adrenaline and endorphins are a critical factor of gambling. Even when someone loses money, their body is still producing these substances, making them feel the excitement. A study conducted in 2009 by the University of Stanford showed that 92% of gamblers have, at some point, bet more than they would like initially. Even though they lost money in the end, their opinion and excitement about gambling were still positive.
Australian gamers compared to other countries
While the psychological reasons for gambling are universal, Australians have been characterized as the World’s Biggest Gambling Losers. This is because losses in Australia per adult are the highest ones in the world. In 2017, the average adult in Australia lost $958 per capita, making Australia the king of losses worldwide. Compared to Hong Kong, where losses per adult in the same year were $768 per capita, Australia has lost $190 per capita more than the second place on the list. Looking at the rest of the countries that were the top 15 on gambling losses that year, the results are even worse. Finland lost $515 per capita and came 4th, while the rest of these countries lost less than $500 per capita. Canada, Panama, the United Kingdom, Malta, and Iceland are the last five countries on this list with less than $400 per capita lost that year. Compared to these countries, Australia lost about $300 per capita more.
Responsible Gambling
Responsible gambling is about creating a safe environment for players, where they will be treated fairly and be made aware of the harms that can occur through gaming, such as gambling addiction. This is ensured by government rules, social responsibility, casino’s, and vendor’s responsibility. Some of Australia’s actions are warning signs for gaming addictions in casinos, pubs, clubs, or limits on betting. In Australia, the maximum bet at a pokie machine in a pub or club is 5 Australian dollars. Other measures include restrictions on the speed of betting or the betting amount.
Research has shown that responsible gambling still has a long way to go. The social cost of betting only in Victoria is approximately $7 billion per year when psychological distress, domestic violence, depression, and suicide are considered. Another study has shown that players affect the number of people in their lives according to addiction levels. A “low-risk gambler” affects at least one other person in their lives, while a “moderate-risk gambler” affects 3. “Problem gamblers” affect six other people.
Many Australians believe that responsible gaming has no effect. This is because the measures taken by the government are moderate and still have a long way to go. Gamblers at Crown can still bet an unlimited amount of money, while there is no speed or autoplay limit. Another contradictory decision is the recommendation for more staff members at casinos to observe gambling behaviours and intervene where needed. But considering choices such as limiting time or betting amounts, this often doesn’t affect.
When asked about the phrase “Gamble Responsibly” and its effect on the gambling problems in Australia, 69% of people from 40 to 59 years old said they think it does not affect. The same answer was given by 63% of people between 18 and 39 years old. Only 3% of the people who participated in the poll said this phrase would be useful. Overall, 78% of people think this slogan will not affect gaming problems. The gambling issues in Australia are not going to be solved overnight. It is a worldwide phenomenon with many problems deriving from it. Australia surely has a long way to go regarding the policies on responsible gaming and the solution to the problem occurring by it.
