Responsible Gambling and the Communication to Customers through Casino Websites Bachelor Thesis for Obtaining the Degree Bachelor of Science International Management Submitted to Ph.D. Ivo Ponocny Alexander Ullmann 1311046 Vienna, 15th February 2019 Affidavit I hereby affirm that this Bachelor’s Thesis represents my own written work and that I have used no sources and aids other than those indicated. All passages quoted from publications or paraphrased from these sources are properly cited and attributed. The thesis was not submitted in the same or in a substantially similar version, not even partially, to another examination board and was not published elsewhere. 15th February 2019 Date Signature 2 Abstract The gambling industry is growing at a fast pace due to the proliferation of internet and digital media. Both online and offline gambling businesses are becoming recognized more and more around the globe. However, gambling brings the dilemma of social, political and financial problems at the individual as well as the collective level. This research study seeks methods of preventing the gamblers from social and economic destructive effects by controlling the gaming attitude. 52 websites referring to casino companies operating in North America and Europe were analyzed using a qualitative approach. The analysis included various strategies used by the companies regarding the incorporation of responsible behavior of gambling in promotion and marketing. Results show that the responsibility in gambling behavior could be induced through raising awareness of the consequences when the addiction to gambling takes over the control of individuals. Instead of playing with their patrons’ imagination by promising fun and large sums of money, casinos should communicate in a more serious manner by promoting ways to minimize the addiction. 3 Table of Contents AFFIDAVIT ................................................................................................................................... 2 ABSTRACT ................................................................................................................................... 3 CHAPTER 1. INTRODUCTION ................................................................................................. 6 1.1 BACKGROUND OF GAMBLING ...................................................................................................... 8 1.2 PRESENTATION OF THE PROBLEM ............................................................................................. 10 1.3 AIM OF THE THESIS ..................................................................................................................... 11 1.4 METHOD OF ANALYSIS ............................................................................................................... 11 CHAPTER 2. LITERATURE REVIEW ..................................................................................... 12 2.1 INTRODUCTION TO GAMBLING LITERATURE ............................................................................. 12 2.2 PROBLEM GAMBLING, GAMBLING ADDICTION, AND PATHOLOGICAL GAMBLING .............. 12 2.2.1 Problem of Gambling Demographics ........................................................................ 12 2.2.2 3 Types of Problem Gamblers (Traditional, Heavy, and Skill Game Problem Gamblers) ............................................................................................................................................ 14 2.2.3 Superstition and Gambling ........................................................................................... 15 2.3 PERCEPTION OF CHANCE ............................................................................................................ 16 2.3.1 Perception of Probability, Randomness, Risk ......................................................... 16 2.3.2 Gambler's Fallacy .............................................................................................................. 17 2.3.3 Attribution Theory ............................................................................................................ 17 2.3.4 Locus Of Control ................................................................................................................ 18 2.3.5 Early Win Hypothesis - Recent Wins Influence Future Betting ........................ 21 2.3.6 Near Miss Effect ................................................................................................................ 22 2.3.7 Personal Choice ................................................................................................................. 23 2.3.8 Win/Loss Alters Perception ........................................................................................... 24 2.3.9 Entrapment and Near Miss ........................................................................................... 25 2.3.10 Luck vs. Skill ...................................................................................................................... 26 2.3.11 Loss Chasing ..................................................................................................................... 28 2.3.12 Myths: Lady Luck ............................................................................................................ 28 2.4 CSR ............................................................................................................................................. 29 2.5 RESPONSIBLE GAMBLING .......................................................................................................... 30 2.5.1 What Responsible Gambling Is .................................................................................... 31 2.5.2 What Casinos have to/should/can provide ............................................................ 32 2.5.3 How Responsible Gambling gives Players more Self Awareness ................... 33 2.6 LOYALTY PROGRAMS IN CASINOS ............................................................................................. 34 2.7 CONSUMER PROTECTION .......................................................................................................... 35 CHAPTER 3. SCIENTIFIC QUESTION ................................................................................... 37 4 CHAPTER 4. METHODS ........................................................................................................ 38 CHAPTER 5. RESULTS ........................................................................................................... 41 5.1 DESCRIPTION OF SAMPLE .......................................................................................................... 41 5.2 INTERPRETATION OF CREATED CATEGORIES ............................................................................ 41 5.3 ANALYSIS OF RESPONSIBLE GAMBLING ON WEBSITES: EUROPE ........................................... 41 5.4 ANALYSIS OF RESPONSIBLE GAMBLING ON WEBSITES: NORTH AMERICA ........................... 47 CHAPTER 6. INTERPRETATION, DISCUSSION AND PROGNOSIS .................................... 52 6.1 REFLECTION OF RESPONSIBLE BEHAVIOR ................................................................................. 52 6.2 CONTROLLING LOYALTY PROGRAMS ......................................................................................... 54 6.3 LIMITATIONS AND FUTURE RESEARCH ....................................................................................... 55 BIBLIOGRAPHY ........................................................................................................................ 57 List of Figures Figure 1. Levels of Risk Exposure & Gambling Related Harm (BlasZczynski, A., et al., 2004)…………………………………………………………………………………………………………..31 5 Chapter 1. Introduction Gambling refers to the huge gaming industry in which the players take risks on certain events, scenarios, items physical games, etc. to win money. It is formally defined as betting money on some uncertain situations of events and involves high degree of uncertainty and risk that attracts and fascinates a huge number of people (Ladouceur, 2001). For most of the people, gambling is related to fun, pleasure and relaxation. They seek excitement by giving their luck a chance in one way or another. They do not take huge risks in such gambling to lose a lot of money. It is often thought that the gambling that does not encounter significant loss doesn’t have any catastrophic effects on the psychology or financial considerations of the players. However, gambling addiction can appear at any stage; the gambler doesn’t necessarily have to take huge risks with big amounts of money to get addicted. Considering the destructive consequences of the gambling addiction, the term “Responsible Gambling” started getting more attention by psychological researchers. This concept refers to playing games at Casinos and other places by taking risk to the safe extent. Many advantages can be drawn from this, such as minimizing the risk of loss by taking calculated risks in casino gaming and reducing the negative emotions and behavior that cultivates among players due to excessive gaming. Due to the recent growth of the gambling industry in Canada and USA and its potential negative impacts on the social and economic aspects, the idea of responsible gambling is spreading fast. The term of “Problem Gambling” is also found in literature to associate the negative social, economic, and psychological impact of excessive gambling on the person and society as a whole. The consequences