BACKGROUND: Cryptocurrencies are a popular investment tool today. However, some studies highlight the investing behavior of cryptocurrencies similar to pathological gambling. Investing behavior becomes risky when it is not based on proper and adequate analysis and carries the possibility of big losses as well as big gains. For this reason, we aimed to determine the potential risky investor profile by age, gender, personality traits and impulsivity levels. SUBJECTS AND METHODS: Six hundred and fifty-four cryptocurrencies investors (529 was male, 125 was female, their mean age was 35.6 ± 9.0) participated in this study between June 2022 - August 2022. Participants were administered the Sociodemographic Data Form, the South OAKS Gambling Screen Test - revised (SOGS-r), the Big Five Inventory (BFI-10), and Barratt Impulsiveness Scale-11 (BIS-11). RESULTS: We found higher neuroticism and impulsivity in possible problematic crypto investors. In addition, extraversion, agreeableness and conscientiousness scores were lower. Additionally, in our regression analyzes we found that younger age and male gender predicted SOGS-r scores. After controlling for age and gender, extraversion negatively and motor impulsivity positively predicted SOGS-r scores. DISCUSSION: Investing in cryptocurrencies can become a behavioral addiction, similar to pathological gambling. It is important to identify profiles in which investment behavior is risky. CONCLUSION: Personality traits and impulsivity may have a significant impact on identifying risky crypto investors and in the treatment process.
Jamie Torrance, Conor Heath, Maira Andrade, Philip Newall
Background & aims: The gamblification of UK football has resulted in a proliferation of in-game marketing associated with gambling and gambling-like products such as cryptocurrencies and financial trading apps. The English Premier League (EPL) has in response banned gambling logos on shirt-fronts from 2026 onward. This ban does not affect other types of marketing for gambling (e.g., sleeves and pitch-side hoardings), nor gambling-like products. This study therefore aimed to assess the ban's implied overall reduction of different types of marketing exposure. Methods: We performed a frequency analysis of logos associated with gambling, cryptocurrency, and financial trading across 10 broadcasts from the 2022/23 EPL season. For each relevant logo, we coded: the marketed product, associated brand, number of individual logos, logo location, logo duration, and whether harm-reduction content was present. Results: There were 20,941 relevant logos across the 10 broadcasts, of which 13,427 (64.1%) were for gambling only, 2,236 (10.7%) were for both gambling and cryptocurrency, 2,014 (9.6%) were for cryptocurrency only, 2,068 (9.9%) were for both cryptocurrency and financial trading, and 1,196 (5.7%) were for financial trading only. There were 1,075 shirt-front gambling-associated logos, representing 6.9% of all gambling-associated logos, and 5.1% of all logos combined. Pitch-side hoardings were the most frequent marketing location (52.3%), and 3.4% of logos contained harm-reduction content. Discussion & Conclusions: Brand logos associated with gambling, cryptocurrency, and financial trading are common within EPL broadcasts. Approximately 1 in 20 gambling and gambling-like logos are subject to the EPL's voluntary ban on shirt-front gambling sponsorship.
Abstract Play-to-earn (P2E) is a new form of monetised gaming based on blockchain and crypto-currency technology. Such games offer opportunities to combine gaming with speculative investment through the purchase of tradable in-game currencies and assets (non-fungible tokens). In this paper, we investigate the profile of people most likely to be attracted to this emerging form of gaming. A sample of 560 participants aged between 18-65 ( M = 28.3, SD = 8.3) were recruited via Prolific to complete an online survey that included measures of gaming ( Petry’s Internet Gaming Disorder Scale ) and gaming risk ( Problem Gambling Severity Index ), measures of gaming motivation and impulsivity. Other existing engagement in gaming monetization as well as digital asset ownership was also assessed. P2E interest was associated with higher gambling risk scores, but not with internet gaming disorder. P2E gamers also scored higher on extrinsic motivation and monetised gaming was generally associated with higher impulsivity. The results suggest that P2E may be attractive to those with a pre-existing interest in financially risky activities. Policy implications include the increasing need to monitor the growth of digital asset technology and the increasing convergence of gambling, financial speculation and gaming and the potential for increasing financial harm in gaming populations.
