Penny Wise, Player Foolish? Slot-Hold Regulation and Consumer Preference
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.
Consumer Protection Law | Economics | Gaming Law | Public Policy
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Schwartz, D. G.
Penny Wise, Player Foolish? Slot-Hold Regulation and Consumer Preference.
Journal of Business Research, 66(9),