Notes of the Social Gaming Expert Seminar 3 December 2012

Transcription

1 Notes of the Social Gaming Expert Seminar 3 December 2012 Venue: Gambling Commission, Victoria Square House, Birmingham 1. Introduction and welcome 1.1 Sir Brian Pomeroy, the Chair of Responsible Gambling Strategy Board (RGSB) welcomed attendees to the Social Gaming Expert Seminar (the seminar). 1.2 The RGSB has taken up the Gambling Commission s (the Commission s) invitation to lead a debate on this and the seminar is used to scope an understanding of social gaming and any regulatory implications that there might be. The RGSB (independent of the Commission) has identified social gaming as a topic requiring attention in relation to gambling-related harm. 1.3 The RGSB Strategy was published on Monday 3 December and states that there is a need to understand evidence to support concerns about exposure to gambling and gambling-like behaviour through social gaming. The Strategy recommends that more research is needed about social gaming. 1.4 There is growing interest in social gaming as the market develops. Facebook launched its first real money game (Bingo Friendzy) over the summer. There is also a lot of interest (by the RGSB) in non-monetary games and whether these could pose risks. 1.5 Industry representative groups are starting to form around social gaming and it is a very live issue within the digital economy. Experts have been brought together today to try to understand the implications of social gaming. 1.6 The Chair of RGSB explained the objectives of the day and introduced the first session. 2. Academic discussion 2.1 Matthew Hill, Director of Regulatory Risk and Analysis, Gambling Commission, introduced the panellists for the academic discussion: Professor Mark Griffiths, Nottingham Trent University Jane Rigbye, The Gambling Lab Dr Jonathan Parke, The Gambling Lab Heather Wardle, University of Glasgow 2.2 The attendees were shown the tag cloud What is social gaming from the survey of delegates that was completed prior to the seminar. Social gaming and convergence with gambling Professor Mark Griffiths 2.3 Professor Mark Griffiths outlined the contextual factors involved in social gaming. 2.4 As of June 2012, there are 31 million registered adult users of Facebook in the UK. A study by Experian showed that people spend on average 22 minutes a day on Facebook. Following use of a social networking site [research shows that] people will then go to an entertainment site. This shows that there is a market for people who would want to engage with gambling-type products. 2.5 Social networking is also profitable, from Facebook 123million came from social gaming.

2 2.6 A preconception of gaming and social gaming is that this is the domain of adolescents. However, there is already a mature gaming market (the average gamer is usually male and in their 30s). The attendees were shown a graph showing users of social games on a mobile/smartphone are more likely to be years. 2.7 In the summer of 2012, the first game with gambling-like elements (playing for real money) was introduced on Facebook (Bingo Friendzy). Playing games has become commonplace for social networks and the monthly average use figures (MAU) for the top Facebook games in November 2012 were 64,300,300 for Farmville 2 (retained as the top played game) and Texas Hold em Poker with a MAU of 34,000,000 in second place. Texas Hold em Poker was also the second most daily played game on Facebook in November Gambling-type games (whether played for money or points) are popular within social networks. 2.8 There is currently no accepted definition of what social gaming is. Professor Mark Griffiths defined social gaming as games played via a social network platform. Gambling operators (online) are moving into the social gaming market and vice versa with social gaming companies moving into gambling. The lines are beginning to blur and this raises issues of moral, ethical, legality and social especially with implications for young people. 2.9 Gamesys were one of the first companies to move from a freemium model (free, premium games where players pay for additional extras to enhance play) to a play for real money model. The company s casino and slots apps have 1.7million monthly users. Bwin are currently setting up a social gaming division within the company which shows the popularity of social games There are drivers and restraints for social gaming. Professor Mark Griffiths explained that drivers for social gaming are: a desire to gamble disposable income social gaming is convenient and easily available, for example, via a smartphone technology is improving an increase in social networking users and also a change in the target audience on Facebook from young people to much more diverse audience social games are very user friendly The constraints for social gaming are: regulatory issues - any company operating social gaming has to work within the jurisdiction of each country age verification user confidence payment processing there may also be issues around network speed, for example those with slower broadband may not wish to engage in social gaming The constraints may be removed and therefore in a sense become drivers in the future Technology is becoming increasingly convergent and people of all ages are interacting with various different technologies (video games, smartphones, interactive TV etc) and gambling-type elements are becoming more popular (De Freitas & Griffiths, 2008; King, Delfabbro & Griffiths, 2010). All provide interesting regulatory, moral and social issues Professor Mark Griffiths explained the rising trends and social groups in relation to social gaming. More women are now happy to gamble. Facebook allows for a safe environment for women to access social games Another social group on the rise is digital natives (young children who have grown up with technological forms such as internet, smartphones etc) and use social networks frequently. This group is entirely trusting in technology. Page 2 of 15

