Responsible Gaming Features on Video Lottery Terminals:

1. A Healthy Bottom Line Impact and Promise Responsible Gaming Features on Video LotteryTerminals: Tracy SchransFocal Research Consultants Ltd Tony SchellinckDalhousie University March 28, 2003 Nova Scotia Gaming Corporation

2. Background Dec 1998 Focal/DOH 1998 VL Study 54% of VL Revenue from Problem Gamblers Jan 1999 Nova Scotia Gaming Corp requests tenders for new VLTs designed to mediate problem gambling Dec 2000 NSGC announces plan to replace 3200 VLTs with new or modified machines with 3 phase approach over 2 years Focal Research Consultants Ltd.

3. VLT Replacement Plan • Introductory Phase: • May 2001 to January 2002 • 1000 new terminals, 400 modified/upgraded • rolled out in retailer locations throughout the province • includes new games, bill acceptor, improved graphics and four responsible gaming features intended to assist players in managing time and money spent playing • research to assess player response Focal Research Consultants Ltd.

4. The Responsible Gaming Features Rationale • First in North America • Developed based on research and consultation with problem gambling experts, VLT manufacturers and VL players • Designed to provide: • reality checks • interruptions /breaks in play • alert players to the amount of time and money being spent during a specific play session. Focal Research Consultants Ltd.

5. The Four RGFs • A permanent on-screen clock displaying time-of-day • the display of betting activity in cash amounts versus credits • pop-up reminders of time spent playing after 60, 90 and 120 minutes of continuous play • a 5 minute warning at 145 minutes of continuous play and mandatory cash out at 150 minutes Focal Research Consultants Ltd.

6. Purpose of Research • Assess awareness of and exposure to the features; • Determine the effect of the RGFs on player behaviours, perceptions and attitudes; • Identify improvements to enhance the effectiveness of the features in mitigating excessive play. Focal Research Consultants Ltd.

7. Research Challenges • Roll out schedule for the new terminals • Accurate measurement of changes • Novelty effect • Confounding effect of new games and other terminal enhancements • Regression effect • Rate of expenditure Focal Research Consultants Ltd.

8. Methodology • Qualitative research - preliminary product response phase • Quantitative Pre-Post Return-to-sample design • on-site intercept in 81 retail locations in selected communities • detailed play behaviours benchmarked and tracked over 3 follow-up measurement periods (two month intervals) • total n=164 with response rate of 69.2% and drop off rate of 30.8% for qualified respondents Focal Research Consultants Ltd.

9. Research Design • QUALITATIVE Observed Play in Laboratory Environment Focus Groups (May 2001) One-on-one interviews • QUANTITATIVE On-site Intercepts (May 2001) Pre Survey (June 2001) Post 1 Survey (Sept. 2001) Post 2 Survey (Nov. 2001) Post 3 Survey (Feb. 2002) Analysis (March - Aug. 2002) Focal Research Consultants Ltd.

10. Risk Group CPGI Score n % • No Risk 0 47 29% • Low Risk 1-2 48 29% • Moderate Risk 3-7 39 24% • Problem Player 8+ 30 18% Analysis Segments • Adopters (n=75) versus Non-Adopter (n=89) • Switchers (n=55) versus Non-Switchers (n=109) • Canadian Problem Gambling Index Groups Focal Research Consultants Ltd.

11. Adopters versus Non-Adopters Focal Research Consultants Ltd.

12. Switchers versus Non-Switchers Focal Research Consultants Ltd.

13. Analysis Approach Three Primary Analysis • General Overview - Aggregate level tracking analysis (adopters versus non-adaopters) Provides descriptive contextual information for evaluating the impact of RGFs and other machine characteristics on player behaviour, attitudes and games outcomes. Focal Research Consultants Ltd.

14. “In order to understand the likely impact of proposed changes to the patterns of play amongst problem and recreational gamblers it is important to observe the usual patterns of patrons” and by extension patterns of play on the modified machines. Final Report: The Assessment of the Impact of the Reconfiguration on Electronic Gaming Machines as Harm Minimization Strategies for Problem Gambling; A. Blaszczynski, L. Sharpe, M. Walker; University of Sydney Gambling Research Unit, November 2001. Analysis Approach Con’d • Play behaviours and game outcomes on a per session basis Focal Research Consultants Ltd.

