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Open Access
Article
Publication date: 16 August 2019

Kalle Lind, Anne H. Salonen, Johanna Järvinen-Tassopoulos, Hannu Alho and Sari Castrén

The purpose of this paper is to explore the prevalence of potential problem gambling among Finnish prisoners; the associations between problem gambling and demographics…

1192

Abstract

Purpose

The purpose of this paper is to explore the prevalence of potential problem gambling among Finnish prisoners; the associations between problem gambling and demographics, substance use and crime-related factors; and problem gamblers’ support preferences.

Design/methodology/approach

Prisoners (n=96) from two Finnish prisons were recruited between December 2017 and January 2018. The estimated response rate was 31 percent. Gambling problems were measured using the Brief Biosocial Gambling Screen. The participants were asked to report their gambling both for one year prior to their incarceration and for the past year. The independent variables were demographics (age, gender and marital status), substance use (alcohol, smoking and narcotics) and crime-related factors (crime type, prison type and previous sentence). Statistical significance (p) was determined using Fischer’s exact test.

Findings

Past-year pre-conviction problem gambling prevalence was 16.3 percent and past-year prevalence 15 percent. Age, gender, smoking, alcohol or illicit drug use were not associated with past-year problem gambling before sentencing. One-third of the prisoners (33.3 percent) who were sentenced for a property crime, financial crime or robbery were problem gamblers. One-quarter (24 percent) of all participants showed an interest in receiving support by identifying one or more support preferences. The most preferred type of support was group support in its all forms.

Research limitations/implications

It is recommended that correctional institutions undertake systematic screening for potential problem gambling, and implement tailored intervention programs for inmates with gambling problems.

Originality/value

This study provides a deeper understanding of problem gambling in prisons. Problem gambling is associated with crime and also seems to be linked with serving a previous sentence. Early detection and tailored interventions for problem gambling may help to reduce reoffending rates.

Details

International Journal of Prisoner Health, vol. 15 no. 4
Type: Research Article
ISSN: 1744-9200

Keywords

Article
Publication date: 11 March 2021

Bei Chen and Quan Gan

This paper investigates how the gambling measure captures market bubble events, and how it predicts stock return and option return.

Abstract

Purpose

This paper investigates how the gambling measure captures market bubble events, and how it predicts stock return and option return.

Design/methodology/approach

This paper proposes a gambling activity measure by jointly considering open interest and moneyness of out-of-the-money (OTM) individual equity call options.

Findings

The new measure, CallMoney, captures excessive optimism during the dot-com bubble, the oil price bubble and the pre-GFC stock market bubble. CallMoney robustly and negatively predicts both OTM and at-the-money call option returns cross-sectionally. The option return predictability of CallMoney is stronger when stock price is further from its 52-weeks high, capital gains overhang is lower, and when information uncertainty of the underlying stock is higher. CallMoney also robustly and negatively predicts cross-sectional stock returns.

Originality/value

The gambling measure has the advantages of being economically intuitive, model-free, easy to measure. The measure performs more robustly than existing lottery measures with respect to option and stock return predictability and more reliably captures the overpricing of options and stocks. The work helps understanding the gambling related anomalies in equity option returns and stock returns.

Details

Review of Behavioral Finance, vol. 14 no. 3
Type: Research Article
ISSN: 1940-5979

Keywords

Abstract

Details

Gambling Advertising: Nature, Effects and Regulation
Type: Book
ISBN: 978-1-78769-923-6

Article
Publication date: 15 June 2021

Tingting Zhang, Desheng Wei, Zhifeng Liu and Xihao Wu

This paper studies the effects of lottery preference on stock market participation at the macro level.

Abstract

Purpose

This paper studies the effects of lottery preference on stock market participation at the macro level.

Design/methodology/approach

The authors use the abnormal search volume intensity for lottery-related keywords from the Baidu search engine to capture retail investors' lottery preference. To measure stock market participation, they use five different macro-level measures from various angles. They perform the time series regression analysis in their empirical study.

Findings

First, the validation tests show that the lottery preference index in this study is reasonable. Further, the authors find that lottery preference increases people's propensity to enter and trade in the stock market. Besides, they find that the effect on trading behavior is asymmetric, that is, high lottery preference has a more significant impact on trading behavior than low lottery preference. However, lottery preference has no significant effect on the stockholding.

Originality/value

This paper contributes to the growing literature that examines the determinants of stock market participation and the role of lottery/gambling preference in the financial market. It also provides direct and novel evidence for Statman's (2002) conclusions about the similarity of lottery players and stock traders.

