Marketing, Gambling, The North American Context Today’s Agenda Current Zeitgeist and Marketing...
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Transcript of Marketing, Gambling, The North American Context Today’s Agenda Current Zeitgeist and Marketing...
Marketing, Gambling, The North American Context
Today’s Agenda
Current Zeitgeist and Marketing of Gambling PPT
Break
Group Movie Emersion: High Rollers in America
CURRENTZEITGEIST
The western view of gambling has changed from gambling as deviant and immoral to gambling as leisure entertainment, a form of adult play. The causes of this are unclear, but are probably related to
It has been some time since the public has been exposed to the harmful impacts of gambling
Because we now have more disposable income and more leisure time (similar to the aristocracy historically)
The weakened authority of the church, usually the main critic. The gradual increase in pervasiveness of gambling opportunities.
In modern Western democracies, our current attitude toward gambling is very similar to our current attitude toward drinking alcohol:
Excessive gambling, like excessive drinking, can lead to addiction. There should be some controls to minimize the harm, but it should be legal
and available to the general public.
Gambling is now organized on commercial principles. The commercial orientation, technology and style of the U.S. approach has strongly influenced the objectives and character of global casino development, in large part due to the investment strength of American casino corporations and the market structure of international tourism.
Fair amount of research now on the regulatory and administrative aspects of cost-benefit analyses.
Lot of economic justification for gambling (creates jobs; good way of raising money for good causes; keeps money from leaving the jurisdiction)
Canada
A Few Important DevelopmentsA Few Important Developments1969 Law permitting federal and provincial governments to operate lotteries of any 1969 Law permitting federal and provincial governments to operate lotteries of any size size
Quebec first to set up lottery in 1970, but end of 70s all provinces all in. Quebec first to set up lottery in 1970, but end of 70s all provinces all in.
Federal government and provincial governments fight over lottery jurisdictions Federal government and provincial governments fight over lottery jurisdictions
1979 Ottawa withdraws from lotteries in return for receiving an annual inflation-1979 Ottawa withdraws from lotteries in return for receiving an annual inflation-adjusted cash payment from the provincesadjusted cash payment from the provinces
By 1985 then Prime minister Brian amended the Criminal Code to place all forms of By 1985 then Prime minister Brian amended the Criminal Code to place all forms of gambling (except horse racing) solely under provincial jurisdiction. gambling (except horse racing) solely under provincial jurisdiction.
This same amendment allowed provincial governments to run VLT’s & slot This same amendment allowed provincial governments to run VLT’s & slot machines, which helped to set the stage toward machines, which helped to set the stage toward allowing for further delegation of the management of casino’s to private companies
Let their be gambling…Let their be gambling…
AllAll provinces introduce either VLT’s or slot provinces introduce either VLT’s or slot machines (Manitoba 1989 – B.C. 1997)machines (Manitoba 1989 – B.C. 1997)
All provinces except N.B., P.E.I. & All provinces except N.B., P.E.I. & Newfoundland introduce permanent Newfoundland introduce permanent casinos (Alberta 1980 – B.C. 1998) casinos (Alberta 1980 – B.C. 1998)
Gambling Availability in Canada as of 2004Gambling Availability in Canada as of 2004
BCBC ABAB SKSK MBMB ONON QUQU NBNB NSNS PEPE NFNF YKYK NWT/NWT/NUNU
Lotteries; Instant Lotteries; Instant Win; RafflesWin; Raffles
BingoBingo
Sports BettingSports Betting
Horse RacingHorse Racing
Electronic Gaming Electronic Gaming MachinesMachines
Casino Table Casino Table GamesGames
Alberta Gambling Venues Alberta Gambling Venues (2004 Consensus)(2004 Consensus)
5656 Bingo HallsBingo Halls
1616 Casinos (5,621 slot machines)Casinos (5,621 slot machines)
33 Racinos Racinos (Northlands & Whoop-Up Downs; (Northlands & Whoop-Up Downs; 624 slot machines)624 slot machines)
2,1262,126 Ticket Lottery CentresTicket Lottery Centres
1,1941,194 VLT Locations (6,000 VLTs)VLT Locations (6,000 VLTs)
55 Horserace tracksHorserace tracks
Percent agreement with statement ‘gambling is an Percent agreement with statement ‘gambling is an acceptable activity’ acceptable activity’
68
65
59
58
57
50 55 60 65 70
Ontario
Prairie
Atlantic
B.C.
