The Behavioural science of gambling

'People have asymmetric reactions to losses and gains while gambling. Compare winning $10 in one gamble with winning $5 twice. Most people would prefer to win twice. What bout ,losing $10 in one game as compared with losing $5 in each of two gamble? Her. most people prefer one loss. That is why any company dealing with customers must break pleasant experiences into multiple stages and combine unpleasant ones into a single stage.

Now consider the 'sequence effects' on gambling. People prefer a sequence of experiences that improve over time. When gambling, people prefer to lose $10 first, then win $5, rather than win $5, then lose $10. There is also evidence that people pay attention to the rate of improvement in a sequence - clearly preferring ones that improve faster.'

( Ref : Want to perfect you company's Service? Use Behavioural Science; R.B. Chase & S. Dasu )

Even as the Karnataka High Court, in the month of May, upheld the ban on online lotteries and also the notification declaring Karnataka a "lottery-free zone. , worldwide, global gambling revenues are on the rise.

Global gambling revenue is estimated to hit $144 billion (€107.25 billion) in 2011 after growing at an annually compounded rate of 7.2 percent a year, according to a PricewaterhouseCoopers LLP report being released Thursday.

Gambling revenue is expected to rise from $101.6 billion (€75.67 billion) in 2006, driven by new casinos and upgrades of existing casinos in all regions of the world, the report said.
Revenue in the United States is expected to grow 6.7 percent a year to $79.6 billion (€59.28 billion) from $57.5 billion (€42.82 billion), while in the Asia Pacific region it is forecast to grow 15.7 percent annually to $30.3 billion (€22.57 billion) from $14.6 billion (€10.87 billion), becoming the world's second largest casino market.

Legal casino and online gambling revenue in the region encompassing Europe, the Middle East and Africa is expected to rise 1.9 percent a year to $27.8 billion (€20.7 billion) from $25.2 billion (€18.77 billion). Gambling revenue in Canada is seen rising to $5.9 billion (€4.39 billion) from $4 billion (€2.98 billion), while in Latin America, revenues are expected to climb to $495 million (€368.66 million) from $278 million (€207.05 million).

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