The Effectiveness of Sinking Lid Policies in Reducing Gambling Expenditure

Author(s):  
Christopher Erwin ◽  
Gail Pacheco ◽  
Alexandra Turcu
Keyword(s):  
Author(s):  
Alexander Blaszczynski

Abstract. Background: Tensions exist with various stakeholders facing competing interests in providing legal land-based and online regulated gambling products. Threats to revenue/taxation occur in response to harm minimisation and responsible gambling policies. Setting aside the concept of total prohibition, the objectives of responsible gambling are to encourage and/or restrict an individual’s gambling expenditure in terms of money and time to personally affordable limits. Stakeholder responsibilities: Governments craft the gambling environment through legislation, monitor compliance with regulatory requirements, and receive taxation revenue as a proportion of expenditure. Industry operators on the other hand, compete across market sectors through marketing and advertising, and through the development of commercially innovative products, reaping substantial financial rewards. Concurrently, governments are driven to respond to community pressures to minimize the range of negative gambling-related social, personal and economic harms and costs. Industry operators are exposed to the same pressures but additionally overlaid with the self-interest of avoiding the imposition of more stringent restrictive policies. Cooperation of stakeholders: The resulting tension between taxation revenue and profit making, harm minimization, and social impacts creates a climate of conflict between all involved parties. Data-driven policies become compromised by unsubstantiated claims of, and counter claims against, the nature and extent of gambling-related harms, effectiveness of policy strategies, with allegations of bias and influence associated with researchers supported by industry and government research funding sources. Conclusion: To effectively advance policies, it is argued that it is imperative that all parties collaborate in a cooperative manner to achieve the objectives of responsible gambling and harm minimization. This extends to and includes more transparent funding for researchers from both government and industry. Continued reliance on data collected from analogue populations or volunteers participating in simulated gambling tasks will not provide data capable of valid and reliable extrapolation to real gamblers in real venues risking their own funds. Failure to adhere to principles of corporate responsibility and consumer protection by both governments and industry will challenge the social licence to offer gambling products. Appropriate and transparent safeguards learnt from the tobacco and alcohol field, it is argued, can guide the conduct of gambling research.


2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Anne H. Salonen ◽  
Jukka Kontto ◽  
Riku Perhoniemi ◽  
Hannu Alho ◽  
Sari Castrén

2021 ◽  
pp. 107229
Author(s):  
Philip W.S. Newall ◽  
Leonardo Weiss-Cohen ◽  
Henrik Singmann ◽  
W. Paul Boyce ◽  
Lukasz Walasek ◽  
...  

2013 ◽  
Vol 5 (1) ◽  
pp. 1-22 ◽  
Author(s):  
Brad Humphreys ◽  
Yang Seung Lee ◽  
Brian P. Soebbing

Survey data on participation in gambling typically contain many zeros. The presence of many zeros presents methodological problems for the analysis of participation in gambling markets and gambling expenditure. The most common techniques for handling zeros in gambling data have been the Tobit estimator and the Heckman selectivity estimator. Recent research indicates that hurdle models (Jones 1989, 2000) and the Cragg (1971) model, are better suited to analyze participation in gambling. We apply these models to gambling participation in Canada and find that the double hurdle model is preferred in two of the three forms of gambling examined.


2013 ◽  
Vol 4 (2) ◽  
pp. 79-100 ◽  
Author(s):  
Brad Humphreys

Characteristics of households who participate in gambling markets in the US, and the determinants of household expenditure on gambling, are investigated using data from the Consumer Expenditure Survey (CEX). I estimate empirical models of participation in gambling markets and gambling expenditure using Tobit and double hurdle estimators. A likelihood ratio test rejects Tobit in favor of the double hurdle model. The double hurdle model estimates show that key explanatory variables affect participation and expenditure with different signs. Tobit, which is widely used in the literature, forces the signs to be identical, calling into question empirical regularities reported in this literature.


2021 ◽  
Author(s):  
Philip Warren Stirling Newall ◽  
Leonardo Weiss-Cohen ◽  
Henrik Singmann ◽  
William Paul Boyce ◽  
Lukasz Walasek ◽  
...  

UK online casino games are presently not subject to any limitations on stakes or speed-of-play. Two policy recommendations have been recently put forward: One proposal is to limit the maximum bet to £2, and another is to ensure that no online casino game can be played faster than its in-person equivalent. However, any policy proposal may be ineffective or have unintended consequences. This research experimentally investigated the speed-of-play proposal, in an experiment with 1,002 UK online roulette players, incentivized payouts, and £4 endowments. Participants played on a commercial online roulette game, which was slowed-down in one condition to enforce a speed-of-play limit of one spin every 60 seconds. The preregistered analysis plan showed no effect of the speed-of-play limit on participants’ choice to gamble at all, a marginal reduction in participants’ probability to gamble everything, and a credible reduction in the proportion of endowments gambled amongst participants who gambled some of their money. Expenditure reductions occurred via a credible reduction in the number of spins played that outweighed a marginal increase in per-spin bet sizes. This research shows how speed-of-play limits for online casino games may be effective in reducing gambling expenditure, and how the structural characteristics of online gambling games can be explored via ecologically-valid online experiments.


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