admin, Author at Minnesota Alliance on Problem Gambling

Facebook Enters The Fantasy Games Market

Sep 13, 2021 | PROBLEM GAMBLING, SPORTS BETTING

Date Published 02 September 2021 by Chris Sieroty Facebook is expanding its offerings to include free predictor fantasy sports and other types of fantasy games, a move that troubles problem gambling advocates who see such games acting as a primer to sports betting. The company on Wednesday launched Facebook Fantasy Games on the Facebook app in the U.S. and Canada, allowing users to make predictions on sporting events and TV shows. As part of the new daily sports prediction games, users will have be able to set their own leagues. Facebook also announced partnerships with Whistle Sports, Major League Baseball and LaLiga Santander, Spain’s top soccer league. The first game to launch is Pick & Play Sports, in which users score points for correctly predicting the winner of a game, the points scored by a top player or specific events that unfold during a game. Players can earn bonus points for building a streak of correct predictions over a series of days. In a blog post announcing the new free-to-play games, Facebook did not address whether players would be able to redeem their points for prizes, including cash. If the company were to offer cash prizes, Facebook’s predictor games would be in the same category as Fox Bet's Super 6 game, where players try to choose the winners of six weekly National Football League games, and PointsBet’s Premier League predictor game in partnership with NBC Sports, in which viewers try to pick the outcome of five soccer games. Daniel Fletcher, project manager of entertainment with Facebook, said the company will release additional games in the fall linked to popular television shows, such as CBS’ Survivor and ABC’s The Bachelorette, as well as contests for Major League Baseball and LaLiga. For each slate of games during the LaLiga season, fans will predict a single team that will win on that day. Fans will try to build the longest streak possible of correct predictions, but they cannot pick the same team twice during a streak. “These games bring the social fun of traditional fantasy sports to simpler formats that are easy to play for people new to prediction games, while still engaging enough for more seasoned players,” Fletcher said in a blog post. Facebook’s decision to launch free-to-play predictor fantasy games was met with some concern from problem gambling advocates. Keith Whyte, executive director of the National Council on Problem Gambling, said he believes there is some risk of future problems with free-to-play and predictor games. “I imagine they are targeting a younger audience, but this could be a case that because there is no money exchanged, they don’t understand or appreciate the potential harm that it could be creating,” said Brianne Doura-Schawohl, vice president U.S. policy and strategic development with EPIC Risk Management. Susan Sheridan Tucker, executive director with the Minneapolis-based Northstar Problem Gambling Alliance, said the group would be looking at Facebook’s new product “with a careful eye.” “ At first glance, it looks like they are trying to bring friends together to compete amongst themselves,” Tucker said. “For most this could be considered harmless fun and a way to connect.” However, Tucker said these games are designed to keep the player engaged for as long as possible. “There may not be gambling involved at first, but the loss of time engaging in the physical world as opposed to the virtual world is troubling,” she said. “These games can act as primer to sports betting later on.” “I didn’t notice any age limitations set for this platform. By making the games less complicated, it will likely attract a new base of players. Again, this could act as a primer for future sports betting.” “ Yes, there is reason to keep watch on these apps,” Tucker said. The addition of fantasy games is expected to help Facebook increase the time users spend on its platform as the company faces increasing competition from TikTok and Twitch. Currently, TikTok bans the promotion of gambling-related content and earlier this month, Amazon-owned streaming website Twitch banned the sharing of promotional links and referrals to gambling sites. In January, Twitch launched a virtual currency betting system for its users worldwide, allowing viewers to place bets on in-stream events, including online casino games. The feature, Channel Points Predictions, gives streamers the ability to “let viewers guess your destiny” by designating an event in-game and defining two possible outcomes. Viewers wager their virtual currency — known as Channel Points — on these outcomes, up to a cap of 250,000. Viewers who predict correctly win a proportionate share of Channel Points from the total pool. Predictions are disabled in several jurisdictions globally, however. According to Twitch, the feature is not available to viewers in Denmark, Luxembourg, Netherlands, Philippines, Poland, Quebec, Singapore, Sweden, South Korea and Turkey due to “legal restrictions.” All rights reserved. ©Compliance Online Limited (trading as VIXIO). St. Clare House, 30 Minories, London, EC3N 1DD. Downloaded by: National Council on Problem Gambling at 2021-09-02 15:44:50

