Economics and Business Letters

The relation between responsible gambling program perceptions
and customer satisfaction with a gambling firm
Brett Abarbanel1,2* • Lisa Cain3 • Kahlil S. Philander4,5

International Gaming Institute, University of Nevada, Las Vegas, US
UCLA Gambling Studies Program, University of California, Los Angeles, US
Chaplin School of Hospitality and Tourism Management, Florida International University, North Miami, US
School of Hospitality Business Management, Washington State University, Washington, US
School of Psychology, University of Sydney, Sydney, Australia

Received: 10 July 2018
Revised: 05 October 2018
Accepted: 10 October 2018

Abstract
Using data collected from customers of a Canadian provincial government-owned gambling
firm, this study explores the relationship between gamblers’ perception of the organization’s
commitment to responsible gambling programs and satisfaction with the firm. Results of a
principal components analysis suggest that many value based judgements are closely related,
and a multivariate regression model suggests that perceived adequacy of responsible gambling
programs and perceived firm motives are predictive of customer satisfaction scores. We
conclude that corporate social responsibility, and in particular, a commitment to responsible
gambling programs, are closely related to customer satisfaction with gambling firms.
Keywords: gambling; responsible gambling; corporate social responsibility; customer satisfaction
JEL Classification Codes: M14, L83

1. Introduction
The gambling industry is associated with many negative perceptions. Historically, gambling
was viewed as a sinful activity, subjectively viewed as immoral by many religious organizations
and leaders (Bernhard, 2007). More recently, aversive views of gambling industry are noted to
be associated with the health consequences of disordered gambling, and other perceived societal
impacts, such as facilitation of property crime and money laundering (Eadington, 1999). Because of these concerns, gambling is typically either directly operated, or closely regulated, by
governmental organizations that have an interest in reducing societal harm from externalities
*

Corresponding author. E-mail: brett.abarbanel@unlv.edu.

Citation: Abarbanel, B, Cain, L., and Philander, K. S. (2018) The relation between responsible gambling program
perceptions and customer satisfaction with a gambling firm, Economics and Business Letters, 7(4), 144-155.
Oviedo University Press
ISSN: 2254-4380

Responsible gambling program perceptions and customer satisfaction

or irrational consumption caused by addiction. Firms are obliged to meet or exceed these responsible gambling (RG) policy requirements, which are generally designed with the intention
of keeping gambling losses and time spent within affordable and normative ranges (Blaszczynski et al., 2011).
While there is some research into the impacts of corporate social responsibility (CSR) on
perceptions of the gambling industry (e.g., Kim, Song, Lee, & Lee, 2017), there is limited understanding of how RG programs shape consumer attitudes and behavior. There is reason to
believe positive perceptions of RG programs are important. First, understanding that there is a
strong safety net in place for gamblers that experience harms from gambling may reduce informational asymmetry during the purchase stage, and thereby reduce impacts of adverse selection
(Akerlof, 1970). Second, purchase intention is shaped by perceptions of social norms and individual attitudes (Sheppard, Hartwick, & Warshaw, 1988), which may be shaped by RG-related
activities.
In this study, we explore the impact of perceptions of an RG program on consumer satisfaction at a large Canadian provincial government operated gambling firm. We observe that perceived adequacy of the RG programs, as well as the perceived firm motives in developing the
programs, are important. In the next section, we provide a brief overview of RG programs. We
then discuss our empirical approach, results, and conclude our findings.
Responsible Gambling Practices
Industries that create goods that may be harmful to the consumer health tend to receive attention
from policymakers and other stakeholders (Moodie et al., 2013). As gambling disorder poses a
public health concern, the gambling industry has received attention from government, health
advocates, industry operators, and others in an effort to reduce the potential harms that excessive gambling may cause (Blaszczynski, Ladouceur, & Shaffer, 2004).
The overarching goal of RG is to enable the player to gamble at affordable amounts and for
reasonable time periods (Blaszczynski, Ladouceur, Nower, & Shaffer, 2008; Shaffer, Ladouceur, Blaszczynski, & Whyte, 2016; Wood & Griffiths, 2014). Examples of such programs include game education, encouraging limit setting, and normative feedback (Griffiths & Wood,
2008; Wood & Griffiths, 2014; Wood, Wohl, Tabri, & Philander, 2017).
Scholars have examined the efficacy of RG initiatives by ascertaining players’ awareness of
RG practices in the gaming establishment, and customers’ perceived effectiveness and adequacy of those practices (Hing, 2003), and several studies have also shown tangible benefits of
RG practices for gamblers (Auer & Griffiths, 2013; Hing, 2003; Wood & Griffiths, 2014; Wood,
Shorter, & Griffiths, 2014; Wood et al., 2017).
Corporate Social Responsibility and the Gambling Industry
Companies that provide services that may be harmful to the consumer (e.g., gambling, alcohol,
tobacco) tend to face an amoral stigma (Lindorff, Prior Jonson, & McGuire, 2012). Because
gambling is often relegated to this non-socially-responsible realm, CSR initiatives are often
viewed as negative and self-serving, instead of positive and socially-beneficial (Kim et al.,
2017).
When gaming patrons evaluate the RG program at a casino, an inference may be made regarding the motives of the gaming establishment for providing these programs. When a CSR
initiative synergizes with the company’s core values, it may be easier for the consumer to see
why the company is engaging in the effort, but it also may raise a suggestion of opportunism
(Ellen, Webb, & Mohr, 2006). Hing (2003), for example, found that there were numerous criticisms of the effectiveness of the RG strategies as there were conflicting messages in the facilities that encouraged players to gamble more with strong incentives and stay in the gaming
establishments for long periods of time.

