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Marketing, Gambling, and the Socioeconomic Impacts: The Canadian Context Today’s Agenda Current Zeitgeist and Marketing of Gambling PPT Group Gaming Presentation # 2 (ALGC, 2011; CDC, 2009; Williams et al., 2011) 1

Marketing, Gambling, and the Socioeconomic Impacts: The Canadian Context Today’s Agenda Current Zeitgeist and Marketing of Gambling PPT Group Gaming

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Marketing, Gambling, and the Socioeconomic Impacts: The Canadian Context

Today’s Agenda

Current Zeitgeist and Marketing of Gambling PPT

Group Gaming Presentation # 2

(ALGC, 2011; CDC, 2009; Williams et al., 2011) 1

CURRENTZEITGEIST

(ALGC, 2011; CDC, 2009; Williams et al., 2011) 2

The western view of gambling has changed from gambling as deviant and immoral to gambling as leisure entertainment, a form of adult play. The causes of this are unclear, but are probably related to

It has been some time since the public has been exposed to the harmful impacts of gambling

Because we now have more disposable income and more leisure time (similar to the aristocracy historically)

The weakened authority of the church, usually the main critic. The gradual increase in pervasiveness of gambling opportunities.

In modern Western democracies, our current attitude toward gambling is very similar to our current attitude toward drinking alcohol:

Excessive gambling, like excessive drinking, can lead to addiction. There should be some controls to minimize the harm, but it should be legal

and available to the general public.

(ALGC, 2011; CDC, 2009; Williams et al., 2011) 3

Gambling is now organized on commercial principles. The commercial orientation, technology and style of the U.S. approach has strongly influenced the objectives and character of global casino development, in large part due to the investment strength of American casino corporations and the market structure of international tourism.

Fair amount of research now on the regulatory and administrative aspects of cost-benefit analyses.

Lot of economic justification for gambling (creates jobs; good way of raising money for good causes; keeps money from leaving the jurisdiction)

(ALGC, 2011; CDC, 2009; Williams et al., 2011) 4

Canada

(ALGC, 2011; CDC, 2009; Williams et al., 2011) 5

A Few Important DevelopmentsA Few Important Developments1969 Law permitting federal and provincial governments to operate lotteries of any size 1969 Law permitting federal and provincial governments to operate lotteries of any size

Quebec first to set up lottery in 1970, but end of 70s all provinces join in the Quebec first to set up lottery in 1970, but end of 70s all provinces join in the sweepstakes. sweepstakes.

Federal government and provincial governments fight over lottery jurisdictions Federal government and provincial governments fight over lottery jurisdictions

1979 Ottawa withdraws from lotteries in return for receiving an annual inflation-adjusted 1979 Ottawa withdraws from lotteries in return for receiving an annual inflation-adjusted cash payment from the provincescash payment from the provinces

By 1985 then Prime minister Brian Mulroney amended the Criminal Code to place all By 1985 then Prime minister Brian Mulroney amended the Criminal Code to place all forms of gambling (except horse racing) solely under provincial jurisdiction. forms of gambling (except horse racing) solely under provincial jurisdiction.

This same amendment allowed provincial governments to run VLTThis same amendment allowed provincial governments to run VLT’’s & slot machines, s & slot machines, which helped to set the stage toward which helped to set the stage toward allowing for further delegation of the management of casino’s to private companies

(ALGC, 2011; CDC, 2009; Williams et al., 2011)(ALGC, 2011; CDC, 2009; Williams et al., 2011)66

Let their be gambling…Let their be gambling…

AllAll provinces introduce either VLT provinces introduce either VLT’’s or slot s or slot machines (Manitoba 1989 – B.C. 1997)machines (Manitoba 1989 – B.C. 1997)

All provinces except N.B., P.E.I. & All provinces except N.B., P.E.I. & Newfoundland introduce permanent Newfoundland introduce permanent casinos (Alberta 1980 – B.C. 1998) casinos (Alberta 1980 – B.C. 1998)

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 77

Alberta Gambling Venues Alberta Gambling Venues

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 88

(ALGC, 2011; CDC, 2009; Williams et al., 2011)(ALGC, 2011; CDC, 2009; Williams et al., 2011)

99

The Most Common Activity The Most Common Activity Associated with Problem Associated with Problem

Gambling?Gambling?