3 2.16 There is currently very minimal research completed on social gaming. There is an increase in mobile type gaming and that people can now access social networks on the move There is also a growing market in advertising via social networks There is also an increase in online therapy, the internet is perceived as non-threatening and comfortable. This may be a way to reach people affected by gambling-related harm There is an emergence of a new type of problem (which social network gamblers may fit into) which is different from the traditional problem gambler. The new type of social network gambler loses more time rather than money. Traditional problem gambling tends to be mainly associated with financial consequences of losing. It is possible that social network gaming/gambling could fit into this time-loss problem gambling model Professor Mark Griffiths provided examples of social games that may appeal to children. Social games may introduce players to the principles and excitement of gambling Small, unpredictable rewards for the consumer of social gaming leads to highly engaged players and repeat custom. This could lead to addictive behaviour The psycho-social impact of social gaming has only just begun to be investigated. Social networking sites may normalise gambling-like behaviour and this may change the social understanding and the role of gambling in the future amongst young people Ipsos MORI completed a study in 2011 (for the National Lottery Commission) which they found that one in seven children played a form of free or practice gambling games. The most popular form of practice being through Facebook. It is understood that no money is changing hands in these types of games, however we do not know how these types of games influence children s/young people s attitudes towards gambling Today s youth are techno-savvy. Children s first exposure to gambling may be through social networking sites Social games may also prove to be a virtual asset addiction i.e. the consumer will part with money for virtual goods to for example, customise their gaming experience. This becomes more like gambling as social gamers understand they are spending little money with little or no return. They are buying entertainment and the intrinsic play of the game can be highly psychologically rewarding Unlike most social gamers, gamblers do have the chance of getting some of their virtual money back. However, social gamers are prepared to pay to buy points/credits to play poker (for example). By introducing real gambling into social network games gives players a chance to get some money back and this could make games more attractive Professor Mark Griffiths introduced the four elements to successful games (from the work of Nicole Lazzaro): hard fun, for example have difficult obstacles to overcome easy fun, so enjoyment of the game altered state it changes people s psychological mood state people factor being able to socially interact with other players Social network games seem to fit this description quite well Facebook is changing the way that people and gamblers play games. There is also little research on the psycho-social impact of gambling via social network sites. The playing of free games is one of the risk factors for the uptake of real gambling and problem gambling. Group discussion: 2.30 Dr Carolyn Downs, University of Lancaster explained that her research into social gaming showed that young people are lying about their age on Facebook to participate in gambling-like activities. Research in 2007 (with mainly girls aged from middle-class families) showed that they had all bought lottery tickets, scratchcards and visited arcades. Page 3 of 15

4 2.31 Dr Henrietta Bowden-Jones, RGSB asked the difference between addiction to online gaming (for example World of Warcraft) and someone who spends all their time on social gaming websites. Addiction was defined as an activity that impacts on daily living that produces withdrawal symptoms, does not allow engagement in other activities, produces conflict in areas of their life and causes relapses. It was also re-iterated that games played via a social network platform are being classed as social games An industry lawyer asked the panel about views on imagery for the social games (in particular, Bingo Friendzy) Dr Carolyn Downs, University of Lancaster explained a lot of the imagery used in social games is very similar to imagery used by Bingo Friendzy which may make it appealing to children. Research into message boards on Facebook groups especially with regards to poker show profiles which use a school address. There are also messages [within these groups] about gambling websites to try and how to avoid the age controls. Carolyn Downs suggested that this is another area which needs research. What is social gaming? Jane Rigbye, Gambling Lab 2.34 Jane Rigbye, Gambling Lab explained that social gaming is structured activities that have contextual roles, through which users can engage with each other. Therefore, games which are played socially. Their features are that they are casual, more than one player and player take turns. They are often games which are based on a social platform and provide players with an identity Jane Rigbye explained that when talking about social platforms, this does not only mean social networking sites but other areas of the internet too Social gaming has been used to describe all types of games on Facebook and used to describe the real money games available on Facebook, however it can also be used to describe regulated gambling that is available through social mechanisms Rachel Church-Sanders work reviews the market and industry data and came up with classification of social game genres (particularly turn based card or parlour games and virtual currency gambling). However within these terms there are too many variants. There is a need to have a more specific classification that looks at gaming across different platforms A study by Daniel King (2012) looked at simulated gambling in virtual environments and identified a typology of gambling as it appears in all gaming: Standard gambling simulation: a digitally simulated interactive gambling activity that is structurally identical to the standard format of an established gambling activity, such as blackjack or roulette. This referred to as social gaming, for example Zynga Poker. Non-standard gambling simulation: an interactive gambling activity that involves the wagering of in-game credits or other items on an uncertain outcome, in an activity that may be partially modelled on a standard gambling activity but which contains distinct player rules or other structural components that differ from established gambling games. Such as Runescape which offers games that look like gambling but are actually not. Gambling references: the appearance of non-interactive gambling material or gambling-related paraphernalia/materials within the context of the video game It was queried whether this study had been published The above classification does distinguish virtual currencies and real money play, what games might be social and not social, different types of gambling that may fall within the typologies above. There is a need to research more in these fields as these will have an impact on the different risks that may come out of social gaming Jane Rigbye presented emerging classifications from the work she was undertaking from the Commission (2013): Page 4 of 15