The WAGER: Gambling during COVID: The impact of COVID-19 on gambling behavior and gambling-related problems

Sep 13, 2021 | RESEARCH

Article by The WAGER. Read original article on The BASIS website. Editor’s Note: Today’s review is part of our month-long Special Series on Managing Addiction during COVID-19. Throughout September, The BASIS is highlighting how the COVID-19 pandemic has impacted people managing addiction. This Special Series is generously sponsored by the Greater Boston Council on Alcoholism. The COVID-19 pandemic has permeated just about every area of our society, causing massive changes in our world. Some changes—like working remotely and staying home instead of going to sporting events, bars, and casinos—might outlast the virus. Certainly during the first year of the pandemic, people couldn’t gamble in land-based venues even if they wanted to. It’s important to understand how people’s relationship with gambling changed during COVID because some of these changes might be long lasting. Therefore, this week, as part of our Special Series on Managing Addiction during COVID, The WAGER reviews a study by David Hodgins and Rhys Stevens on the impact of COVID-19 on gambling and gambling-related problems. What was the research question? How has the COVID-19 pandemic impacted gambling behavior and gambling-related problems? What did the researchers do? The researchers searched several online databases for peer-reviewed scientific articles and other relevant published works (e.g., research reports) that examined changes in gambling and risk factors for gambling-related problems during the COVID-19 pandemic. Their criteria for selecting articles in the study included: (1) the examination of individual gamblers, (2) assessment of the impact of COVID-19 on gambling, and (3) publication in English after March 2020. Seventeen distinct articles were located that fit these inclusion criteria.

Author’s notes, Dr. David Hodgins: “I was very surprised at the number of studies that have addressed this issue, given that it is still emergent. Sometimes as researchers we struggle to generate evidence in a timeline that allows it to impact policy and practice in a meaningful way. With this issue, the evidence points to the group of individuals that are particularly vulnerable to increasing gambling and gambling-related harm.” (We thank Dr. Hodgins for sharing his personal thoughts about the article.)

What did they find? The articles were limited geographically to middle- and upper-income Western countries, though they included a variety of recruitment methods and recruited participants from a variety of different population groups within those countries. Most (65%) of the studies were cross-sectional and 35% were longitudinal, and all of the studies used online surveys as one of the data collection approaches. While changes in participants’ gambling behavior varied across studies, all 17 studies showed an overall decrease in gambling behavior, measured as reduced gambling frequency and/or money spent on gambling. Though only two studies investigated the causes behind this decline, the most common in descending order were: (1) financial reasons, (2) absence of live sports, (3) not wanting to gamble around family, (4) thinking they were gambling too much, and (5) shopping less overall. On the other hand, some individuals increased their gambling behavior, which can lead to increased risk of gambling-related problems. Several risk factors were associated with increased gambling behavior (See Figure).

Figure. Number of studies that found certain characteristics and behaviors (i.e., risk factors) of subgroups of individuals who increased their gambling during the pandemic. The total number of studies included was n = 17. Why do these findings matter? These findings are important because they indicate that gambling trends during the current COVID-19 pandemic situation are complicated and may be worsening for some individuals as a result of psychological and financial stress. Online gambling—which appeared to have increased in popularity in some subgroups—might be especially problematic for some gamblers due to its relative lack of constraints (e.g., 24/7/365 availability) and the wide variety of gambling products available. For these reasons, it is important that anyone who gambles uses safe gambling habits and is aware of educational and help resources that can help them manage their gambling, such as self-limitation and self-exclusion tools offered by many gambling operators. Every study has limitations. What are the limitations in this study? Many of the studies in the literature review had their own limitations such as the sampling methodology, including using convenience samples in online surveys, which might not be representative of their target population. Additionally, this study only provides a snapshot of where we currently are, in the midst of the COVID-19 pandemic, and does not provide any data on post-COVID-19 trends in the US or internationally. For more information: Individuals who are struggling with problem gambling may find support at the Massachusetts Office of Problem Gambling Services or the National Council on Problem Gambling. Additional resources can be found at the BASIS Addiction Resources page. — John Slabczynski

Playing To Win

Aug 31, 2021 | YOUTH GAMBLING

Youth sports organizations that manage the complexities and the risks of gambling see rewards that include lower participation fees, enhancements to their programs and more kids playing sports.