Responsible gambling program perceptions and customer satisfaction

Despite the potential public skepticism, previous gambling research has also demonstrated
that CSR is linked to several positive organizational outcomes, including greater financial performance (S. Lee & Park, 2009), increased employee retention and satisfaction (C. K. Lee,
Song, Lee, Lee, & Bernhard, 2013; Song, Lee, Lee, & Song, 2015) and increased revisit intentions by patrons (Kim et al., 2017). In addition, Wu (2014) observed that corporate image was
a key component in customer satisfaction with gambling operators. We therefore propose the
following hypothesis:
H1: Perceived firm commitment to responsible gambling is positively related to self-reported
satisfaction.
2. Methods and data
Data collection methods
In cooperation with a Canadian provincial gambling operator, data was collected from a sample
of the firm’s marketing program database, via an online survey. The sample was comprised of
Canadian adults aged 18 years or older who had gambled in person or online in the prior 12
months. As the sampling frame included only active gamblers who self-selected into firm marketing, the group should be considered more involved in gambling than the general public or a
general sample of gamblers. Participant orientation towards the firm is less clear as despite the
request for marketing materials, there is little competition in the market. The government provider is a monopolist and consumers may only consider competing products in the unregulated
market or outside of the province. Enrollment in the marketing program may indicate a desire
for promotions rather than firm-specific loyalty.
The firm distributed an email to potential respondents with a brief description of the survey
with directions to access the online survey questionnaire. Participation was self-selected, was
voluntary, and participants could withdraw from the survey at any time. A total of 803 respondents completed the survey. Ethics approval was waived by the University of California, Los
Angeles Institutional Review Board for this study as an excluded activity, as only deidentified
responses were provided to the researchers.
The survey included several categories of questions:
▪ Respondent Characteristics. Demographics (e.g., age, gender) and behavioral characteristics (e.g., game preference, gambling frequency).
▪ Perceived Adequacy of Firm’s Responsible Gambling Practices. An assessment of
adequacy of RG practices in minimizing harm and protecting gamblers. Fifteen total
measures were used to elicit opinions on adequacy of RG measures in general, as
well as specific firm practices.
▪ Perceived Effectiveness of Firm’s Responsible Gambling Practice. An assessment of
customer perception of how firm RG practices changed their gambling behavior. Five
measures examined the extent to which the firm’s practices have affected the way
customers think and feel about their own gambling, and time and money spent when
gambling.
▪ Perceived Motives of Firm’s CSR Efforts. An assessment of how patrons view the
motives (self-serving vs. public-serving) of the firm’s CSR efforts through the RG
program.
▪ Patron Satisfaction. An assessment of patrons’ general satisfaction with the firm.
3. Analytical procedures
The data were analyzed using SPSS 24.0 and R 3.4.1. Assumptions testing was conducted on
all continuous variables, including skewness and kurtosis, univariate outliers, and multivariate
outliers (Mahalanobis distance). Twenty-four (24) univariate and two (2) multivariate outliers