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 1010

Monies Generated in AlbertaMonies Generated in Alberta

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 1111

Where Do the Revenues Go?Where Do the Revenues Go?

Other than licensing fees that go to the government, revenue from charitable gaming goes to charitable and religious groups conducting the gaming

The Alberta government’s portion of net proceeds from EGM’s, slot machines, electronic bingo and ticket lotteries are placed in the ALBERTA LOTTERY FUND.

In 2010-11, approx. 1.4 billion was placed in this fund. (ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et

al., 2011)al., 2011) 1212

Aboriginal Relations.............................$116 million

Advanced Education and Tech...............105 million

Agriculture and Rural Development .........43 million

Children and Youth Services....................63 million

Culture and Community Spirit ................148 million

Education ..............................................114 million

Employment and Immigration ..................12 million

Environment ...........................................0.5 million

Health and Wellness..............................450 million

Municipal Affairs.......................................26 million

Solicitor General and Public Security .......35 million

Tourism, Parks and Recreation................23 million

Allocations

(ALGC, 2011; CDC, 2009; Williams et al., 2011)(ALGC, 2011; CDC, 2009; Williams et al., 2011)1313

Gambling Availability (2008-09)Gambling Availability (2008-09)

CANADA CANADA

ALL ALL

IN IN (ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et

al., 2011)al., 2011) 1414

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 1515

CASINO’SCASINO’S

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 1616

EGM VENUESEGM VENUES

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 1717

HORSE TRACK VENUESHORSE TRACK VENUES

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 1818

Player Banked Poker Rooms Player Banked Poker Rooms

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 1919

Lottery Tickets Total VenuesLottery Tickets Total Venues

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 2020

NET GAMING REVENUENET GAMING REVENUE

(CDC, 2009)(CDC, 2009)

2121

Distributions to Problem Gambling / Distributions to Problem Gambling / Responsible GamblingResponsible Gambling(( C

DC

, 2009;)C

DC

, 2009;)

2222

Percent agreement with statement Percent agreement with statement ‘‘gambling is an acceptable activitygambling is an acceptable activity’’

2323

Percent agreement with statement Percent agreement with statement ‘‘more restrictions on gambling neededmore restrictions on gambling needed’’

2424

Is it enough? Problem Gambling in Is it enough? Problem Gambling in Canada Canada

3.2% of Canadian adults are affected by 3.2% of Canadian adults are affected by moderate to severe problem gambling moderate to severe problem gambling (Williams, 2009).(Williams, 2009).

2.2% of youth aged 15–24 are affected by 2.2% of youth aged 15–24 are affected by moderate risk or problem gambling moderate risk or problem gambling (Huang, 2007).(Huang, 2007).

Where does the money come from?Where does the money come from?

Top 10% of spenders account for the majority of gaming Top 10% of spenders account for the majority of gaming revenues. Yet very little is known about the revenues. Yet very little is known about the socioeconomic characteristics of these individuals. socioeconomic characteristics of these individuals.

– A portion of these people are wealthy A portion of these people are wealthy ‘‘high rollershigh rollers’’. In Las . In Las Vegas high-rollers account for 5% of gamblers but generate 40% Vegas high-rollers account for 5% of gamblers but generate 40% of total revenue. High rollers account for a smaller portion of of total revenue. High rollers account for a smaller portion of revenue in most other jurisdictions.revenue in most other jurisdictions.

– In Canada, roughly 33% In Canada, roughly 33% of gambling revenue comes from of gambling revenue comes from problem gamblers. Proportion derived from problem gamblers problem gamblers. Proportion derived from problem gamblers also dependent on the type of gambling: highest for EGMs also dependent on the type of gambling: highest for EGMs (60%) and casino gambling, lowest for lotteries (20%).(60%) and casino gambling, lowest for lotteries (20%).

