Personal Credit and Financial Vulnerability

Rather than a narrow focus on risk of default, this paper advocates for lenders to take a broader data-led approach to tackling the challenges posed by financial vulnerability due to its latent and transient nature. Earlier identification and intervention when customers are experiencing financial hardship may help prevent default. Firstly, we consider how macro and micro data sources, in combination with emerging theoretical frameworks that conceptualise financial vulnerability, could be used by lenders for earlier identification of vulnerable customers. Secondly, we look at tailored interventions that could help financially vulnerable consumers once they have been identified, with passive and active methods inspired by protective efforts currently underway within the gambling industry. Lastly, when consumers do enter the arrears process, we highlight how lenders have a responsibility to help mitigate cognitive biases and promote behaviours that will help consumers escape perpetual debt.

Regulatory Resistance? Narratives and Uses of Evidence around “Black Market” Provision of Gambling during the British Gambling Act Review

Commercial gambling is increasingly viewed as being part of the unhealthy commodities industries, in which products contribute to preventable ill-health globally. Britain has one of the world’s most liberal gambling markets, meaning that the regulatory changes there have implications for developments elsewhere. A review of the British Gambling Act 2005 is underway. This has generated a range of actions by the industry, including mobilising arguments around the threat of the “black market”. We critically explore industry’s framing of these issues as part of their strategy to resist regulatory change during the Gambling Act review. We used a predefined review protocol to explore industry narratives about the “black market” in media reports published between 8 December 2020 and 26 May 2021. Fifty-five articles were identified and reviewed, and themes were narratively synthesised to examine industry framing of the “black market”. The black market was framed in terms of economic threat and loss, and a direct connection was made between its growth and increased regulation. The articles mainly presented gambling industry perspectives uncritically, citing industry-generated evidence (n = 40). Industry narratives around the “black market” speak to economically and emotionally salient concerns: fear, safety, consumer freedom and economic growth. This dominant framing in political, mainstream and industry media may influence political and public opinion to support the current status quo: “protecting” the existing regulated market rather than “protecting” people. Debates should be reframed to consider all policy options, especially those designed to protect public health.

Corporate Digital Responsibility Challenges for Sports Betting Companies

The emergence and continuing development of digital technologies is disrupting and reshaping traditional business practices throughout the service industries, and the gambling industry is no exception. On the one hand, digital technologies have opened the door to a landscape of new sports betting opportunities. On the other, the introduction of digital technologies brings responsibility challenges for sports betting companies. This policy paper outlines the features of corporate digital responsibility, provides some simple illustrations of digital responsibility issues in sports betting, and offers reflections on how these responsibilities are being discharged.

Casino capitalism in the era of COVID-19: examining Macau’s pandemic response

Purpose This purpose of this paper is to explain Macau’s successful pandemic response through an analysis of its social, political and economic landscapes. In particular, it focusses on the economic relief brought by casino capitalism in this era of COVID-19. Design/methodology/approach As mobility is highly restricted during the coronavirus pandemic, digital technologies have become central to ongoing social science research. Thanks to videoconferencing programmes such as Zoom, Facetime and WhatsApp, the author was able to carry out virtual interviews with 13 local people from different sectors of Macau in July 2020. In addition to in-depth interviews, the author also undertook an extensive review of the Macau government’s pandemic policies. Findings This paper argues that the Macau government’s swift and effective coronavirus policies are deeply intertwined with the urban fabric and political economy of the city’s casino capitalism, which endowed the government with surplus funds and an infrastructure that enabled the implementation of an array of strict measures that few other countries could afford to subsidise. Factors that have led to Macau’s extraordinarily low rates of COVID-19 infections and deaths include: competent leadership and the public’s high compliance with mandatory health measures; the generous benefits and financial support for citizens and businesses; and the compulsory quarantine required of all incoming travellers, who are lodged in hotel rooms left empty when casino tourists stopped coming. All of these measures have been made possible by a political economy backed by the peculiarities of casino capitalism and its resultant tax revenues. Research limitations/implications Future research could compare the case of Macau with other small but affluent economies (ideally economies that do not depend on the gambling industry) to ascertain the role of casino capitalism in building up economic resilience. Originality/value Although previous studies tend to emphasise the negative impacts of casino capitalism, this paper shows how tax revenues and infrastructure from the gambling industry can make a contribution to the host society in times of crisis.

