Dispensing wisdom: ATMs on the gaming floor
The gambling industry has long been trying to perfect techniques that keep players on their premises and gambling on their games longer. In short, their aim is to introduce facilities that maximize their bottom line profits. In super-casinos around the world, restaurants are often positioned in the centre so that customers have to pass the gaming areas before and after they have eaten. Live entertainment areas for music or sporting events (e.g., boxing matches) are also positioned similarly.
This strategy is often combined with the deliberate use of circuitous paths to keep customers in the casino longer, the psychology being that if the patrons are in the casino longer they will spend more money. Large US casinos have got this down to a fine art. A number of years ago I remember going to a live music concert at the MGM Grand in Las Vegas and on entering the casino it took me a 20- to 25-minute walk past thousands of slot machines and gaming tables before I even arrived at the auditorium! Although I didn’t gamble during the 45 minutes I was exposed to the slot machines to and from the casino entrance, I did wonder how many of the thousands in the audience had succumbed at some point.
UK gambling venues are now increasingly offering other non-gambling services (such as snack facilities and live entertainment) in a bid to either attract new customers or to keep those already in the venue as long as possible. The 2005 Gambling Act allowed even more of this diversification. It is also worth noting that some forms of gambling (such as slot machines) are far more profitable than other forms (such as table games). What’s more, slot machines don’t need a croupier to deal or spin the roulette ball. This means that most casinos worldwide are now dominated by slot machines in preference to other forms of gambling (although there are places like Macao where table games are preferred over slot machines).
Two of the biggest changes that have occurred in casinos worldwide over the last 20 years that appear to aid such a ‘maximisation’ strategy are the introduction of cash machines onto the gaming floors and the introduction of note acceptors to electronic gaming machines. At a very simplistic level, facilities like these create and enhance convenience gambling.
Note acceptors are very popular in countries like US, Canada and Australia. The gaming industry argues that note acceptors are popular with customers and enhance the playing experience in that they make life a little bit easier for the punter when standing in front of a slot machine not to have to keep going to the cashier for change. However, there is a very fine line between customer enhancement and customer exploitation. Note acceptors have the capacity to increase spending in a number of direct and indirect ways. Firstly, note acceptors increase privacy for the punter. More specifically for the punter, it avoids the potential embarrassment of letting gaming staff, friends, family or even other customers know how much they are spending. Secondly, note acceptors can aid in suspending judgment whereby more cash is transferred to credit in one go. Thirdly, note acceptors minimise breaks as players do not need to leave the machine to get change. Not taking breaks minimises ‘time out’ periods where punters can think more rationally about the money they have spent. A study carried out in Canadian casinos showed that the amount initially put into a slot machine by punters was twice as high on machines that had note acceptors. Although this is only one study, it does seem to suggest that gamblers spend more when a note acceptor is present.
Like note acceptors, the introduction of automated cash dispensers onto the casino floor also increases privacy for the punter. Although studies have found that only a relatively small proportion of casino patrons seldom use cash dispensers at gambling venues, a significantly high proportion of problem gamblers do so. One study in New Zealand carried out by Professor Max Abbott found that only 2% of all adults interviewed in a national survey considered that greater access to these facilities led to an increase in their gambling. Among problem gamblers, this figure was over eight times as high at 17%.
In Australia, a study led by Professor Jan McMillen also found much greater cash dispenser usage at gambling venues by problem gamblers when compared to non-problem gamblers. They also found that problem gamblers withdrew larger amounts. Money accessed in this way was most often for the purchase of both alcohol and gambling. They concluded that convenient access to cash dispenders in gambling venues contributed to greater expenditure and was a contributory factor in the development and persistence of gambling problems.
A number of other studies have reported similar findings. Problem gamblers frequently mention that adjacent access to cash dispensers is one of the most frequently mentioned reasons for gambler’s exceeding their planned spending limit. Research has also shown that both problem and non-problem gamblers would prefer cash dispensers to be located away from gambling venues. It would seem that the only people who want cash dispensers on gambling premises are the operators themselves, mainly because they know it increases revenue.
Dr Mark Griffiths, Professor of Behavioural Addictions, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
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Posted on May 7, 2017, in Addiction, Gambling, Gambling addiction, Online gambling, Psychology, Uncategorized and tagged ATMs, ATMs gambling, Cash dispensers, Cash machines, Casino design, Convenience gambling, Customer enhancement, Customer exploitation, Gambling, Gambling venue design, Note acceptors, Problem gambling, Situational characteristics, Slot machines. Bookmark the permalink. Leave a comment.