SOCIOECONOMIC SOCIOECONOMIC COSTS/BENEFITS OF COSTS/BENEFITS OF

GAMBLINGGAMBLING

Economic Benefits of GamblingEconomic Benefits of Gambling

In 2010, the gambling industry in Canada sees the full time employment of In 2010, the gambling industry in Canada sees the full time employment of 128,000 people, as well as 283,000 indirectly.  128,000 people, as well as 283,000 indirectly.  Wages not high, however, Wages not high, however, 1/3 compensation comes from tips. 1/3 compensation comes from tips.

Increased government tax revenues or direct gambling revenue (a voluntary Increased government tax revenues or direct gambling revenue (a voluntary tax that prevents involuntary tax increases).tax that prevents involuntary tax increases).

Significant revenues for charities.Significant revenues for charities.

Increased revenue and employment to complementary industries (hotels, Increased revenue and employment to complementary industries (hotels, tourist facilities) tourist facilities)

Increased property values (although this also means increased rental costs)Increased property values (although this also means increased rental costs)

May repatriate gambling money flowing outside the jurisdiction.May repatriate gambling money flowing outside the jurisdiction.

(Maple Gambling, 2011)(Maple Gambling, 2011)

Economic Costs of GamblingEconomic Costs of Gambling

Displacement or cannibalization of competing industries Displacement or cannibalization of competing industries

– particularly certain gambling industries: horse racing, bingoparticularly certain gambling industries: horse racing, bingo– some demise of entertainment and amusement industries (bars, some demise of entertainment and amusement industries (bars,

restaurants, etc.)restaurants, etc.)– Some demise of general merchandise Some demise of general merchandise

Increased infrastructure costs (roads, sewers, police, utilities, Increased infrastructure costs (roads, sewers, police, utilities, etc) due to increased tourism etc) due to increased tourism

Economic costs due to increased problem gamblersEconomic costs due to increased problem gamblers

– Absenteeism and loss of productivity; embezzlementAbsenteeism and loss of productivity; embezzlement– Costs of police, trials and incarcerationCosts of police, trials and incarceration– Health and treatment costsHealth and treatment costs

3 Ways to Economic Benefits3 Ways to Economic Benefits

Inflow of money or resources from outside the Inflow of money or resources from outside the jurisdiction.jurisdiction.

Creation of something of value that adds to Creation of something of value that adds to wealth of the jurisdiction (because of its intrinsic wealth of the jurisdiction (because of its intrinsic wealth) or increases the value of other things in wealth) or increases the value of other things in the jurisdiction.the jurisdiction.

Increasing the number and frequency of Increasing the number and frequency of monetary transactions between individuals so monetary transactions between individuals so that more people can benefit from the existing that more people can benefit from the existing wealth within a district.wealth within a district.

Social Benefits of GamblingSocial Benefits of GamblingPositive social effects due to positive economic effects (e.g., Positive social effects due to positive economic effects (e.g., employment, govt revenues)employment, govt revenues)

Gambling as an enjoyable leisure activity; a form of adult play. This Gambling as an enjoyable leisure activity; a form of adult play. This is how it has always been seen in Chinese culture.is how it has always been seen in Chinese culture.– The pleasure of fantasizing about being richThe pleasure of fantasizing about being rich– The pleasure of being intoxicated (gambling as a high)The pleasure of being intoxicated (gambling as a high)– The pleasure of escape (gambling as theatre). Perhaps for some it is an The pleasure of escape (gambling as theatre). Perhaps for some it is an

effective way of handling stress.effective way of handling stress.

Gambling may provide social support to isolated older adults.Gambling may provide social support to isolated older adults.

May encourage an entrepreneurial, risk-taking spirit. Provides players May encourage an entrepreneurial, risk-taking spirit. Provides players with an opportunity to demonstrate strength of character and with an opportunity to demonstrate strength of character and commitment to valued social codes such as risk-taking, courage and commitment to valued social codes such as risk-taking, courage and honesty.honesty.

