New gambling research points finger at ‘predatory’ bookmakers

December 12, 2022 7:58 pm.by Peace Nwankpa

Mobile sports betting

A recent investigation into the experiences of former gambling addicts has unveiled disturbing findings concerning Australia’s relationship with the activity.

Mark Kempster was one of the numerous former addicts interviewed and recently made an impassioned appeal to the parliamentary inquiry in charge of the online gambling impact on Australian communities. During the interview, Kempster, who previously worked for an online betting company, spoke about his gambling issue and how he still struggled with abstinence.

He recalled the AFL Grand Final day in 2020 and how he had staked several thousand dollars on the game and lost out. By then, Kempster was already seven years deep into his online gambling addiction, and obsessively placed bets on horse racing and sports match on his mobile phone.

His uncontrollable addiction had already cost his family over $100,000 by the time his partner discovered him. He had also acquired massive debts by then and alienated his family and friends from his secret habit. Kempster revealed that the activity had left him “a shell of the person I was before”, but he was able to overcome it after going cold turkey from gambling for nearly two full years.

Despite his determination, Kempster’s improvement was made difficult, mainly due to how frequently he saw gambling ads and continuous contact with numerous betting companies.

“[Gambling addiction] has a massive, massive impact, and we’re certainly not the only ones experiencing it — it’s tearing families apart,” Kempster’s partner, Maddy, said.

Almost two years into his resolve to cut back from gambling, Kempster turned in a three-page submission that questioned if enough was being done to shield the people from gambling harm. He revealed his disdain for the gambling industry, which, according to him, made a profit from hooking vulnerable people on a harmful habit.

“Gambling is a predatory industry, and they prey on and profit from the most vulnerable people in society,” Kempler said.

“They lack any duty of care to the Australian public, and I think the government’s been happy to turn a blind eye so long as they’re making tax revenue off these companies.”

Australia has had an issue with gambling for a long time and consists of more gamblers than any nation in the world. In a year, the country has recorded $25 billion spent on pokies, sports betting, casinos, lotteries, and animal racing.

Despite the massive amount, recent research revealed that out of Australia’s entire population, only 35% gambled in an average month. Most of the gambling is done by buying lottery tickets.

Online betting, which is conveniently available on phone apps, has revolutionised the gaming industry and, in the process, caused harm to several people in the community.

The activity has recently heightened due to the combination of technology, consistent advertising, and the COVID-19 lockdown. Due to this, Australian gambling has increased by 20% online, higher than in any other country.

Rebecca Jenkinson, a representative from the Australian Gambling Research Centre, explained that although there has been some decrease in conventional forms of gambling, online betting has significantly increased.

“All of the data shows an increase in online gambling during the COVID pandemic, and those increases have been sustained. We had expected that levels would drop off once people were back at work and socialising again, but that didn’t happen,” Dr. Jenkinson explained.

“There are a range of ways it can impact people: conflict in relationships, financial harm from losing money, impacts on work and study due to tiredness or being absent.”

“And a real concern for us is around the emotional or psychological harms — feelings of regret and failure — that are linked to health harms like stress or depression.”

The parliamentary inquiry was made due to the community’s concern over the far-reaching impact of gambling addiction and its potential risk to underage individuals. Over 20 written submissions have been turned in, and several public hearings are being shown online.

Victorian Labor MP Peta Murphy, the committee chair, noted how strongly the community felt about the issue and revealed that they were searching for ways to curb gambling harm.

“As a committee, we have to hear all of the evidence before we reach any conclusions. But it has to be said the evidence that we’ve received so far … is there’s a weight of evidence about increasing harm and concern in the community,” she said.

“This inquiry is not saying that all gambling is evil, and all gambling has to stop … it’s looking at what we can do to minimise harm.”

Responsible Wagering Australia turned in a submission that listed the benefits of gambling to the community and the potency of its current regulation. The industry group explained that a number of its members contributed to over 32,000 jobs in the economy and provided almost $2 billion in levies and taxes in the previous financial year.

The group released a statement saying its members were all committed and would remain so to make sure responsible gambling in Australia was practiced. Responsible Wagering Australia also disclosed that it was open to having a new discussion about possible changes to gambling ads with the government. This was under the condition that they were sustainable and evidence-based.

The parliamentary inquiry community will hold public forums at the start of next year to get the opinion of the broader community on the need for further regulation.

One of the major changes being discussed concerns advertising. Nielson Research revealed that in the past few years, there had been a significant increase in advertising. Television advertisements reportedly increased by 150% in the five years leading up to 2021, causing the industry to spend three times what it did 10 years ago.

Although restrictions were placed on broadcast times and some retouches were recently made to the warning messages, concerned parties asked that gambling advertising be entirely banned. They alternatively suggested that a national regulator streamline and centralise oversight in the industry. Daily gambling limits, similar to the practices in Tasmania, were also proposed.

Researcher Matt Stevens noted the sophisticated techniques gambling companies employ to bring in new unsuspecting punters and expressed concern over it. For the past two decades, Dr. Stevens has had an avid interest in gambling patterns and policy and is currently employed as a research consultant. He revealed that he had never quite seen anything like the popularity of online betting apps.

“Unlike other types of gambling, you can do it lying in bed, sitting on your couch, or going for a walk in the park. And the sports betting industry are incredibly dynamic and smart with their marketing, which is mainly directed at young men,” Dr. Stevens said.

“And what they’re really pushing now are these multis, or multi-bets, where you have two or three bets all linked together.”

“And there’s a reason for that — the research is starting to show these are the worst bets, the ones that people lose on the most, and the odds offered are not commensurate with the betting risk they’re taking.”

The researcher believes that the gaming industry has been given too much control to make gains from a harmful product.

“I would give them a two out of 10 when it comes to the job they’re doing [of behaving responsibly]. We have a system where the regulation and policy is way, way behind the industry – the industry is setting the pace,” Dr. Stevens said.

“And I think [government] has been wilfully turning a blind eye and not actually wanting to make the legislation that would reduce the revenues and taxation income.”

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