39% of Gamblers Overestimate Gambling Risk Behavior, Says Bet on Awareness

39% of Gamblers Overestimate Gambling Risk Behavior, Says Bet on Awareness

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39% of Gamblers Overestimate Gambling Risk Behavior, Says Bet on Awareness

Gambling stakeholders Mindway AI, CasinoReviews.net, and Ecogra have concluded their Bet on Awareness campaign testing.

The campaign was launched to determine general player habits and the ability to properly evaluate risks at any gambling establishment, including a dice casino or a sports betting service. Among other findings, the campaign concluded that 39% of participants overestimated their gambling risk-taking. 

According to Mindway AI CEO Rasmus Kjaergaard, the analysis used a card game designed via Mindway’s Gamalyze tool. Each player receives 80 cards to be turned, while the tool analyzes decision-making and strategy, providing each player’s risk score. Gamalyze also offers some insight into particular gambling behavior as well as sensitivity to losses and rewards.

Explaining Gamalyze, Kjaergaard said:

“Gamalyze is designed to encourage players to understand their risk profile and their decision making while they are gambling…Essentially it is a gamified reinvention of the self-test, making self-testing more user-friendly, engaging, and actionable than typical player questionnaires.” 

The test used neuroimaging and other analysis points to analyze 181 games out of the 236 initiated. Gamalyze gave each game a risk score after measuring player persistence, sensitivity to loss and reward, as well as sensitivity to win. After determining the risk score, players were then asked to guess their own score. The two figures were compared to assess each player’s impression of their risk-taking levels. The test then awarded negative scores to players who guessed a lower risk than their actual figure, and positive scores to people with a higher self-assessed risk.

The test concluded that 39% of players overestimated their risk, with underestimations at 16.5%. Interestingly, most games fell into the assessment range where players perceived their risk-taking as near or above the actual score. 

For sensitivity to loss, most games (47) reported a sensitivity in the 0-10% range. This shows that winning was a more potent motivator for these players. For sensitivity to wins, the result was broader, in the 0-100% range. 

Also, the test’s persistence result shows that players want to win. However, 91 games falling into the low to moderate persistence categories show that after a certain point, most players may not be persistent enough to continue trying to win.  

The results could have wide-reaching effects, especially in the crypto gambling industry, where there is even higher risk because of the volatile nature of cryptocurrencies. Players gambling on iGaming platforms that support digital assets must consider the instability of these assets before or during gameplay. However, this could skew their perception of risk-taking or considerably influence their persistence levels.

Nikoleta Kuncheva, the product owner at CasinoReviews.net, said the campaign has highlighted critical areas where the industry might need some intervention. Kuncheva believes that gamblers need the right resources to understand their risk tolerance, maintain healthy player habits, and make informed decisions.

The stats on consumer spending at casinos highlight the importance of the Gamalyze tool. According to a report from the American Gaming Association on gambling, US consumer spending on sports betting and gambling in commercial casinos hit $60.46 billion in 2022, a 14% increase from the $53 billion recorded in 2021. The report also states that 27 states set annual records for commercial gaming revenue, while commercial gaming operations paid $13.29 billion in direct gaming tax revenue to state and local governments. This figure excludes billions more spent on other taxes, including income and sales.

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