Gambling & CrimeGambling & Crime

Legal gambling has a dampening effect on illegal gambling and Legal gambling has a dampening effect on illegal gambling and corruption.corruption.– In western Canada illegal gambling still extensive in the four largest In western Canada illegal gambling still extensive in the four largest

cities—Vancouver, Calgary, Edmonton, and Winnipeg; less so in cities—Vancouver, Calgary, Edmonton, and Winnipeg; less so in medium-sized cities and a minor concern in rural areas (Smith & medium-sized cities and a minor concern in rural areas (Smith & Wynne, 1999)Wynne, 1999)

– A small portion of laundering money is laundered in casinosA small portion of laundering money is laundered in casinos– Mostly sports betting with a bookmaker, unauthorized poker clubs, Mostly sports betting with a bookmaker, unauthorized poker clubs,

unlicensed VLTs, and offshore lottery sales (Smith & Wynne, 1999)unlicensed VLTs, and offshore lottery sales (Smith & Wynne, 1999)– (if govt offered competitve odds it would drive out all illegal gambling)(if govt offered competitve odds it would drive out all illegal gambling)– In Ontario, there are illegal gaming venues offering blackjack, poker, In Ontario, there are illegal gaming venues offering blackjack, poker,

roulette; patronized because they offer services not available elsewhere roulette; patronized because they offer services not available elsewhere (prostitution; house credit; drugs)(prostitution; house credit; drugs)

Illegal gambling will always exist if it has a competitive edge (more Illegal gambling will always exist if it has a competitive edge (more convenient, better odds, different games, house credit, convenient, better odds, different games, house credit, drugs/prostitution, tax-free winnings)drugs/prostitution, tax-free winnings)

Social Costs of GamblingSocial Costs of Gambling

Undercuts work ethic?Undercuts work ethic?

Corrupting influence on society because it promotes Corrupting influence on society because it promotes materialism and hedonism?materialism and hedonism?

Creates divisions within society because of different Creates divisions within society because of different attitudes and religious beliefs about gambling (e.g., intra-attitudes and religious beliefs about gambling (e.g., intra-tribal divisions in many tribes that established casinos)tribal divisions in many tribes that established casinos)

Corrupting influence on governments and nonprofit Corrupting influence on governments and nonprofit sector. Their dependency on the revenue blinds them to sector. Their dependency on the revenue blinds them to the fact that 1/3 of this money comes from problem the fact that 1/3 of this money comes from problem gamblers. gamblers.

Gambling Increases Prevalence of Problem GamblingGambling Increases Prevalence of Problem Gambling

Roughly 3.2% of population in Canada is a problem Roughly 3.2% of population in Canada is a problem gambler, which represents a significant increase from gambler, which represents a significant increase from 20 years ago.20 years ago.

– depressiondepression– suicidesuicide– bankruptcybankruptcy– CrimeCrime– Work or school problemsWork or school problems– Health problemsHealth problems– Problems with Family or FriendsProblems with Family or Friends

Problem gamblers impact their families with all Problem gamblers impact their families with all of the above, plus:of the above, plus:

– Spousal abuse or divorceSpousal abuse or divorce– Child neglectChild neglect– Modelling of gambling to childrenModelling of gambling to children

Impact on PG prevalence rates tend to take a Impact on PG prevalence rates tend to take a few years, then stabilizes, then perhaps few years, then stabilizes, then perhaps decreases. decreases.

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 3535

Do the social and economic benefits Do the social and economic benefits outweigh the costs or vice versa?outweigh the costs or vice versa?

The answer depends on the circumstances The answer depends on the circumstances of the jurisdictionof the jurisdiction

Depends on whether the gambling patrons are tourists or locals.Depends on whether the gambling patrons are tourists or locals.

– If locals, then most of the economic If locals, then most of the economic ‘‘benefitsbenefits’’ represent represent cannibalization of other industries and no cannibalization of other industries and no ‘‘netnet’’ increase in wealth increase in wealth to the jurisdiction. If tourists, this represents a true inflow of new to the jurisdiction. If tourists, this represents a true inflow of new wealth.wealth.

– If locals, you increase problem gambling prevalence rates in your If locals, you increase problem gambling prevalence rates in your own populace. If tourists, the own populace. If tourists, the ‘‘problemsproblems’’ go home with the go home with the tourists.tourists.

