Risky Business: A Few Provocations on the Regulation of Electronic Gaming Machines

Electronic gambling machines (EGMs) proliferate in Australian club and hotel venues, generating revenues of billions of dollars annually and accounting for the majority of gambling expenditure. These revenues arguably rely on unsafe consumption practices, generating considerable harm. Clear evidence is available describing unsafe levels of EGM consumption by regular EGM consumers in hotels and clubs, and indicating modifications to EGM technology and systems to minimize harm. However, a comfortable orthodoxy, the discourse of ‘business as usual’, perpetuates current arrangements, sustaining in particular a model of the ‘problem’ gambler as an individualized flawed consumer. The article argues that the marketing and distribution of EGMs is neither accidental nor something for which the individual is responsible, and neither is the safeguarding of oneself from the harm produced by goods licensed by government. Pursuit of a goal of safe consumption for all EGM gamblers requires disruption of the discourse of business as usual.     

Gambling Behaviour and the Prevalence of Gambling Problems in Adult EGM Gamblers when EGMs are Banned. A Natural Experiment

In this article, findings of a panel study among former EGM gamblers are discussed. The data were collected in two waves during 2007, and 1293 people, 18 years or older, participated. The background for the study was the Norwegian ban on EGMs from 1 July 2007, and the aim was to investigate how this ban affected gambling involvement and problem levels in the sample. The analysis shows that gambling participation, gambling frequencies and gambling problems were reduced after EGMs disappeared from the market. There was no indication of the development of an illegal EGM market, or of substitution of EGMs with other types of gambling. A reduction in other types of gambling is interpreted as an indication of synergetic effects between games. Reduced gambling participation among the most active EGM gamblers, and among risk gamblers, shows that the reductions in gambling availability had an effect even on highly involved gamblers.     

Electronic Gaming Machine Gambling: Measuring Motivation

Electronic gambling machines (EGMs) are known to be a particularly risky form of gambling (Petry. Addiction 98(5):645–655, 2003). It is vital that researchers and clinicians are aware of factors which could lead to people having problems with this form. Gambling motivation is one such factor. This study developed a measure of EGM gambling motivations based on the results of qualitative research conducted with EGM problem gamblers and experienced counsellors (Thomas et al. Int J Mental Health Addiction 7:97–107, 2009). A community based sample of 232 females (M = 29.60 years of age, SD = 15.41 years) and 123 males (M = 29.64 years of age, SD = 12.29 years) participated. Exploratory factor analysis extracted three motivational factors indicating people gambled on EGMs to escape, for its accessibility and for the social environment. Gambling to escape and for its accessibility had substantial positive correlations with frequency of EGM gambling and gambling problems. Social environment correlated less well with these indicators of excessive gambling. Correlations between factors suggested the accessible, social experience offered by EGM venues increases their appeal as a means of escape. The new subscales were internally consistent and demonstrated good evidence of validity. This new measure will facilitate future investigations into the relationships between gambling motivations, other aetiological factors and EGM problem gambling.     

The Effects of Pop-up Harm Minimisation Messages on Electronic Gaming Machine Gambling Behaviour in New Zealand

In New Zealand a simple pop-up message feature that provides gambling session information and forces a break in play is mandatory on all electronic gaming machines in all venues (EGMs). Previous research has demonstrated small effects of more sophisticated pop-up messages tested predominantly in laboratory environments. The present research examined gambler engagement with and views on the New Zealand pop-up messages and on the relationship between pop-up messages and EGM expenditure. A sample of gamblers was recruited at casino and non-casino (pub) EGM venues. Most participants were aware of pop-up messages (57 %) and many saw them often (38 %). Among gamblers who reported seeing pop-up messages, half read the message content, and a quarter believed that pop-up messages helped them control the amount of money they spend on gambling. Participants who reported being likely to stop gambling in response to pop-up messages spent significantly less money on gambling when variables that were independently associated with EGM expenditure were controlled for. A modest harm minimisation effect of the pop-up message feature that has been operating in New Zealand for 5 years was evident. Suggestions for improvement of the harm minimisation potential of the current pop-up message feature are discussed.     