Benjamin Johnson, Tianze Sun, Daniel Stjepanović, Giang Thu Vu · 5 authors
The constant, substantial price fluctuations of cryptocurrency allow traders to engage in highly speculative trading that closely resembles gambling. With significant financial loss associated with adverse mental health outcomes, it is important to investigate the impact that market participation has on mental health. Therefore, we conducted interviews with 17 participants who self-reported problems due to trading. Thematic analysis was conducted revealing themes: (1) factors in engagement, (2) impacts of trading and (3) harm reduction. Factors in engagement captured factors that motivated and sustained cryptocurrency trading. Impacts of trading outlined how cryptocurrency trading positively and negatively impacted participants. Harm reduction described methods participants employed to reduce mental distress from trading. Our study provides novel insights into the adverse impacts of cryptocurrency trading across multiple domains, especially mental health, relationships and finances. They also indicate the importance of further research on effective coping strategies for distress caused by financial loss from trading. Additionally, our study reveals the significant role social environments play on participants' expectations and intentions regarding cryptocurrency trading. These social networks extend beyond real-life relationship to include celebrity and influencer endorsement. This encourages investigation into the content of cryptocurrency promotions and the influence they have on individuals' decision to trade.
Cryptocurrencies has been considered as both an investment tool and a great invention that will replace money and change the world order. Although crypto currency trading has been investigated in many aspects, the psychological dimension that directly affects investors has often been ignored. Control of cryptocurrency trading is in the hands of investors rather than a central authority or institution. Thus, the value of cryptocurrencies changes with the reactions of investors. This situation suggests that psychological factors may be more prominent in cryptocurrency trading. Cryptocurrency trading has many similarities with gambling and betting, such as risk taking, getting quick returns, extreme gains or losses. Some significant components of behavioral addiction are also seen in individuals who spend so much time with cryptocurrency trading. The purpose of this article is to provide a better understanding of the psychological effects of cryptocurrency trading, which has entered our lives over a relatively brief period of time and reached millions of investors.
Policymakers’ attempts to prevent gambling-related harm are affected by the ‘gamblification’ of, for example, video games and investing. This review highlights related issues posed by cryptocurrencies, which are decentralised and volatile digital assets, and which underlie ‘cryptocasinos’—a new generation of online gambling operators. Cryptocurrencies can be traded around the clock and provide the allure of big potential lottery-like wins. Frequent cryptocurrency traders often suffer from gambling-related harm, which suggests that many users are taking on substantial risks. Further, the lack of regulation around cryptocurrencies and social media echo chambers increases users’ risk of being scammed. In comparison to the conventional regulated online gambling sector, cryptocasinos pose novel risks for existing online gamblers, and can also make online gambling accessible to the underage, the self-excluded, and those living in jurisdictions where online gambling is illegal. Researchers and policymakers should continue to monitor developments in this fast-moving space.
Gamification is an effective strategy for motivating and engaging users, which is grounded in business, marketing, and management by designing games in nongame contexts. Gamifying education, which consists of the design and study of educational games, is an emerging trend. However, the existing classroom games for understanding macroeconomics have weak connections to the microfoundations of individual decision-making. We design an educational game on cryptocurrency investment for understanding macroeconomic concepts in microeconomic decisions. We contribute to the literature by designing game-based learning that engages students in understanding macroeconomics in incentivized individual investment decisions. Our game can be widely implemented in online, in-person, and hybrid classrooms. We also reflect on strategies for improving the user experience for future educational game implementations.
The purpose of gamification in cryptocurrencies is to improve user engagement through game-thinking (Kabita, 2020; Rodrigues et al., 2019). Yet, it is unclear whether participants are motivated by the desire to have fun or to generate money. This study intends to explore the elements that encourage people to participate in cryptocurrency gamification by analysing perceived enjoyment, perceived profitability, and demographic variables. Data was obtained from Thai nationals residing in Thailand who have invested in digital assets or plan to in the future. Using multivariate logistic regression, statistically significant factors were identified. The data indicate that Thai investors’ interest in cryptocurrency gamification increases with age and student status. Also, people are attracted to the gamification of cryptocurrencies since they may be both interesting and lucrative. The study argues that it is essential to assess the risks associated with the gamification of cryptocurrencies. This will ensure that individuals who wish to earn money do not lose it. In addition, the likelihood of financial exploitation through cryptocurrency gaming must be evaluated. This is required because the risk of individuals being victimised through scams increases as the number of persons who play these games grows.
