Responsible gambling: Who uses win limits?

As gambling has become a more accepted leisure activity, researchers have begun to examine strategies for “responsible gambling” (RG). Such strategies have the goal of reducing excessive gambling behaviors, akin to “drink responsibly” campaigns. The two key components of RG are player-set monetary loss and time limits on gambling. Such pre-commitments have shown promise in reducing the likelihood one will develop a gambling disorder.

In a recent paper, Walker et al. (in press) proposed a simple, but novel RG strategy: “win limits”. They used a slot machine simulation to demonstrate that a self-imposed “win limit” will reduce gamblers’ average losses, and thereby reduce gambling-related harms. Thus, win limits could be an effective RG strategy. The only empirical evidence on the usage of player-set win limits comes from a 2012 survey of Massachusetts gamblers (Nelson et. Al. 2013). Around 25% of the survey respondents who gambled in the past year indicated that they usually set a win limit before gambling; 83% set loss limits for themselves.

The Walker et al. (in press) simulation showed that self-imposed win limits will reduce the average gambler’s losses, simultaneously reducing casinos’ profits. Yet, among those players who set win limits for themselves, almost 40% reported gambling beyond the limit they set. In this study I analyze the 2012 survey data provided by Nelson et al. (2013) to get a better understanding of the characteristics of individuals who set betting limits for themselves. This will be the first analysis of win limits using data from real gamblers. Since the Nelson et al. survey includes a variety of demographic, economic, and behavioral items, this analysis will provide an understanding of which types of people are more likely to give thought to limiting their gambling behavior prior to gambling. I would hypothesize that individuals who set betting limits for themselves, and particular win limits, are more likely to be financially responsible in other aspects of their lives. I would also anticipate that they would be less likely to endorse items on a problem gambling screening instrument.

A general understanding of the characteristics of individuals who use win limits is critical to further research on the efficacy of win limits as a RG strategy and in preventing gambling disorders. A follow-up to this part of the project would be to develop an experiment on betting limits using real gamblers.