Environmental Factors in the Choice of EGMs: A Discrete Choice Experiment

EGMs are a form of entertainment, and the gambling environment is an important contributor to the overall experience. Logically, to select a play-environment, EGM gamblers must choose the platform through which to access the EGM (e.g., internet, mobile application or land-based venue), a particular provider (e.g., specific website, app vendor or branded casino), and the game itself (e.g., based on graphical theme or bonus features; Thorne et al. in J Gambl Stud, 2016. doi: 10.1007/s10899-016-9601-2). A discrete choice experiment was conducted to identify the features of the platform, provider and game that are most strongly preferred by EGM gamblers. Participants were 245 EGM gamblers from clubs in Victoria, Australia and 7516 EGM gamblers from an Australian online panel. Results indicate that the ideal environment for the average gambler consists of: gambling at a club that is close to home; with a group of friends; in a relatively quiet place that has air conditioning, cheap food and a large space to play in; on a classic game with quality animations and small bet sizes; where you feel safe and secure; and where there is a wide variety of other games to play when you are done. Segmenting these results by problem-gambler status highlights important differences in preferences between problem and non-problem gamblers. Problem gamblers are less likely to give weight to the company they share and have a preference for larger venues. Using a powerful paradigm from marketing research, the present study was able to determine the relative value of different features of the EGM gambling environment, and also contributes important insight towards what constitutes a safer environment for recreational play.     

Evaluating the Effectiveness of a Limited Reduction in Electronic Gaming Machine Availability on Perceived Gambling Behaviour and Objective Expenditure

In Australia, there is evidence to suggest that there is a positive association between the geographical accessibility of electronic gaming machines (EGMs) and the frequency and intensity of gambling in local areas. Evidence such as this has been used to introduce regulatory policies to reduce the geographical accessibility of EGMs through the reduction of gaming machine numbers in venues. The aim of this paper was to describe the process involved in the 15 per cent reduction in gaming machine numbers in the state of South Australia and the apparent effects on gaming revenue and gambling behaviours. Detailed analysis of objective EGM data as well as survey-based interviews with 400 regular EGM players provided only limited evidence of behavioural changes or significant reductions in gaming revenue. The paper describes the nature of industry responses to circumvent the effects of the reduction in machine numbers and the implications of these findings for future regulatory policies relating to EGM gambling.     

An Initial Investigation of Individual Rate-of-Play Preferences and Associations with EGM Gambling Behavior

Electronic gambling machines (EGMs) show a strong association with gambling problems. The high speed of gaming offered by modern EGMs allows playing numerous games in a short span of time, which is thought to contribute to attentional distraction, increased spending and prolonged play. However, the relationship between EGM speeds and potentially risk-related gambling behavior remains unclear. We introduce a novel approach to investigating the role of gaming speed in EGM gambling behavior by examining ‘individual rate-of-play’ (I-ROP) during simulated EGM gambling. A community sample of male regular gamblers (N = 72) played virtual slot machines in pairs offering sequentially adjusted game speeds towards the estimation of a behaviorally expressed preference speed, or I-ROP. This initial experiment aimed to explore the variability of I-ROPs during simulated EGM gambling, and examine behavior while playing EGMs at speeds relative to their I-ROP. Estimated I-ROPs ranged from less than one half second to over seven seconds and were negatively associated with cognitive ability, but not related to problem gambling severity, impulsiveness, or gambling-related cognitions. Subsequent gambling sessions on EGMs offering individually calibrated faster and slower gaming speeds were associated with greater and reduced risk-related gambling behaviors respectively. I-ROPs represent a potentially informative construct for exploring influences of gaming speed on gambling behavior, and may lend insight into potential risk-related behavior an individual vulnerability with respect to commercially available EGMs that warrants additional research.     