Story by CHIP SCOGGINS • Photos by CARLOS GONZALEZ • Star Tribune

Every table inside Jimmy’s Food and Drink is taken by 7 p.m. on a Thursday in late spring. This is bingo night, always a full house. The crowd is so large patrons sit in an overflow section near the door. The bingo game is being broadcast over the speakers, with large TVs flashing numbers as they are announced. At table after table, customers at the Vadnais Heights establishment alternate between ripping open cardboard pull-tabs and dotting numbers on their bingo cards. “O-74” comes over the speaker, a woman shouts “Bingo!” and an echo of groans follows. The big winner, though, is someone else: youth sports in Minnesota. In this case, kids who participate in the White Bear Lake Hockey Association. The money generated by pulltabs and bingo at Jimmy’s on this night and every night is crucial to hockey in that northern suburb. Similar arrangements are playing out all across Minnesota, as youth sports organizations in the state combined to generate nearly $100 million in net receipts on lawful gambling in 2020, a figure more than double the 2010 total. Play pull-tabs at your favorite bar? There is a decent chance that game is being operated by a community sports entity and that you’re contributing to what now serves as an essential fundraising source for many youth sports organizations in the state. Charitable gambling is booming business in Minnesota, to the tune of $2.1 billion in total sales in the 2020 fiscal year. The pandemic shutdown disrupted steady annual growth in sales, but gambling operators are reporting a bounce-back in wagering since the state lifted restrictions. In 2020, 183 youth sports associations held a gambling license, according to the state’s Gambling Control Board, and they make up the largest percentage of total sales of any subsection of Minnesota nonprofits, 30%. This money has long been a fundraising source for youth activities, but a surge in revenue during the past decade has bonded lawful gambling and youth sports in many Minnesota cities. That increase can be attributed to several factors, including the arrival of electronic pull-tabs, and comes despite ever-present risks of theft and addiction problems. Organizations have matched increased popularity with their own raised aggressiveness and sophistication. They don’t get to pocket all of their gambling revenue, of course; taxes, expenses and administrative costs strip away a sizable chunk. What is left over enables associations to lighten the cost-of-play burden on families and fund enhancements or new opportunities. Gambling proceeds in many organizations dwarf traditional fundraising methods such as 50-50 raffles at football games and selling candy bars or frozen pizzas door-to-door. Christine Olson, gambling manager for the White Bear Lake Hockey Association, put it simply: “It’s a big business.” Where the money goes A lot of the money coming in goes out just as quickly. Organizations pay for extra training, cover costs of fees and equipment, fund capital improvement projects, award scholarships and donate money to high school programs and other charities in their communities. Some hockey associations use gambling proceeds to pay ice rental bills, which can run as high as $700,000 per year. “It goes straight back to the kids,” said Chad Marquardt, president of the White Bear Lake Hockey Association. The Apple Valley Hockey Association used gambling revenue to outfit a dryland training facility with high-end equipment available to its 200 youth players. The facility includes a skating treadmill and a RapidShot system that alone cost $100,000. On a spring evening, middle schoolers Leila Korkowski and Makayla Gore went through workouts on the skating treadmill, which measures stride, power and skating form. A certified trainer ran the controls and monitored their data at a computer. A few feet away, sixth-grader Padraig Spencer jumped into the RapidShot booth. The system tracks players’ shooting accuracy, speed and reaction time in firing a shot off their stick. White Bear Lake’s hockey association, which has 800 kids, is in the process of opening a new facility that will feature two skating treadmills, two RapidShot machines, a weight room and a plyometrics area. The project was financed 100% by gambling proceeds. The association already helped save its city-owned rink by committing $2.5 million in gambling revenue to pay for a new refrigeration system when the old one had to be replaced. Blaine Youth Hockey Association uses gambling funds to help subsidize costs. Anything to lower the “sticker shock” of playing hockey, association president Jeff Meister said. They also donate money to Blaine’s girls’ and boys’ varsity programs as well as homeless shelters, other youth sports programs and local organizations. Youth sports officials say they shudder to think what would happen if they didn’t have gambling revenue to cover the costs of big projects or offset participation. “That would crush a lot of sports,” said Coon Rapids wrestling coach