Quebec
Percent agreement with statement ‘more restrictions on Percent agreement with statement ‘more restrictions on gambling needed’ gambling needed’
60
49
48
43
34
0 10 20 30 40 50 60 70
Atlantic
Quebec
Prairie
B.C.
Ontario
Revenue generated in Alberta Revenue generated in Alberta as of 2007-2008as of 2007-2008
$1.538 $1.538 billion billion
"That's just "That's just $28 million $28 million less than less than Alberta's oil Alberta's oil royalties. royalties.
Marketing Gambling: How do Marketing Gambling: How do they do it?they do it?
Marketing: Two Factors Marketing: Two Factors
Situational factors: Situational factors:
– Foundational characteristics that induce first gambling experiences (i.e., Foundational characteristics that induce first gambling experiences (i.e., location of outlet, number of outlets, use of advertising).location of outlet, number of outlets, use of advertising).
Structural factors:Structural factors:
– Any gaming device/design that exists outside the individual that may facilitate Any gaming device/design that exists outside the individual that may facilitate the maintenance of a gambling behaviour. the maintenance of a gambling behaviour.
– These devices not only maintain a behaviour, but in fact may make a game These devices not only maintain a behaviour, but in fact may make a game addictivaddictive. e.
Race TracksRace Tracks
Marketing “mystique” – getting closer to the Marketing “mystique” – getting closer to the bourgeoisiebourgeoisie
A taste of the good life A taste of the good life
Today this mystique has fallenToday this mystique has fallen
Now racetracks are marketed through intrinsic Now racetracks are marketed through intrinsic association or proximity of play association or proximity of play
Casino’s – Situational Casino’s – Situational
Vacation destinations Vacation destinations
VIP ServicesVIP Services
Free food / drink Free food / drink
Sin City Sin City
Casino’s – StructuralCasino’s – Structural
Gambling environments are created to intensify the impact of ones Gambling environments are created to intensify the impact of ones experience through casino or venue design which deliberately experience through casino or venue design which deliberately manipulates sensory and cognitive influences. manipulates sensory and cognitive influences.
Intense visual and auditory stimuli enhanced to the maximum. Intense visual and auditory stimuli enhanced to the maximum.
Lights and sounds pervade casinos and are used to saliently signal Lights and sounds pervade casinos and are used to saliently signal wins and rewards. wins and rewards.
Casino’s typically do not have clocks, windows, passage of time is Casino’s typically do not have clocks, windows, passage of time is downplayed. downplayed.
Excess to alcohol, which has a direct neurochemical effect leading Excess to alcohol, which has a direct neurochemical effect leading to altering judgment and increasing risk-taking.to altering judgment and increasing risk-taking.
Payment CharacteristicsPayment Characteristics
Suspension of Judgement and Cashless Suspension of Judgement and Cashless GamingGaming
– Cash turned into vouchers: misinterpret value of Cash turned into vouchers: misinterpret value of moneymoney
– Smart Card: isolated play, no interruptions Smart Card: isolated play, no interruptions
– Alternative argument “May also encourage Alternative argument “May also encourage responsible gaming” … responsible gaming” … I know how much I can spendI know how much I can spend
Bet Sizes and Bill AcceptorsBet Sizes and Bill Acceptors
Conflicting evidence regarding bet sizes Conflicting evidence regarding bet sizes
Meanwhile bill acceptors may cause: Meanwhile bill acceptors may cause:
• Un-interrupted play Un-interrupted play • De-value moneyDe-value money• Isolated play Isolated play
Cash / Credit Display Cash / Credit Display
Conflicting evidenceConflicting evidence
Structurally the argument is that if the gambler views Structurally the argument is that if the gambler views money disappearing on the EGM screen as opposed to money disappearing on the EGM screen as opposed to credits, the gambler is likely to: credits, the gambler is likely to:
– Bet less Bet less – Stop themselves when losses begin to add up Stop themselves when losses begin to add up – Less likely to chase losses… But now we can switch to either Less likely to chase losses… But now we can switch to either
or…?or…?