Details

China Finance Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 8 July 2019

Udayan Sharma and Madhumita Chakraborty

In the current study, the significance of extreme positive returns has been investigated in the pricing of stocks in the Indian equity market. This study aims to…

Abstract

Purpose

In the current study, the significance of extreme positive returns has been investigated in the pricing of stocks in the Indian equity market. This study aims to understand if investors in India have a preference for lottery-like stocks. The existing literature provides support for MAX effect in several countries, where risk seeking in the form of gambling is an acceptable form of social behavior, suggesting a preference for lottery-like stocks. This motivates the authors to investigate whether such preference for lottery-like stocks is prevalent in a country such as India with a different cultural setting, where gambling is not socially and legally encouraged.

Design/methodology/approach

The MAX effect is tested in the Indian market for the period from January 2003 to March 2017. The average number of firms per month in this study is 2,949. Univariate and bivariate portfolio-level analyses, as well as Fama MacBeth regressions, are conducted to observe the difference between average raw and risk-adjusted returns between the stocks lying in the highest and lowest MAX deciles. Several tests have been performed for checking the robustness of the findings.

Findings

Unlike the extant literature, the authors have not found any evidence of a negative relationship between extreme positive returns and expected returns. The univariate and bivariate analyses suggest that high MAX deciles over-perform low MAX deciles. Fama Macbeth regressions also do not support the negative relationship documented for other markets. This suggests that investors are not euphoric about lottery-like stocks in India. One may devise profitable trading strategies by going long on high MAX deciles and short on low MAX deciles.

Originality/value

This study finds a behavioral aspect of Indian investors, which seems to be in contrast to that of other countries. While there is a strong preference for lottery-like stocks in other markets, investors in India do not end up overpaying for such stocks in the market. This tendency might be an outcome of a different social and regulatory setting in India. In view of the fact that India is increasingly becoming an important investment destination, it becomes important to devise investment strategies based on the peculiarities of this market rather than simply extrapolating the findings of other markets.

Details

Studies in Economics and Finance, vol. 38 no. 3
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 1 February 2013

Sandy C. Chen, Stowe Shoemaker and Dina Marie V. Zemke

Slot machines and other machine gaming generate between 65 percent and 90 percent of a US casino's revenue. This article aims to examine the motivations, behaviors, and…

1442

Abstract

Purpose

Slot machines and other machine gaming generate between 65 percent and 90 percent of a US casino's revenue. This article aims to examine the motivations, behaviors, and preferences of slot machine customers, and to develop market segments.

Design/methodology/approach

The study's objectives include: understanding the demographic, gambling motivation, and gambling behavioral characteristics of slot machine players; identifying important reasons for choosing one slot machine game over another; examining player attitudes and behaviors pertaining to progressive machines; and investigating player desire for theme‐based games. This was accomplished through an online survey of slot machine players.

Findings

Profiles of slot machine players are developed and the slot players are segmented into four clusters that explain motivations and game preferences.

Practical implications

This article fills in some of the gaps in understanding the gambling behavior of slot players. This study can help gaming machine manufacturers design new products and features to serve existing machine gaming customers and to attract new customers. Casino and other gaming operators can use this information not only to select the right types of machines to provide on‐site, but also to develop advertising and promotions to attract and retain new and existing customers for slot machines and other types of gaming machines.

Originality/value

This is the first published study that segments slot machine players from a marketing perspective and identifies their preferences, behaviors, and demographic groupings.

Details

International Journal of Contemporary Hospitality Management, vol. 25 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 January 2006

Jackie Johnson

To highlight the compliance issues which face gambling entities with the implementation of the Financial Action Task Force's (FATF's) 2003 Forty Recommendations

632

Abstract

Purpose

To highlight the compliance issues which face gambling entities with the implementation of the Financial Action Task Force's (FATF's) 2003 Forty Recommendations

Design/methodology/approach

To determine the gambling sector's attitudes towards the FATF's new anti‐money recommendations their responses to an earlier FATF consultation paper are analysed. Interested parties were asked to provide feedback on a number of options proposed by the FATF. Twenty six of the 145 respondents provided feedback on issues relating to the gambling sector. It is these responses that form the bases of the analysis in this paper.

Findings

The preferences of the gambling sector were not taken on board by the FATF. The increased customer due diligence (CDD), suspicious transaction reporting and the identification of politically exposed persons will be a burden on casino operators, the only gambling sector to be specifically identified in the new recommendations. Non‐compliance could be a serious issue.

Research limitations/implications

The small number of responses from the gambling sector does place limitations on the ability to generalise the outcomes to the global gambling industry, though five of the respondents were gambling organisations.

Practical implications

For regulators, the possibility of non‐compliance by the gambling sector should be addressed as should the likelihood of pressure for reduced CDD procedures.

Originality/value

The FATF's updated 2003 Forty Recommendations impose considerable compliance costs on the financial sector. A number of other business sectors are also caught within the scope of these new recommendations. This paper addresses anti‐money laundering compliance issues for the gambling sector, an area not previously explored.

