Griffiths, M.D. (2007). Mobile phone gambling. In D. Taniar (Ed.), Encyclopedia of Mobile Computing and Commerce. pp.553-556. Pennsylvania: Information Science Reference. more

Encyclopedia of Mobile Computing and Commerce David Taniar Monash University, Australia Volume I A-Mobile Hunters INFORMATION SCIENCE REFERENCE Hershey • London • Melbourne • Singapore Acquisitions Editor: Development Editor: Senior Managing Editor: Managing Editor: Assistant Managing Editor: Copy Editor: Typesetter: Support Staff: Cover Design: Printed at: Kristin Klinger Kristin Roth Jennifer Neidig Sara Reed Diane Huskinson Maria Boyer and Alana Bubnis Diane Huskinson Sharon Berger, Mike Brehm, Elizabeth Duke, and Jamie Snavely Lisa Tosheff Yurchak Printing Inc. Published in the United States of America by Information Science Reference (an imprint of Idea Group Inc.) 701 E. Chocolate Avenue, Suite 200 Hershey PA 17033 Tel: 717-533-8845 Fax: 717-533-8661 E-mail: cust@idea-group.com Web site: http://www.idea-group-ref.com and in the United Kingdom by Information Science Reference (an imprint of Idea Group Inc.) 3 Henrietta Street Covent Garden London WC2E 8LU Tel: 44 20 7240 0856 Fax: 44 20 7379 0609 Web site: http://www.eurospanonline.com Copyright © 2007 by Idea Group Inc. All rights reserved. No part of this publication may be reproduced, stored or distributed in any form or by any means, electronic or mechanical, including photocopying, without written permission from the publisher. Product or company names used in this set are for identification purposes only. Inclusion of the names of the products or companies does not indicate a claim of ownership by IGI of the trademark or registered trademark. Library of Congress Cataloging-in-Publication Data Encyclopedia of mobile computing and commerce / David Taniar, editor. p. cm. Summary: “Nowadays, mobile communication, mobile devices, and mobile computing are widely available. The availability of mobile communication networks has made a huge impact to various applications, including commerce. Consequently, there is a strong relationship between mobile computing and commerce. This book brings to readers articles covering a wide range of mobile technologies and their applications”--Provided by publisher. Includes bibliographical references and index. ISBN 978-1-59904-002-8 (hardcover) -- ISBN 978-1-59904-003-5 (ebook) 1. Mobile computing--Encyclopedias. 2. Mobile communication systems--Encyclopedias. 3. Mobile commerce--Encyclopedias. I. Taniar, David. QA76.59.E47 2007 004.16503--dc22 2006039745 British Cataloguing in Publication Data A Cataloguing in Publication record for this book is available from the British Library. All work contributed to this encyclopedia set is new, previously-unpublished material. The views expressed in this encyclopedia set are those of the authors, but not necessarily of the publisher. Category: M-Entertainment 553 Mobile Phone Gambling Mark Griffiths Nottingham Trent University, UK M INTRODUCTION It is often claimed by marketeers that online gambling (i.e., the combining of gambling and the Internet into one convenient package) makes commercial sense. Gambling looks like it might make another step towards convenience with the advent of mobile phone gambling. This is gambling on the move, whenever, wherever, with the wireless world of mobile gambling. Since it is somewhat unnatural to always be near a computer, it could be argued that wireless mobile phones are the ideal medium for gambling. Whenever gamblers have a few minutes to spare (at the airport, commuting to work, waiting in a queue, etc.), they can occupy themselves by gambling (Griffiths, 2005a). BACKGROUND AND BRIEF OVERVIEW The mobile phone industry has grown rapidly over the last few years. It is predicted that by the end of 2005, the number of international mobile phone users will pass the two billion mark. The latest research by Mintel (2005a) highlights that mobile phone revenues from mobile gambling and gaming is increasingly rapidly. In 2004, mobile gaming revenue reached $200 million. According to the Mintel report, by 2009, mobile gambling is set to generate $3 billion in the United States alone. Despite the huge figure, mobile gambling will only likely account for around 1.5% of mobile industry revenues. It will also be a small part of the overall market as Mintel predicts that the U.S. casino gambling market will generate revenues of almost $71 billion by 2009 (compared to the $48.3 billion generated in 2004). In the UK, mobile phone gambling has also increased dramatically. Mintel (2005b) reported that the number of betting pages downloaded by the end of 2005 was expected to approach three million, up 367% on 2004. Mobile phone users in the UK are set to spend £740m on phone downloads by the end of 2005. This is 18 times the £40m spent in 2002. Ring tones for phones account for approximately one-third of all mobile downloads. Arcade-style games (26%), screensavers and wallpaper (13%), and music (8%) are all popular. However, the biggest growth area has been in gambling, which now accounts for 9% of all mobile phone downloads in the UK. These predictions also seemed to be backed up by Juniper Research (2005) who predicted mobile gambling revenues will total about $19.3 billion worldwide by 2009, with lotteries accounting for about $7.9 billion, sports betting bringing in $6.9 billion, and casino-style gambling contributing $4.5 billion. Juniper predicts that lotteries will make most money for mobile gambling operators because governments are generally less censorious about lotteries than other forms of gambling. They are also easy to play and relatively low cost compared to other types of gambling (Griffiths & Wood, 2001). This means that mobile lotteries are likely to become established fairly quickly in a greater number of markets. Given the ubiquity of lotteries worldwide, it only requires a very small percentage of players to buy their tickets via their mobile phone for the resulting global dollar revenues to run into the billions. Juniper also claims that the growth in the UK National Lottery is almost wholly attributable to mobile betting. Conventional wisdom says that two things have the power to drive any new consumer technology—pornography and gambling (Griffiths, 2001, 2004a). These activities helped satellite and cable television, video, and the Internet. It has been claimed in the media that Internet gambling and adult (pornography) sites are about the only e-businesses easily succeeding, as they provide adult entertainment in a convenient and guilt-free environment. The wireless world of the mobile phone may not be too different. So will gambling compete with pornography for dominance of mobile commerce? Along with pornography, gambling sites are one enterprise that should have little trouble reaching profitability—especially if this is combined with sports events. Sports are huge on the Internet. There are thousands of communities on the Internet built around sports teams or leagues, and even more “unofficial” team sites set up by fans. The most successful of those communities will look to “mobilize” and then “monetize.” To some extent, the majority of gamblers are risk-takers to begin with (Griffiths, 2004b). Therefore, they may be less cautious with new forms of technology. Third-generation (3G) mobile phones are ideal for bet placing, and gamblers will be able to check on their bets and place new ones. Furthermore, it is anonymous and can provide immediate gratification, anytime, anywhere. Anonymity and secrecy may be potential benefits of mobile gambling, as for a lot of people there is still stigma attached to gambling in places like betting shops and casinos (Griffiths & Parke, 2002). Mobile gambling is also well suited to personal (i.e., oneto-one) gambling, where users bet against each other rather than bookies. Online betting exchanges (e.g., betfair.com) Copyright © 2007, Idea Group Inc., distributing in print or electronic forms without written permission of IGI is prohibited. Mobile Phone Gambling are prime examples of where people bet on anything and everything with each other (Griffiths, 2005b). So what types of gambling will work best on mobile phones? Internet gambling lends itself most naturally to “casino-style” games like slot machines, blackjack, roulette, poker, and so forth. These games require more in the form of graphics, sound, and interactivity. These types of gambling are not ideal for mobile devices but have now been introduced on 3G devices. It is unlikely that mobile phone graphics and technology can compete with Internet Web browsers (although the technology is improving all the time). Intuitively, mobile phone gambling is best suited for sports and event betting. With mobile phone betting, all that is required is real-time access to data about the event to be bet on (e.g., a horse race, a football match), and the ability to make a bet in a timely fashion. These basic requirements are easily provided by the current generation of mobile phones and the appropriate software. At present, it looks as though mobile phones’ biggest influence will be on sports betting. The placing of the bet is not the driving motivation in event wagering. Since being the spectator is what sports fans are really interested in, the sports gambler does not need fulfillment from the process of gambling. People betting on sports will use mobile phones because they are easy, convenient, and take no time to boot up. Once they have their sports book registered as a bookmark on their phone, they can access it and place a bet within minutes. FUTURE TRENDS However, the situation will change over time. The new generation of mobile phones already has the capability to play typical “casino-style” games like blackjack, poker, and slots. The limiting aspects of the technological and protocol demands of mobile gambling (graphics, sound, and displays on mobile and personal digital assistant devices) are largely being resolved through technological advance. These advances will allow punters to watch sporting events live on their phones while wagering in real time. Consider the following scenario. A betting service that knows where you are and/or what you are doing has the capacity to suggest something context related to the mobile user to bet on. For instance, if the mobile phone user bought a ticket for a soccer match using an electronic service, this service may share this information with a betting company. If in that match the referee gives a penalty for one team, a person’s mobile phone could ring and give the user an opportunity (on screen) to bet whether or not the penalty will be scored. On this type of service, the mobile phone user will only have to decide if he or she wants to bet, and if so, the amount of money. Two clicks and the bet will be placed. Context, timeliness, simplicity, and above all user 554 involvement look like enough also to convince people who never entered a bet shop. The scenario described is not as far-fetched as it would seem. Manchester United soccer club has transformed itself into a powerful media company. It has launched its own digital TV channel, signed up a host of big-name technology partners (including Vodaphone, Sun, Lotus, and Informix), and started an ISP service. Its partnership with Vodaphone is perhaps a sign of the shape of things to come. In addition to sponsoring the club’s