Alan Feldman: “There is little evidence to support what has been put in place”

We speak with Alan Feldman, Distinguished Fellow, Responsible Gaming at UNLV International Gaming Institute and Chair Emeritus at International Center For Responsible Gaming, who walks us through the state of gambling research today, and what has necessitated a recent spike in demand for such activity.

Feldman holds several influential positions across the RG space and has been the topic's leading industry advocate for 3 decades prior to joining UNLV. As someone who has worked in the gambling industry for 30 years before switching to doing research, Feldman is the right person to talk to. He cautions that regulatory changes should happen in a context that is understood and more scientific evidence is needed to properly enact changes that would guarantee the safety of consumers.

Q: Alan, you are one of the best people to talk to when it comes to taking gambling not as a purely emotional exercise, but using research and scientific evidence to talk about the industry calmly and factually. Can we start by first telling us what you do as part of UNLV International Gaming Institute?

I was appointed as a Distinguished Fellow in Responsible Gambling in 2019 after I retired from a nearly 30-year career in the industry. I work with a cross-section of the campus community including colleagues at the International Gaming Institute, the Boyd School of Law and the Hospitality College to develop and implement research on RG and, more broadly, gambling and health. I’m also on the faculty for the International Center for Gaming Regulation and the Executive Development Program (EDP.)

Q: We have seen a lot of calls to action when it comes to research and an "evidence-based approach" to regulation - granted this is mostly happening to Europe, but it would eventually arrive in the United States - and sooner than it took the processes to develop in Europe, certainly. Do you think there is a sudden spike in the demand for research on gambling, how problem gambling impacts consumers, or do you think things are moving at the usual pace?

There have already been multiple calls in the U.S. for evidence-based approaches to regulation. This may reflect the reality around the world that there is little evidence to support much of what has been put in place. The spike in demand for gambling research is precisely a result of this. It is important to understand the impacts that can be reasonably expected from any regulation. If there are none, or should they prove counter-productive, the regulations really should be reconsidered. Of course, that’s rarely the reality as legislators and regulators usually double down in spite of evidence that their actions are not leading to meaningful impact.

Q: The United States has recently been talking about a tougher stance on gambling advertisement, although, due to the fragmented nature of how the industry is regulated, this is a rather hard one to pull off. From your standpoint, what do you think needs to be done in terms of gambling advertisement in the United States - do we have too much of it? Do we need to make it more conspicuous that gambling could lead to harm?

The most important action can be taken today by the industry itself: stop making ridiculous claims and marketing over-hyped promotions. Both "risk-free bets" and "no-lose" propositions fit into this category.

Widespread restrictions on advertising are unlikely to withstand legal challenges. However, smaller, more granular and specific regulations in any state are likely to succeed. We will end up with a patchwork of rules and regulations which is of benefit to no one. The industry needs to take control here and control itself first. Further, as the industry naturally contracts, much of this advertising will fade from memory over time.

Q: What is the role of the ICRG in educating industry professionals to better detect gambling-related harm? Do you think a research body like yours ought to be guiding the public discussion on this or is it expected from gambling companies to have done their homework and come prepared?

The research that has resulted from 20 years of ICRG grant-making provides a worthy and reasonable path to effective regulation. The ICRG is working hard to improve its ability to make this research more accessible to legislators, regulators and operators. Additionally, the ICRG has focused its interest on critically important topics today: sports betting and the marketing of RG.

Q: What do you think the ICRG needs to see from the industry in order to truly take our understanding of gambling disorder "to the next level"?

I think the biggest need is for the industry to make significant, multi-year commitments to the work. Research rarely fits within a single budget cycle; it’s almost always a 2 or 3-year process. As a result, the funding must reflect the reality of this timeline. There is also a great need for more companies within the industry to participate. Under the leadership of the ICRG’s remarkable President, Art Paikowsky, the overall numbers are growing, but there is so much ground to cover as many more need to step up.

Q: Are better days coming for consumer protection in the gambling industry not just in the United States, but globally, do you think?

I think we first must address the question of how consumer protection works successfully. Governments trying to impose their will on consumers have failed in almost every context in which it has been tried. There is a significant educational gap that can cause people to not recognize when they are experiencing negative consequences from gambling or even that such consequences are possible in the first place.

Currently, I am unaware of any primary school curriculum in the U.S. that teaches about risk, probability and the basics of the math surrounding gambling. This in spite of the fact that 48 states have legalized some form of gambling and many of those states spend tens of millions of dollars promoting gambling. We can’t ignore the lack of education and expect that operators are going to catch all problems before they begin. Prevention is best achieved BEFORE someone starts to gamble.

All stakeholders – not just operators - have a role to play in developing a consumer base that is knowledgeable about gambling risks and rewards. Better players will make for a stronger, more sustainable industry.

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