5 Console Based Gambling betting on the outcome of video games via an internet connection. This could be person to person (informal and not regulated) or it can be facilitated by an external operator, for example Virgin Games. Massively Multiplayer Online Role Playing Games (MMORPG) Based Gambling important to consider in the realm of social gaming. There are different types of gambling available in virtual worlds for example Squeal of Fortune in Runescape. This is an optional activity in Runescape and is not intrinsic to game play. It is possible to win prizes and also to post these to social media platforms. Online Gambling does have social elements for example chat rooms on a poker website, however the social element is not intrinsic like social games. Online Social Gambling gambling that is offered through social networking sites. They can play for free or for real money. For example, Paddy Power has launched Betdash. Social Networking Site (SNS) Gaming this has optional gambling within gaming on SNS, for example, Happy Island or CityVille which has gambling-like elements which has an option to play slots to win prizes to enhance play. SNS Freemium Gambling games specifically designed around gambling. There is a choice to pay to enhance play, micro-transactions are encouraged in these types of games. For example, Doubledown casino. SNS Real Money Gambling an example of this is Bingo Friendzy. Facebook are in talks to launch more gambling games similar to this. App-Freemium Gambling App-Real Money Gambling Apps were included as an important part of social gaming. There are a lot of social elements in apps and social interaction is encouraged for example, sending links/scores to Facebook profile page, sharing achievements with friends. Many SNS freemium gambling games are mirrored and available as apps for Iphone/Android etc and information can be shared between devices The classifications were not presented as hierarchical as there is still research to be done on which social games are more or less like regulated gambling. It is however descriptive and these classifications are intended as a framework and starting point when considering protective factors and risks There are three main evolving game priorities that have been identified: extent to which they offer increased accessibility enhanced social component implications of the freemium model. The potential risks and protective factors? Dr Jonathan Parke, Gambling Lab 2.45 There is a need to explore the different risks and protective factors, for example accessibility and the implications of freemium games Part of the research is to scope out the way in which the social component is enhanced Freemium as a definition is where a game is free to play however gives the option to pay for enhanced play but cannot win any financial prizes (no cash-out) There is also increased accessibility, especially with smartphones and tablets The first potential risk factor is a cultural one. The micro-environment is changing and gambling is now seen as a legitimate form of social life. There is a cultural shift and now a more responsible approach to gambling. However, earlier exposure to young people could mean a bigger risk factor for problem gambling There is a risk of social influence. There is a degree of trust with social games, for example 90% of people would consider using a product if one of their friends had done so People tend to spend more when being watched. Activity becomes a permanent feature on profile pages (on Facebook, for example). Page 5 of 15

