Exploring the Harm Reduction Potential of Cashless Gambling Payment Systems for Electronic Gaming Machines

Abstract

Consumers are increasingly using cashless payments for everyday retail purchases. Despite this trend, cash use remains the status quo in physical gambling environments. The accessibility of money plays an important role in regulating gambling behaviour, but little prior literature directly addresses the relative utility of cash and cashless payments for controlling spending. Excessive spending on gambling can have harmful consequences. Focusing on electronic gaming machine (EGM) gambling in Australia, this thesis presents three studies exploring potential impacts of transitioning to cashless payment systems on gambling behaviour and harm, and the optimal design and implementation of such systems for effective harm reduction. In the first study, a meta-analytic review of 94 studies from broader literature on consumer behaviour finds that cashless payments have a small effect in encouraging spending relative to cash use in retail settings. Over more than four decades studied, this effect appears not to have changed in size. In the second study, a qualitative analysis of focus group discussions suggests regular EGM gamblers perceive accountbased cashless systems to present opportunities for stronger harm reduction measures by tracking individuals’ gambling activity. Concerns about excessive restrictions, privacy, and overspending are identified as potential barriers to uptake of a voluntary system. In the final study, a discrete choice analysis of hypothetical systems with varying harm reduction potential shows that regular EGM gamblers most prefer a smartphone-based system that operates across multiple venues, involves mandatory self-imposed limits, and is linked with loyalty schemes. Modelling suggests at least 42.5%–62.9% of regular EGM gamblers would not opt-in to a voluntary cashless system. Overall, findings provide support for a mandatory cashless system with strong harm reduction features, including requirements for gamblers to set personalised loss limits.