How Social Media Affect to Online Gambling - Research Paper Example

 “How Social Media Affect To Online Gambling?” 1.1 Introduction Gambling has always been a practice for years. In past people used to do gambling at bars and casinos. But presently, accessibility of internet has made gambling very easy. Online gambling has become popular nowadays among all generations and the main cause which promoted this thing is the social media i.e. internet, television, mobiles, blogs, websites etc. It has greatly affected online gambling to become popularize differently and making people addicted to it. This promotion of online gambling through social media is troublesome; people are considering it compulsory, similar to that of shopping, which can also be referred to as net compulsions. Social media have given totally a new picture to gambling. It has opened the doors of more challenges and opportunities towards online gambling. Researches have estimated that in 2011 around 430 million people (worldwide) are involved in online gambling (Castronova E, 2011) 1.2 Social media In order to identify the effect of social media on online gambling, firstly it is imperative to know what the social media is. Social media can be of many forms such as internet, videos, social blogs or weblogs, pictures etc. Researchers concluded that mainly there are six forms of social media i.e. Blogs (Twitters), social networking sites (face book), collaborative projects (Wikipedia), content communities (YouTube), game world (world of war craft) and Virtual social world (Second life). In some way or the other all these networks are promoting online gambling. Howe ever, this research paper focuses on some of these social media sources and aims to identify their effect on online gambling (Kaplan Andreas, 60). 1.3 Effect of social media on online gambling Social media have greatly enhanced and promoted online gambling. It has given a new shape and practice to it. Online gambling basically means doing gambling via internet, which is presently one of the major social media source. There are many forms of online gambling. Some of the forms of online gambling been affected by social media are described below: Online casinos Most of social Medias such as twitters, face book, social blogs, and internet provide varieties of online casinos. It provides casino games to the people such as baccarat, roulette, pachinko etc. These are some of the most popular online casino games promoted by social media. It helps in making money by making odds in favor and is played against the house. Online poker Online poker is mainly played though game world, which is most popular social media among youngsters and teenagers. Game world offer poker tables on Texas, horse, razz, Omaha and other online games, these are based on two structures ring game and on tournament basis. Students make money in it through tournament fees or rake. In it students play with each other rather than the house. This is mostly used in college campuses; therefore it is troublesome for the economy. Research predicts that around 20% of college students use online poker through game world (Young Kimberly, 2011). Online bingo It is the bingo game played on internet. It is forecasted that this internet game will grow around $1000 million by 2012. Social networking sites are used for the promotion of bingo rooms such as face book. These sites are a major part of bingo networks. This means that these sites play for numbers on the basis of jackpot. Multiple sites promote a single game, moving to large chartrooms and providing more chances to win which is commonly known as white label gaming. Mainly brand owners of the game are liable to manage the websites. The website will work only if it has minimum players in the game. It works on the basis of shared players. It is a leisure activity of women’s within the age of 20 to 25 years. In US market many large companies are launching bingo games on their built in websites. So this game has become quite popular in Asian markets through social networking sites (Harris Kandace, 20). Online sports betting Sports betting are very popular in Asia mainly in world cup season. It is done on the internet through various firms such as betting exchangers, book makers and spread betting firms. Content communities and blogs are the the most common social media used for online sports betting. These betting are made on the overall result of the match. The most famous online sport betting is fixed- odds gambling. Online lotteries Lotteries are mainly protected by government because it involves taxable cash flows. In beginning online lotteries were handled by private companies on the basis of license. But in order to be secured government passed many regulations because of which most of the companies stopped trading in lotteries. Presently, government controls the lotteries and online lotteries are promoted through social networking websites. All information in relation to lotteries i.e. the winning number and prices are displayed on websites (kalpoint.com). This process has made the lottery transaction easier and safer (Matthew Garrahan, 2011). Mobile gambling Most common gambling practice today is mobile gambling. Advancement in mobile gambling is the reason of the promotion and excess use of wireless social networks in mobile devices. Wireless networks are common nowadays and its launch in mobile had made gambling very easy. It provides the benefit of playing poker and blog games. It is also used for betting sports games. Wireless network is one of the most modern techniques of gambling (Brown R, 105). Online horse racing betting Horse racing betting was famous from the very beginning in the early