Motives Behind and Effects of State-owned Netpoker

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Motives Behind and Effects of State-owned Netpoker
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Svenska Spel started net poker in March 2006

• The situation in 2005
• 124.000 Swedes played net poker regularly on
  international sites
• Most sites had no or weak gambling responsible
  programmes
• Growing concerns of more gambling problems
• Money was drained from Sweden

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Motives behind the permission

• Not possible to stop gambling on international
  poker-sites
• There is obviously a demand to play net poker
• There is substantial evidence that poker on
  internet can contribute to problem gambling
• Svenska Spels mandate is i.a. to meet Swedish
  demand for gambling in a safe and responsible way
  free of private profit interests
• A state-owned company could take other concerns
  than short-term commercial and be subjected to
  more efficient control and follow-up than
  commercial companies
• Efforts should be done to channel poker
  gamblers to a controlled site with elaborated
  responsible gambling programmes

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Concerns on the permission

• The SNIPH recommended the government not to give
  permission
• Even a safe site could increase gambling
  problems. The characteristics of the game are
  essential.
• The effects of RG-programmes are not evaluated.
  We dont know if RG-programmes can compensate for
  increased gambling.
• Gamblers who never would gamble on international
  sites could start gambling on Svenska Spels site
  and then turn to other sites
• The Gaming board also advised against a
  permission
• - Such a permission might not conform with EU
  community law and would possibly jeopardize
  Swedish gambling regulation

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Permission with conditions and limitations

• Only people over 18 years of age and with a
  residence in Sweden are allowed to gamble
  (Swedish social security number is required)
• Advertising should be moderate, only in print
  media and on the Internet, direct links are not
  allowed
• Players must set there own limits to the amount
  of money lost and time played
• Svenska Spel should actively seek to prevent
  problems caused by excessive gambling
• Maximum bet per poker hand played should not
  exceed EURO 8,200
• The permit is valid for two years and may be
  revoked immediately if the government find reason
  to do so
• The site should be evaluated before the permit is
  renewed

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A commercial success

• When launched in March 2006, the site attracted
  many players
• Svenska Spels site is one of the biggest actors
  on the market, having about 35 percent of the net
  poker gamblers in Sweden
• The income from the rake (2,5 ) was last year
  385 million SEK (40 million EURO)
• This corresponds to stakes from gamblers of more
  than 15 billion SEK (1,6 billion EURO)
• The number of net poker gamblers could 2007 be
  estimated to 200 000 an increase from 2005 by
  75 000 people
• 65 000 started to play poker at Svenska Spel and
  hadnt played net poker before
• 55 000 had started at other sites and play now
  either only at Svenska Spel or at both Svenska
  Spel and other sites.

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Evaluation of the site

• A governmental inquiry evaluated Svenska Spels
  site and the RG measures. The conclusions of the
  inquiry
• The conditions on RG are fulfilled
• The conditions on promotion are followed
• The RG-measures are used and appreciated by many,
  but not all players
• Those playing only on Svenska Spels site are
  less risk-taking and have less gambling problems
  than those playing on other sites
• Svenska Spel has managed to construct and run a
  safe site which is attractive for many players
• The evaluation has some scientific shortcomings
  and is only retrospective.

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Channelling (total around 200 000 players)
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Channelling

• Only a minority (20 000) has left other sites for
  Svenska Spel
• 65 000 started at Svenska Spel and 35 000 are
  still only playing at Svenska Spel
• 30 000 started at Svenska Spel and are now
  playing on other sites
• 35 000 has added gambling on Svenska Spel to
  their gambling on other sites
• We dont know if those who began playing at
  Svenska Spel would have played net poker if the
  site never had started

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Motives for playing or not playing at Svenska Spel

• Pro Swedish Crowns, Safe and reliable, limits
  for gambling
• Against No freerolls, no bonus, easier to win
  money at other sites

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Responsible gambling tools at Svenska Spel

• Everyone has to set limits to the amount of money
  lost and time played
• Self-exclusion for a short or longer period is
  possible
• A self-test is easily available
• Information on time and money spent is easily
  available
• Information is given of the national help-line
  and counselling on problem gambling
• The tool Game-check will soon be introduced also
  for poker players

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Use and attitudes towards RG-measures

• Most gamblers at Svenska Spel are positive
  towards the RG-tools
• Those only playing at Svenska Spel are more
  positive
• When the limit was reached 30 of all players
  gambled at other sites, but among risk-players
  50
• The self-test was used by 16 of all players,
  but among risk-players 24

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Problem gambling and poker

• SoRAD at the University of Stockholm made
  February-December 2006 a monthly telephone survey
  with a representative sample of 1 500 individuals
  aged 16-80 years. (Tryggvesson, English summary
  is available)
• Tryggvesson shows that net-poker gamblers have
  much more risky gambling behaviour than other
  gamblers
• 3 per cent of all gamblers had risky behaviour,
  but 27 of net poker gamblers
• Among young people 39 were risk players

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Less problem gamblers at Svenska Spels poker site

• Among all players interviewed (2 000 in a
  webb-survey) for the inquiry on evaluation of
  Svenska Spels site 8.2 were problem gamblers
  (PGSI 8-27) and 14.8 were risk-players (PGSI
  3-7)
• Among those only playing at Svenska Spel 2.6
  and 8.8
• Among those playing only other sites it was 11.4
  and 15.9
• For those playing on both Svenska Spel and other
  sites 8.7 and 19.8

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Possible explanations

• Players at Svenska Spel are older, have better
  education and are more often female
• They seem to be a little less risk-taking
• Svenska Spel may attract people who want a safe
  site, where it is easy to control your own
  gambling
• The RG-tools may have some effect, but it is
  difficult to prove
• (data both from Tryggvessons study and the
  inquiry)

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Other effects of Svenska Spels site

• Svenska Spel has developed some very good
  RG-tools
• Other companies have learned that RG-tools and a
  responsible attitude can be a commercial
  advantage
• Some money has stayed within Sweden

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Heaven or hell?

• Svenska Spel offers a site that is perceived as a
  safe and trust-worthy game
• Gamblers at Svenska Spels site like the RG-tools
  and have a less risky gambling behaviour
• But if gamblers have the option to turn to other
  sites, RG-tools may be less valid to curb risky
  gambling
• Some gamblers miss bonuses and rake-backs and
  dont like that it is a state-owned site
• The increase in number of net poker players
  corresponds to the number who have started
  playing at Svenska Spel.
• A site like this can be said to sanction poker on
  Internet and it can be questioned if the state
  should offer a game with such a high risk for
  gambling problems

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Heaven or hell? Cont..

• A conclusion can be that Svenska Spels site
  probably does less harm than expected
• On the other hand, it is very difficult to prove
  that it contributes to decrease problem gambling
• Only if it will be very difficult or impossible
  to gamble on foreign sites, the RG-tools will be
  fully effective

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Some advice

• Other forms of internet-gambling may be still
  more risky than poker
• For instance Bingo, casino and slot-machines
  may attract new groups among them women
• If Finland will allow net poker be sure to launch
  a scientific evaluation programme as an
  integrated part of the license

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Thank you

• You are welcome to contact me Anders.stymne_at_fhi.se
  
• The website of SNIPH
• www.fhi.se
• References will be published at
• www.stakes.fi/pelihaitat