Bob Adams, who oversees charitable gambling for a club program. This sense of reliance didn’t exist in the early days of the relationship between charitable gambling and youth sports. Minnesota legalized pull-tabs in 1981, and sports associations already were involved when Gary Danger joined the Gambling Control Board in the late 1980s. Paper pull-tabs — nicknamed “cardboard crack” — have historically been the primary attraction for bar gamblers, and the arrival of electronic pull-tabs in the last decade helped trigger double-digit annual growth. “There’s an appetite out there,” Danger said. Danger, a compliance officer, uses a dollar bill to illustrate how the gambling pie gets divided. On average, 85 cents of a wager returns to the player in winnings. Of the remaining 15 cents, roughly half goes toward expenses (payroll, rent, accounting, etc.). The other half gets split between taxes and the association’s take. About 3 cents per dollar multiplied many, many times over can pay for a dryland training center, ice time and reduced costs for families. Inside the operations By law, every nonprofit with a gambling license must employ a gambling manager. Olson has held that job for White Bear Lake Hockey for 10 years, though she has worked in the pull-tabs industry for 23 years. Her association runs gambling operations in seven establishments and registered total sales of $24.1 million last year, with pre-tax net receipts of $3.5 million. That put the association No. 2 in total sales among all 1,144 licensed organizations in Minnesota, according to state data. Five of the top 10 organizations in total sales were youth hockey associations. WBL Hockey’s net profit last year was $479,035, trailing Blaine YHA ($697,473), which was No. 2 among all organizations. Seven hockey associations ranked in the top 10 in profit. Youth sports associations that operate a pull-tabs booth in a bar are responsible for staffing it with their own workers. They also pay the establishment rent — a maximum of $1,750 per month — and buy the inventory (pull-tab tickets and other gaming material). “It’s a lot of work and regulation so you better be ready to manage that well,” Blaine’s Meister said. Olson manages 65 employees who primarily cover shifts at pull-tabs booths in those seven establishments. She uses an accounting firm to handle bookkeeping, and her operation gets audited at least once every year and some years experiences multiple audits by different agencies. Her association paid nearly $100,000 in taxes per month last year. The state received $27.5 million in tax revenue from all youth sports associations combined. “If you say that the gambler is a willing participant and not a victim in any way,” said Daniel Harrison, president of the Cottage Grove Athletic Association, “then the state wins, the association wins and the bar wins.” Running the shows Gambling manager typically is a paid position, and experience in doing the work is critical. Former Apple Valley Hockey Association president Chris Link described the thought of a newcomer starting up a gambling operation from scratch as “almost impossibly daunting.” That reality has stopped the Chanhassen Athletic Association from proceeding beyond periodic conversations. The association, which oversees baseball, softball, basketball and soccer, relies on other forms of revenue: participation fees, tournament hosting proceeds, sponsorships and more. CAA president Jaxon Lang, a parent volunteer, said the “burden of compliance complexity” in charitable gambling is too much of a hurdle to overcome for his association. “We don’t have a moral compass that says we shouldn’t do it,” Lang said. “We have a sense that it takes work and there is a complexity in it that we just haven’t had the motivation to create the position or recruit the position. Nor have we had someone step up and say, ‘I want this.’ We talk about it and then we just kind of back away when nobody says, ‘I want to own it.’ “ That is where an experienced gambling manager proves invaluable. Olson started working in a bingo hall at age 18 and later sold pull-tabs at White Bear Bar before taking over as her association’s gambling manager. Olson created custom pulltabs tickets for each bar, along with a White Bear Lake Hockey ticket. Her association also runs night bingo, morning bingo, raffles and Tri-Wheels. Olson takes out advertising in suburban newspapers to promote their games. “Since the beginning, I said we’re going to do everything we can and let’s see how much we can earn,” she said. “Let’s help the bar owners.” Risks, rewards The state requires meticulous oversight in this cash-only business. Multiple gambling managers and association presidents referred to charitable gambling as “the most regulated” entity in the state. Diligent management is twofold: Handling cash transactions appropriately, and then making sure gambling revenue is being spent legally on its intended purpose. One gambling manager likened the arrangement between sports associations and charitable gambling to two families living