Investigative Journalism

Turning gamers into gamblers

Popular, long-running online game Runescape is being widely criticised for encouraging youngsters to gamble..Australian gamer, parent and former gambling addict Jakob Gamertsfelder is a veteran Runescape player but is now one of many actively protesting about the game’s new direction – what he describes as “an online casino aimed at children”. Most of the complaints are directed at Squeal of Fortune, which was added early this year and allows players to “buy spins” to a virtual wheel of fortune to win prizes. Jakob says Squeal of Fortune is “marketing aimed at habituating and incentivising gambling, directly aimed at kids”. “My motivation comes not just from the good memories of spending time with my kids in Runescape but also from remembering what it feels like to be caught up in a gambling addiction, which I was for some years.” Last year a gambling industry veteran urged sports betting agencies to target video gamers, while a study suggested teenager game players had brains “like gambling addicts”. Meanwhile, research in 2009 suggested teenagers who regularly play video games are more likely to develop anti-social behaviour that can lead to problem gambling.

Jakob Gamertsfelder is particularly angry that Runescape’s new owners Jagex changed the terms and conditions of Runescape around the same time as launching Squeal of Fortune. The changes ensure the company is not liable if a player uses someone else’s credit card. He says this seems to have been done because Jagex expects kids to use their parent’s cards without permission. “The timing indicates the intent,” Jakob says. “It annoys the crap out of me that Jagex does something this malicious and then fobs off responsibility to parents.”

Turning gamers into gamblers

CkirbyTurning gamers into gamblers
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Online lottery sales, meant to draw in younger gamblers, draw opposition

Lotteries tell the public “people are gambling anyway” but there is no question that lotteries are actively targeting and creating new gamblers to get them to lose their money. In this story, the Maine Lottery Director describes the strategy: “While our lottery revenue generation is doing reasonably well, our consumer or customer head count participation is flat to slightly down….the lottery needs to bolster sales to the “Generation Y” segment of the population, 18-to 30-year-olds that embrace the Internet.”

Online lottery sales, meant to draw in younger gamblers, draw opposition

LesOnline lottery sales, meant to draw in younger gamblers, draw opposition
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Casino giant IGT launches popular slot machine on Facebook

In an effort to encourage more young people to lose money gambling on the Internet, International Gaming Technology has launched its Da Vinci Diamonds slot machine, which can be found in casinos across the country, as a Facebook game, as if it were Farmville or Words With Friends.

2012 Casino giant IGT goes social, launches Vegas slot machine favorite on Facebook

CkirbyCasino giant IGT launches popular slot machine on Facebook
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FBI crime numbers show crime has increased in Pennsylvania cities since casinos were built

According to FBI crime numbers and the district attorney of Luzerne County (the location of a casino owned by Mohegan Sun), crime has actually gone up in several categories since the casino opened in 2006. From 2005 to 2010, larcenies shot up 20 percent, property crime jumped 13 percent and aggravated assaults increased 12 percent. “I believe it’s just increasing,” said Luzerne County District Attorney Stefanie Salavantis. “Yes, homicides may have gone down, but every year is different with homicides and rape. The burglaries, the property crime — those things I don’t think have gone down. … We get approximately 5,000 cases a year, and it’s been increasing.”

In Bethlehem, a casino opened in July 2010. While FBI statistics are not available for 2011, the bureau’s numbers for Bethlehem from 2009 to 2010 show a 6 percent increase in violent crime and a 7 percent increase in property crime, as well as jumps in robbery and larceny. Burglary in Bethlehem rose 20 percent over those two years.

2012 Suffolk CEO says casino will reduce crime in Eastie but numbers don’t add up

CkirbyFBI crime numbers show crime has increased in Pennsylvania cities since casinos were built
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A look at “The Profit Optimization suite” software used by casinos to squeeze the maximum amount of money out of customers

This article provides a window into how casinos like Caesars squeeze the maximum revenue out of customers.  The software described here has increased Caesars revenue by $50 million per month (even while room occupancy rate actually declines.) The article concludes: “Filthy, you say? Maybe so. But Rainmaker has more than two dozen customers in the casino business so it’s not out of the question that the company has helped customers to the tune of billions of dollars.”

A look at “The Profit Optimization suite” software used by casinos to squeeze the maximum profits

 

LesA look at “The Profit Optimization suite” software used by casinos to squeeze the maximum amount of money out of customers
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Payday Lenders and Indian Tribes Evading Laws Draw Scrutiny

Due to sovereign immunity, the legal doctrine that restricts state interference in tribal affairs, many partnerships between Native American Tribes and federal regulators are being put under the microscope. These partnerships are drawing a lot of scrutiny given their allowance of predatory lending and finding loopholes in federal laws.

Payday Lenders and Indian Tribes Evading Laws Draw Scrutiny

LesPayday Lenders and Indian Tribes Evading Laws Draw Scrutiny
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Slots and Safety at New Mexico Tracks

One of the first states to approve slot machine gambling at horse tracks, New Mexico now has been tagged with the worst safety record in racing. Nationwide, the newspaper found the industry “still mired in a culture of drugs and lax regulation and a fatal breakdown rate that remains far worse than in most of the world.” In addition, slots are now the tail that wag the horse, accounting for most of the revenue at tracks and turning racing into a side business, and perhaps the biggest reason for safety plummeting.

Slots and Safety at New Mexico Horse Tracks

LesSlots and Safety at New Mexico Tracks
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Political leader challenges government-sanctioned gambling machines

MLA Ken Allred took aim at video lottery terminals (VLTs) , questioning whether the crown corporation that runs them is being upfront with the public about how the machines work, how the finances are reported and what the true cost is to the province.

Allred Sounds Alarm on VLTs

CkirbyPolitical leader challenges government-sanctioned gambling machines
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Atlantic City Undercover: Analyzing Casino Crime

After a carjacking in the Taj Majal casino parking garage, the Atlantic City mayor demands an increase in private security. Security issues have been a major problem in Atlantic City over the years due to the increase in the gambling presence.

Atlantic City Undercover: Analyzing Casino Crime

LesAtlantic City Undercover: Analyzing Casino Crime
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