stages. A large percentage of online gambling is done on horse racing. Online horse racing is offered by internet, bookmarkers, twitters, social networking websites, sports books and betting exchangers. A large amount of bid is made in each participating horse online without going to the stadium. Online Fund transfers With the promotion of online banking systems funds received from gambling can be easily transferred from one account to the other. Gamblers use credit cards or debit cards to transfer the gambling money to the accounts. This is done through the online transfer facilities of banks on social network websites also, by just entering the pin code and account number the whole amount can be easily transferred. Presently in US banks usage of credit cards for internet gambling have been rejected. However, there are many social networking websites which offer gambling funding services, such as money brokers, fire play, neteller etc (Dowling N, 5). Some other effects of social media on online gambling are: Social media have changed the games of gambling. There is a change in its process, nowadays everything is done online on the basis of new terms and techniques. It has changed the overall gaming industry. This means new games are introduced, game process have changed and audience of games have also broaden, which includes not only the business men but teenagers, house wives, and old aged people. It has given new model to gambling such as games on Facebook and twitters. It works on the basis of equation i.e. collaboration and partnership with new audiences will create synergy, which means it helps to get new target markets. It has promoted survival of only those online gambling games which are most fit. This means that only those games are played which are easy to play, share and helps in human interaction. Social media have tried to enter good online gambling games in the market. Bad games do not stay long in the market place. Therefore, best features are incorporated in games to attract more players. In today’s complex environment, social media have provided a new path to online gambling i.e. it had targeted niche segment by making games in accordance to their need and preferences. This proves that social media had led to the diversification of online gambling industry. Gambling games are presently being used in new ways. They are not just used for entertainment but are also used to get more players. This increasing social network will reduce the hurdles in the growth of gambling. This is mainly done through Facebook, in which games are introduced for all generations (Hudson Scott, 14). 1.4 Social media technique to online gambling Impact of social media towards gambling has always been to bring more players in the market. It has been done through attractive websites, announcing big price winners and approaching to the target segments. It also helped in creating new segments such as old and youngsters, by providing gambling games in accordance to their nature on the websites. In order to achieve success and increase its market brand managers keep on improving their websites. Social media is the main reason for the success of online gambling. If social media technique is effective it will not only increase the loyalty of gambling players but will also bring new players to the website. One of the main reasons for the popularity of online gambling is that it provides fun and entertainment to the players through social online communities. These communities play a key role getting people attached to one another and promotion of gambling on these online communities is very beneficial in attracting new audiences (Li Charlene, 2008). 1.5 Internet Internet is one of the most famous social media, which includes helping people to get connected with each other and assisted in business purposes. It is the truth that we feel more comfortable when we talk to our online friends rather than talking to our real friends, in doing so we get used to internet and get involved in browsing, playing games or gambling. Even though internet has helped us in all major cycles of our life but one cannot forgo its negative aspects which is harming the humanity. It has promoted the business of online gambling. Nowadays, through internet access virtual or online casinos are open twenty- four hours. This means that people who are unable to go to casinos or have their residence away from the betting track can do gambling easily though online. This online gambling has become an entertainment for people of all stages. Online gambling through internet has promoted new procedures and ways of gambling, which have attracted not only the middle aged people but also young ones are getting involved to it with the introduction of online gambling games on internet. This means internet have open new opportunities and challenges towards gambling. Opposition It is important to note that some researchers have neglected to the idea that internet is a vast social media which have promoted online gambling. Internet is used for online gaming, online auctions, online gambling etc., but it doesn’t mean that this whole system is addictive. Whether gambling is done through internet or other source, one may do this due to any psychological differences such as lack of sleep or disturbance. It is for a short time period. There is a vast difference in internet activities and gambling. Internet is a large information medium while gambling is a single anti social behavior. It is also noted that internet addict people do not suffer the same damages as seen in common established addictions (Hansen S, 235). 