kit, Vodafone will also get the chance to develop co-branded mobile services with the club. This will offer users access to content similar to the company’s Web site (receiving real-time scores and team news via SMS). What Vodafone is heading towards is the ultimate goal—live video of matches, straight to mobiles, anywhere in the world. While watching matches, users will be able to view statistics, player biographies, and order merchandise. So what does all this have to do with gambling? Mobility will facilitate an increase in “personalized” gambling, for example, the types of service offered by Eurobet’s Match service, where bettors gamble against each other, rather than the house. Gambling will become part of the match day experience. A typical scenario might involve a £10 bet with a friend on a weekend football match. The gambler can text the friend via SMS and log on to the betting service to make a bet. If the friend accepts, the gambler has the chance to win (or lose). Football clubs will get a share of the profits from the service. Clubs are keen to get fans using branded mobile devices where they can simply hit a “bet” button and place a wager with the club’s mobile phone partner. The penetration of wireless gambling will mostly be contingent upon the market penetration of wireless Web users in general. The mobile phone market is already large in many parts of the world. Juniper predicts that by 2009, mobile gambling revenues will be concentrated in Europe (37%) and the Asia-Pacific region (39%). They predict that North America will produce only 15% of global revenues because of government and societal opposition to wireless gambling. If these numbers are combined with the popularity of gambling, it could be speculated that there is the basis for a very profitable enterprise. As with all new forms of technological gambling, ease of use is paramount to success. In the early days of WAP phones, programming the phone to use the protocol was very difficult. However, mobile phones are becoming more user friendly. Pricing structures are also important. Internet access and mobile phone use that is paid for by the minute produces very different customer behavior to those that have one-off payment fees (e.g., unlimited use and access for a monthly rental fee). The latter payment structure would appear to facilitate leisure use, as consumers would not be worried that for every extra minute they are online, they are increasing the size of their bills. Mobile Phone Gambling SOCIAL IMPACT: SOME CONCERNS As with all new forms of technology—especially when used for gambling—there are some areas of potential concern. These are briefly outlined below (adapted from Griffiths, 2004c). Youth Gambling It has also been claimed that promoters of mobile phone gambling think it will attract a younger breed of gambler. In fact some companies are deliberately targeting the under16 market with mobile phones specially designed for them, although they are not targeting gambling per se. This is something that needs to be monitored (Smeaton & Griffiths, 2004). Mobile phones that do not implement a user ID program will be very hard to trace and check—in particular when it comes to under-age customers trying to place a bet. However, the industry claims one way to tackle underage use is through a pre-paid card system. Pre-pay systems are bound by the same security and accounting best practices currently employed within the casinos today. This may potentially minimize problem gambling and prevents access to minors since distribution is controlled by the operator. As we can see, potential social impact always follows new developing markets. Mobile phone gambling is clearly an area that needs in-depth monitoring of the psychosocial impact over the next few years. M Access and Convenience As already (implicitly) mentioned, mobile gambling’s greatest advantage (even over the Internet) is its accessibility. Gamblers with mobile phones are no longer bound to computers and Internet access. The only thing that separates a mobile phone gambler from his or her favorite games is network coverage. Regardless of location, anyone can bet on their favorite sporting event or play their favorite casino games via mobile phone. Mobile phone gambling eliminates geographical borders, travel, and queuing up to bet. With mobile gambling, anyone can (theoretically) gamble 24 hours a day, seven days a week from the gambler’s preferred location. It could also be argued that mobile phones make “impulse betting” easier. Like Internet gambling, it is also another example of convenience gambling (Griffiths, 2003a, 2005a). Given that prevalence of behaviors is strongly correlated with increased access to the activity, it is not surprising that the development of regular mobile use is increasing across the population. Increased accessibility may also lead to increased problems. Research into other socially acceptable but potentially addictive behaviors (drinking alcohol) has demonstrated that increased accessibility leads to increased uptake (i.e., regular use) and that this eventually leads to an increase in problems (although the increase may not be proportional) (Griffiths, 2003b). CONCLUSION It is clear that mobile phone gambling is still a relatively untapped area, and the functional capabilities of mobile phones are getting better all the time. Cell phones are rapidly growing in their functional capabilities. Mobile gambling is available on most of the mobile phones that are powered by Windows Mobile, Symbian OS, RIM including Java, and browser-based phones. There are now Internet sites that allow mobile phones to download casino-style games to the gambler’s phone, allowing real money betting