Determining optimal placement for pop-up messages: evaluation of a live trial of dynamic warning messages for electronic gaming machines

Dynamic warning messages are a harm minimization strategy aimed at preventing or reducing gambling-related problems by assisting individuals to make informed choices about their gambling. Laboratory studies have demonstrated the efficacy of dynamic warnings in facilitating responsible gambling. This article presents the results of a trial of the related effectiveness of dynamic warnings appearing either in the middle or on the periphery of electronic gaming machines (EGMs) screens in commercial gambling venues. Regular gamblers (n = 667) were surveyed to assess their recall of warning messages and the perceived impact of message placement on thoughts and behaviours. Messages appearing in the middle of screens were recalled to a greater extent, and respondents reported that these were more impactful and useful than messages on the periphery of screens. As one of the first trials of dynamic warning messages in operating EGM venues, the results provide important verification and validation of previous laboratory research. Results demonstrate that dynamic warning messages appearing in the middle of an EGM screen during play are likely to be a more effective harm minimization intervention than messages on the periphery of EGM screens.     

The Impact of Jackpots on EGM Gambling Behavior: A Review

This paper reviews literature on how jackpots influence Electronic Gaming Machine (EGM) gambling behaviour. Most of the available evidence addresses the motivational effect of the mere presence of EGM jackpots on play, as actual wins are relatively rare for individual gamblers. The review identifies a distinction between rational, biased and irrational motivations that attract people to EGM jackpots. The evidence suggests that EGM jackpots should generate additional consumption on EGMs above machines that do not have such lottery-like features. Rational motivations are likely to lead to consumer surplus, whereas biased and irrational motivations are likely to contribute to excessive consumption. Moreover, there is evidence that excessive gambling consumption is strongly associated with gambling-related harm. Future research should identify how the structural features of different types of jackpots; such as progressive, deterministic, hidden, mystery, linked and wide-area jackpots; may differentially appeal to rational, biased and irrational gambling motivations. Jackpots are common feature of EGM games, and therefore it is important to have a better understanding of how jackpot features influence play on the machines.     

Impact of Mode of Display and Message Content of Responsible Gambling Signs for Electronic Gaming Machines on Regular Gamblers

Harm-minimization strategies aim to reduce gambling-related risks; however, minimal evidence supports the effectiveness of current strategies involving the placement of warning signs in gambling venues and on electronic gaming machines (EGMs). This qualitative replication study evaluated the differential effect of pop-up messages compared to static signs and the content of messages on EGMs on recall, thoughts, and behaviors assessed during the session and at 2-week follow-up. In Study 1, 127 regular EGM gamblers (male = 97, mean age = 20.3) recruited from a university student population attended a laboratory where they were randomly assigned to play a computer-based simulated EGM analogue displaying signs that differed by (a) mode of presentation (pop-up and static) and (b) message content (informative, self-appraisal, and control/blank). In Study 2, an identical methodology was used but included the use of a simulated EGM within an in vivo gaming setting with 124 regular EGM players (male = 81, mean age = 44.1). Results from both studies showed that pop-up messages were recalled more effectively than static messages immediately and at 2-week follow-up. Pop-up messages reportedly had a significantly greater impact on within-session thoughts and behaviors. Messages encouraging self-appraisal resulted in significantly greater effect on self-reported thoughts and behaviors during both the experimental session and in subsequent EGM play. These findings support the effectiveness of pop-up messages containing self-appraisal messages as an appropriate harm-minimization initiative.     

The evolving market structures of gambling: case studies modelling the socioeconomic assignment of gaming machines in Melbourne and Sydney,Australia

The expansion of gambling industries worldwide is intertwined with the growing government dependence on gambling revenue for fiscal assignments. In Australia, electronic gaming machines (EGMs) have dominated recent gambling industry growth. As EGMs have proliferated, growing recognition has emerged that EGM distribution closely reflects levels of socioeconomic disadvantage. More machines are located in less advantaged regions. This paper analyses time-series socioeconomic distributions of EGMs in Melbourne, Australia, an immature EGM market, and then compares the findings with the mature market in Sydney. Similar findings in both cities suggest that market assignment of EGMs transcends differences in historical and legislative environments. This indicates that similar underlying structures are evident in both markets. Modelling the spatial structures of gambling markets provides an opportunity to identify regions most at risk of gambling related problems. Subsequently, policies can be formulated which ensure fiscal revenue from gambling can be better targeted towards regions likely to be most afflicted by excessive gambling-related problems.     