Playability Characteristics (Structural) Playability Characteristics (Structural)
Bonus Game, the game within the gameBonus Game, the game within the game
– The idea behind the bonus game is to increase The idea behind the bonus game is to increase playability and ultimately give the gambler an illusion playability and ultimately give the gambler an illusion of control. of control.
– As such, the gambler believes that they have more As such, the gambler believes that they have more ability to bring about a win, manipulated through...ability to bring about a win, manipulated through...
Stop Buttons Stop Buttons
Gamble Buttons Gamble Buttons
Touch Screen Touch Screen
– Essentially, the bonus games along with Essentially, the bonus games along with the latter features brings us to the the latter features brings us to the
Near MissNear Miss
The Near MissThe Near Miss
The near miss or The near miss or near win, is any non-near win, is any non-winning outcome that winning outcome that is perceived by the is perceived by the gambler to be almost gambler to be almost successful. successful.
Hence, the bonus Hence, the bonus games, stop buttons, games, stop buttons, nearly hitting three nearly hitting three symbols, or three symbols, or three lines, visually entice lines, visually entice the gambler to the gambler to continue to play. continue to play.
The Near Miss (contd)The Near Miss (contd)
According to Kahneman and Tversky , According to Kahneman and Tversky , nearly winning produces a frustration and nearly winning produces a frustration and cognitive regret... cognitive regret...
Whereby, if we continue to play we can Whereby, if we continue to play we can eliminate the cognitive regret by actually eliminate the cognitive regret by actually getting the win, picking the larger bonus getting the win, picking the larger bonus prize, ect. prize, ect.
Psychology of Familiarity Psychology of Familiarity
Other technological advances Other technological advances in EGM machines have also in EGM machines have also played into the hands of the played into the hands of the structural marketing structural marketing technique known as technique known as “psychology of “psychology of familiarityfamiliarity.” .”
This speaks to playing on one This speaks to playing on one machine more than the other.machine more than the other.
Beyond the obvious attraction Beyond the obvious attraction to the common, novel, to the common, novel, (socially and culturally) Parke (socially and culturally) Parke and Griffiths (2007) hold that and Griffiths (2007) hold that gamblers may fall victim the gamblers may fall victim the psychology of familiarity psychology of familiarity because...because...
Psychology of FamiliarityPsychology of Familiarity
EGM gamers EGM gamers trusttrust in an international symbol in an international symbol (celebrity) (celebrity) – thus – thus jackpots maybe be higher, “I won’t be ripped off.” jackpots maybe be higher, “I won’t be ripped off.”
ExperienceExperience , gamblers believe they have an added advantage , gamblers believe they have an added advantage because they have knowledge of the game (i.e., price is right, because they have knowledge of the game (i.e., price is right, wheel of fortune), which directly affect the EGM game. wheel of fortune), which directly affect the EGM game.
FunFun – the newer games are more interactive, music is hip, – the newer games are more interactive, music is hip, humorous, ect. humorous, ect.
Ultimately, in addition to the newer games being played more, Ultimately, in addition to the newer games being played more, gamblers supposedly may not be affected by their losses as usual, gamblers supposedly may not be affected by their losses as usual, and continue to play despite mounting losses. and continue to play despite mounting losses.
Psychology of FamiliarityPsychology of Familiarity
1.1. Fear Factor Fear Factor
2.2. Price is Right Price is Right
3.3. Monopoly Monopoly
4.4. Wheel of Fortune Wheel of Fortune
5.5. Simpsons Simpsons
6.6. Spider Man Spider Man
7.7. King KongKing Kong
Event DurationEvent Duration
Event duration simply refers to how fast is Event duration simply refers to how fast is the event (i.e., reel speed). the event (i.e., reel speed).
