Mathematical and Behavioral Advantages of Match Play Promotions

Session Title

Session 3-3-E: Marketing and Consumer Behavior

Presentation Type

Paper Presentation

Location

Park MGM, Las Vegas, NV

Start Date

25-5-2023 1:30 PM

End Date

25-5-2023 3:00 PM

Disciplines

Behavioral Economics | Economics | Marketing | Other Economics | Recreation Business

Abstract

Two of the most common promotions offered by casinos are free play (i.e. “slot play”) and match play. Free play functions much like real money as patrons are able to quickly turn their promotional play into cash without risking their own funds, typically by playing slot machines or video poker. Match play, however, can only be used at table games and its uses requires gamblers to wager their own funds. In our paper, we construct a thorough description and investigation of match play promotions. Using mathematical and behavioral economic concepts, we consider the unique promotional advantages that match play offers casinos. We provide evidence that patrons are likely unaware of the true value of a match play voucher and, using prospect theory, argue that match play promotions increase gambler’s appetite for risk.

Keywords

gambling economics behavioral economics match play casino

Author Bios

Brent Evans is an associate professor of economics at Georgia College & State University. His research is primarily focused in the fields of personal finance, sports economics, and the economics of gambling. His work has been included in various outlets such as the Journal of Gambling Studies, Applied Economics, Journal of Sports Economics, and Financial Services Review.

Doug Walker is a professor of economics at College of Charleston. His primary research focus is on the economic and social impacts of legalized gambling, on which he has published more than 50 articles and book chapters. In addition, Walker has published two books, the most recent of which is Casinonomics: The Socioeconomic Impacts of the Casino Industry (2013).

Funding Sources

None.

Competing Interests

None.

Comments

Implications: Despite the prevalence of match play promotions, there is little research the effects of match play promotions on gambling behavior. Our analyses suggest that match play promotions increase a patron's appetite for risk, perhaps resulting in problem gambling.

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May 25th, 1:30 PM May 25th, 3:00 PM

Mathematical and Behavioral Advantages of Match Play Promotions

Park MGM, Las Vegas, NV

Two of the most common promotions offered by casinos are free play (i.e. “slot play”) and match play. Free play functions much like real money as patrons are able to quickly turn their promotional play into cash without risking their own funds, typically by playing slot machines or video poker. Match play, however, can only be used at table games and its uses requires gamblers to wager their own funds. In our paper, we construct a thorough description and investigation of match play promotions. Using mathematical and behavioral economic concepts, we consider the unique promotional advantages that match play offers casinos. We provide evidence that patrons are likely unaware of the true value of a match play voucher and, using prospect theory, argue that match play promotions increase gambler’s appetite for risk.