Many countries regulate gambling services to prevent gambling harms, crime, and other negative social outcomes (Banks,
2017; Sulkunen et al.,
2019). There are great differences between countries how the regulation is arranged from licensing systems to monopoly suppliers. Rapid rise on the popularity of online gambling has drawn the attention to offshore gambling operators which accept online gamblers in contravention to local regulations even though they do not have local licenses (Gainsbury et al.,
2018; Hing et al.,
2021; Lind et al.,
2021). The popularity of offshore gambling raises some concerns as the offshore operators may offer access to products that do not meet local restrictions for gambling or do not follow consumer protection requirements (Forsström & Cisneros Örnberg,
2019; Hing et al.,
2021; Podesta & Thomas,
2017). For example, unregulated gambling operators have been associated with difficulties or inability of withdrawing winnings, and frauds, such as identity thefts (Banks,
2012; Griffiths,
2010; Gainsbury et al.,
2018; Hing et al.,
2021). Moreover, offshore gambling may predispose to exacerbation of gambling problems as offshore sites are accessible 24 h a day with large game variety (Silvennoinen & Vuorento,
2022). Having multiple player accounts makes it more difficult to follow how much has been spent to gambling overall. For those who have voluntarily self-excluded from gambling through licensed operators, offshore gambling sites may pose a risk to breach one’s own self-exclusion (Håkansson & Åkesson,
2022). Offshore gambling has also been linked to trading with high-risk cryptocurrencies (Oksanen et al.,
2022).
The reasons for gambling, called gambling motives, are key concept in understanding gambling behavior and potential gambling harm, such as problem gambling. To our knowledge, only a few studies have investigated the reasons to gamble on offshore gambling sites, and no prior study has compared the general gambling motives between online gamblers who use only onshore gambling sites as opposed to gamblers who also use offshore gambling sites. This study aimed to fill this gap with an analysis of offshore and onshore gamblers in Finland.
Offshore and Onshore Gambling
In this paper, we use the term offshore gambling for those operators which do not hold a valid operating license in a particular jurisdictional area but provide gambling services for online gamblers from that area (Gainsbury et al.,
2019; Hing et al.,
2021; Podesta & Thomas,
2017). Gambling operators which hold a license for a given jurisdictional area are referred as onshore gambling operators (Podesta & Thomas,
2017). Onshore gambling operators must follow the governmental regulations for marketing and promotion, offer adequate consumer protection tools, and pay taxes for the given jurisdictional area (Gainsbury et al.,
2019; Marionneau & Järvinen-Tassopoulos,
2017). Offshore gambling operators compete with onshore operators in the same markets with similar products and services, or with the kind of products and services that regulated sites are unable to offer, but do not pay taxes or follow the local restrictions (Gainsbury et al.,
2019). By competing with onshore gambling sites, offshore gambling operators undermine the value of licenses while having an unfair competing advantage. For these reasons, many governments try to channel gambling for their licensed gambling operators.
For some gamblers, offshore gambling sites might seem tempting as they may provide greater variance of different products, payouts, and gambling experiences. Moreover, the restrictions the onshore sites must use might be frustrating for some compared to offshore sites (Costes et al.,
2016; Gainsbury et al.,
2018). It is also noteworthy, however, that gamblers may not always be aware of the unlicensed status of the gambling site (Hing et al.,
2021), as the gambling websites can mimic or copy the design of a licensed gambling website (Griffiths,
2010). Based on our knowledge, only a few studies have examined the characteristics of those who use offshore gambling sites and their reasons for site selection. Previous studies have associated offshore gambling with younger age (Costes et al.,
2016; Gainsbury et al.,
2018,
2019) but the associations with gender are somewhat mixed. One study found that offshore gamblers were more often men (Gainsbury et al.,
2018) while two studies found offshore gambling to be more common among women (Costes et al.,
2016; Gainsbury et al.,
2019).
The proportion of problem gambling is higher among offshore than onshore gamblers (Hing et al.,
2021), and offshore gambling is also associated with more intense gambling patterns (Costes et al.,
2016) and greater variance of game types (Gainsbury et al.,
2019). The most common reasons for offshore gambling are greater variance in gambling options, higher payout rates and better prices (Gainsbury et al.,
2018; Hing et al.,
2021). The ability to pay in local currency and the usability of the website were also listed as reasons for choosing one site over another (Gainsbury et al.,
2019). Furthermore, some gamblers might be encouraged to use offshore gambling sites due to betting restrictions that onshore gambling operators place to their gambling accounts if they gamble too successfully (Podesta & Thomas,
2017).
Motivation, Addiction, and Gambling Motives
The role of motivation has been recognized as an important factor in gambling behavior and addictions (Baumeister,
2016; Binde,
2013; Köpetz et al.,
2013). Motivation can be defined as any sort of desire to do something (Baumeister & Vohs,
2007). Baumeister and Vohs (
2007) distinguish two forms of motivations; drives and impulses. Drive is a more long-term desire or a recurrent pattern of behavior that heads toward some goal that may not be present at the current situation. Impulse, or a state, is a situational and contextual desire to perform a particular act in a particular occasion. Drive can be seen as trait of a person which is independent of the situations whereas impulse is a product of the interaction between person and a situation. Some situational cue can activate an impulse.
