Focusing on power structures in digital gambling: Helsinki researchers secure major grant

– Writing the ERC application was incredibly rewarding. It allowed me to think on a much larger scale than before. A small country like Finland doesn’t have funding schemes available that could support a project of this scale. Without this grant, I would never have had the resources to think this big and create a new theoretical framework.

University Researcher Virve Marionneau will lead a team of four researchers and oversee the five-year project, which was made possible by the 1,5 million euro ERC grant. The research will delve deeper into how digital gambling companies operate, focusing on their data-driven commercial strategies and use of power.

– Gambling research has often been viewed as niche, not recognised as a significant societal issue, and funders didn’t always see its value. But the ERC recognised its importance, and that’s a huge step forward for the field, Virve Marionneau says.

A new form of power

Traditionally, corporations that sell addictive products, such as gambling companies, have exerted significant influence through lobbying power and their ability to shape political decisions while causing addictive behaviours. This leverage becomes even more pronounced in digital environments, offering new tools to control consumers and legislation. Virve Marionneau describes this as a new mechanism of power.

– This research project explores the power from a sociological perspective, questioning whether the influence of digital gambling represents an extension of traditional power forms or an entirely new one emerging in digital environments.

Virve Marionneau explains that tech companies like Google or Facebook widely share this data across platforms to profile individuals and create targeted commercials. Gambling companies likely use the same strategies.

– In digital environments, every action generates data. Companies now know far more about consumers than they ever did in offline settings.

Online gambling companies track every move a user makes. If you visit a gambling site, all your activities are recorded – what games you clicked on, how much you deposited, and everything else you viewed.

Three work packages: Data, consumers, and political power

The research plan is divided into three parts, each focusing on a different aspect of the overarching research question.

Virve Marionneau explains that the first work package examines the types of data collected, the broader ecosystem in which this data is shared, and where profiling occurs.

The second work package focuses on the individual, exploring consumer experiences and how companies influence behaviour by targeted marketing.

– For example, if you have a favourite sports team like Arsenal and you’ve previously placed a bet on them, do you receive a push notification on your phone when Arsenal plays again, encouraging you to bet? The research examines this type of consumer influence and explores people’s experiences with it.

The third work package focuses on political influence. In some cases, companies hold an almost monopoly over data, as few countries require them to share data with researchers or even with regulators. Virve Marionneau explains that these practices could create a situation where online gambling companies wield significant power.

– These companies are challenging to regulate. In some cases, regulators can see companies as part of the solution as they are perceived to have the necessary data and expertise on that data.

Online gambling companies are also generally reluctant to share their data voluntarily with researchers, especially when the research may not be in their favour. Therefore, the research project also aims to develop new methodologies for understanding data.

No single ‘evil corporation’

There is significant consolidation in the gambling sector, with large companies acquiring others and forming conglomerates that house numerous brands under one umbrella. Data on customers is likely shared within these conglomerates. The research project will focus on four European countries: Finland, the UK, Poland, and Italy.

– We may find evidence of collaboration between companies and brands and then use network analysis to better understand these partnerships.

University Researcher Virve Marionneau aims to develop a new theoretical framework for understanding corporate power in digital environments and how it operates across the gambling sector.

Her research hypothesis is that power is deeply networked, with influence stemming from the ability to control and access data in the online space.

– I don’t believe a single ‘evil corporation’ is pulling the strings. Instead, it’s a networked structure where power resides. No one entity necessarily leads it, but the network itself becomes powerful and thus influences both the customer experience and regulation.