Advertising slogans in the gambling industry: content analysis informed by the heuristics and biases literature

In this paper, we analyse the contents of over a thousand gambling slogans. We identify several features considered in the literature that the slogans might capitalize on. In particular, we investigate heuristics and biases analyzed in the behavioural economics of decision making under risk, such as the gambler’s fallacy. We then employ factor analysis to identify the main types of heuristics and biases showing up in the analyzed slogans. We find three naturally interpretable factors and show that they intuitively correlate with the type of game each slogan advertised. We also construct an index of potentially dangerous features a slogan might have and show that their use subsided slightly in the UK after the Industry Code for Socially Responsible Advertising was implemented in 2007.RésuméCet article porte sur l’analyse de plus d’un millier de slogans sur les jeux de hasard. Nous retrouvons dans ces slogans de nombreuses caractéristiques évoquées dans la littérature sur le sujet, en particulier les heuristiques et biais analysés en économie comportementale dans la prise de décision en situation de risque, comme l’illusion du joueur. Au moyen d’une analyse factorielle, nous dégageons les trois principaux types d’heuristiques et de biais qui se manifestent dans les slogans étudiés. Nous décelons ensuite trois facteurs interprétables et démontrons leurs corrélations intuitives avec le type de jeu dont chaque slogan fait la promotion. Enfin, nous proposons un index des caractéristiques potentiellement dangereuses des slogans sur les jeux de hasard et démontrons que l’emploi de ceux-ci a diminué légèrement au Royaume-Uni après l’adoption du Gambling Industry Code for Socially Responsible Advertising en 2007.

From Responsible Gambling to Responsible Innovation?

A CGS Blog entry on responsible innovation and the gambling industry.

Gambling at Work: A Qualitative Study of Swedish Elite Athletes, Coaches, and Managers

Considering the financial connections between sport and the gambling industry, more should be learned about gambling and problem gambling in this setting. This study explores how male athletes, coaches, and sports managers experience gambling activities and problems in their sports. Interviews were conducted with 30 male elite athletes, coaches, and managers in four sports. The interviews were analysed using content analysis, and the results indicated two main themes: 1) desire for and concerns with money and 2) in the shadow of performance, and three categories. The first main theme emerged as a result of the respondents recurring reference to money as the reason to different actions: It is important to win money,’too little’ or ‘too much’ money is described as reason for gambling, athletes status is affected by money and sponsor money from the gambling companies are considered important. ‘In the shadow of the performance’ captures the reason to and value of performance: The thrill and money are rewards for the gambling performance, everyday sporting life emphasizes performance both in training and matches. Lack of successful performance is perceived as a threat and evokes a fear of being seen as weak and being ejected from the team. This study identifies gambling as normalized within male elite sport. Preventing gambling problems calls for action at all levels of the involved socio-ecological framework. Management, coaches, and athletes need more knowledge of gambling and how to create a sustainable framework to prevent gambling problems.

The application of digital technology in gambling industry

PurposeThe study aims to integrate the insights gained from the gambling industry into a value creation conceptual framework for analyzing the influence of digital technology application. Both primary and secondary data from industry practitioners are examined and discussed.Design/methodology/approachIn-depth interviews covering top management from six major casinos in Macau were conducted with industry experts, who provided the pioneering feedback on digitalization technology implemented with examples from major casino cities, including Macau, Las Vegas, Monte Carlo, Singapore, Seoul and some others.FindingsThe study provides an overview of the current status of the application of digital technology in the gambling industry and the level of the feasibility, practicability and profitability of this development on the casino floor. Digital technologies are found to augment the gambling industry in aspects of the product, service and operational structure. Research also discovers that benefits and values gained by the casino can be categorized in three dimensions: (1) value perceived by the customer, (2) value obtained from the customer and (3) value gained by the firm.Originality/valueThe research serves as a reference for Macau policymakers regarding regulations on emerging digital technologies in the gambling industry, as well as for casino management seeking to understand new potential business opportunities and future developments in digitalization.