Responsible gambling program perceptions and customer satisfaction

were found and removed from the database, leaving 777 respondents. Missing values were excluded on a casewise basis. Total dollar amount spent gambling, total time spent gambling, and
number of games played were all leptokurtic; leptokurtosis was corrected for all affected variables with a natural log transformation.
Table 1. Demographic characteristics of survey respondents.
Gender
N = 725
Age
N = 777

Income
N = 777

Education
N = 777

Marital Status
N = 777

Male
Female
Total
20 Years and younger
21 – 30 Years
31 – 40 Years
41 – 50 Years
51 – 60 Years
61 – 70 Years
71 – 80 Years
81 Years and Older
Total
Less than $20,000
$20,000 - $29,999
$30,000 - $39,999
$40,000 - $49,999
$50,000 - $59,999
$60,000 - $69,999
$70,000 - $79,999
$80,000 - $89,999
$90,000 - $99,999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 - $249,999
$250,000 or more
Prefer not to answer
Total
Have not completed high school
High school diploma or equivalent
Some university, no degree
2-year post-secondary degree
4-year post-secondary degree
Graduate degree
Total
Single
Married
Unmarried, living with significant other
Widowed
Separated
Divorced
Total

Frequency

% of Total
49.0
51.0
100.0
1.0
11.6
16.1
17.0
21.1
20.8
10.4
1.9
100.0
5.9
6.2
8.4
8.2
7.2
8.4
7.9
6.8
5.7
9.3
4.2
4.0
1.3
0.5
16.1
100.0
3.3
20.3
26.3
13.6
27.4
9.0
100.0
23.9
47.9
12.6
3.7
3.0
8.9
100.0

Responsible gambling program perceptions and customer satisfaction

Initial analysis included frequencies and descriptive statistics for demographics, gambling
behavior, perceived adequacy, perceived effectiveness, and perceived motives. A principal component analysis (PCA) with oblique rotation was conducted for measures assessing twenty-six
perceived adequacy, effectiveness, and motives for, and satisfaction with, the firm and its specific RG program and broader RG efforts, to delineate underlying dimensions for analysis.
Loading cut-off value was set at 0.40 for item inclusion, with eigenvalue greater than 1 criterion
and Scree Test to identify the number of dimensions (Hair, Black, Babin, Anderson, & Tatham,
2010). Oblique rotation was chosen because the research goal was to obtain theoretically meaningful factors with the acknowledgement that motivations may be correlated (Hair et al., 2010).
The reliabilities of dimensions were assessed by Cronbach’s Alpha and average variance extracted (AVE).
Finally, an ordinary least squares (OLS) multiple regression model was applied to the data
to determine which characteristics significantly predict satisfaction with the firm, among the
demographic, gambling behavior, and perceived adequacy, effectiveness, and motive measures.
4. Results
Demographics
Of the 777 responses included in the analysis, 49.0% were male (N = 725), and a majority
(76.3%) had at least some university education, with 50% of respondents holding a 2-year degree or higher. Approximately 3 in 5 (60.5%) were married or living with a significant other.
Age ranged from 19 to 87, with an average of 51.23 years (SD = 16.17). Full demographic
characteristics can be found in Table 1.
Gambling Behavior
Table 2 displays reported gambling behaviors of survey respondents, including games played
in the past 12 months, medium of play, and total dollar and time amount spent gambling across
all games per gambling session. As can be seen in the table, lottery games had the highest
participation rate during the prior 12 months (89.1%), followed by scratch and win games
(64.0%). The mean number of games played during the last 12 months was 2.55 (SD = 1.71).
The range of total dollar amount spent per gambling session was $1.00 to $689.20, with M =
$66.20 and SD = $102.37, which is comparable spending found in studies recruiting active
gamblers (Nower & Blaszczynski, 2010; Palmer & Mahoney, 2005) but greater than general
population studies (e.g. 2014 British Columbia Problem Gambling Prevalence Study, 2014;
Orford, Wardle, & Griffiths, 2013). The range of total time spent, in hours, per gambling session
was 1 to 26 hours, with M = 4.40 and SD = 2.36.
Principal Components Analysis – Perceived Adequacy, Effectiveness, Motive, and
Satisfaction
The results of the PCA and reliabilities are reported in Table 3. The PCA with oblique rotation
of 26 measures was run with a cut-off loading value of 0.40 for inclusion. The factor analysis
produced five component dimensions based on eigenvalue greater than 1 and Scree Test criteria.
Both Bartlett’s Test of Sphericity (p < .0001) and Kaiser-Meyer-Olkin (KMO) measure of
sampling adequacy (0.895) indicated there was sufficient correlation between variables for the
factor analysis procedure (Hair et al., 2010). The five components explained 69.998% of the
variance. All measurement items loaded on one component only, with the exception of “the
firm’s performance exceeds my expectations”, which did not load on any factors and was
dropped from the dimension reduction procedure. The high loadings for the 25 remaining
measures indicated a high correlation between the items and the component grouping assigned
by analysis.