Depends on the type of gambling (i.e., some forms like lotteries create Depends on the type of gambling (i.e., some forms like lotteries create very few problem gamblers, other forms, like VLTs create high very few problem gamblers, other forms, like VLTs create high proportions of PGs and very few employment benefits).proportions of PGs and very few employment benefits).

Depends on where profits go…Depends on where profits go…

Employees local or notEmployees local or notOwners local or notOwners local or notProfits reinvested locally or on other projects Profits reinvested locally or on other projects elsewhereelsewhere

Depends where the supplies are purchased from Depends where the supplies are purchased from (gambling equipment, furniture, food, hotel supplies)(gambling equipment, furniture, food, hotel supplies)

Depends where the taxes and revenues go Depends where the taxes and revenues go (taxes/revenues going to the jurisdiction or (taxes/revenues going to the jurisdiction or federal/provincial level; tax money reinvested in the federal/provincial level; tax money reinvested in the region?)region?)

(ALGC, 2011; CDC, 2009; Williams et al., 2011)(ALGC, 2011; CDC, 2009; Williams et al., 2011)3838

WinnersWinnersLas VegasLas Vegas

90% money from visitors90% money from visitorsowners local and reinvest in other local operationsowners local and reinvest in other local operationsproblem gamblers go back homeproblem gamblers go back homenot a manufacturing or agricultural region so a lot of money spent on not a manufacturing or agricultural region so a lot of money spent on supplies from elsewheresupplies from elsewhere

Atlantic City Atlantic City Similar to Las VegasSimilar to Las Vegas

Many U.S. Native casinosMany U.S. Native casinosNative casinos also do not pay federal tax, so revenues stay on siteNative casinos also do not pay federal tax, so revenues stay on site

Tourist-restricted or tourist-dominated venues around the world (e.g., France, Tourist-restricted or tourist-dominated venues around the world (e.g., France, Vietnam, Macao, etc.)Vietnam, Macao, etc.)

Large, destination-style casinos on Canadian border (Windsor, Niagara Falls) that Large, destination-style casinos on Canadian border (Windsor, Niagara Falls) that draw significant portion of patronage from U.S.draw significant portion of patronage from U.S.

LosersLosers

Everywhere elseEverywhere else

Marketing Gambling: How do they do it?Marketing Gambling: How do they do it?

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 4242

Marketing: Two Factors Marketing: Two Factors

Situational factors: Situational factors:

– Foundational characteristics that induce first gambling experiences (i.e., Foundational characteristics that induce first gambling experiences (i.e., location of outlet, number of outlets, use of advertising).location of outlet, number of outlets, use of advertising).

Structural factors:Structural factors:

– Any gaming device/design that exists outside the individual that may Any gaming device/design that exists outside the individual that may facilitate the maintenance of a gambling behaviour. facilitate the maintenance of a gambling behaviour.

– These devices not only maintain a behaviour, but in fact may make a game These devices not only maintain a behaviour, but in fact may make a game addictivaddictive. e.

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 4343

Race TracksRace Tracks

Marketing “mystique” – getting closer to the Marketing “mystique” – getting closer to the bourgeoisiebourgeoisie

A taste of the good life A taste of the good life

Today this mystique has fallenToday this mystique has fallen

Now racetracks are marketed through intrinsic Now racetracks are marketed through intrinsic association or proximity of play association or proximity of play

(ALGC, 2011; CDC, 2009; Williams et al., 2011)(ALGC, 2011; CDC, 2009; Williams et al., 2011) 4444

Casino’s – Situational Casino’s – Situational

Vacation destinations Vacation destinations

VIP ServicesVIP Services

Free food / drink Free food / drink

Sin City Sin City

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 4545

Casino’s – StructuralCasino’s – Structural

Gambling environments are created to intensify the impact of ones Gambling environments are created to intensify the impact of ones experience through casino or venue design which deliberately experience through casino or venue design which deliberately manipulates sensory and cognitive influences. manipulates sensory and cognitive influences.

Intense visual and auditory stimuli enhanced to the maximum. Intense visual and auditory stimuli enhanced to the maximum.

Lights and sounds pervade casinos and are used to saliently signal Lights and sounds pervade casinos and are used to saliently signal wins and rewards. wins and rewards.

