Behavioral Economics and Gambling: A New Paradigm for Approaching Harm-Minimization

Abstract

The premise of this article is that an understanding of behavioural economics can inform and improve the effectiveness of gambling policies and practices. Existing interventions to minimise gambling-related harms appear to be ineffective. Many conceptual models of gambling consider the role of cognitive distortions in potentiating harmful gambling outcomes, however, policies and practices often fail to recognise the heuristics (and resulting biases) that drive ongoing gambling. A behavioural economics approach to gambling public policies and interventions acknowledges humans do not always act in their best interest and introduces a range of policy tools that better motivate behaviour change. This paper reviews insights from psychology and behavioural economics to develop recommendations for gambling harm-minimisation policies.Behavioural science tools such as commitment devices, personalised messaging, and more generalised 'nudges' can be effective across the entire spectrum of gambling-related harms. The interventions recommended involve low-cost, subtle tweaks to the decision-making environment that promote agency, encourage positive behavioural change, and improve measurable outcomes.A multidisciplinary, evidence-based approach to developing gambling policies is recommended to enhance gamblers' well-being.

Equivalent gambling warning labels are perceived differently

“…These results provide evidence for a novel framing effect in gambling warning labels. This further supports the view that gambling policy should reflect behavioural scientific insights .…”

Understanding use of consumer protection tools among Internet gambling customers: Utility of the Theory of Planned Behavior and Theory of Reasoned Action

“…Publicising positive attitudes towards the tools may enhance normalisation of tool use amongst all online wagering customers and encourage greater uptake of the tools. This is consistent with a behavioural economics approach in terms of increasing perceptions of social norms to influence behavioural change (Gainsbury, Tobias-Webb, & Slonim, 2018). It is important to take efforts to reduce the perception that consumer protection tools are only for those with gambling problems (Griffiths et al, 2009b;Wood & Griffiths, 2008) and encourage their use by the broad population of online wagering customers as a way to remain in control and facilitate sustainable levels of gambling.…”

Digital Gambling Payment Methods: Harm Minimization Policy Considerations

“…As such, we recommend research to trial these recommendations to ensure that they achieve the intended objective of minimizing gambling-relating harm, do not overly restrict consumers who do not experience gambling harms, or have unintended negative consequences. 22 We strongly encourage all stakeholders to engage in dialogue and contribute resources towards independent research trials to inform policies and to commit to acting on the emerging evidence. Although outside the scope of this article's focus, the capacity to track transactions reduces money laundering, fraud, violence, and the involvement of criminal organizations reliant on untraceable cash movements.…”