Responsible gambling program perceptions and customer satisfaction

Table 2. Gambling Behaviors of survey respondents.
Game(s) of Choice

a

Total Dollar Amount
per Session

Total Time Spent
per Session (in
hours)

Lottery games
Lottery variant games (e.g., scratch cards)
Keno
Bingo games
Slot machines
Table games, such as blackjack/roulette
Poker
Other casino games
Horse racing
Sports wagering
Betting on non-sporting events, such as
politics, Hollywood, music, or TV specials
Total
$10 or less
$11 – $50
$51 – $100
$101 – $200
$201 – $500
$501 or more
Total
2 hours or less
3 – 5 hours
6 – 10 hours
11 – 15 hours
16 – 20 hours
21 hours or more
Total

Frequency

% of Total
89.1
70.3
15.6
5.0
6.4
29.5
12.1
5.4
12.4
8.9

1.2
25.2
42.9
13.1
9.5
8.0
1.3
100.0
48.4
24.3
18.4
5.0
2.2
1.7
100.0

Note: aMultiple response question for survey participants

The Adequacy – General RG component includes measures that passively inquire about
general RG activities, while the Adequacy – Firm Efforts component includes measures that
ask about the firm’s RG actions. The two effectiveness components, Effectiveness – Internal
and Effectiveness – External, describe measures on gamblers’ thoughts and feelings and their
behaviors, respectively. The Motive component is comprised of measures that inquired about
the firm’s motivations in their RG efforts. The Satisfaction component includes measures that
inquired about patrons’ enjoyment and satisfaction with the firm’s gambling activities. The
reliabilities (Cronbach’s α) ranged from 0.485 to 0.926, which indicated acceptable internal
consistency (Hair et al., 2010) for all factors with the exception of one, Effectiveness – Internal,
though this measure is acknowledged as not unidimensional, as it includes affective and
cognitive measures. The measure is reported here and was included following regression
analysis, as Cronbach’s α was near the minimum cutoff of 0.50 and it fits in the theoretical
framework of the research inquiry. The components were averaged for composite scores.
Relationships between Predictor Variables and Satisfaction
An OLS multiple regression was applied to determine which characteristics predict overall
satisfaction, using the derived Satisfaction component from the PCA, among the demographic,
gambling behavior, perceived effectiveness, perceived adequacy, and perceived motive
measures. The overall model is significant, F(13, 645) = 24.61, p < 0.001. R-squared for the