CasinoCasino’’s typically do not have clocks, windows, passage of time is s typically do not have clocks, windows, passage of time is downplayed. downplayed.

Excess to alcohol, which has a direct neurochemical effect leading Excess to alcohol, which has a direct neurochemical effect leading to altering judgment and increasing risk-taking.to altering judgment and increasing risk-taking.

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 4646

Payment CharacteristicsPayment Characteristics

Suspension of Judgement and Cashless Suspension of Judgement and Cashless GamingGaming

– Cash turned into vouchers: misinterpret value of Cash turned into vouchers: misinterpret value of moneymoney

– Smart Card: isolated play, no interruptions Smart Card: isolated play, no interruptions

– Alternative argument “May also encourage Alternative argument “May also encourage responsible gaming” … responsible gaming” … I know how much I can spendI know how much I can spend

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 4747

Bet Sizes and Bill AcceptorsBet Sizes and Bill Acceptors

Conflicting evidence regarding bet sizes Conflicting evidence regarding bet sizes

Meanwhile bill acceptors may cause: Meanwhile bill acceptors may cause:

• Un-interrupted play Un-interrupted play • De-value moneyDe-value money• Isolated play Isolated play

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 4848

Cash / Credit Display Cash / Credit Display

Conflicting evidenceConflicting evidence

Structurally the argument is that if the gambler views Structurally the argument is that if the gambler views money disappearing on the EGM screen as opposed to money disappearing on the EGM screen as opposed to credits, the gambler is likely to: credits, the gambler is likely to:

– Bet less Bet less – Stop themselves when losses begin to add up Stop themselves when losses begin to add up – Less likely to chase losses… But now we can switch to either Less likely to chase losses… But now we can switch to either

or…?or…?

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 4949

Playability Characteristics (Structural) Playability Characteristics (Structural)

Bonus Game, the game within the gameBonus Game, the game within the game

– The idea behind the bonus game is to increase The idea behind the bonus game is to increase playability and ultimately give the gambler an illusion playability and ultimately give the gambler an illusion of control. of control.

– As such, the gambler believes that they have more As such, the gambler believes that they have more ability to bring about a win, manipulated through...ability to bring about a win, manipulated through...

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 5050

Stop Buttons Stop Buttons

Gamble Buttons Gamble Buttons

Touch Screen Touch Screen

– Essentially, the bonus games along with Essentially, the bonus games along with the latter features brings us to the the latter features brings us to the

Near MissNear Miss

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 5151

Psychology of Familiarity Psychology of Familiarity

Other technological advances Other technological advances in EGM machines have also in EGM machines have also played into the hands of the played into the hands of the structural marketing structural marketing technique known as technique known as “psychology of “psychology of familiarityfamiliarity.” .”

This speaks to playing on one This speaks to playing on one machine more than the other.machine more than the other.

Beyond the obvious attraction Beyond the obvious attraction to the common, novel, to the common, novel, (socially and culturally) Parke (socially and culturally) Parke and Griffiths (2007) hold that and Griffiths (2007) hold that gamblers may fall victim the gamblers may fall victim the psychology of familiarity psychology of familiarity because...because...

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 5252

Psychology of FamiliarityPsychology of Familiarity

EGM gamers EGM gamers trusttrust in an international symbol in an international symbol (celebrity) (celebrity) – thus – thus jackpots maybe be higher, “I won’t be ripped off.” jackpots maybe be higher, “I won’t be ripped off.”

ExperienceExperience , gamblers believe they have an added advantage , gamblers believe they have an added advantage because they have knowledge of the game (i.e., price is right, because they have knowledge of the game (i.e., price is right, wheel of fortune), which directly affect the EGM game. wheel of fortune), which directly affect the EGM game.

FunFun – the newer games are more interactive, music is hip, – the newer games are more interactive, music is hip, humorous, ect. humorous, ect.

Ultimately, in addition to the newer games being played more, Ultimately, in addition to the newer games being played more, gamblers supposedly may not be affected by their losses as usual, gamblers supposedly may not be affected by their losses as usual, and continue to play despite mounting losses. and continue to play despite mounting losses.