Self-regulation is a concept closely connected to motivation and addiction, which includes setting a goal, finding appropriate means to achieve the goal, rejecting distractions, and managing conflicts (Köpetz et al.,
2013). Goals have motivational properties as they represent a desirable end-state which can be achieved through certain action. At the beginning of an addiction, means (such as gambling) are just different pathways to the desirable end-state (e.g., enhancement or relaxation). As time passes, the means are cognitively and emotionally associated with the goal through a process called emotional transfer, and the mean becomes the goal in itself that the individual compulsively chases.
Previous research has associated difficulties in impulse control with addictive behaviors (Ioannidis et al.,
2019). Impulsivity is a multifaceted concept which consist of impulsive choice, impulsive action and impulsive personality traits (negative and positive urgency, lack of persistence, lack of planning and sensation seeking) (MacKillop et al.,
2016; Whiteside et al.,
2005). The tendency to act rash without thinking, difficulty to tolerate negative emotions, and the preference of small immediate rewards rather than large but delayed rewards (delay discounting) are typical characters of impulsive behavior, and may maintain the addiction despite the negative consequences (Amlung et al.,
2017; MacKillop et al.,
2016).
In order to understand gambling behavior more in depth, researchers have identified psychological reasons for gambling, in other words gambling motives (e.g. Binde,
2013; Stewart & Zack,
2008). Although the possibility to win money is the fundamental motive to gamble, many other reasons to gamble have been recognized (Binde,
2013). Previous studies have identified five motives in addition to monetary motive: enhancement, socializing, challenge, escape and supporting worthy causes (Binde,
2013; Dechant,
2014; Francis et al.,
2015; Wardle et al.,
2011). According to different population studies (Francis et al.,
2015; Pallesen et al.,
2020; Volberg et al.,
2015; Wardle et al.,
2011), gambling for money and enhancement are usually the most common motives whereas the escape motive is one of the least endorsed motives, but there are some differences between countries.
Gambling motives have been shown to vary between socio-demographic and gambling behavior related factors (Francis et al.,
2015; Hagfors et al.,
2022; Pallesen et al.,
2020; Volberg et al.,
2015; Wardle et al.,
2011). For example, gambling for money and enhancement is usually more common among men, whereas gambling for escape is more common among women (Francis et al.,
2015; Pallesen et al.,
2020; Wardle et al.,
2011). Furthermore, gambling for socializing, enhancement and escape is more common among younger gamblers, while supporting worthy causes is more common among older gamblers (Francis et al.,
2015; Pallesen et al.,
2020; Volberg et al.,
2015; Wardle et al.,
2011). Some of the motives (e.g. escape, money, enhancement) have been associated with problem gambling more strongly than others (Abbott et al.,
2018; Francis et al.,
2015,
2015; Pallesen et al.,
2020; Volberg et al.,
2015).
Online gambling is currently changing gambling globally (Håkansson,
2020; King et al.,
2020; Oksanen et al.,
2021; Sirola et al.,
2021). This emerging and transforming context of gambling involves also potentially different motives for gambling than traditional forms of offline gambling. Online gambling has been associated with escape motives and negative affect, and it is more often initiated to make money, to demonstrate skills or because of boredom than offline gambling (Goldstein et al.,
2016). Although online gambling has been associated with problem gambling, the likely reason behind it could be that online gamblers often engage in multiple gambling forms, which is a strong predictor of problem gambling in itself (Abbott et al.,
2018).
Present Study
This study focused on the offshore and onshore online gamblers in Finland. Currently, a state-owned monopoly supplier Veikkaus Oy has exclusive right to provide gambling services in Mainland Finland. In 2017, three gambling operators (RAY, Fintoto and Veikkaus) were merged in order to prevent competition between the monopoly operators, and it was thought that monopoly supplier could be better at preventing and reducing gambling-related harms than licensed operators who compete with each other (Salonen et al.,
2019). The Sect. 52 of the Lotteries Act regulates gambling in Mainland Finland. The Ministry of Interior governs gambling with a decree which regulates specific details in gambling provision, e.g., the wins paid to players and the maximum number of slot machines. The National Police Board monitors the provision of gambling services. The Lotteries Act has assigned the Ministry of Health and Social Affairs to monitor and research gambling harms which allocated this mission to the Finnish Institute of Health and Welfare. Veikkaus Oy must compensate the state for the costs incurred by monitoring, research, and development. Gambling profits are used to support public interest activities from health, culture, research, and sports fields. (The Sect. 52 of the Lotteries Act.)
To gamble onshore games provided by Veikkaus Oy, the customer is obligated to create a player account and verify their identity and age. Each customer can have only one account and must set limits to daily and monthly money transfer in order to gamble. Despite the monopoly, participating in offshore gambling, that is, games offered by Paf (Ålands Penningautomatförening) and/or foreign gambling operators, is not prohibited under Finnish legislation. Monopoly operator Paf operates in the Åland Islands by offering online games and games on ships sailing between Finland and Sweden or Estonia. Overall, the proportion of offshore gamblers has increased in Finland from 5.1 to 6.2% between 2015 and 2019 (Salonen et al.,
2020). The most popular offshore game types in Finland were EGMs, online betting, and poker.
This study examines both gambling motives in general and the specific reasons for offshore gambling in Finland. Our research questions were:
1)
How do gambling motives differ between offshore and onshore online gamblers?
2)
What are the specific reasons for offshore gambling?