1.6 Social networking sites One of the most common technique used for gambling and helped in its promotion are networking sites. All information in relation to gambling is available on sites. People can bet easily through websites on the basis of current information without visiting the betting place. Facebook.com Facebook is one of the most popular media nowadays and have gained a large target market in a very short time span. It helps to get people connected and provides a full entertainment package to the people. It have also promoted online gambling by including games of betting, cards, taxes, razz etc. People play these games, win various prices and pass their comment on the games, which help in getting more players by poking it to their friends and members in face book. They are getting addicted to these games. It is most popular social media site and has captured a large market segment off gambling through its large varieties of games. It also provides online casinos, twitters etc., (Padilla Walker, 20). CasinoAffiliatePrograms.com (CAP) Casino affiliate programe.com is one of the world’s largest online gambling communities. It have total 11, 000 players. It is one of the biggest online game brands, where people play and do business. It has partnership with three big online casinos i.e. Brent Custoras, Blue glass and Dave Snyder. CAP has gained large popularity in the gambling world. In order to achieve social success betting is done on various social events by linking and sharing the points on websites. It also promotes online marketing in which people do betting on different products on websites. CAP have received this success only due to continuous improvement and monitoring the websites. It not only helps in playing but also holds a question and answer session at the end of game (Taylor Lori, 245). 1.7 Economic impact of social media in the gambling industry Online gambling through social media has greatly affected the economy all over the world. This industry has significantly contributed in the development of output and employment in the economy. In 2009 betting alone created $3 billion gross income in value added terms in the US economy and also promoted 40,700 full time jobs. On the other hand many people think that online gambling is a major problem in the economy in spite of its huge contribution. This industry promoted economic inclusion, employment, transferring skills and regeneration in the economy. Online gambling through social media has provided direct and indirect benefits to the economy. Direct contribution to the economy Online gambling has provided direct benefits to economy in terms of income and expenditures. It has increased the gross income of US market with three billion dollars, which equals to 77% of industry revenue and provided full time jobs to the people. Indirect contribution to the economy Online gambling provides indirect benefits by interacting with other businesses in the supply chain. These indirect benefits are the result of the activities of gambling industry which promotes job and growth. This industry has indirectly supported 62,300 jobs, in retail, IT services and real estate industries which is major contribution. This was possible only due to strong relationship of online gambling industry in the other supply chains which was only possible through social media techniques and procedures (Ladbrokes, 25). 1.8 Conclusion Gambling was in practice since early stages. However, modern technologies and social media have totally changed its picture of history. Presently, online gambling have become quite popular, the main reason of which is social media. It has mainly affected US markets and partially Asian markets. It have promoted online gambling through many ways such as through internet, blogs, twitters, social networking websites, videos, chatting, Facebook, casino online programs etc. this research paper shows that social media have greatly affected online gambling not only in process and technique but also in attracting new and retainable audiences (Downey G, 402). References Brown, R. “Gaming, gambling and other addictive play. Adult play: A reversal theory appraoch.” Addictive behaviors 23 (2008):101-108. Castronova, E. “Synthetic Worlds: the business and culture of online gambling.” London: University of Chicago Press, 2011. Dowling, N. “Screening for Internet Dependence: Do the Proposed Diagnostic Criteria Differentiate Normal from Dependent Internet Use?” Cyber Psychology & Behavior 12 (1) (2008): 1-10 Downey, G. "Social factors and psychopathology.” Annual Review of Psychology 42 (2008): 401-425. Hansen, S. “Excessive Internet usage or 'Internet Addiction'? The implications of diagnostic categories for student users.” Journal of Computer Assisted Learning 18 (2) (2002): 232–236 Harris, Kandace. “Using Social Networking Sites as gambling Tools". Diverse Issues in Higher Education 25 (18) (2008): 12-25 Hudson, Scott. “The Social and Psychological Impact of Online Gambling”. Journal of psychology 5 (2006): 1-50 Kaplan, Andreas. “Users of the world, unite! The challenges and opportunities of Social Media". Business Horizons 53 (1) (2010): 59–68 Ladbrokes. “Economic impact of gambling industry.” Deloitte research papers (2009):1-50 Li, Charlene. “Groundswell: Winning in a World Transformed by Social Technologies.” Boston: Harvard Business Press, 2008 Padilla Walker. “More than just a game: Video game and Internet use during emerging adulthood.” Journal of Youth and Adolescence 9 (2009): 16-25 Matthew, Garrahan. “Call for change to US gambling laws". Financial Times, 2011. Taylor, Lori. “Why social media gambling is a big business for your business.” Business Horizons 54 (2010): 241-251. Young, Kimberly. “Internet addiction among college students.” New York Times, 2011 Read More