6 2.52 There is also a social inhibition effect, for example showing all activity on Facebook on social games may lead others to be concerned. It might also inhibit behaviour. It is not clear what role social forces play in influencing social gaming behaviour How does this produce new rewards and new risks? For example, posting wins, notifications. Social motivation has low importance with gamblers. A theory is that traditional or problem gamblers may be put off by the social component of social gaming. It would not address the key function of why they are participating in gambling It is possible that the traditional gambler would not find the graphics, effects, advertisements as engaging as normal forms of gambling Social media marketing is low cost, fast and highly efficient and this form of marketing could be used to make social games more pro responsible gambling There is the value of creation in social gaming. Should we be discounting what happens in a virtual environment? The legal position of virtual currency is ambiguous. An example of a social slot game was shown to attendees and explained how collected a large amount of credits. It raises the question of what is the consumer buying? 2.57 Social games are monitored by social network sites such as Facebook and may produce perceived risk. When a game is being endorsed by friends and peers, the user will not scrutinise the content as much The Gambling Lab have been scrutinising what happens during play of social games. There is social influence as your friends can see what has been purchased and the user can collect free points/credits We do not know what the implications are for social gambling It was suggested that the freemium side of social gaming might prove to be less risky. In social gaming there is no option to get the money back Social gaming is another form of gambling. It is known that gambling and the internet can both be addictive, therefore is it doubly addictive? 2.62 Social gaming has the ability to satisfy human needs in a very accessible way. There are psycho-social motivations to gamble The final point was that there is no robust age verification available on Facebook (unless gambling for real money). Not only being exposed to the social games, users are exposed to advertising set for specific age/target groups There is still research needed to be completed on social gaming and social networks. Secondary analysis of National Lottery Commission data Heather Wardle, University of Glasgow 2.65 This presentation was to provide an overview of who (aged 11-16) uses social networking sites freemium games, examine this in relation to other gambling data and present research findings Social games are popular internationally, however we do not really know what is happening with social games in the UK Heather Wardle asked for clarification from the industry on people talking about the game (for example). This raises the question of what makes people play these types of games? Is it the game content itself or is the social interaction of the game? 2.68 Between January-April 2012, the study asked year olds: Have you played any of these free or practice gambling games on the internet in the past 7 days? (freemium gambling) No, I have not played any free or practice gambling games Page 6 of 15

7 Bebo gambling games (e.g. Blackjack, Roulette, Poker or Bingo) Facebook gambling games (e.g. Blackjack, Roulette, Poker or Bingo) MySpace gambling games (e.g. Blackjack, Roulette, Poker or Bingo) Free online blackjack Free online bingo Free online roulette Free online poker websites (e.g. Zynga poker) Any other free or practice gambling games on the internet Don t know 2.69 Facebook social network platform was the most popular form to play games on. Boys were more likely to participate in each one of the types of games. There is a large variation in the popularity of games between boys (15%) and girls (6%) The second most popular was the free online poker sites This means that 11% of year olds had taken part in a form of social network site freemium gambling. What was interesting was that it was a very limited variation by age group, social gaming was just as popular amongst 11 year olds as it was amongst 16 year olds Playing social games is currently more popular amount young people than going to a youth club, doing drama classes, arts and crafts, music groups etc From the data, we are able to look at which groups of young people are more likely to take part. Living in a single parent household had the highest rate of participation in social gaming for both boys and girls There is a strong correlation between those taking part in the freemium gambling and those who had taken part in online gambling. For example, playing cards with friends for money Social networking site freemium gambling is very rarely undertaken on its own, combining it usually with engagement with other free games or with gambling itself. This is notably the case for boys. For girls there is a slightly differentiated pattern, most are just doing the freemium form of gambling with money itself. What differentiates the boys and the girls is that girls participate less in free gambling websites. This could mean that the girls find [a safer environment] in social networking sites. This could be another area to research The study shows that young people are combining social gaming with other forms of gambling. There is significant overlap with the playing of free games and gambling itself The study shows that social networking is part of youth culture, however we cannot say if it does cause people to gamble for money, it is just an association Gambling behaviour could also be due to the context in which youth are living such as household, where educated, area lived, parental attitudes etc. It is important to consider this alongside behaviour We need to gain a better understanding of how and why young people use social gaming, understand different perspectives, how young people understand it themselves, how it is attractive to young people, education etc Discussed use of imagery that may be attractive to young people, however in a broader trend the use of animation for games started off in Japan and spread by which animation was used to make technology less frightening and so more people can engage There is a great deal of overlap between social network site games and gambling. This could be used to develop prevention work and education work as young people have shown that they are engaged with both social games and gambling. Group discussion: Why are we bothered and what is different about social gaming? Page 7 of 15