15. Analysis Approach Con’d • Impact Analysis of RGFs on session length and expenditure - General Linear Modeling for repeated measures with covariates • comparison of of measures overtime on an individual basis (Time 1 (Pre) versus Time 2 (Post 3) “Excessive VL gambling from a practical perspective, occurs as a function of spending time and/or money on the activity beyond desired or affordable levels. Thus, interventions that effectively assist players in managing either of these two critical aspects of play should contribute to reducing involvment in excessive VL gambling.” Focal Research Consultants Ltd.

16. Key Findings Associated With Play On New Terminals(Adopters vs Non-Adopters) • Reduction in session length • Improvements in tracking time and money spent • Improvements in staying within desired time and money limits • expenditure remained stable at aggregate level • Increase in rate of expenditure on new machines (faster speed of expenditure) Focal Research Consultants Ltd.

17. Behaviours associated with risk for problem gambing • Frequency of play • total length of time spent playing • Amount of money spent per session • Frequency of: • losing track of time or money • spending more time or money than wanted • chasing losses • continuous play Focal Research Consultants Ltd.

18. Behaviours associated with risk for problem gambing • Planned versus impulsive • one-third to one-half of all plays involve friends/family • amounts used to initiate play similar but frequency of inserting additional funds increases with risk • interruptions in continuous play increase (3.5 to 9.8) • running credits/bank down to zero (3 vs 7) • longest period before first interruption on average 25-30 minutes but longest period of continuous play increases with risk for problem gambling (60 vs 30-40 minutes) • play more games during session (42% vs 17%) • new games have greater appeal • most likely to stop when run out money (40% vs 16%) versus stopping when spend budget or have big win • more likely to end in loss position (75% vs  44%) Focal Research Consultants Ltd.

19. Key Findings – Impact Analysis (for those who switched to play of the new terminals n=55) Changes in time and money spent • Session length Pre Survey 135.85 minutes Post 3 Survey 113.67 minutes • Session expenditure Pre Survey $61.58 Post 3 Survey $60.00 • Amount spent per minute Pre Survey $0.45/minute Post 3 Survey $0.53/minute Increase in amount spent per minute = 16.4% Focal Research Consultants Ltd.

20. Factorsfor decrease in session length • Increase in rate of expenditure (spending money faster) • Cashing out and continuing to play • Keeping a budget • Use of bill acceptor • Rural players • Younger adults Focal Research Consultants Ltd.

21. Factors for increase in session length • Not setting a budget • Losing track of time • Playing new machines more often (frequency of gambling on new machines) • Running credit down to zero and continuing to gamble • Older adults Focal Research Consultants Ltd.

22. Factors associated with increase in expenditure • Losing track of money spent • Increase in rate of expenditure (spending money faster) • Losing track of time • Not setting a budget for play • Dislike of bill acceptor Focal Research Consultants Ltd.

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24. Effectiveness ofOn-Screen Clock On-screen clock • high awareness • high liking among all players, • effectiveness of the feature rated second only to the cash display. • Use of the clock RGF was associated with improvements in tracking time and money spent. • No measurable impact on length of session or expenditure • Lack of familiarity and regular use is impacting effectiveness. Focal Research Consultants Ltd.

25. ON-SCREEN CLOCK: RECOMMENDATIONS • Easy to find – same location on all game screens • Easy to read – test to insure it is clear and stands out among clutter on screen • Enhance the use of the on-screen clock as a tool for time awareness and management. • Allow gambler to set alarm/reminder based on time of day Focal Research Consultants Ltd.

26. Cash Display Focal Research Consultants Ltd.

27. Cash Display Results were mixed • highest awareness levels • considered the most effective RGF by participating players to manage money spent while playing • Some players continue to prefer credits over cash for security and other privacy related reasons. • No link established with reduction in session length or expenditure – difficult to do! Focal Research Consultants Ltd.

28. CASH DISPLAYRECOMMENDATIONS • Retain feature – strong anecdotal evidence it is effective • Facilitate gamblers’ switch from credit based to cash based system • Consider options to link cash display to budgeting Focal Research Consultants Ltd.