Hence, the faster the event, the more opportunity Hence, the faster the event, the more opportunity their is to win or lose. their is to win or lose.
EGM machines today and their speed can be EGM machines today and their speed can be manipulated by the gamblers, the faster you hit manipulated by the gamblers, the faster you hit the bet button, the faster your money goes, the bet button, the faster your money goes, increases, or the closer you are to hitting the increases, or the closer you are to hitting the jackpot or entering into the bonus game.jackpot or entering into the bonus game.
Payout IntervalsPayout Intervals
Closely related to event duration, is the Closely related to event duration, is the payout interval. payout interval.
Research tells us (operant conditioning) that Research tells us (operant conditioning) that humans are prone to seek rewards. humans are prone to seek rewards.
Hence, the casino industry produces high Hence, the casino industry produces high rates of response via random and variable rates of response via random and variable ratio schedules.ratio schedules.
Chance IdeologyChance Ideology
LotteriesLotteries
Upward mobility!Upward mobility!
Regressive tax…Regressive tax…
Escape your life/job!Escape your life/job!
Could you imagine?Could you imagine?
SummationSummation Empirical evidence does exist revealing that games that Empirical evidence does exist revealing that games that
offer a fast, arousing span of play, frequent wins, and the offer a fast, arousing span of play, frequent wins, and the opportunity for rapid replay are associated with problem opportunity for rapid replay are associated with problem gambling. gambling.
In essence, if we look at addiction and understand to be In essence, if we look at addiction and understand to be highly related to the pairing of reward and the speed by highly related to the pairing of reward and the speed by which we can receive an award which we can receive an award
It might would be foolish to disregard the structural It might would be foolish to disregard the structural characteristics of EGM machines and their role in the characteristics of EGM machines and their role in the development of a gambling problem... development of a gambling problem...
Or would it?Or would it?
Group Task For Movie Emersion (using the movie, readings, lect Group Task For Movie Emersion (using the movie, readings, lect material, and your opinions)material, and your opinions)
1.1. Create a written statement declaring whether you are for the current gambling ethnos Create a written statement declaring whether you are for the current gambling ethnos (culture) or want to sanction or modify it. Need to declare reasons and evidence for (culture) or want to sanction or modify it. Need to declare reasons and evidence for why? why?
2.2. Afterwards, it is your group’s job to lobby other groups to support your position. In Afterwards, it is your group’s job to lobby other groups to support your position. In order for your group to do this – the group(s) you lobby must have more than 50% of order for your group to do this – the group(s) you lobby must have more than 50% of “their” group agree with your group’s position (collects votes/signatures).“their” group agree with your group’s position (collects votes/signatures).
3.3. Be prepared to discuss your case in front of the class / at the beginning of next class; Be prepared to discuss your case in front of the class / at the beginning of next class; along with declaring which groups are in favour of your stance.along with declaring which groups are in favour of your stance.
4.4. The group with the best argument / coupled with having a minimum of The group with the best argument / coupled with having a minimum of at least at least two two supporting lobby groups wins. supporting lobby groups wins.
5.5. RememberRemember the groups you lobby and get support from have to make sense the groups you lobby and get support from have to make sense with respect to your declaration and theirs. If their support doesn’t make sense in with respect to your declaration and theirs. If their support doesn’t make sense in relation to your declaration. Support will be withdrawn!!!relation to your declaration. Support will be withdrawn!!!
Here Are Your GroupsHere Are Your Groups
1.1. Rainbow Rollers Rainbow Rollers
2.2. Triple Action Triple Action
3.3. Battle of the Brains Battle of the Brains
4.4. Bank Roll Bank Roll
5.5. All or NothingAll or Nothing
6.6. High-Low Hockey High-Low Hockey
7.7. Dad’s Home Dad’s Home
8.8. Wanna Die Wanna Die
9.9. Rainbow Digit Space Ball Rainbow Digit Space Ball
10.10. Pantheon of Fortune Pantheon of Fortune
Reading for Next WeekReading for Next Week
I will send of the PDF immediately I will send of the PDF immediately following class following class
Three readingsThree readings