Electronic Gaming Machine (EGM) Environments: Market Segments and Risk

This study used a marketing-research paradigm to explore gamblers’ attraction to EGMs based on different elements of the environment. A select set of environmental features was sourced from a prior study (Thorne et al. in J Gambl Issues 2016b), and a discrete choice experiment was conducted through an online survey. Using the same dataset first described by Rockloff et al. (EGM Environments that contribute to excess consumption and harm, 2015), a sample of 245 EGM gamblers were sourced from clubs in Victoria, Australia, and 7516 gamblers from an Australian national online survey-panel. Participants’ choices amongst sets of hypothetical gambling environments allowed for an estimation of the implied individual-level utilities for each feature (e.g., general sounds, location, etc.). K-means clustering on these utilities identified four unique market segments for EGM gambling, representing four different types of consumers. The segments were named according to their dominant features: Social, Value, High Roller and Internet. We found that the environments orientated towards the Social and Value segments were most conducive to attracting players with relatively few gambling problems, while the High Roller and Internet-focused environments had greater appeal for players with problems and vulnerabilities. This study has generated new insights into the kinds of gambling environments that are most consistent with safe play.     

Hierarchy of Gambling Choices: A Framework for Examining EGM Gambling Environment Preferences

This paper presents the Hierarchy of Gambling Choices (HGC), which is a consumer-oriented framework for understanding the key environmental and contextual features that influence peoples’ selections of online and venue-based electronic gaming machines (EGMs). The HGC framework proposes that EGM gamblers make choices in selection of EGM gambling experiences utilising Tversky’s (Psychol Rev 79(4):281–299, 1972). Elimination-by-Aspects model, and organise their choice in a hierarchical manner by virtue of EGMs being an “experience good” (Nelson in J Polit Econ 78(2):311–329, 1970). EGM features are divided into three levels: the platform—including, online, mobile or land-based; the provider or specific venue in which the gambling occurs; and the game or machine characteristics, such as graphical themes and bonus features. This framework will contribute to the gambling field by providing a manner in which to systematically explore the environment surrounding EGM gambling and how it affects behaviour.     

Too close to home? The relationships between residential distance to venue and gambling outcomes

Although gambling accessibility is generally viewed as a multidimensional construct, few studies have successfully untangled the specific role of spatial accessibility in determining gambling outcomes relative to other forms (i.e. temporal, social and psychological). In this paper, we explore the association between gambling outcomes and the distance travelled from a person's home to their most-frequented gambling venue. To this end, we conducted a geocoded mail survey of 7044 households in the Northern Territory of Australia. We employed a geographic information system to calculate the network distance from each household to all visited electronic gaming machine (EGM) venues (n = 64). Multivariate regression modelling revealed that, when adjusted for individual and neighbourhood-level characteristics, frequency of venue visitation and gambling participation were inversely related to residential distance from venue. There was no additional distance effect for problem gambling. Spatial accessibility of EGMs is an important determinant of gambling risk and should be explicitly considered by regulators.     

Problem Gambling and Gaming Machine Density: Socio-spatial Analysis of Three Victorian Localities

This paper examines the debate about possible relationships between problem gambling and accessibility to electronic gaming machines (EGMs), in the context of the Victorian Government's policy that imposed a ‘cap’ on EGMs in disadvantaged communities. Using GIS (Geographical Information Systems), the spatial distribution of social disadvantage in three ‘capped’ localities was compared with the spatial distribution of gaming venues and patterns of concentrated EGM expenditure during 2001–2005, including seasonal trends. Research revealed different relationships between spatial and social categories in the study localities, indicating the need for more systematic local area analysis. This research raises questions about the limitations of conventional methodologies and regulatory strategies based on simple measures such as gaming machine density. We propose improvements to the methodology to better measure the changing level of local supply and demand for machine gaming.     

