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

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Abstract

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.

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Notes

  1. There was one attribute with six features, three attributes with four features, two attributes with three features and six attributes with two features. These are illustrated in Table 1. There were 300 unique environmental combinations generated, and each subject made 15 judgments.

  2. We recognise that the term “high roller” is most often associated with table-games––although not necessarily dice games––and not usually with EGM players.

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Acknowledgements

This research was supported by a Grant from the Victorian Responsible Gambling Foundation. The authors would like to thank Keith Chrzan, SVP, Sawtooth Software for his assistance with statistical advice related to the discrete choice experiment. The content of this article is solely the responsibility of the authors. Matthew Rockloff has received research grants from the Queensland Treasury, the Victorian Treasury, the Victorian Responsible Gambling Foundation, the New Zealand Ministry of Health and Gambling Research Australia. Matthew Browne has received grants from the Victorian Responsible Gambling Foundation, the New Zealand Ministry of Health and Gambling Research Australia. Hannah Thorne has received a grant from the Victorian Responsible Gambling Foundation.

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Correspondence to Matthew Rockloff.

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Neda Moskovsky and Gabrielle Bryden declare no conflicts of interest.

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Rockloff, M., Moskovsky, N., Thorne, H. et al. Electronic Gaming Machine (EGM) Environments: Market Segments and Risk. J Gambl Stud 33, 1139–1152 (2017). https://doi.org/10.1007/s10899-017-9681-7

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