Niko Suhonen

Consumer attitudes towards Internet gambling: Perceptions of responsible gambling policies, consumer protection, and regulation of online gambling sites

There is an insufficient understanding of consumer attitudes towards Internet gambling, which contributes to difficulties in developing policies to encourage the use of regulated online gambling sites. This research aimed to generate knowledge about consumer attitudes towards online gambling, specifically concerning the issues of player protection, regulation, and responsible gambling. An online survey was completed by 10,838 online casino and poker players from 96 countries. Responsible gambling features were generally viewed positively, particularly by casino game players, those who chased losses, and younger adults. Over one-third of participants reported having experienced a dispute with an online gambling operator. Respondents reported high levels of mistrust and concerns regarding online gambling and confusion regarding the appropriate regulation of Internet gambling. Consumer attitudes play a significant role in driving behavior and must be considered if regulators and operators are to effectively encourage online gamblers to use regulated gambling sites that include consumer protection and harm minimization measures. The results suggest that responsible gambling features, such as the ability to set spending limits, should be implemented on Internet gambling sites to increase consumer trust and favorable attitudes towards online gambling operators, and reduce disputes associated with excessive gambling.

Chasing losses in online poker and casino games: Characteristics and game play of Internet gamblers at risk of disordered gambling

Disordered Internet gambling is a psychological disorder that represents an important public health issue due to the increase in highly available and conveniently accessible Internet gambling sites. Chasing losses is one of the few observable markers of at-risk and problem gambling that may be used to detect early signs of disordered Internet gambling. This study examined loss chasing behaviour in a sample of Internet casino and poker players and the socio-demographic variables, irrational beliefs, and gambling behaviours associated with chasing losses. An online survey was completed by 10,838 Internet gamblers (58% male) from 96 countries. The results showed that Internet casino players had a greater tendency to report chasing losses than poker players and gamblers who reported chasing losses were more likely to hold irrational beliefs about gambling and spend more time and money gambling than those who reported that they were unaffected by previous losses. Gamblers who played for excitement and to win money were more likely to report chasing losses. This study is one of the largest ever studies of Internet gamblers and the results are highly significant as they provide insight into the characteristics and behaviours of gamblers using this mode of access.

How Do Prior Gains and Losses Affect Subsequent Risk Taking? New Evidence from Individual-Level Horse Race Bets

Many empirical studies focusing on how prior outcomes affect subsequent risk taking report conclusions that appear mutually contradictory. While some studies document increased risk taking after gains and risk aversion after losses, others report the opposite. This paper contributes to this literature by investigating horse race bettors’ sequential risky decisions using individual-level data. A horse race betting market is a laboratory-like environment and can be used to analyze behavioral patterns associated with decision making under risk. We find evidence for (i) the “house money effect” as bettors take riskier wagers after gains and mostly spend the money they have won; (ii) risk aversion after prior losses, which we label a “playing safe effect”; and (iii) a preference for breakeven. Contrary to the widely held conception in the empirical literature, our findings suggest that the “break-even effect” does not necessarily imply an increased preference for riskier bets because bettors may seek to break ...