Responsible gambling program perceptions and customer satisfaction

model was 0.33, with adjusted R-squared at 0.32 and Root Mean Square Error (RMSE) at 0.63.
Variance Inflation Factors were all under 3 and Durbin-Watson statistic was 2.001, indicating
low multicollinearity and autocorrelation issues, respectively (Hair et al., 2010).
Table 4 summarizes the regression results. Adequacy – General RG, Adequacy – Firm
Efforts, and Motive are all found to be positively related to self-reported satisfaction. In
addition, Satisfaction scores are also positively related to average spend and female gender.
Table 3. Principal components analysis of measures perceived adequacy, effectiveness, and motive of
the firms RG program.
Factors and Corresponding Measures

Factor
Loading

F1: Adequacy – General RG
RG is more likely to happen when…
There are information kiosks in the
casinos and community gaming centres
There are reminders to play responsibly
at the retail locations that sell lottery
tickets or games
There are reminders to play responsibly
on the firm’s gambling website
Players in this jurisdiction can volunteer
to self-exclude themselves from a
gambling venue
There are staff in the casinos who are
trained to provide information on how to
keep gambling safe and fun
There is a toll-free problem gambling
help line available
There are advertising materials to
remind people about responsible
gambling
There is free counselling available for
those that need help
F2: Adequacy – Firm Efforts
The firm is doing the right thing by
providing information about tools and
resources to assist problem gamblers
The firm is not doing enough to reduce
gambling related harma
The firm encourages responsible play
The firm is actively involved in
educating players about playing
responsibly
The firm provides information about
tools and resources to assist problem
gamblers
The firm promotes their games and
products in a socially responsible way
The firm is a good corporate citizen

Eigenvalue

Varianc
e (%)

Cronbach’s


Mean

7.859

31.435

0.926

3.48

0.825

3.36

0.810

3.42

0.812

3.39

0.672

3.64

0.752

3.55

0.802

3.42

0.849

3.46

0.788

3.63
2.934

11.735

0.734

3.62

0.649

4.04

-0.687

2.90

0.751

3.87

0.774

3.69

0.801

3.85

0.678

3.57

0.664

3.43

Responsible gambling program perceptions and customer satisfaction

F3: Effectiveness - Internal
Have the responsible gambling
programs and initiatives in [jurisdiction]
that you are aware of changed the way
you think about your own gambling
Have the responsible gambling
programs and initiatives in [jurisdiction]
that you are aware of changed the way
you feel about your own gambling, in
terms of how much you enjoy gambling
F4: Effectiveness - External
Have the responsible gambling
programs and initiatives in [jurisdiction]
that you are aware of changed how often
you gamble more than you intended
Have the responsible gambling
programs and initiatives in [jurisdiction]
that you are aware of changed how
much time you usually intend to spend
on gambling
Have the responsible gambling
programs and initiatives in [jurisdiction]
that you are aware of changed how
much money you usually intend to
spend on gambling
F5: Motives
I think the firm’s motivations are…
Self-interested :::: Community-interested
Firm-focused :::: Customer-focused
Profit-motivated :::: Socially-motivated
F6: Satisfaction
I enjoy participating in the firm’s
gambling activities
The firm’s gambling offerings are fun
Total variance extracted (%)

1.107

4.429

0.485

3.81

0.666

4.67

0.935

2.96

2.568

10.270

0.825

2.93

0.818

2.94

0.876

2.94

0.874

2.92

1.851

7.402

0.880

2.46

0.842

2.61
2.57
2.20
3.62

0.864
0.845
0.896
1.182

4.727

0.929

3.65

0.896

3.60
68.336

Notes. Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy = 0.895. Bartlett’s Test of Sphericity =
10072.49.0 (300 d.f., p < 0.0001). aReverse coded measure for entry. Standard coding is used for mean reporting.