in one house. There is a gambling side and an association side. The state mandates that gambling funds be held separately from an association’s general account, and any expenditure using gambling revenue requires approval from the association’s board. Gambling managers must present monthly reports to their association to show detailed bookkeeping. “You need transparency, especially when you’re dealing with cash,” Danger said. Embezzlement happens, but those involved believe strict regulation of the industry provides a safety net and some peace of mind. “If you steal from gambling of any substantive amount, you will get caught,” Harrison said. “It’s just a matter of when.” Most associations use independent accounting firms to keep gambling finances in order. The Gambling Control Board conducts regular compliance reviews, and occasionally the Department of Revenue audits associations as well. “We stress that it can’t be a one-person show,” Danger said. “With that kind of volume, somebody could get in there and if they’re doing something [illegal] and no one is watching, it could get away from people pretty fast.” That happened in Little Falls when the treasurer of the youth hockey association was charged with embezzling $92,000 over a 3½-year span. Association president Carmen Johnson said the theft did not come from its gambling account but rather from the organization’s general operating account. The association had been setting aside money for improvements to its arena. The treasurer altered bank balances and the association’s board did not double-check statements. “None of us ever thought that would happen,” said Johnson, who discovered the theft. Insurance and donations helped the association replenish a portion of what was stolen, but the ordeal served as a cautionary tale. “You need to have checks and balances,” she said. Danger said the governing body has expanded its oversight and educational messaging as gambling has grown. A case of theft can not only send a person into the criminal justice system but it also could cost the organization its gambling license, thus eliminating a critical fundraising source. “It’s heavily regulated,” Danger said, “but that also provides for integrity.” Theft is not the only potential problem. Susan Sheridan Tucker, executive director of the Northstar Problem Gambling Alliance, is concerned about addiction as a byproduct of gambling’s everincreasing popularity. Her organization advocates for “hardcore guardrails” in gambling controls beyond hotline numbers posted at pull-tabs booths. “I’m not against gambling, but I am against creating situations where the player is not going to be protected,” Sheridan Tucker said, while noting 220,000 Minnesotans fall somewhere on the problem gambling spectrum. Sheridan Tucker said she understands the benefits that charitable gambling provides youth sports but finds it “very unfortunate that we have set up a system that kids are dependent on a gambling game to be able to play sports.” The impact of that revenue source — however each individual views it — is hard to overstate. It is evident in new sheets of ice at hockey arenas, in new dugouts at baseball fields, in lower participation fees, in extra training, in scholarships and in more kids able to play sports. “Associations have a lot of kids and a lot of people involved,” Cottage Grove’s Harrison said. “The charitable gambling gets to the grassroots.” Daily Delivery discussion Listen as Chip Scoggins and Michael Rand discuss this issue on our Daily Delivery podcast this week. Find the episodes at startribune.com/dailydelivery. Your take In addition to commenting on this story on startribune.com, readers can express opinions on this issue by e-mailing sports@ startribune.com. A collection of submissions will be republished for continued discussion on a topic that affects many Minnesota communities. HOW MUCH GOES TO SUPPORT YOUTH SPORTS? For every $1 in gross receipts that youth sports organizations earned in 2020 through gambling, here's where that money went . . . GAMBLING SALES BY YOUTH SPORTS GROWS The gross receipts generated by charitable gambling programs run by youth sports organizations in Minnesota have nearly tripled since 2010. About 85% of that is paid out in prize winnings. SHERIDAN TUCKER SAID SHE UNDERSTANDS THE BENEFITS THAT CHARITABLE GAMBLING PROVIDES YOUTH SPORTS BUT FINDS IT “VERY UNFORTUNATE THAT WE HAVE SET UP A SYSTEM THAT KIDS ARE DEPENDENT ON A GAMBLING GAME TO BE ABLE TO PLAY SPORTS.” WHITE BEAR LAKE’S HOCKEY ASSOCIATION IS IN THE PROCESS OF OPENING A NEW FACILITY THAT WILL FEATURE TWO SKATING TREADMILLS, TWO RAPIDSHOT MACHINES, A WEIGHT ROOM AND A PLYOMETRICS AREA. THE PROJECT WAS FINANCED 100% BY GAMBLING PROCEEDS. 183 Youth sports associations that held a gambling license in Minnesota in 2020. $100.7 mill. Total charitable gambling net revenue for Minnesota youth sports associations in 2019, a state record. 3 cents Profit estimate from every dollar wagered for associations. chip.scoggins@startribune.com cgonzalez@startribune.com

