Using behavioural insights to combat online gambling

Online wagering, or gambling via the internet, is rapidly becoming the most popular form of gambling in Australia. Between 2012 and 2018, participation in online betting increased dramatically from 16% to 34%. But while it may seem like a fun activity, online wagering comes with serious risks.

“Given this rise, there is need to understand how those accessing gambling online can be guided to better choices,” says Professor Ben Newell from the UNSW Sydney School of Psychology.

He says significant issues arise not only for the gamblers themselves, but also for their families and communities.

“Online gambling offers convenience and accessibility,” Prof. Newell says. “Players can place bets anytime and anywhere. However, this ease can make it hard for individuals to keep track of their spending and betting habits.”

As a result, many gamblers face serious problems, including depression, bankruptcy, job loss, relationship issues, causing breakdowns in families and friendships and overall reduced productivity.

To tackle these issues via practical solutions, Prof. Newell collaborated with the Behavioural Economics Team of the Australian Department of the Prime Minister & Cabinet (BETA) to create ‘activity statements’, which were designed to help gamblers keep track of their betting.

The project, ‘Applying behavioural insights to online wagering’, is a partnership between government and academic institutions, including Professor Bob Slonim from the University of Technology Sydney (UTS) and Professor Swee-Hoon Chuah from the University of Tasmania.

Challenges & opportunities

Activity statements provide detailed information about a gambler’s activities, including the bets made, wins and losses, as well as other account transactions.

By offering this information, Prof. Newell says activity statements act as a critical feedback tool.

Prof. Newell helped design experiments to test how different features of activity statements could affect gambling behaviours. This work builds on research into how people make decisions about gambling, helping to understand the biases that can lead to risky behaviours.

“Our discussions with BETA focused on the types of thinking that people might engage in and how potential biases can influence the decision to gamble,” he says.

“We wanted to design the activity statements in ways that would make clear how much people were betting and how much they were winning and losing.”

Future focused

In 2018, the Commonwealth, state, and territory governments introduced the ‘National Consumer Protection Framework for Online Wagering’. This is what prompted the trial of activity statements.

The project was a crucial step toward reducing gambling-related harm.

“In July 2022, states and territories made it mandatory for online wagering companies to provide monthly activity statements to their customers using our design as a template,” Prof. Newell says.

He says while the impact of the statements on actual rates of online gambling are yet to be evaluated, “the collaborative approach between academia and government helps work towards better economic outcomes, foster social cohesion and improve mental health for many Australians.”