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With the popularity of cryptocurrencies and the remarkable development of blockchain technology, decentralized applications emerged as a revolutionary force for the Internet. Meanwhile, decentralized applications have also attracted intense attention from the online gambling community, with more and more decentralized gambling platforms created through the help of smart contracts. Compared with conventional gambling platforms, decentralized gambling have transparent rules and a low participation threshold, attracting a substantial number of gamblers. In order to discover gambling behaviors and identify the contracts and addresses involved in gambling, we propose a tool termed ETHGamDet. The tool is able to automatically detect the smart contracts and addresses involved in gambling by scrutinizing the smart contract code and address transaction records. Interestingly, we present a novel LightGBM model with memory components, which possesses the ability to learn from its own misclassifications. As a side contribution, we construct and release a large-scale gambling dataset at https://github.com/AwesomeHuang/Bitcoin-Gambling-Dataset to facilitate future research in this field. Empirically, ETHGamDet achieves a F1-score of 0.72 and 0.89 in address classification and contract classification respectively, and offers novel and interesting insights.
Atte Oksanen, Heli Hagfors, Ilkka Vuorinen, Iina Savolainen
OBJECTIVES: Cryptocurrency trading has gained popularity over the last few years. Trading is facilitated by online platforms that enable 24/7 trading. Cryptocurrency trading is potentially attractive to gamblers, and it may increase their gambling problems. Furthermore, cryptocurrency trading might be a particularly harmful activity for those gambling offshore. We investigated whether cryptocurrency trading predicts excessive gambling over time. We also analyzed how cryptocurrency trading combined with offshore gambling is associated with excessive gambling. STUDY DESIGN: This was a population-based longitudinal survey study. METHODS: We surveyed a sample of Finnish people aged 18-75 years (N = 1022, 51.27% male) at three time points in 6-month intervals: April 2021 (T1), October to November 2021 (T2), and April to May 2022 (T3). Of the original T1 respondents, 66.80% took part in T2 and T3. Outcome measure was excessive gambling using the Problem Gambling Severity Index, and the predictor was cryptocurrency trading. We adjusted models for onshore and offshore gambling online, excessive gaming (Internet Gaming Disorder Test), excessive internet use (Compulsive Internet Use Scale), excessive alcohol use (Alcohol Use Disorders Identification Test), and sociodemographic background factors. We used multilevel regression models to investigate within-person and between-person effects. RESULTS: Cryptocurrency trading has increased in popularity over time. Within-person changes in cryptocurrency trading predicted increased excessive gambling. Excessive gambling was also generally more common among cryptocurrency traders. The full model that was adjusted for the number of confounding factors showed that cryptocurrency trading had a within-person effect on excessive gambling. Of the confounding factors, offshore online gambling, excessive gaming, and excessive internet use had within-person effects on excessive gambling. Offshore and onshore online gamblers and excessive gamers showed more excessive gambling than others. Those participants who were both cryptocurrency traders and offshore gamblers showed significantly higher rate of excessive gambling than others. CONCLUSIONS: Cryptocurrency trading is a risky activity and associated with a higher rate of excessive gambling over time. Such activity is especially risky among offshore online gamblers, who could view cryptocurrency trading as another form of gambling or as a way to make money for gambling. Policymakers and counselors should be aware of the risks of cryptocurrency trading.
Public health harms from gambling are now well recognised. Public Health England estimates societal gambling-related harm in England exceeds £1·27 billion. Australian research estimates that the years lost to disability from gambling exceeds that of diabetes.1 Policy makers have begun to take action; gambling advertising and sponsorship is banned in Italy, and English football clubs and the UK government are currently considering sponsorship bans for the Premier League.2
Benjamin Johnson, Daniel Stjepanović, Janni Leung, Tianze Sun · 5 authors
Abstract Purpose Considering the volatility of the cryptocurrency market, it is important to investigate the impact that market participation has on mental health. Therefore, we analyzed Reddit discussions regarding mental health, gambling, and addiction from members of the cryptocurrency discussion board, r/cryptocurrency, during a recent downturn in the cryptocurrency market. Methods We collected 1315 threads submitted to the subreddit r/cryptocurrency between January 3rd to February 4th. A thematic analysis was employed, which included threads that discussed psychological wellbeing, mental health or gambling. Results We thematically analyzed the content of 130 threads, which contained 7635 comments. Our analysis identified three main themes present in user discussion. Theme 1 (emotional state and mental health) captured users' discussion on their wellbeing, mental health and emotional responses to the market downturn. Theme 2 (strategies for coping) examined coping strategies recommended by users to combat distress to the market conditions or trading urges. Theme 3 (likeness to gambling) captured discussion on the relationship between cryptocurrency and gambling based on its fixating properties and risk profile. Conclusions Reddit is a valuable resource for examining the experiences and attitudes of the cryptocurrency community. Accounts of Reddit users' experiences provided insight into the mental distress market downturns can cause and strategies to combat problems due to trading. Our findings offer qualitative insights into the problems experienced by individuals who cryptocurrency trade and encourage further investigation into its relationship with mental health.
