Definitions of Gambling Flashcards
1
Q
Psychological definition of gambling
A
- behavior (of an individual) where something of value (typically $) is placed on an uncertain prospect of a larger prize (typically $)
- Issues: does it need to be done by an individual? Does money need to be involved? “Uncertain” can involve a varying balance of chance and skill –> this definition is a bit overly inclusive
- Elements of that definition could apply to everyday activities we don’t typically think of as gambling (ie. Marriage, post-secondary, etc.)
2
Q
legal definition of gambling
A
- Focuses on 3 elements:
- The consideration (bet, stake, wager): what you must pay to play
- The prize: what you can win
- Outcome is determined by chance
- Many legal disputes revolve around chance (poker, fantasy sports), but for loot boxes, it’s the prize that’s controversial
3
Q
Reber’s Expected Value x Flexibility (EVF) Model
A
- Dimensions:
- Positive expected value: profit, Negative expected value: loss
- Flexibility: ability to change the odds over time (ie. Through practice, knowledge, skill)
- High flexibility, - expected value: business start-ups, financial speculation
- Low flexibility, - expected value: roulette, slots, lotteries
- High flexibility, + expected value: higher education, marriage
- Low flexibility, + expected value: market-linked savings accounts
4
Q
Poker: chance or skill?
A
- Croson et al study:
- Number of top 18 finishes in major tournaments as a predictor of final position in current tournament
- Significant stability for poker, of similar size to golf
- Levitt & Miles: analyzed return on investment in world series (profit minus fee): -15% for amateurs, +30% for pros
5
Q
Loot boxes
A
- Virtual good in video games that produce randomly-generated item of varying desirability or value (ie. “legendary” items)
- Earned through play or bought with in-game currency or in-game payment
- Player is guaranteed to receive an item, but most items are common and of low value
