Keywords
entry fee; casino; levies; responsible gambling
Disciplines
Gaming and Casino Operations Management | Gaming Law
Document Type
Original Research Article
Abstract
Entry fees or levies have received increased interest as a responsible gambling tool and have been implemented or proposed in an increasing number of jurisdictions. Using comparative statics, this study applies economic theory to understand the distributional consequences of entry fees on players with and without gambling related problems. Overall, it appears that there is relatively weak theoretical support for entry fees’ use as responsible gambling tool as they primarily distort the demand of more price sensitive recreational gamblers. This creates a potentially large dead weight loss in the economy, and likely increases the share of revenue from players with a gambling disorder.
Funding Sources
No funding was provided in support of this research.
Competing Interests
Over the past three years, Dr. Philander received compensation as a former employee at the British Columbia Lottery Corporation. He has also received grant funding, consulting fees, conference travel considerations, and honorariums from private, public, and non-profit organizations.