We are often faced with the non-trivial task of designing incentive mechanisms in the era of Web3. As history has shown, many Web3 services failed mostly due to the lack of a rigorous incentive mechanism design based on token economics. However, traditional mechanism design, where there is an assumption that the users of services strategically make decisions so that their expected profits are maximized, often does not capture their real behavior well as it ignores humans' psychological bias in making decisions under uncertainty. In this paper, we propose an incentive mechanism design for crypto-enabled services using behavioral economics. Specifically, we take an example of a crypto lottery game in this work and incorporate a seminal work of cumulative prospect theory into its lottery game mechanism (or rule) design. We designed four mechanisms and compared them in terms of utility, a metric of how appealing a mechanism is to participants, and a game operator's expected profit. Our approach is generic and will be applicable to a wide range of crypto-based services where a decision has to be made under uncertainty.
Maira Andrade, Steve Sharman, Leon Y. Xiao, Philip Newall
OBJECTIVE: Online gambling has increased the accessibility and range of gambling products available to people all over the world. This trend has been particularly noticeable in the United Kingdom. Cryptocurrency-based gambling is a new, largely unregulated, way to gamble online, which uses mostly anonymous blockchain-based technologies, such as Bitcoin. The present research investigated consumer protection features of 40 frequently visited and U.K.-accessible cryptocurrency-based online gambling operators. METHOD: A content analysis was performed by visiting all 40 cryptocurrency-based online operators and recording their safer gambling and consumer protection practices. Coded features included aspects of the sign-up process, features of any safer gambling pages, customer support practices, and Identity verification. RESULTS: Results revealed significant failings in the account registration process; none of the operators verified the identity of new users, and 35% required only an email or no personal information for sign-up. Overall, 37.5% of operators offered no safer gambling tools and a further 20% offered only one. Additionally, 64.7% of operators continued to email promotional material after being informed of a user's impaired control when gambling. Less than half of the analyzed operators held a valid license (47.5%), and none of the operators with an available deposit page required identity verification before enabling deposits. CONCLUSIONS: These results highlight the potential risks for young and vulnerable individuals, especially when a lack of identity verification is paired with the inherent anonymity of cryptocurrencies. Furthermore, it emphasizes the need for greater policy and research attention toward cryptocurrency-based online gambling. (PsycInfo Database Record (c) 2023 APA, all rights reserved).
We present a decentralized online gaming platform implemented as a Decentralized Application (DApp) on the Ethereum blockchain. The gaming platform enables secure gaming, where the account balances and the stakes of the players are secured by a smart contract. Moreover, the fair enforcement of the game rules and the deposit of the winnings of the players and the gaming platform into their accounts are guaranteed by the smart contract. The gaming platform proposes lending functionalities that allow players to securely borrow tokens from the gaming platform in order to participate in the games.
Non-fungible tokens (NFTs) exist today as a component of a broader, ever-evolving financial environment in which questions of value, ownership, and intention are characterized by their ambiguity. This article considers Dapper Labs “NBA Top Shot,” a blockchain-backed website inviting NBA fans to join in “a new era in fandom” wherein they may acquire NFTs of NBA highlights by opening “packs,” which are functionally similar to trading cards. NFTs reflect the pressures of market forces, as well as increased cultural and economic emphasis on marketization, financialization, commodification, and the ubiquity of gambling-like designs and interactions. Furthermore, this study explores tensions present in differing intentions for the NBA Top Shot platform and Discord server, the diffuse nature of user conversations (a nature that disregards topical boundaries), and audience attention toward marketization and investment interests. The commodification of the NBA fan experience illustrates a shared social pressure to more readily think of one’s life, interactions, and consumptive behaviors through the lens of the investor, fostering financial attitudes that normalize instability and encourage risk-taking beyond the scope of a platform where purchase-dependent interactions serve as a source of joy and social experience in a venue representing a perceived electronic gold rush.