Details

Journal of Money Laundering Control, vol. 9 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 6 September 2013

John A. Doukas and Wenjia Zhang

This study investigates the implications of the cumulative prospect theory in the context of US bank acquisitions, with particular emphasis on its probability weighting…

1652

Abstract

Purpose

This study investigates the implications of the cumulative prospect theory in the context of US bank acquisitions, with particular emphasis on its probability weighting component. Specifically, we examine whether gambling attitudes matter in US bank takeover decisions. The evidence demonstrates that offer price premiums and target announcement returns are much higher in bank takeover transactions involving targets with gambling (lottery) features (high skewness, high volatility, and low price). Overall, the results indicate that banking acquisitions are influenced by gambling attitudes.

Design/methodology/approach

To measure idiosyncratic skewness, we follow Harvey and Siddique (2000) and Kumar (2009) and decompose total skewness into its idiosyncratic and systematic components.

Findings

The evidence demonstrates that offer price premiums and target announcement returns are much higher in bank takeover transactions involving targets with gambling (lottery) features (high skewness, high volatility, and low price). In addition, we find that synergies and bidder announcement returns are lower in lottery‐type acquisitions. The patterns we document are stronger when bidding banks are bigger, target banks are smaller, investor sentiment is above the median, and the Chicago Fed National Activity Index is negative.

Originality/value

This is an original piece of work in the field of banking.

Details

Review of Behavioural Finance, vol. 5 no. 1
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 11 June 2018

Andrew Lindridge, Sharon E. Beatty and William Magnus Northington

Gambling is increasingly a global phenomenon, derided by some as exploitative and viewed by others as entertainment. Despite extensive research into gambling motivations…

Abstract

Purpose

Gambling is increasingly a global phenomenon, derided by some as exploitative and viewed by others as entertainment. Despite extensive research into gambling motivations, previous research has not assessed whether gaming choice is a function of one’s personal motivations or simply a desire to gamble in general, regardless of game choice among recreational gamblers. The purpose of this study is to explore this theme by considering “illusion of control” where luck and skill may moderate gambling motivation.

Design/methodology/approach

This study applies two motivation theories, hedonic consumption theory and motivation disposition theory, and examines heuristic perspectives related to gambling. Three stages of qualitative data collection were undertaken.

Findings

The findings indicate that for recreational gamblers, gaming choice is a function of personal motives. Hence, gamblers chose games that reflect their needs or motives, focusing on the game or games that best allow them to achieve their goals and desires.

Research limitations/implications

These findings shed light on an important topic and include an in-depth examination of recreational gamblers’ motivations. Further quantitative examinations should be considered.

Practical implications

This research could be used by practitioners or researchers in better segmenting the casino recreational gambling market.

Originality/value

While many researchers have examined gambling motivations and even gambling motivations by venue (e.g. casino versus online), few researchers have focused on gamblers’ choice of games and even fewer have studied recreational gamblers’ motivations with a qualitatively rich approach, resulting in some useful perspectives on drivers of recreational gamblers by personal motives.

Details

Qualitative Market Research: An International Journal, vol. 21 no. 3
Type: Research Article
ISSN: 1352-2752

Keywords

Article
Publication date: 2 October 2017

Eunju Suh, Matt Alhaery, Brett Abarbanel and Andrew McKenna

This study aims to examine Millennials and generational differences in online gambling activity by comparing online gambling behavior across four different generations…

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Abstract

Purpose

This study aims to examine Millennials and generational differences in online gambling activity by comparing online gambling behavior across four different generations: Silent Generation, Baby Boomers, Gen Xers and Millennials.

Design/methodology/approach

The sample comprised tracked gambling data at the individual player level provided by an online casino accepting real money wagers in a major US gambling market. Attributes of gambling behavior were examined and compared across different generations using Kruskal–Wallis test and pairwise comparisons.

Findings

Generational differences were observed in 13 of the 16 behavioral variables. Millennials spent the least amount of time on gambling and exhibited the lowest scores on the number of days for slot gambling, trip length and trip frequency among all generations. However, their average table gaming volume per play day was greater than those of other generations.

Practical implications

The results of this study provide a better understanding of the generational differences in online gambling behavior. They also help casino operators and gaming machine manufacturers develop casino games and products that can appeal to different generational groups in the online gambling market.

Originality/value

Despite the on-going industry discussion about Millennials and their potential influence on the online gambling market, there appears to be a paucity of empirical research on the online gambling behavior of the Millennial generation. This study fills that gap in empirical evidence, addressing generational differences in online gambling.

Details

Journal of Hospitality and Tourism Technology, vol. 8 no. 3
Type: Research Article
ISSN: 1757-9880

Keywords

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