A recent study has found that more than 25 percent of Australian online gamblers are playing at unlicensed offshore gambling sites and found they are at higher risk of developing gambling problems the other gamblers.
The study was published and written by Sally Gainsbury of the University of Sydney and contributed to by Alex MT Russell and Nerilee Hing from the Central Queensland University, and Alex Blaszczynski from the University of Sydney.
It compared online gamblers in Australia using offshore sites to those using only domestically licensed sites. The study focused on factors influencing site selection, awareness of gambling legislation and experience of gambling-related problems.
The study’s objective was to understand the extent to which consumers are using offshore gambling sites and the extent to which use of offshore gambling sites is related to gambling problems.
“Understanding consumers’ use of offshore sites may enable design of strategies and policies to reduce demand and access, and provide greater levels of consumer protection,” the study’s authors wrote.
The study found that out of the 3199 respondents who gambled online, 74.2 percent were domestic gamblers, while the remaining 25.8 percent were offshore gamblers.
Further, offshore gamblers were significantly more likely to be male; younger; never married; living in a household with one parent; less educated; more likely to be unemployed or a full-time student. They were also more likely to speak a language other than English at home and significantly more likely to have only a mobile phone than domestic gamblers.
Offshore gamblers were also more likely to engage in every form of gambling than players using domestic sites and were reported to hold longer gambling sessions when betting on sports. Offshore gamblers were also significantly more likely to be moderate risk or problem gamblers, said the study.
The study concluded that there would likely be a demand for prohibited forms of online gambling as younger gamblers prefer to gamble online.
While legalization would likely contribute to a greater increase in participation, there is evidence that gambling through domestically licensed sites is associated with lower levels of gambling-related problems, the study said.
“Regulators need to act to reduce the availability of and use of offshore gambling sites. This is important to minimize unfair competition for licensed providers, to retain taxation from gambling, to enforce regulation and to protect consumers,” it said.
“Gamblers using offshore sites represent a somewhat distinct market of consumers, which is important to understand to allow consumer education campaigns to target appropriate sub-populations,” the study said. “Understanding the preferences and needs of this population can drive policies and practices accompanying any legislative changes.”
