A new study conducted by researchers from the Brain & Mind Center and the School of Psychology at the University of Sydney has shed light on significant discrepancies between Electronic Gaming Machine (EGM) customers’ perceived and actual gambling expenditure.
The research, published in the Journal of Gaming Studies, involved contributions from Teejay Santos, Robert M. Heirene, and Sally M. Gainsbury, alongside Deborah Cobb-Clark and Agnieszka Tymula from the ARC Center of Excellence for Children and Families Over the Life Course and the Institute of Labor Economics (IZA) in Bonn, Germany.
The study aimed to address critical gaps in existing literature by investigating how accurately EGM customers recall their past gambling spending and predict future expenditures.
It surveyed customers from a large club venue in Sydney with 720 Electronic Gaming Machines (EGMs) to collect self-report data and link these with behavioral account data obtained from the venue.
The researchers focused on three main aspects: the accuracy of these estimations; their potential as markers for risky decision-making; and how they correlate with individual traits such as impulsivity, self-control, and risk-taking propensity.
In a novel approach, participants were asked to estimate their spending and winning amounts either before or after learning their net outcomes, which is defined as the difference between wins and expenditures. The hypothesis was that those estimating their spending and winnings first would provide more accurate predictions of their net outcomes.
This study is one of the few conducted internationally to pair objective EGM activity data with self-reported survey responses in a real-world gambling context.
The findings revealed alarming trends: EGM customers could only accurately recall their gambling expenditures if they had not gambled at all in the previous month. Generally, participants demonstrated a marked inability to track their spending, often overestimating their chances of winning and failing to recognize all of their wins.
These inaccuracies pose significant risks, as they impede consumers’ ability to make informed decisions regarding their gambling activities. The authors argue that without a clear understanding of the costs associated with gambling, individuals may inadvertently engage in problematic behaviors, spending beyond their means.
Given these findings, the researchers emphasize the necessity for a reevaluation of the structural design of EGMs to improve customer awareness regarding the costs of play. Enhancing clarity on expenditure and winnings could empower consumers to make more informed decisions about their gambling habits.
This study further highlights the urgent need for effective strategies to aid EGM customers in recognizing their gambling behaviors and expenditures, ultimately contributing to better decision-making and reduced risks of gambling-related harm.
