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Who Spends Money to Play for Free? Identifying Who Makes Micro-transactions on Social Casino Games (and Why)

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Abstract

Social casino games are online gambling-like games found on social networking sites. They are initially free to play, however, players are encouraged to make micro-transactions (i.e., in-game purchases) for additional game credits or functionality. As a result, they generate billions of dollars in revenue. Yet, little is known as to who purchases virtual credits, let alone why. In the present research, we assessed whether there are individual differences (impulsivity, reward sensitivity, competitiveness, and problem gambling severity) between who is and who is not likely to make micro-transactions during social casino game play. Moreover, we examined possible motivations for making micro-transactions (e.g., extend play, win back lost credits) and whether the individual difference variables of interest predict reported motivation(s) for making micro-transactions. Results showed that social casino gamers who engaged in micro-transactions reported significantly higher levels of impulsivity, reward sensitivity and problem gambling severity, but not competitiveness. In terms of motivation to make micro-transactions, desire to extend play was endorsed most frequently, followed by a desire to access additional features, chasing lost credits, and to speed up play. Lastly, among participants who made micro-transactions, reward sensitivity predicted making micro-transactions to chase lost credits. These results suggest the personality make-up of social casino gamers is important to understand who is likely to make micro-transactions as well as their motivation to do so—information that could prove useful for regulation of the industry.

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Notes

  1. In addition to assessing whether the individual difference variables significantly predicted motivation for engaging in micro-transactions, we also conducted a multivariate regression with the number of motivations indicted as the dependent variable and problem gambling severity, impulsivity and reward sensitivity as the predictor variables. The results showed that reward sensitivity significantly predicted the number of motives indicted (p = .008). However, the number of motives indicated was not predicted by either impulsivity (p = .15) or problem gambling severity (p = .16).

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Acknowledgments

This research was funded by a Standard Research Grant from the Ontario Problem Gambling Research Centre to Wohl (#3515).

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Correspondence to Michael J. A. Wohl.

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Conflict of interest

Kim has received research grants from the National Center for Responsible Gaming (NCRG), Alberta Gambling Research Institute (AGRI), and Gambling Research Exchange Ontario (GREO). Kim also holds a doctoral scholarship from AGRI. Wohl has received research grants from NCRG, GREO, Manitoba Gambling Research Program and the Ministry of Long Term Health and Care. Wohl has presented at the New Horizons Conference (British Columbia Lottery Corporation) and the Responsible and Problem Gambling Stakeholders Symposium (Alberta Gaming and Liquor Commission) with travel expenses covered. Hollingshead declares no conflict of interest.

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All procedures performed in studies involving human participants were in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki declaration and its later amendments or comparable ethical standards.

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Kim, H.S., Hollingshead, S. & Wohl, M.J.A. Who Spends Money to Play for Free? Identifying Who Makes Micro-transactions on Social Casino Games (and Why). J Gambl Stud 33, 525–538 (2017). https://doi.org/10.1007/s10899-016-9626-6

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