Submission Title
Meme asset gambling
Session Title
Session 1-4-E: Online Betting: New Perspectives
Presentation Type
Paper Presentation
Location
Park MGM, Las Vegas, NV
Start Date
23-5-2023 3:45 PM
End Date
23-5-2023 5:15 PM
Disciplines
Finance and Financial Management | Gaming and Casino Operations Management
Abstract
Several financial assets, such as shares of GameStop or Dogecoin cryptocurrency, became the focus of substantial speculation in early-2021 that resulted in high price volatility and trading volume. This “meme asset gambling” appears to be closely related to the emergence of zero-fee retail brokerages, high-leverage cryptocurrency exchanges, and social media investment communities that facilitate and encourage risky behavior. As an emerging form of financial risk-taking, little is known about participants in these markets. In this study, an internet-based sample (n=643) was recruited to assess the relation between meme asset ownership, perceived risks in gambling and investing, investment knowledge, and measures associated with gambling problems. Results suggest that meme asset gamblers perceive less risk from financial uncertainty, have higher levels of overconfidence in their investment ability, and have higher risk of gambling problems. The findings suggest that these products may be treated like gambling by some individuals.
Keywords
meme assets, cryptocurrencies, retail investing, risk-taking, personal finance
Funding Sources
None
Competing Interests
KP received research funds from the Washington State Gaming Commission, Manitoba Gambling Research Program, UNLV International Centre for Gaming Regulation, U.S.-Japan Business Council, Wynn Resorts, Board of Regents of the Nevada System of Higher Education. He received consulting payments from British Columbia Lottery Corporation, Eilers & Krejcik Gaming, Seminole Hard Rock Entertainment Inc., Responsible Gambling Council of Canada, the Commonwealth of The Bahamas, West Virginia Lottery, Indiana Gaming Commission, Intralot, and iDevelopment and Economic Association. He received expert witness payments from Crown Resorts Ltd, Jones Ward PLC, and Scientific Games Corp.
Meme asset gambling
Park MGM, Las Vegas, NV
Several financial assets, such as shares of GameStop or Dogecoin cryptocurrency, became the focus of substantial speculation in early-2021 that resulted in high price volatility and trading volume. This “meme asset gambling” appears to be closely related to the emergence of zero-fee retail brokerages, high-leverage cryptocurrency exchanges, and social media investment communities that facilitate and encourage risky behavior. As an emerging form of financial risk-taking, little is known about participants in these markets. In this study, an internet-based sample (n=643) was recruited to assess the relation between meme asset ownership, perceived risks in gambling and investing, investment knowledge, and measures associated with gambling problems. Results suggest that meme asset gamblers perceive less risk from financial uncertainty, have higher levels of overconfidence in their investment ability, and have higher risk of gambling problems. The findings suggest that these products may be treated like gambling by some individuals.