Non-Fungible Token (NFT) markets are one of the fastest growing digital markets today, with the sales during the third quarter of 2021 exceeding $10 billions! Nevertheless, these emerging markets - similar to traditional emerging marketplaces - can be seen as a great opportunity for illegal activities (e.g., money laundering, sale of illegal goods etc.). In this study we focus on a specific marketplace, namely NBA TopShot, that facilitates the purchase and (peer-to-peer) trading of sports collectibles. Our objective is to build a framework that is able to label peer-to-peer transactions on the platform as anomalous or not. To achieve our objective we begin by building a model for the profit to be made by selling a specific collectible on the platform. We then use RFCDE - a random forest model for the conditional density of the dependent variable - to model the errors from the profit models. This step allows us to estimate the probability of a transaction being anomalous. We finally label as anomalous any transaction whose aforementioned probability is less than 1%. Given the absence of ground truth for evaluating the model in terms of its classification of transactions, we analyze the trade networks formed from these anomalous transactions and compare it with the full trade network of the platform. Our results indicate that these two networks are statistically different when it comes to network metrics such as, edge density, closure, node centrality and node degree distribution. This network analysis provides additional evidence that these transactions do not follow the same patterns that the rest of the trades on the platform follow. However, we would like to emphasize here that this does not mean that these transactions are also illegal. These transactions will need to be further audited from the appropriate entities to verify whether or not they are illicit.
Ryan Francisco, Nelson Rodelas, John Edison Ubaldo
Purpose – This study aims to shed light on the rise of play-to-earn games in the Philippines alongside cryptocurrency. The lack of research and public understanding of its benefits and drawbacks prompted the researchers to investigate its market. As such, the study tried to look into the risks and benefits of crypto gaming if it would be regulated by the government, and how market volatility influences the churn rate of crypto games. Method – The research used a descriptive study to determine the perception of people who are engaged in playing “Axie Infinity”. The research also used non-probability sampling using the snowball method. The only tool used to collect data was Google Forms. Furthermore, the study used Statistical Package for Social Science (SPSS) to analyze the descriptive data. Result – The results showed that most players spend their time playing Axie Infinity for about 1 to 4 hours a day. Predominantly, the return of investments for playing the game will take about 1 to 3 months. It also showed that these players agreed that there is a possible financial instability in a volatile market. With this, they have a high trust issue in terms of price manipulation, privacy and security, and its design and usability. Conclusion – Understanding the cryptocurrency market requires comprehending the perspective of the people who are engaged in a play-to-earn game, and their concerns are critical for any government actions aimed at regulating self-employed income earners playing (Non-fungible Tokens) NFT games in the Philippines. Recommendations – It is suggested that further research must be conducted to understand how self-employed Filipino income earners comprehend NFT gaming and cryptocurrency, impacting their level of interest and participation. Research Implications – Taxing NFT games without sound regulatory frameworks may result in the disarray of this alternative income source. Therefore, the government must tread carefully to avoid a market collapse or other unfavorable outcomes.
Abstract We proxy retail investor attention through Google Trends and find that fungible and non-fungible crypto tokens generate greater attention from high-gambling propensity regions. Crypto attention is higher during bubble-like episodes in the crypto market and for more lottery-like tokens. Moreover, retail crypto attention decreases after sports gambling is legalized. Higher token attention is associated with more contributors and higher fundraising. However, consumer credit default rates spike after periods of high crypto attention, but solely in the subprime segment. Overall, our findings suggest that gambling preferences strongly predict retail investor interest in the crypto market.
Professional sports have in recent years become increasingly intertwined with gambling marketing, especially in countries such as Australia, Spain, and the UK. Even Formula 1 racing, which used to be closely associated with tobacco sponsorship, announced in 2021 an agreement to have an official betting sponsor. However, as happened previously with tobacco sponsorship, some policymakers and regulators have started to take legal action with gambling marketing restrictions. In Italy, gambling advertising and sponsorship are now prohibited. In Spain, gambling sponsorship of sports teams is prohibited, whilst advertising is prohibited except between 1:00AM–5:00AM, thus effectively banning commercially viable gambling marketing through sports. The UK is currently considering a sponsorship ban in sports. Although these regulatory actions may have improved consumer protection against gambling harms, a closer examination of recent developments in the top men’s soccer leagues of these three countries reveals an emerging trend toward sponsorship from two gambling-like industries that are unaffected by these legal bans: financial trading apps and cryptocurrencies. Consumers are becoming increasingly exposed to the marketing of these gambling-like products through sports contexts, and these products could pose similar risks to gambling or even additional, unique risks.