8 2.82 The panel were asked what is different about social gaming Professor Mark Griffiths -there is a lot of displacement surrounding social gaming. There is not a lot of difference with social gaming and online gambling and it is possible that studies in the future will show this Being able to play online 24/7 gives people accessibility to gambling. For people who are vulnerable or susceptible already [to problem gambling], an online environment can facilitate or enhance that pre-disposition. This is a reason for concerns surrounding online social network games Dr Jonathan Parke motivation. Social games are blurring the type of activity that is being participated in. Currently we are unsure what it is is it gaming or gambling? Or combined is it something distinct? Social games are perceived as twice as addictive as gambling, however it is possible that social games are diluting the impact of what the activity actually is. This dilution could also attract a different type of person to social gaming and there is a possibility that the core player group will be slightly different to traditional gamblers There is an environmental factor to consider as well as not just young people, but all people are being more exposed to gambling, not just young people Two challenges of social games are transparency and player control Matthew Hill - is there something inherently new about this style of interaction within social games? 2.89 Dr Carolyn Downs, Lancaster University. There is a different type of player, in particular girls who started playing social games because it was recommended by friends and peers. There is a new way of engagement and attraction to gambling. Girls also have different types of motivation such as gambling to receive virtual goods for their virtual world Matthew Hill des this make it a different type of product? There is a spectrum of products and different impacts such as uncontrolled loss of time and uncontrolled loss of money. Is the experience that Carolyn mentioned captured within this spectrum? 2.91 Professor Mark Griffiths Dr Carolyn Down s original paper - Young people playing with risk: social networking and the normalisation of gambling behaviours (2010) talked about fluff art and girls having to win stakes in order to get virtual prizes for their social environment. This was a fundamental part of the gaming; girls had to gamble to make their social environment beautiful. It is the mechanics of gambling using points rather than money but it takes a lot of time to create a personalised space Dr Carolyn Downs what was interesting was the levels of anxiety felt from not winning and a lot of the goods had limited availability. If the girls lost all their virtual currency, they were genuinely distressed compared to boys. There is a difference in the rationale for gambling and also the perception of the games between boys and girls Professor David Miers, RGSB interested in the point that Professor Mark Griffiths made regarding loss of time and there is an issue of social judgement on how we spend our time Gambling operator our starting point is that gambling is not intrinsically wrong but an entertainment experience. Buying assets and entertainment is the whole essence of social gaming and encourages people to buy time. There should not be any social judgement on the person for buying entertainment through social gaming (or gambling) Dr Henrietta Bowden-Jones, RGSB is social gaming just replacing TV watching (for example) or do we need to be far more concerned with it to begin with? There is a responsibility to make sure the right research is conducted on the vulnerabilities associated with social gaming The panel were asked to provide closing remarks: Heather Wardle, University of Glasgow we should be bothered now as at previous social gaming/gambling summits, panels were asked what the next big Page 8 of 15

9 turning point would be and all said gambling. The now is very pertinent and we should be more bothered about youth and social gaming. We do need to be careful about social judgements, we live in a jurisdiction where gambling is a positive leisure activity. There is a need to look more closely at youth and social gaming in particular. Dr Jonathan Parke, the Gambling Lab the biggest issue that problem gamblers face is that social gaming may become a trigger. There may be some regulation of social gaming in the future. Jane Rigbye There is potential for use of social media (such as Facebook) to mitigate harms. Gamcare now has a social media presence to engage with young people which is increasing awareness. Professor Mark Griffiths, Nottingham Trent University there is a loss of time with social gaming, however there is nothing wrong with that if it doesn t interfere with lives. It all depends on context. There is a need to explore the wider question surrounding social gaming. 3. Delivery models, risks and solutions panel discussion 3.1 The panel consisted of: Melissa Blau, Social Gaming Association (moderator) Richard Wade, Rank Group Jonathan Flesher, Betable Tina Thakor-Rankin, Virgin Games Raf Keustermans, Plumbee 3.2 This panel represents the commercial side of the social gaming business. Social gaming is a highly debated topic amongst the industry. The Social Gaming Association (SGA) was started to help the gambling and social gaming industries work better together and bring more responsibility to the social games side of the business. The important issues for the SGA are transparency of the game, marketing to minors, social responsibility and ensuring that virtual currency stays virtual. 3.3 Melissa Blau provided an overview of the social market: online gambling still has a higher revenue of $35bn compared to social games ($2bn), however there are 800m people that play games, 170m play social games examples of social games were provided, for example slotomania and mirrorball the difference between free-play and virtual currency is that there needs to be a value to the currency, there needs to be levelling up and unlocking of items etc. This needs to be managed through supply and demand Bingo Friendzy is the first real money gambling app. This launched in summer This game requires a second sign-in to play and this is different to all other social games. This has moved the social game into real money gambling. My Vegas provides virtual currency and the option to get prizes through playing slots. the majority of online gaming/gambling sites have this child-like appeal and it is not just the Facebook social games. there are free-play, virtual currency, social gambling and real money gambling. 3.4 Melissa Blau asked the panel to introduce themselves and provide an overview with what their company is doing within social gaming. Richard Wade, Rank Group 3.5 Richard Wade introduced how the Rank Group (a licensed gambling operator) use social gaming to bring new customers to their site. Rank has a social responsibility protection policy in place for their social games. They monitor time spent on their casino products to protect vulnerable people and to work with regulators. Page 9 of 15