from anywhere they can get a phone signal. As the new generation of mobile phones accept Java programming, the high-end graphic display can be used to deliver live video feeds for the various casino games. It appears that sophisticated mobile phone technology is increasingly able to integrate within our culture. This will have implications for the social impact and will need monitoring. The research by both Mintel and Juniper raises the possibility that almost unlimited access to mobile phone gambling will lead to more problem gambling. Like Internet gambling, mobile phone gambling has completely changed the way people think about betting. Mobile phones provide the convenience of making bets or gambling from wherever the person is. On paper, this all sounds relatively simple and is set to get even easier. Many gaming industry observers are claiming that in the not too distant future, people will not go to sporting events like horse races or football anymore. They will simply watch the sport on television and place bets via their mobile phones. Targeting the Low Earners A popular claim by anti-gambling campaigners is that the low-limit bets and the relatively low payouts on many types of mobile phone gambling will attract mostly lower-class gamblers. However, most low-income workers are unlikely to own a brand-new high-tech PDA or mobile phone that incorporates such technology and services (although as prices continue to decrease, this may change). According to the gaming industry, mobile phone betting requires a very high standard of security and reliability that can only be reached with the newest (and most expensive) mobile phones. Regardless of disposable income, mobile phone gambling providers must (at the very least) allow gamblers to set pre-determined spending limits. This will help the gambler to avoid chasing losses (a known risk factor that facilitates problem gambling). 555 Mobile Phone Gambling REFERENCES Griffiths, M. D. (1999). Gambling technologies: Prospects for problem gambling. Journal of Gambling Studies, 15, 265-283. Griffiths, M. D. (2001). Sex on the Internet: Observations and implications for sex addiction. Journal of Sex Research, 38, 333-342. Griffiths, M. D. (2003a). Internet gambling: Issues, concerns and recommendations. CyberPsychology and Behavior, 6, 557-568. Griffiths, M. D. (2003b). Adolescent gambling: Risk factors and implications for prevention, intervention, and treatment. In D. Romer (Ed.), Reducing adolescent risk: Toward an integrated approach (pp. 223-238). London: Sage. Griffiths, M. D. (2004a). Mobile phone gambling: Preparing for take off. World Online Gambling Law Report, 8(3), 6-7. Griffiths, M. D. (2004b). Betting your life on it: Problem gambling has clear health related consequences. British Medical Journal, 329, 1055-1056. Griffiths, M. D. (2004c). Interactive television gambling: Should we be concerned? World Online Gambling Law Report, 3(3), 11-12. Griffiths, M. D. (2005a). Remote gambling: Psychosocial aspects. In Proceedings of Remote Gambling (Westminster E-Forum Seminar Series) (pp. 11-20). London: Westminster Forum Projects Ltd. Griffiths, M.D. (2005b). Online betting exchanges: A brief overview. Youth Gambling International, 5(2), 1-2. Griffiths, M. D., & Parke, J. (2002). The social impact of Internet gambling. Social Science Computer Review, 20, 312-320. Griffiths, M. D., & Wood, R. T. A. (2001). The psychology of lottery gambling. International Gambling Studies, 1, 27-44. Juniper Research. (2005). Betting on mobile gambling. Retrieved October 11, 2005, from http://www.spin3.com/ in070305mobilegambling.php Mintel. (2005a). Mobile gambling expected to sweep the U.S. Retrieved October 3, 2005, from http://www.spin3. com/sweep.php Mintel. (2005b). Mobile phone gambling on the increase. Retrieved October 3, 2005, from http://www.onlinecasinonews.com/ocnv2_1/article/article.asp?id=8684 Smeaton, M., & Griffiths, M. D. (2004). Internet gambling and social responsibility: An exploratory study. CyberPsychology and Behavior, 7, 49-57. KEY TERMS Convenience Gambling: Remote forms of gambling such as Internet gambling, interactive television gambling, and mobile phone gambling. Convenience gambling allows the gambler to gamble when he or she wants to without leaving the comfort of home and/or the workplace. Java: A feature that allows the device to run specially written applications. Java applications can provide specific functions such as games, or they can be custom-written corporate applications. Some phones allow the user to download new applications directly from Internet, while others require a data cable to transfer the applications from a PC. Mobile Gambling: One of several mobile (cellular) phone activities that are similar to online (Internet) gambling and offer the chance for players to win money on a range of different gambling activities. Mobile Gaming: Video games played on mobile (cellular) phones. There is no opportunity to win money on these types of game. Mobile Phone: A wireless telephone that sends and receives messages using radiofrequency energy in the 800900 megahertz portion of the radiofrequency (RF) spectrum. Also called a cell phone. Short Message Service (SMS): A service that enables subscribers to send short text messages (usually about 160 characters) to and from mobile phones. Third Generation (3G): Analog cellular phones were the first generation. Digital marked the second generation. 3G is loosely defined, but generally includes high data speeds, always-on data access, and greater voice capacity. The high data speeds are possibly the most prominent feature and certainly the most hyped. They enable such advanced features as live, streaming video. 556