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30. Pop-up Reminders • Behaviour triggered exposure • less relevant for the majority of players • lower awareness, liking and perceived effectiveness. Focal Research Consultants Ltd.

31. Pop-up Reminders • It is total length of play, not continuous play, that most strongly distinguishes high risk from low risk VL gambling. • As presently configured – less effective for targeting high risk gamblers • Exposure to the 60-minute pop-up reminder is greatest for higher risk players. However, after the 90-minute mark, (because it is continuous play) none of the messages preferentially target those at higher risk. Focal Research Consultants Ltd.

32. Pop-up Reminders • Exposure to the 60-minute pop-up message was the only RGF found to have any positive influence in reducing session length and expenditure. • Exposure to the later pop-up messages was more likely to be associated with increases in continuous play, primarily due to the link between continuous play and playing with found money and chasing behaviours. Focal Research Consultants Ltd.

33. POP-UP REMINDERSRECOMMENDATIONS • Retain pop-up messages for continuous play with revised schedule • Have messages stay fixed onscreen until players respond • Have message “freeze” onscreen for minimum time period regardless of player response • Introduce complementary RGFs/messages to target non-continuous play • Consider linking message to time-of-day clock (appearing at regular intervals throughout play) • Develop and provide updated player information announcements as part of screen messages Focal Research Consultants Ltd.

34. Mandatory Cash Out • After 145 minutes – warning that in 5 minutes, gambler would be cashed out. • After 150 minutes – gambler cashed out. Focal Research Consultants Ltd.

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36. Effectiveness of Mandatory Cash Out • In its current configuration had: • low awareness; • low exposure; • generated low levels of liking; • low perceived effectiveness; • no detectable influence on reducing session length or expenditure. “the five minute excitement period“ Focal Research Consultants Ltd.

37. CASHOUTRECOMMENDATIONS • Link activation to total time spent playing not continuous play • Move up the warning message to provide players with more time to prepare for cash out • Consider linking cash outs to occurrence of moderate wins to stop gamblers playing with winnings Focal Research Consultants Ltd.

38. Conclusions • Evidence of efficacy of machine based interventions • Clock, 60 minute pop-up, and cash display were effective in helping players keep better track of time and money • Bill acceptor helped some manage money, caused others to spend money faster • Other pop-ups and mandatory cash out had little positive impact but were not harmful • The information from Focal’s report provides a basis for future work in responsible gaming Focal Research Consultants Ltd.

39. Other Significant Characteristics/Behaviours Associated with Changes in Time or Money Spent on the New VLTs Session Length Expenditure Increase in rate of expenditure *** *** Frequency of cashing out and continuing to play *** --- Frequency of losing track of time * ** Frequency of losing track of money --- *** Keeping a budget for play ** ** Frequency of spending more time playing than desired --- *** Frequency of play on the new terminals * --- Liking of bill acceptors --- * Use of bill acceptors * --- Frequency of running credits down to zero * --- Area of residence ** --- Age * --- Education Level --- * --- = p>0.10; * = p<0.10; ** = p<0.05; *** = p<0.01 Focal Research Consultants Ltd.

40. Overview of Recommendations • Report contains 13 recommendations related to RGFs • Enhancements to existing features • On-screen clock more prominent/distinctive • 30-minute pop-up • Mandatory response to pop-up • Pop-up freeze • Advance cash-out warning Focal Research Consultants Ltd.

41. Overview of Recommendations (cont’d) • New RGFs • Pre-set length of play • Similar to Quebec’s new approach • Printed record of play activity Focal Research Consultants Ltd.

42. Overview of Recommendations (cont’d) • Recommendations not being pursued at this time: • Allowing players to set a budget • Lack of cumulative betting information • Alternative – receipt of play session • Pop-up every 20-30 minutes • Alternative - new 30-minute pop-up Focal Research Consultants Ltd.

43. Overview of Recommendations (cont’d) • Recommendations not being pursued at this time (cont’d): • Linking mandatory cash out to total time • Player tracking required • Associating mandatory cash out with wins • Player misconceptions Focal Research Consultants Ltd.