10 3.6 Rank s initial thought was that this type of game should be regulated, however have since modified their position. 3.7 Rank has two bingo games on Facebook. Measures were put in place to monitor what people did on the game. The average time spent on Rank s products is 14 minutes 59 seconds. The average spend on the game is not a huge amount of money. There are links available to the Mecca Bingo site from the social media game. If the links are clicked (from Facebook, for example) it takes the user to an age verification page. 3.8 Age verification and underage policy are totally reliable on Facebook for their social game. There is not much that can be done without putting in several controls and making it on par with a real online gaming site. Rank believe that for most players this may be off-putting. There is a commercial balance to ensure it is a product that people want to play without having to give further personal details (for age verification purposes, for example). Rank is currently keeping this under advisement. 3.9 Rank believes that their bingo social game is not hugely attractive to children. The gambling industry have used child-like imagery for years (on slot machines etc) and psychologically this does encourage people to play and brings back memories of childhood. This is not just something that has been born from social gaming Rank does specifically require people who play on their social games to be over 18. Rank does believe that they are able to look after their own products as they have been regulated for a number of years. Jonathan Flesher, Betable 3.11 Jonathan Flesher, Betable - developing a free to play product into a monetised product Social gaming is a rapidly evolving space. The terms used (such as virtual currency etc) are in their infancy. The space is new (i.e. on a social media platform) however the issues are not new. This has been seen over time within various forms of media (provided the example of Grand Theft Auto game) Thought does need to go into the development of games that are on social platforms as these access the social graph (a connection between people). On Facebook this is usually a person s real identity whereas on Xbox (for example) there are gamer names/tags There is a natural social inhibitor within social gaming as the player would not want to display losing large amounts on gambling to friends/family. It will be interesting to see how this plays out on Facebook Social network games are very different to online gambling sites (reference was made to casino games) It is far too early to say whether regulation is needed. Tina Thakor-Rankin, Virgin Games 3.17 Tina Thakor-Rankin, explained that Virgin Games are currently sitting on the fence and have made no decision to create a social game Tina Thakor-Rankin agreed with what Jonathan Flesher said regarding the social inhibitor of social gaming While Zynga is moving into the realms of real money gambling, Virgin Games feel more market research is needed especially into the legal status of virtual currency. This may involve some financial regulation too. Virgin Games need to see how the social gaming market develops first If Virgin Games were to create a social media game, they feel that casino card games would be more appealing. Facebook is a very cost effective way of marketing products compared to other forms of marketing (such as TV, print etc). The customer does the marketing for you. Page 10 of 15

11 3.21 It will take time for Virgin to come on board with social gaming as they wish to see what happens commercially with it. Raf Keustermans, Plumbee 3.22 The game is currently doing very well, particularly in USA and Australia with credits for being a high quality game. Commercially the game has been successful Currently only 2% of their players are based in the UK. The average age of a Mirrorball slots player is 52 years old. Less than 1% of the user base [of Mirrorball slots] is under 21 years. 70% of the users are female UK regulation may make it very expensive for the game to continue and they may opt to close it in the UK if this is the case Mirrorball Slots currently uses Facebook as an advertising platform In terms of responsibility and whether these games should be regulated, this is a very interesting debate. Self regulation driven by the platform owners (such as Facebook) would solve a lot of issues. Every country in Europe currently has their own set of rules and regulation which the game adheres to Melissa Blau - it may not be possible to rely on Facebook to drive self regulation due to the culture of the organisation Raf Keustermans - we need to be careful that a situation is not created where regulators need to take control. In a space where there is currently confusion and no real definitions, the industry needs to be cautious Jonathan Flesher- Facebook was not set up originally with age verification, if this was implemented on Facebook, it would lose a lot of what it is The panel discussed secondary login on Facebook for real money gambling Melissa Blau real money gambling on Facebook may not be as big as there is a social inhibitor as the user will not want to tell all their friends that you are playing social games Facebook is an eco-system that uses channels to allow posts to go viral. There are sub eco-systems too, social games being one of these Melissa Blau - how do you manage the success of a social game within a competitive world? 3.34 Richard Wade Rank are managing a small budget on social games. The investment of social games is the return of the customer and exposure to the Rank brand on Facebook Tina Thakor-Rankin social casino card games are more popular to gamblers Jonathan Flesher people are spending more on social games because it is nice to have however it may change to be more competitive spend and a must have. The games should also have the correct age verification The panel opened for a group discussion. Group discussion 3.38 Rebecca Cassidy (Goldsmiths University) - the industry does not want to target under 21s, would there be a problem if some kind of system was introduced to state that certain types of games are not available to under 18s? 3.39 Raf Keustermans there is no problem however these systems take time to build into the game. It is not something that can be done straight away. It also depends on what you are trying to build, for example good gaming experience. Page 11 of 15