NCPG Launches Operation Responsible Gambling

Aug 13, 2021 | PROBLEM GAMBLING

The National Council on Problem Gambling (NCPG) recently announced the launch of ‘Operation Responsible Gambling,’ supported by Entain Foundation US and RG24seven. Operation Responsible Gambling (OpRG) is designed to assist members of the military community in gambling responsibly, and also to ensure they have options to seek help if they show signs of gambling problems.

Keith Whyte, NCPG Executive Director, stated, “We know that active-duty personnel and veterans face higher risks for gambling problems so Operation Responsible Gambling provides access to help, information and veterans’ video testimonials aimed specially at the military community. The information will be available on social media and a micro-website.” The first two videos feature stories from veterans in their own words, talking about their gambling issues during their service and the road to recovery through the Veterans Administration gambling services.

Whyte continued, “The research is clear that members of the military community are at higher risk for gambling problems, yet military community members may not know what to do or where to go. We want to make sure they know there is hope and help available.”

Operation Responsible Gambling is funded by a donation from Entain Foundation US.

RG24seven provided in-kind production and technical support for the videos and overall project.

Go to www.OperationResponsibleGambling.org to view the video testimonials and to find information and help on the risks for gambling problems in the military community.

In their Own Words- Jan’s Story

Aug 13, 2021 | RECOVERY, STORIES

The first time I started to think I might have a gambling addiction was when it was suggested to me by my manager at work. She saw that I enjoyed talking to coworkers about my gambling — even laughing off my appreciable losses. Until then, I didn’t give it all that much thought.

I was taken a little off guard by my manager’s comment, in which she actually asked me to watch how much I talked about gambling in the workplace because coworkers might think I had an addiction. But the message hit home for me — she was telling me I should consider that I had an addiction.

At my very next therapy appointment after that conversation I used my therapist’s phone to call the gambling helpline. I knew it was time.

Although I was decisive in seeking help once my manager talked to me — and I took the initial homework assignments very seriously — I still had relapses in the first several years while going to Gambler’s Anonymous (GA). And while I know that others might not return to GA after relapsing, I was struck by the welcoming, nonjudgmental outlook they shared, and so I never missed a meeting.

Two things motivated me to become more steadfast in my recovery. When visiting my father for six weeks before he died of cancer, I had to drive right past the casino. But despite the stress of my father’s health and his proximity to the casino, I never gambled.

The second motivator was the lingering feeling I had the last time I gambled. I distinctly remember how I wanted to drive my care into a wall to kill myself. I didn’t wish to revisit that awful feeling, and I also knew that my father would not want me to do that.

Over the years, I’ve learned about the various situations with other problem gamblers. Our stories always have similarities and differences. Unlike a lot of others, I never lied, cheated or stole. I was always honest with people and confessed when I had relapses. I’m also lucky because I never dipped into retirement savings, though I can only wonder how much more I’d have saved had I not spent so much money gambling.

With the work I’ve done to overcome my gambling addiction along with various other addictions, I’m very familiar with many of the processes, including the 12 steps. In my work in the social services industry, I’m able to provide insights to people when I share my own story.

I encourage others to replace gambling with another activity. And if drinking is also an addiction for them, I tell them to replace alcohol with another beverage of choice that they always have on hand. I also encourage people to reward themselves with jewelry or something else as they reach clean milestones to keep them going.

In August, I will have ten years clean from gambling. I live what some might call a boring 12-step life, but I’ve never been happier and more optimistic about my future.