Theoretical Loss and Gambling Intensity (Revisited): A Response to Braverman et al. (2013)

Auer, M. and Griffiths, M.D. ORCID: 0000-0001-8880-6524, 2015. Theoretical Loss and Gambling Intensity (Revisited): A Response to Braverman et al. (2013). Journal of Gambling Studies, 31 (3), pp. 921-931. ISSN 1573-3602

[img]
Preview
Text
PubSub3148_Griffiths.pdf - Post-print

Download (401kB) | Preview

Abstract

In this paper, we provide a brief response to Braverman and colleagues’ (2013) critique of our ‘Theoretical Loss’ metric as a measure of monetary gambling intensity (Auer & Griffiths, 2013; Auer, Schneeberger & Griffiths, 2012). We argue that ‘gambling intensity’ and ‘gambling involvement’ are essentially the same construct as descriptors of monetary gambling activity. Additionally, we acknowledge that playing duration (i.e., the amount of time – as opposed to money – actually spent gambling) is clearly another important indicator of gambling involvement – something that we have consistently noted in our previous studies including our empirical studies on gambling using behavioural tracking data. Braverman and colleagues claim that the concept of Theoretical Loss is nullified when statistical analysis focuses solely on one game type as the house edge is constant across all games. In fact, they state, the correlation between total amount wagered and Theoretical Loss is perfect. Unfortunately, this is incorrect. To disprove the claim made, we demonstrate that in sports betting (i.e., a single game type), the amount wagered does not reflect monetary gambling involvement using actual payout percentage data (based on 52,500 independent bets provided to us by an online European bookmaker). After reviewing the arguments presented by Braverman and colleagues, we are still of the view that when it comes to purely monetary measures of ‘gambling intensity’, the Theoretical Loss metric is a more robust and accurate measure than other financial proxy measures such as ‘amount wagered’ (i.e., bet size) as a measure of what players are prepared to financially risk while gambling.

Item Type: Journal article
Publication Title: Journal of Gambling Studies
Creators: Auer, M. and Griffiths, M.D.
Publisher: Springer
Date: 2015
Volume: 31
Number: 3
ISSN: 1573-3602
Identifiers:
NumberType
10.1007/s10899-014-9463-4DOI
Divisions: Schools > School of Social Sciences
Depositing User: Linda Sullivan
Date Added: 01 Dec 2015 11:45
Last Modified: 09 Jun 2017 13:57
URI: http://irep.ntu.ac.uk/id/eprint/26559

Actions (login required)

Edit View Edit View

Views

Views per month over past year

Downloads

Downloads per month over past year