12 3.40 Jonathan Flesher people can tweet or post about social games and which ones are a good experience. Games have to be balanced, whether they are for real money, free to play etc Dr Carolyn Downs people do not have a very good ability to work out what is real and not real when it comes to numbers, therefore if we have games that provide returns that are unrealistic it is likely that people will get a false impression. Research is needed into these issues Eleanor Roaf, RGSB on Facebook, even where parents think they are monitoring what their children are doing on the social media platform, a lot of children have two accounts, one in their real name and one in another name. Another point is that getting adolescents hooked on games is a very good way of keeping business for the future. There is specific research needed on adolescents and Facebook social games. 4. Social responsibility challenges 4.1 Anthony Lilley, Commissioner for the Gambling Commission introduced the panel for the final session on social responsibility: Professor Mark Griffiths, Nottingham Trent University Jane Rigbye, The Gambling Lab Sue Rossiter, Remote Gambling Association (RGA) Professor David Miers, Deputy Chair of RGSB Melissa Blau, Social Gaming Association 4.2 The attendees were shown the tag cloud what are the risks taken from the online survey completed prior to the seminar. The tag cloud showed that gambling and money were prominent. The tag cloud who is at risk was shown to the attendees. 4.3 There has been two questions that have been introduced at the seminar which are risk of individuals and risk of systems. Both are inter-related. 4.4 Professor David Miers, Deputy Chair of RGSB was asked why are we talking about social gaming today from the point of view of RGSB? 4.5 RGSB had included social gaming in the Strategy which focuses on three areas: Research, Education and Harm Prevention and Treatment. One of the drivers for RGSB is to think about the education and harm prevention needed in relation to social gaming. Part of RGSB s remit is to see if we can anticipate problems/harms that are caused for people affected by gambling and what interventions are successful. 4.6 There are a number of key priorities for RGSB and these influence the priorities that RGSB should focus on over the next three years. Social gaming is on RGSB s agenda and a question for the RGSB is does it have any potential for harm? 4.7 Currently RGSB understanding of risks and harms (of social games) is incomplete. From today s seminar, there are uncertainties regarding social gaming such as definition issues, impact, user trust, time spent, the nature of the risks involved, and issues surrounding conversion (from virtual to real). 4.8 We need to think about the nature of the debate we should be having, what is the evidence base and can we identify harms. 4.9 There was interest in what was said about the age profile of players of social games and RGSB have an interest in finding out more about young players RGSB s function is to advise the Commission on what we think are appropriate research activities and what appropriate steps might need to be taken. Page 12 of 15

13 4.11 Sue Rossiter, Remote Gambling Association (RGA) RGA represents people who have a wide range of interest in social gaming. Some of the issues raised today are not very new but what is new are the products accessed through Facebook For RGA, if it is a gambling product it has to be regulated and there should be know your customer (KYC) and social measures required. Social media is developing and moving on very quickly There are some issues, such as is social gaming, gambling? That is not actually happening as we have seen with Bingo Friendzy that has a second login and the RGA support this. There does, however, need to be the correct age verification if there is money coming out. Where there is no money coming out, we would want to ensure that players understand what they are doing [on the social game]. There is also the issue of lack of transparency What has been raised today is that social gaming is attractive to young people, but that isn t necessarily the case. There is an increase of older female players on social games, however people use social media in different ways. As people develop their use of Facebook, they become more sophisticated in the way they use it. However, younger people being attracted to social games may need to be looked into further A point made at other conferences is that the need for income may encourage social gaming and marketing Loss of time has come up as an issue, but most social games are very short, in particular mobile gaming Sue Rossiter discussed spending money on games and anchor pricing. There are certain goods which people are prepared to pay for. If people keep playing games for free and not paying then if this changes there will not want to pay With online gambling, people will return to site and this is encouraged through bonuses etc. This does happen with social gaming as well There is a natural concern about the differences between free play and the Freemium model. It is important to hold onto the free to play games. RGA also think it is important to have the same outcomes, whether you are paying for the game or playing for free. This ensures that customers have a transparent and open understanding of the games Panel members were asked to speak about risks Anthony Lilley - can you predict a social gaming/gambling related moral panic? What should be done about them? 4.22 Professor Mark Griffiths the space is new but the issues are not. This is critical to understand. Another issue is that we do not know whether it is gaming or gambling and this raises concerns over whether we should regulate this? If it is classed as gambling - for online gambling there is player protection, Facebook should be doing the same. We should not wait for things to happen and we should be putting safeguards in place now. Social gaming is about maximising fun and minimising harm Anthony Lilley - what about the wider questions regarding societal drift towards gambling as a positive leisure activity? 4.24 Professor Mark Griffiths there is a shift and the reason for this is that gambling is a socially accepted leisure activity. To a small minority, it can be problematic but to the majority it is positive. We live in a mature society and people should be able to spend their time as they wish, however for that to happen they should have all the information up front Professor Mark Griffiths suggested that Facebook could do a targeted campaign for parents Anthony Lilley - are there indicators that some people are more at risk? Page 13 of 15