5. Concluding Remarks and References
In this study, we observe that customer satisfaction with gambling experiences is closely related
to perceptions of organizational commitment to RG programs. We find that firm efforts and
intentions related to RG have the largest estimated effect on satisfaction, and that more general
perspectives on the importance of RG, along with perceived motivations of the firm, are also
important predictors of satisfaction.
This study contributes to research investigating the effectiveness of RG practices by providing the perspective of customer understanding and interpretation of these practices. The findings of this study are in line with prior research investigating CSR and RG, and our hypothesis,
with results demonstrating that perceived adequacy of the RG practices have a positive effect
on customers’ satisfaction with the company. These findings are consistent with work examining the relationship between motives and satisfaction: satisfaction is higher when

Responsible gambling program perceptions and customer satisfaction

Table 4. OLS Regression results of the relationship between satisfaction and demographic, gambling
behavior, perceived effectiveness, perceived adequacy, and perceived motive measures, N = 658.
Variable
Adequacy – General RG

ß
0.096

Std. Error
0.039

t
2.465

p-value
0.014

Adequacy – Firm Efforts
Motives

0.552
0.062

0.057
0.029

9.744
2.097

0.000
0.036

Total dollar amount spent per gambling
session (ln)

0.115

0.033

3.516

0.000

Effectiveness – Internal
Effectiveness – External
Total number of hours spent per gambling
session (ln)
Number of games played (ln)

-0.019
0.063

0.060
0.097

-0.308
0.645

0.758
0.519

-0.019
0.098

0.029
0.071

-0.655
1.384

0.513
0.167

Gender
Age
Marital Status
Household Income
Education
Intercept

0.108
-0.002
0.013
-0.005
-0.017
0.604

0.051
0.002
0.019
0.006
0.019
0.384

2.117
-0.903
0.686
-0.928
-0.915
1.574

0.035
0.367
0.493
0.354
0.361
0.116

Notes. Significant predictors at an α<0.05 level are identified in bold. As a robustness test, we ran these results
with individual games as dummy variables. The key results were all consistent. There was a high VIF on number
of games played variable when individual games were included; when the number of games played variable was
dropped, the model specification remained robust.

consumers perceive that the company engaged in RG initiatives to help society rather than as a
means of increasing profits (Chernev & Blair, 2015; Gao & Mattila, 2014; Vlachos, Tsamakos,
Vrechopoulos, & Avramidis, 2009).
Meanwhile, the absence of perceived effectiveness as a significant predictor of satisfaction
with the firm is also of note. Customers may be more likely to be satisfied if they perceive that
the company’s broad, overall RG efforts are useful tools in encouraging RG behaviors, but that
the impact of the RG program on their own behaviors is not as important.
Managerial Implications
Our results suggest that CSR strategies in RG can improve customer satisfaction with the gambling experience. Several implications emerge. First, firms should invest in RG programs, not
only as a strategy to sustain long-run wellness of their customer base, but also to improve customer satisfaction, as consumers may benefit both directly and through the knowledge that other
customers are not being exploited by the firm. Second, it is important for firms to make these
efforts public. Respondent satisfaction was not only related to the availability of RG programs,
but also to the associating those programs with the specific firm. Last, it is important that those
efforts also be viewed as authentic. Satisfaction was measurably higher when respondents
viewed the firm’s intentions as oriented towards the customer, community, and society at large.
Limitations & Future Research
This study uses a cross-sectional data collection from this firm’s gambling population, and future studies should consider use of panel or experimental data to control for endogenous effects.
Standard cautions around the use of voluntary survey respondents apply to this study.
In addition, the finding that average spending in a session is a highly significant predictor of

Responsible gambling program perceptions and customer satisfaction

satisfaction appears to be a reflection of reverse causality, in that those who are satisfied with
the firm’s gambling activities are likely to be those who spend more money on them.
The use of consumers from a single marketing database also biases the results away from
consumers who may have reduced or eliminated purchase behavior, due to perceptions of the
firm or industry. A wider sampling frame could correct this bias. Additionally, this study did not
collect information on problem gambling behavior, but a comparison between problem and
non-problem gambler satisfaction would be valuable. Both of these groups, considered separately and as a whole, are the particular segregated groups that the RG program aims to assist.
Therefore, a comparison of their perspectives is important to a full understanding of RG practices.
Acknowledgments
The authors would like to thank British Columbia Lottery Corporation for their assistance in
coordinating data collection.
Disclosures
Brett Abarbanel received research funding from British Columbia Lottery Corporation to conduct this study. Kahlil Philander formerly served as Director of Social Responsibility at the
British Columbia Lottery Corporation.
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