The Journal of Gambling Business and Economics

Impacts of Increased Free-play on Casino Revenue and Visitation

2024-05-31T01:56:02+01:00

This research seeks to measure the impact of increased promotional incentives on casino revenue and visitation frequency. Free-play has become the primary casino marketing expense in many of the world’s casinos, yet little is known about the efficacy of offers, or how customers respond to changes in existing offer levels. This randomized controlled trial featured a within-subjects design, with patronage data collected in year-over-over sample periods of 180 days each. Paired-samples t tests were employed to measure customer responses to increases in the par level of their free-play offers. A preponderance of results indicated that considerable increases in free-play awards failed to produce significant changes in both the player’s own-money losses and visitation frequency. The outcomes failed to support the notion of operant conditioning, but were generally in line with reactance theory. This was the first longitudinal study to experimentally examine the effects of increases in free-play offers on revenue and visitation data, in a within-subjects design. Analysis of actual performance data added to the value and utility of this research. Casino marketers are provided with critical insight on the ability of increased free-play awards to affect targeted behaviors. Few studies have experimentally manipulated these offers, leaving casino marketers with a paucity of rigorous research on their primary play incentive. Additionally, the changes in behavior were measured from an established/baseline offer level, rather than no offer. This design provides management with results applicable to potential revisions of existing free-play campaigns.

Responsible Gambling and Customer Loyalty, Satisfaction, Retention of Integrated Resort: Does Customer Awareness Matter?

2024-06-04T07:06:50+01:00

Although many prior empirical studies have proved that corporate responsibility (CSR) has a positive effect on customer relationships, there is a lack of studies on integrated resorts (IRs), which have garnered increasing attention worldwide. This study aims to investigate whether “responsible gambling”, as a special CSR strategy, can affect customer loyalty, customer satisfaction, and customer retention. Using data collected from Grand Lisboa, which is known as the representative integrated resort in Macau, it can be demonstrated that responsible gambling positively influences the customer loyalty, customer satisfaction, and customer retention of an integrated resort, customer awareness can mediate the effect between responsible gambling and customer relationships of integrated resorts. This study contributes to responsible gambling and customer relations by developing a research model of how responsible gambling impacts customer relationships, filling some gaps in previous studies, and revealing some new findings in the correlated field of integrated resorts in Asia.

Gambling as a Rational Choice: When Does It Make Sense to Gamble?

2024-10-12T07:24:14+01:00

This paper explores the rationality of gambling within a classical economy framework, where individuals are assumed to be risk-averse and aim to maximize their utility. Traditionally, gambling is viewed as an irrational activity, particularly for those with a concave utility function, as the expected utility from gambling is typically lower than from not gambling. However, this study introduces a novel perspective by considering the role of indivisible goods—high-value items that cannot be partially acquired. The paper argues that for individuals whose income is insufficient to purchase such goods, gambling can become a rational strategy to obtain the necessary funds in a single, albeit risky, endeavor. This rationalization of gambling contrasts with other theories like prospect theory and behavioral economics, which attribute gambling behavior to cognitive biases and psychological factors. By incorporating indivisible goods, this paper provides a new understanding of why rational individuals might choose to gamble despite their risk aversion. The findings suggest in the presence of indivisible goods, gambling may indeed be a rational choice aimed at maximizing overall utility. This has significant implications for policymakers, who must balance the need to regulate gambling with the recognition that it can be a rational economic decision under certain circumstances.

Racial Biases in Wagering Markets – Betting Volume and Percentages in the WNBA

2024-11-14T13:40:51+00:00

The 2024 WNBA season saw heightened engagement and betting interest, driven by the high-profile debuts of Caitlin Clark and Angel Reese. This study utilizes Action Network data to examine how race, star players, and scheduling influence betting volume. Findings reveal strategic scheduling opportunities based on weekday preferences but also indicate a sharp betting decline with the onset of NCAA Football and NFL seasons. Evidence points to racial biases in betting patterns, as games featuring more white players receive increased wagers. However, superstar effects, irrespective of race, appear to mitigate some biases, suggesting unique opportunities to expand audience engagement.

Gambling in a Developing Market

2025-03-26T02:30:47+00:00

The study investigates how institutional voids influence the growth of online gambling platforms in Brazil, focusing on virtual casinos and sports betting. The research adopts non-participatory netnography as its methodology, combining observations on two selected platforms with analyses of search trends on Google Trends™ (2019–2024). The findings indicate that institutional voids, characterized by the absence of regulatory norms and structures, allow platforms to exploit normative gaps to operate and attract consumers. Simultaneously, users expressed distrust regarding the integrity and transparency of the games, highlighting perceptions of manipulation and dissatisfaction with outcomes. The theoretical contribution of the study lies in applying the concept of institutional voids to a rapidly expanding digital market, thereby enhancing understanding of the impacts of deregulation in developing countries. Practically, the study underscores the urgency of establishing a regulatory framework that balances technological innovation, consumer protection, and social responsibility. The research also offers insights for public policy formulation aimed at enhancing the legitimacy of platforms and encouraging sustainable practices.