For anyone that has yet to see the Gambling Research Australia commissioned study on Interactive Gambling (by Hing et al.), I’d highly recommend flipping through the executive summary or abstract, there is a wealth of information here.
I pulled out some of the more economically related quotes that I found interesting (in italics below), and provide some limited commentary. As always, use some caution when interpreting survey data from gamblers…
There are several figures that identify the importance of price in iGaming selection, both in terms of choosing iGaming over brick and mortar, and in choosing one site over another:
Price differential, including more bonuses, free credits and better odds and payout rates, was the second most commonly cited advantage of interactive gambling, endorsed by over one‐third of online survey interactive gambling participants.
Price, including free credits and bonuses, was the most common factor influencing choice of online gambling sites (by 43% of interactive gamblers in the online survey), followed by site reputation (30%), and number of betting options (26%).
We should be a little cautious in interpreting “Price” since gamblers often interpret price as the denomination of the wager, rather than the theoretical loss. However, the question does at least include “bonuses, free credits, and better odds and payout rates” as part of its description.
“Price” also appears to be becoming increasingly important over time, suggesting that the market for iGaming is becoming increasingly competitive, and the product is becoming more commoditized (e.g. many sites can now provide a decent experience in terms of software stability, security and features — this was not always the case)…
The second most commonly reported advantage of interactive gambling as compared to land‐based modes by over one‐third of online survey participants was the price differential, including more bonuses, free credits and better odds and payout rates. The value of price was reported more often in the current survey than in a previous survey of Internet gamblers (Gainsbury, Wood et al., 2012), perhaps indicating that this factor has become more important or tangible for interactive gamblers.
Interview responses provide further insight into the ability of online gamblers to search for the best price online by checking current and/or other websites of various operators. This tendency to search online for the best product and price option, including using mobiles at a retail outlet, is similar to trends in other retail sectors that are driving consumer online purchasing behaviours (Grewal, Roggeveen, Compeau, & Levy, 2012). Being able to access a greater number of betting options was reported as an advantage by over one‐fifth of interactive gamblers in the online survey, which is related to the availability of greater information and access through online sites than land‐based venues.
Most gamblers state that they would prefer to play on domestic and regulated sites, but there still is a large portion of players that do not appear to care. Government-run sites have to be prepared to compete with foreign firms, both in their product and their marketing — there are no monopolies on the internet…
Most interactive gamblers preferred to use domestically regulated sites, although this consideration did not influence choice of site for approximately 33% of interactive gamblers and only 6% considered the jurisdiction where the site is regulated when selecting an interactive gambling site.
Ten per cent of interactive gamblers in the online survey indicated that advertisements and promotions influenced their decision to gamble on a particular site with a further 10% reported marketing and promotions to be critical factors in their initial uptake of online gambling.
Finally, some interesting demographic characteristics to file away:
…interactive gamblers were more likely to work full‐time with household incomes between $90,000 and $119,000 while non-interactive gamblers were more likely to work in casual or part‐time positions.
The majority (81%) of interactive gamblers were also land‐based gamblers.