Why do people gamble? (Part 1)
In one survey published by Auer and Griffiths this year, the researchers studied the reasons for gambling among Norwegian horse bettors, 3 out of 4 being males. The results showed that almost 25% of the interviewees declared their first motives to play was the “chance of winning big prizes”, followed by “to make money”, “because of the thrill”, and “it is exciting” in this order (Auer & Griffiths, 2021). Gambling because “it is fun” and “the chance of winning big money” were also shown as significant factors for gambling among British nationals in a survey by Canale (Canale et al., 2015).
Furthermore, Canale shows that the “prospect of winning money represents a more important determinant of motivation in younger [gamblers]” rather than olders.
Another paper by Barberis from 2012 shows the application of prospect theory, a branch of behavioural economics, to gambling. According to him, the prospective pleasure of winning a huge cash prize (from €17M and up to €220M for the Euro Millions[1]) offsets the pain of spending a small amount of money to purchase a lottery ticket (the price of a Euro millions ticket is 2.5£/€[2]) (Barberis, 2012).
Nonetheless, the researcher asserts that the prospective theory is not sufficient to explain casino success, as “casinos offer gambles (…) [that] are much less skewed than a lottery ticket”. In sum, the ratio of wager/potential winnings in casinos is far less appealing than lottery tickets. While a gambler may multiply at best 36 times their stake on the roulette[3], they could also multiply their initial sum by 40 000 for a hypothetical lotto cash prize of €100M and a ticket cost of €2.5.
When looking back at older literature on why people gamble, Cornish in 1979, cited by Zangeneh in 2018, explained two categories of characteristics that induce people into such behaviour. (Cornish, 1979; Zangeneh et al., 2008)
The first ones are situational determinants, namely the location and numbers of gambling outlets as well as the frequency of advertising. The more one is exposed to gambling advertisements and infrastructures, the more they induce into gambling. The researchers observed situational determinants as particularly relevant for the initial decision to gamble.
The second determinants are structural factors, which are most responsible for facilitating problem gambling and are said “independent of the gambler’s psychological, physiological, or socioeconomic status”. They mostly regard the gaming activities’ design, the service provided inside the casinos, and the process behind making these services more enjoyable and addictive. (Zangeneh et al., 2008)
A novice gambler entering a casino may be taken aback by the activity, with the flashy lights most casinos provide, the excitement that the other people are having, and the enjoyable perspective of escaping from everyday life. (Zangeneh et al., 2008)
Sports betting: Wagering money in the hope of making a benefice
When accessing a sportsbook service, the players are looking to wager a certain amount of money on a sporting event hoping the event will happen. If it does so, the punter expects to win an excess on his/her wager and be able to withdraw or wager again the total amount won.
A qualitative survey answered by British participants, conducted by Killick and Griffiths, demonstrated that sports betting, and more especially in-play betting, “increases excitement of that game, (…) attention and enjoyment”. Some participants mentioned that it made “the game a more enjoyable and [added] a bit of tension” (Killick & Griffiths, 2021).
Poker: Only for the fun?
In 2017, Kim conducted a qualitative study on the general factors leading young adults to gamble online. Regarding poker, some of the participants reported having first got into the game by playing with friends before transitioning to online poker as their friends were not always available (Kim et al., 2017).
Interestingly, Kim also showed the importance of social media, in which Facebook initially attracts customers with free chips and games designed “just for fun”. Progressively, customers wish to pursue further the “fun experience” by going to the next level (“fun and money”) before switching again to the pursuit of monetary gain, minus the fun: “fun has disappeared, and they are just doing it for the money”. The same study showed that young adults signed up more on websites that offered free credits and bonuses than on the platforms that did not.
Notes
[1]https://www.national-lottery.com/euromillions/odds-and-prizes, accessed in February 2021
[2]https://www.national-lottery.co.uk/games/euromillions, accessed in February 2021
[3]https://www.roulettesites.org/rules/odds/, accessed in February 2021
References
Auer, M., & Griffiths, M. D. (2021). Reasons for Gambling and Problem Gambling Among Norwegian Horse Bettors: A Real-World Study Utilizing Combining Survey Data and Behavioral Player Data. International Journal of Mental Health and Addiction, i. https://doi.org/10.1007/s11469-020-00442-6
Barberis, N. (2012). A model of casino gambling. Management Science, 58(1), 35–51. https://doi.org/10.1287/mnsc.1110.1435
Canale, N., Santinello, M., & Griffiths, M. D. (2015). Validation of the reasons for gambling questionnaire (RGQ) in a British population survey. Addictive Behaviors. https://doi.org/10.1016/j.addbeh.2015.01.035
Cornish. (1979). Gambling: a Review of the Literature. By D. B. Cornish. (Pp. 284; illustrated; £4.25.) HMSO: London. 1978. Psychological Medicine. https://doi.org/10.1017/s0033291700021887
Killick, E. A., & Griffiths, M. D. (2021). Why Do Individuals Engage in In-Play Sports Betting? A Qualitative Interview Study. Journal of Gambling Studies, 37(1), 221–240. https://doi.org/10.1007/s10899-020-09968-9
Kim, H. S., Wohl, M. J. A., Gupta, R., & Derevensky, J. L. (2017). Why do young adults gamble online? A qualitative study of motivations to transition from social casino games to online gambling. Asian Journal of Gambling Issues and Public Health, 7(1). https://doi.org/10.1186/s40405-017-0025-4
Zangeneh, M., Blaszczynski, A., & Turner, N. E. (2008). In the pursuit of winning: Problem gambling theory, research and treatment. In the Pursuit of Winning: Problem Gambling Theory, Research and Treatment, January, 1–357. https://doi.org/10.1007/978-0-387-72173-6
