Americans and Canadians Warming up to Internet Gambling

Awareness of Illegal Status of Activity Sinks while Interest and Acceptance Increases

Wednesday, March 24, 2010

Calgary, AB – One fact remains true: Internet gambling is for the most part, illegal in both the United States and Canada. But public thinking, awareness, and interest in the activity do not necessarily reflect that. A recent Ipsos Reid survey conducted online with American and Canadian respondents as part of a joint U.S./Canada lottery study found that, when compared to two years ago, fewer people in both countries are aware that Internet gambling is illegal and more would be willing to see it permitted as long as it were regulated.

“The idea of Internet gambling appears to be gaining acceptance in North America, with more people expressing an interest to see it legalized with proper regulation,” says Paul Lauzon, Senior Vice President & Managing Director of Ipsos Reid’s Lottery & Gaming Group. “Governments also appear to be doing a poor job at informing citizens that Internet gambling is in fact illegal unless regulated by a State or Provincial authority. Over a two year period, we’ve found that fewer people are aware that Internet gambling is illegal in their country.”

The study revealed that over the past two years, Americans and Canadians have become less aware of the illegal status of Internet gambling. In the U.S., 37% of respondents to the survey were aware that Internet gambling was illegal. Two years earlier, 41% of respondents were aware of this fact. In Canada, awareness of the illegal nature of Internet gambling is even worse and getting worse still: only 23% of Canadian respondents were aware that Internet gambling is illegal in their country; two years prior, awareness was at 28%.

The new study also shows that citizens on both sides of the border are becoming more accepting to the idea of allowing Internet gambling, provided a healthy dose of regulation fits in the mix. Half of Americans (49%) and slightly more than half of Canadians (55%) are willing to permit Internet gambling as long as government regulations are in place. This represents a slight increase in tolerance when compared to the 2007 study, where 46% of Americans and 48% of Canadians shared this view.

If Internet gambling were made legal in their respective countries, Americans and Canadians both feel that the regulatory responsibility should be in the hands of the federal government, but the degree of that sentiment varies. In the U.S., 55% of respondents feel the federal government should be the regulator whereas 45% feel it should handled be at the state level. Canadians are more intent on federal regulation, with two-thirds (67%) feeling the onus should be at the federal level and only a third (33%) feeling it should be a provincial matter.

“The regulation issue has the biggest impact on American gambling behaviors,” adds Paul Lauzon. “Across the board on a number of gambling, betting, and gaming options, we see that Americans are more concerned with regulation than Canadians. Comparing a number of legally permitted gambling options, Canadian interest in playing remains almost unchanged based on regulation or no regulation. But Americans feel more comfortable in playing betting games and gambling when there is a system government regulation in place.”

These are some of the findings of an Ipsos Reid poll conducted between January 4 and January 7, 2010.

For the U.S. portion of this survey, a national sample of 1006 adults from Ipsos' U.S. online panel was interviewed online. Weighting was then employed to balance demographics and ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of +/-3.09 percentage points 19 times out of 20 of what the results would have been had the entire population of adults in the United States been polled.

For the Canadian portion of this survey, a national sample of 1032 adults from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics and ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of +/-3.05 percentage points 19 times out of 20 of what the results would have been had the entire population of adults in Canada been polled. In Canada, questionnaires are completed online in English with the exception of Quebec, where respondents are offered a choice of either official language. In the US, all questionnaires are completed online in English.

All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

For more information on this news release, please contact:
Paul Lauzon
Senior Vice-President
Managing Director
Ipsos Reid
Lottery & Gaming Group
(403) 294-7386
Paul.Lauzon@ipsos.com

About Ipsos Reid

Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

To learn more, please visit www.ipsos.ca .

About Ipsos

Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe. Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2008, Ipsos generated global revenues of €979.3 million.

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Americans and Canadians Warming up to Internet Gambling

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Paul Lauzon
Senior Vice President, Canada
Ipsos Marketing
+1.587.952.4871
paul.lauzon@ipsos.com