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 5353

Psychology of FamiliarityPsychology of Familiarity

1.1. Fear Factor Fear Factor

2.2. Price is Right Price is Right

3.3. Monopoly Monopoly

4.4. Wheel of Fortune Wheel of Fortune

5.5. Simpsons Simpsons

6.6. Spider Man Spider Man

7.7. King KongKing Kong

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 5454

Event DurationEvent Duration

Event duration simply refers to how fast is Event duration simply refers to how fast is the event (i.e., reel speed). the event (i.e., reel speed).

Hence, the faster the event, the more opportunity Hence, the faster the event, the more opportunity their is to win or lose. their is to win or lose.

EGM machines today and their speed can be EGM machines today and their speed can be manipulated by the gamblers, the faster you hit manipulated by the gamblers, the faster you hit the bet button, the faster your money goes, the bet button, the faster your money goes, increases, or the closer you are to hitting the increases, or the closer you are to hitting the jackpot or entering into the bonus game.jackpot or entering into the bonus game.

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 5555

Payout IntervalsPayout Intervals

Closely related to event duration, is the Closely related to event duration, is the payout interval. payout interval.

Research tells us (operant conditioning) that Research tells us (operant conditioning) that humans are prone to seek rewards. humans are prone to seek rewards.

Hence, the casino industry produces high Hence, the casino industry produces high rates of response via random and variable rates of response via random and variable ratio schedules.ratio schedules.

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 5656

Chance IdeologyChance Ideology

LotteriesLotteries

Upward mobility!Upward mobility!

Regressive tax…Regressive tax…

Escape your life/job!Escape your life/job!

Could you imagine?Could you imagine?

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 5757

SummationSummation Empirical evidence does exist revealing that games that Empirical evidence does exist revealing that games that

offer a fast, arousing span of play, frequent wins, and the offer a fast, arousing span of play, frequent wins, and the opportunity for rapid replay are associated with problem opportunity for rapid replay are associated with problem gambling. gambling.

In essence, if we look at addiction and understand to be In essence, if we look at addiction and understand to be highly related to the pairing of reward and the speed by highly related to the pairing of reward and the speed by which we can receive an award which we can receive an award

It might would be foolish to disregard the structural It might would be foolish to disregard the structural characteristics of EGM machines and their role in the characteristics of EGM machines and their role in the development of a gambling problem... development of a gambling problem...

Or would it?Or would it?

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 5858

Group Task For Movie Emersion (using the movies, readings, lect Group Task For Movie Emersion (using the movies, readings, lect material, and your opinions)material, and your opinions)

1.1. Create a written statement declaring whether you are for the current gambling ethnos Create a written statement declaring whether you are for the current gambling ethnos (culture) or want to sanction or modify it. Need to declare reasons and evidence for (culture) or want to sanction or modify it. Need to declare reasons and evidence for why? why?

2.2. Afterwards, it is your group’s job to lobby other groups to support your position. In Afterwards, it is your group’s job to lobby other groups to support your position. In order for your group to do this – the group(s) you lobby must have more than 50% of order for your group to do this – the group(s) you lobby must have more than 50% of “their” group agree with your group’s position (collects votes/signatures).“their” group agree with your group’s position (collects votes/signatures).

3.3. Be prepared to discuss your case in front of the class / at the beginning of next class; Be prepared to discuss your case in front of the class / at the beginning of next class; along with declaring which groups are in favour of your stance.along with declaring which groups are in favour of your stance.

4.4. The group with the best argument / coupled with having a minimum of The group with the best argument / coupled with having a minimum of at least at least two two supporting lobby groups wins. supporting lobby groups wins.

5.5. RememberRemember the groups you lobby and get support from have to make sense the groups you lobby and get support from have to make sense with respect to your declaration and theirs. If their support doesn’t make sense in with respect to your declaration and theirs. If their support doesn’t make sense in relation to your declaration. Support will be withdrawn!!!relation to your declaration. Support will be withdrawn!!!

(ALGC, 2011; CDC, 2009; Williams et (ALGC, 2011; CDC, 2009; Williams et al., 2011)al., 2011) 5959