Penny wise, player foolish? Slot-hold regulation and consumer preference

David G. Schwartz

Journal of Business Research, 2013, vol. 66, issue 9, 1623-1628

Abstract: Casino gambling is a heavily-regulated consumer service available to the public, with state oversight of a variety of business functions, including the “pricing” of slot machines via mandated minimum hold percentages. But states typically define minimum slot-hold percentages that are well below those actually found on slot floors. State-mandated minimum paybacks are almost entirely irrelevant; industry standards honed by competition keep average payback rates high above the state minimums in all jurisdictions, with no direct correlation between the state-mandated minimums and actual payback rates: the market, instead, determines the “cost” of playing slots.

Keywords: Casino gambling; Regulation; Slot machines; Consumer protection (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:66:y:2013:i:9:p:1623-1628

DOI: 10.1016/j.jbusres.2012.12.007

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