An empirical analysis of the use of the Herfindahl-Hirschman Index in assessing the distribution of electronic gaming machines and its socio-economic implications

Sargent and Holmes (2014) proposed the use of the Herfindahl-Hirschman Index in assessing the effects of the distribution of electronic gaming machines (EGMs) on expenditure and tax outcomes for local areas. This paper reports empirical analysis on the use of the Herfindahl Hirschman Index (HHI) in this application. Comparative testing of HHI and population-based measures, such as EGM density, was conducted using EGM data from the New South Wales State Government (Australia) for the period 1995 to 2005. The analysis also compares the use of the commonly used Australian Bureau of Statistics’ (ABS) Socio-Economic Indexes for Areas (SEIFA) Index of Relative Socio-Economic Disadvantage, with the Index of Education and Occupation. The socio-economic elements comprising the latter index are acknowledged as being relevant to the assessment of gambling impacts. The results indicate that the use of a concentration measure such as the HHI may augment the use of existing measures in policy development and localized decision-making on distribution of gambling facilities.     

Facilitating Responsible Gambling: The Relative Effectiveness of Education-Based Animation and Monetary Limit Setting Pop-up Messages Among Electronic Gaming Machine Players

Although most gamblers set a monetary limit on their play, many exceed this limit—an antecedent of problematic gambling. Responsible gambling tools may assist players to gamble within their means. Historically, however, the impact of such tools has been assessed in isolation. In the current research, two responsible gambling tools that target adherence to a monetary limit were assessed among 72 electronic gaming machine (EGM) players. Participants watched an educational animation explaining how EGMs work (or a neutral video) and then played an EGM in a virtual reality environment. All participants were asked to set a monetary limit on their play, but only half were reminded when that limit was reached. Results showed that both the animation and pop-up limit reminder helped gamblers stay within their preset monetary limit; however, an interaction qualified these main effects. Among participants who did not experience the pop-up reminder, those who watched the animation stayed within their preset monetary limits more than those who did not watch the animation. For those who were reminded of their limit, however, there was no difference in limit adherence between those who watched the animation and those who did not watch the animation. From a responsible gambling perspective, the current study suggests that there is no additive effect of exposure to both responsible gambling tools. Therefore, for minimal disruption in play, a pop-up message reminding gamblers of their preset monetary limit might be preferred over the lengthier educational animation.     

Gamblers' irrational thinking about chance events: the ‘double switching’ concept

The aim of this study was to examine the association between gender and problem electronic gaming machine (EGM) gambling. One hundred and twenty-three males and 209 females (N=335; three participants did not identify their gender) with a mean age of 44.9 years were surveyed in gaming venues within Metropolitan Melbourne. The results showed a greater representation of Australian-born (74%) among the female group, compared to the male group (64%). The women were also older (47% were aged 41–60 years) than the men (48% of males were aged 19–40 years). Significant relationships were found between gender, age, marital status and religion and pathological EGM gambling. The results of this study showed the pathological EGM gambler was likely to be male, under the age of 45 years, single and possibly of the Greek Orthodox faith. Implications of this study suggest that different forms of gambling may suit different cultures and that other issues pertaining to cultural aspects of gambling need to be explored in greater depth.     

Gambling on Electronic Gaming Machines is an Escape from Negative Self Reflection

An experiment tested whether thinking about oneself, particularly in negative terms, increases gambling intensity on Electronic Gaming Machines (EGMs). Forty male and 65 Female participants, aged 18–76 (M = 46.2, SD = 15.3), were recruited through newspaper advertisements to play a laptop simulated EGM in Hervey Bay, Queensland, Australia. Prior to play, subjects in the test conditions audio tape-recorded 2 min of self reflection on either: (1) “things you like about yourself,” or (2) “things you don’t like about yourself.” Immediately after the recordings, the subjects played an EGM that was programmed (rigged) with five wins in the first 20 spins, and indefinite losses thereafter. Participants gambled more intensively in terms of Average Bet Size, Number of Trials Played, and Speed of Betting in the negative self reflection condition compared to the control condition. The experiment supports the proposition that EGM gambling behavior is motivated by escape from negative self reflection.