A recent study conducted by Sally Gainsbury of the University of Sydney in Australia identified key factors in luring Australian gamblers from illegal offshore betting sites to legal sites, in a report that could offer valuable advice for new U.S. sports betting operations.
According to the report, offshore gamblers indicated that payout rates, game experience, and sites advertising themselves as “for Australians” influenced their decision on where to gamble, while domestic gamblers were more likely to pick their sites because they were licensed by a respected government entity, that they were licensed in Australia, and available payment methods.
“Understanding consumers’ use of offshore gambling sites is essential to derive policies to reduce use of these sites with the goal of consumer protection,” Gainsbury wrote. “As hypothesized, there were some differences between the cohorts of gamblers who use offshore vs. domestic internet gambling sites. Although gender was not significant at a univariate level, its multivariate contribution to the prediction of using offshore gambling sites demonstrates a significant factor.
“This may be related to the use of illegal online gambling forms in the examined jurisdiction, such as casino, bingo and electronic gaming machines, which have higher female involvement than legal sports and race wagering (McCormack et al., 2014). Offshore gamblers were likely to be younger, more highly educated, and work full time, rather than be retired. This may indicate that those more familiar and comfortable with internet technology are engaging in offshore gambling.”
Payouts were another important factor. “As hypothesized, gamblers using offshore sites are more likely to be influenced by factors relevant to payouts and game experience, and are less concerned with the reputation of the operator, where the site is licensed, and available payment methods,” the report said. “However, offshore gamblers did seek sites that are intended for Australians and the ability to bet in local currency, suggesting that they want a customized experience, but are willing to obtain this from an offshore provider.”
The study suggests that a large proportion of regular internet gamblers engage with offshore gambling sites. “This indicates that offshore sites offer a competitive product that is not replicated by domestic sites, and that gamblers are not seriously concerned with licensing details,” the report said.
