Social and Behavioral Sciences Commons^™

Reinventing The Wheel: Comparing Family Friendly Vegas And Adult Friendly Vegas Revenue Growth, James Vaughn

International Conference on Gambling & Risk Taking

The one constant for Las Vegas is change, always looking for the Next Big Thing™. In the 1990s, Las Vegas engaged in a grand experiment: roller coasters, amusement parks, family pools and shows. In the 2000s, Las Vegas reinvented itself back to its roots: condo not amusement parks, sensual not swashbuckling shows, topless European ultra-pools not kiddie pools. While the house always wins, did the casinos of the 1990s or 2000s beat the ultimate house, going beyond nominal revenue growth into the jackpot of real revenue growth?

The Unpredictable Positive Effects Of Sports Gambling: Gamblers Think Losing Feels Worse Than It Actually Feels, Guy Voichek, Nathan Novemsky

International Conference on Gambling & Risk Taking

Implications statement

Gamblers underestimate how much fun small wagers add to enjoying sports events. They think losing will feel worse than it really does. Simple reminder can correct this misprediction.

Abstract

When considering whether to gamble on a sporting event, people may ask themselves how winning or losing will affect their experience. In a series of four experiments, we find that people under-appreciate the positive effect of gambling on watching sporting events, in a way that causes them to under-value the opportunity to place a small stakes gamble. While participants predict that a gamble will enhance or diminish an experience …

Does Near Win Affect People's Investment Behavior?, Jia Yuan

International Conference on Gambling & Risk Taking

Near win is a special kind of failure that comes closely to actual success. It shows up frequently in people’s investment behavior. Only a few studies have researched on the relation between near win and its impact on the future investment. And in the literature, there are conflicting results on this issue. In this paper, we examine the effect of near win on people’s investment amount by exploiting a unique panel individual level lottery purchase data with over 100,000 players which trace each of their purchases for several months. We find that people who have experienced a near win would …

Iq And Gambling Consumption: An Analysis Of Horse Race Betting Participation And Expenditure Using Individual-Level Data, Niko Suhonen, Tuomo Kainulainen, Jani Saastamoinen, David Forrest Prof.

International Conference on Gambling & Risk Taking

Abstract

Recent literature suggests that intelligence is positively associated with economic outcomes involving risky decisions such as investment portfolio returns (Grinblatt et al. 2012). Gambling is a form of entertainment in which consumers buy risky products with negative expected values. However, the relationship between intelligence and gambling consumption is not understood yet. We use a unique individual-level data set from Finland to investigate how intelligence predicts gambling participation and expenditure. Our data consists of betting data from a monopoly horse race betting operator (betting participation and expenditure on betting), background information on the Finnish adult population from Statistics Finland (e.g. …

Public Interests And Economic Regulation Of Gambling, Rein Halbersma, Joost Poort

International Conference on Gambling & Risk Taking

In the Netherlands, the Betting and Gaming Act from 1964 largely determines the current structure of gambling markets. The policy was to channel consumers to a limited number of licensed operators. This led to state-owned monopolies for lotteries, sports betting and casinos, a private monopoly for horse race betting, a limited number of privately owned charity lotteries, and a large number of private slot machines operators.

Pending legislation proposes an online market without a limit on the number of operators. Furthermore, state ownership will be phased out, and introduced legislation to privatizing and expanding the number of casinos. The current …

In Search Of Equilibrium – How Regulatory Changes Impact The Gambling Industry In Poland, Sebastian Meitz, Stanisław Pogorzelski, Przemysław Bloch

International Conference on Gambling & Risk Taking

The so-called Polish “gambling affair” of 2009 resulted in the adoption of a new Act on Gambling. The regulation significantly changed the legal environment in Poland. It was also the starting point of what we identified as the search of equilibrium - a number of further legislative changes aimed at creating a sustainable environment for gambling. Some market segments became delegalized, some monopolized, and others liberalized. The Polish Ministry of Finance and the parliament tried to find the right balance between consumer protection, business growth, and government revenue. A goal that is still to be achieved.

This article examines the …

What Is A Game Of Chance? An Application To Loot Boxes, Wessel Oomens

International Conference on Gambling & Risk Taking

The traditional landscape of games of chance such as lotteries, betting, casinos and slots has become intertwined with complex financial products as well as digital games with elements of chance.

The Netherlands Gambling Authority has issued a guidance paper outlining a five-step decision process in order to determine whether a game classifies as gambling:

• Threshold: is the number of providers, players and the amount money involved considerable enough to warrant spending resources in assessing the game?
• Overlap: is there potential overlap with other rules and regulations, in particular those governing financial products?
• Prize: does the game award its winners with …

Gambling Behavior In Controlled Laboratory Experiments, Don Ross, J. Todd Swarthout

International Conference on Gambling & Risk Taking

We designed a slot machine interface to study gambling behavior over real monetary amounts in a controlled laboratory environment. The interface allowed us to study the effect of multiple playlines compared to single playlines, the use of abstract tokens instead of allowing the gambler to see expenditures and payoffs in a natural currency, the effect of “near miss” displays on subjective beliefs about the chances of winning, and the effect of “wins disguised as losses” on gambling behavior. We measured the risk preferences of each subject, allowing for probability weighting and loss aversion, as well as the evolution of subjective …

A Schumpeterian Approach To Examine The Development Boundary Of Casino Tourism, Ricado C. S. Siu, Joey P. U. Sou

International Conference on Gambling & Risk Taking

In The Theory of Economic Development, Joseph Schumpeter ([1934] 1983, Chapter II) explicates how the dynamic role of innovative mindset and ability of entrepreneurs, through introducing new methods of production and new economic commodities, leads up to the expansion of the boundary for economic/industrial development.

By following Schumpeter’s approach, we explore the development boundary of casino tourism. Through a post facto analysis of the hard evidences derived across the world (e.g., Las Vegas, Macao and Singapore) since the 1980s, the dimensions of innovation to the development boundary of casino tourism are scrutinized and explicated. Besides, we uncovered that the …