14 4.27 Jane Rigbye there is no previous research to indicate the risks and what problems might manifest. We can predict that young people are likely to be most at risk. However is it about risk or more about the effect it will have on that person. We currently do not know the impact of social gaming/gambling. We are currently talking about the conversion of free to play to real money gambling. With young people we may see some issues around advertising and the question is is that for the Gambling Commission or the Advertising Standards Agency to deal with? 4.28 Anthony Lilley - what is the industry s role in keeping social gaming legitimate? 4.29 Melissa Blau the industry is obligated to step up and self regulate, through, for example, transparency, adding spending limits, ensuring that products are not marketed to minors and ensuring that virtual currency stays virtual. There are two groups, the game developers and the gambling operators. A lot of operators may not be opting for social games because of cost. There is also the issue of people not embracing the social responsibility component of games. There needs to be a unified voice of what is acceptable and what isn t Anthony Lilley - is there a genuine issue of addiction to technology? 4.31 Professor Mark Griffiths there is an issue about the amount of time people spend in front of screen-based technologies Professor David Miers there is already research on what type of gambling products people spend their time on. RGSB is interested in whether an issue is tractable, meaning where you can be reasonably clear about the scope of activity. It is difficult to be specific [within gambling] about causality There could be a social responsibility mechanism that informs that the site/game is adult content or a pop up message, however this is not just for Facebook Dr Carolyn Downs where are the measures and impacts? It might be right to have popups on screen however we cannot control groups. There are links to gambling sites within forums on Facebook and posts about how to bypass age controls Not aware of any Freemium games that have a disclaimer regarding content are for over 18s. It is wise to give people the option (such as tick boxes) to realise that some games are for over 18 only Tina Thakor-Rankin - customers see what they want to see with pop-up messages and this would need to be looked at in detail Heather Wardle a sentence could be added to state that this is adult content on social games Melissa Blau - the SGA is attempting to do this as they feel this is an incentive to get the developers of social games to do this together. However, it is extremely expensive and hard to make money now on Facebook Heather Wardle Slotomania is the only game she saw that had a sentence on the page that states it is intended for over 18s Anthony Lilley should the Gambling Commission be bothered about social gaming? 4.41 Melissa Blau the amount of innovation that goes on in the social media market is fast. It is imperative to keep informed Sue Rossiter yes the Commission should be bothered. We must not get fixated by the mechanism, it s not just about Facebook and we may be missing the bigger picture Jane Rigbye The Commission should be bothered about it and doing something about it. However the question is who and what should we be doing. We need to look very quickly about what is happening. Research needs to be completed on what is player s motivation as we are assuming it is the same as gambling. Page 14 of 15

15 4.44 Professor David Miers yes both the Commission and RGSB need to spend time on this issue to try to unpick what it is about this activity that might be concerning as this is still speculated. Return to-player issues might be an area to look into Professor Mark Griffiths yes the Commission should be bothered. We do have some evidence (three studies) which all state that children who play on online gambling websites (whether it be Facebook or another site) are more likely to become gamblers. 5. Closing remarks 5.1 The Chair of RGSB thanked the moderators and the panels. 5.2 This is a very fluid and uncertain area, it is also a maturing industry and there are currently more questions than answers. 5.3 There was a consensus that the Commission should be bothered by social gaming. 5.4 There have been lots of thoughts, ideas and speculations surrounding this issue have been bought to the discussion. There have been lots of pointers towards research. 5.5 RGSB hope to maintain that engagement with all attendees. 5.6 The Chair of RGSB thanked the attendees and closed the seminar. Page 15 of 15