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.
Casino gambling; Casinos; Casinos--Government policy; Casinos--Law and legislation; Consumer protection; Gambling; Regulation; Slot machines; Slot machines--Prices
Consumer Protection Law | Economics | Gaming Law | Public Policy
Use Find in Your Library, contact the author, or interlibrary loan to garner a copy of the item. Publisher policy does not allow archiving the final published version. If a post-print (author's peer-reviewed manuscript) is allowed and available, or publisher policy changes, the item will be deposited.
Schwartz, D. G.
Penny Wise, Player Foolish? Slot-Hold Regulation and Consumer Preference.
Journal of Business Research, 66(9),