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Payback percentage and Problem Gambling

4/8/10 - The European Gambling and Betting Association, home to many of Europe's largest online gambling groups, reported this week on recent research into payback percentage, carrying an interview with Dr Jonathan Parke, senior lecturer from the University of Salford. 
 
We reproduce key elements from the EGBA interview:
 
EGBA: What was the objective of this research?
 
JP: The objective was to provide the first comprehensive literature review on the impact of payback percentage on gambling behaviour, with a particular focus on the areas of problem gambling and social responsibility.
 
EGBA: What is a payback percentage?
 
JP: Payback percentage is the percentage of stakes given back to players in the form of prizes over the long term on a particular game. At any given stake level, the lower the payback percentage, the higher the price to play the game over a specified period of time, and vice versa. The payback percentage is a key competitive element in the gambling industry that contributes to the price that is paid by a player to place a bet or play a game.
 
EGBA: Why address payback percentage in the context of problem gambling?
 
JP: In the context of gambling reforms, some EU Member States are introducing a restriction on the payback percentage with the expectation that it will reduce problem gambling. It is therefore important to consider the appropriateness of such a restriction and whether it should be prioritised. This was the exact purpose of this review: namely, to examine the existing research on a potential relationship between payback percentage and problem gambling.  Hows this for a bonus. Get a 200% bonus on every deposit you make win or lose for the first 7 days after you open your account. We have worked out an exclusive bonus with Aladdins Gold Casino to offer you this great bonus. Click Here To Claim Your Bonus Now.
 
EGBA: What are the main findings?
 
JP: The review concluded that there is no credible evidence to claim that the payback percentage has an impact on problem gambling. As a result, there is currently no evidence to suggest that placing a maximum limit on payback percentage would be an effective means to prevent or reduce levels of problem gambling.
 
This conclusion was in part due to the fact that the research on this subject so far has focused on gambling behaviour more generally and not directly on the impact of payback percentage on problem gambling specifically.
 
That’s why the review also had to consider studies examining the opinions of specialists and experts in the gambling field. These specialists consistently rated payback percentage as one of the least important factors affecting problem gambling. Also, specialists did not discriminate between a higher or lower payback percentage as being more likely to impact problem gambling.
 
For example, in one study (White et al, 2006) the ‘researcher’ group of specialists ranked both a higher payback percentage and a lower payback percentage as the joint least important factors contributing to problem gambling out of 27 possible parameters.
 
Based on this current review, I conclude that there is no scientific evidence at the moment to formulate any definitive regulatory policy regarding the appropriate controls of payback percentage to prevent and minimise gambling-related harm.

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Gambling News :

IGT Continues Partnership with Coljuegos EICE - IGT will continue its 16-year partnership with Colombian administrative gaming authority Coljuegos EICE following a public procurement process for a five-year private operator contract to run the draw-based online lottery game Baloto.

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Mega Moolah progressive jackpot slot was hit for Euro 6,078,249.33 - Identified as N.C., the player was a novice who signed up to the online casino on a new customer bonus offering 100 chances to become a millionaire for Euro 5.

Lightning Box Games in Deal With Everi Games - Australian slot developer, Lightning Box Games, has entered into a distribution deal with electronic gaming content provider, Everi Games, for a selection of its proprietary slot content.

Storspiller HighRoller Casino Launches - Storspiller.com is targeted at “high rollers” within Kindred’s total registered customer base who play for GBP 200 or more per month.

Another Attempt to Acquire Tatts - The surprise A$8.4 billion bid for Tatts late last year by the Pacific Consortium caused some consternation in the Tabcorp and Tatts boards, which were in merger talks but these concerns faded following Tatts rebuff of the consortium's offer

US Supreme Court Interested in NJ SportsBetting Case - The US Supreme Court, which is for the second year mulling whether to hear New Jersey's case for wider legalized sports betting in the United States ) has showed some interest in the case.

Ladbrokes Trading Update - The Ladbrokes Coral plc online and land gambling group has released a trading statement for the unaudited year to 31 December 2016, reporting:

Leovegas Player Wins a BMW X4 - A 23-year-old Southampton University student identified only as Leo has won a GBP 50,000 BMW X4 sports saloon car playing NetEnt's Live Casino Roulette on the Leo Vegas mobile gambling,site.

New Survey on Europe Online Gambling Regulations - The companies delivered their conclusions, which include both EU and European Economic Area technical regulations, this week.

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