Loyalty programmes in the gambling industry: potentials for harm and possibilities for harm-minimization

Figures & data

Table 1. Loyalty programme components and gambling behaviours.

Loyalty programme component	Effect on members	Reference
Tangible rewards
Free play	Attracts members and facilitates gambling	Greenstein (2012) Min et al. (2016) Market Solutions Social Research Group (2016) Responsible Gambling Council (2013)
Promotions	No effect on gambling	Lucas et al. (2005)
	Attracts members	Greenstein (2012) Marfels (2010) Palmer and Mahoney (2005)
Compensations/gifts (e.g. free food, drinks, hotel stays, etc.)	Attracts members and facilitates gambling	Marfels (2010) Palmer and Mahoney (2005) Prentice and Wong (2015) Min et al. (2016) Narayanan and Manchanda (2011) Greenstein (2012) Barsky and Tzolov (2010)
	No effect on gambling	Lucas et al. (2005)
Complimentary entertainment facilities	Attracts members	Prentice and Wong (2015) Min et al. (2016) Greenstein (2012)
Cash equivalents	Facilitates gambling	Narayanan and Manchanda (2011) Greenstein (2012)
Intangible rewards
Preferential treatment	Maintains members	Prentice and Wong (2015)
Specialized/complimentary service	Attracts and maintains members	Barsky and Tzolov (2010) Gómez et al. (2012) Prentice and Wong (2015) Palmer and Mahoney (2005)
Tiered structure
Tier privileges/status	Maintains members and facilitates gambling	Barsky and Tzolov (2010) Min et al. (2016) Palmer and Mahoney (2005)

Greenstein, D. (2012). How casinos target problem gamblers. The Fix. Retrieved from: http://www.thefix.com/content/casinos-target-gambling-addicts7650?page=all

 Google Scholar

Min, J. H., Raab, C., & Tanford, S. (2016). Improving casino performance through enhanced loyalty programs. Journal of Hospitality Marketing & Management, 25, 372–394.

 Web of Science ®Google Scholar

Market Solutions Social Research Group. (2016). The role of loyalty programs in gambling: Final report of findings from audit of electronic gaming machine gambling venues, literature review, online discussion boards and longitudinal telephone survey. Melbourne, Australia: Gambling Research Australia.

 Google Scholar

Responsible Gambling Council. (2013). Responsible gambling best practices for player incentives: Land-based venues. Retrieved from http://www.responsiblegambling.org/rg-news-research/rgc-centre/insight-projects/docs/default-source/research-reports/responsible-gambling-best-practices-for-player-incentives-land-based-venues

 Google Scholar

Lucas, A. F., Dunn, W. T., & Singh, A. K. (2005). Estimating the short-term effect of free-play offers in a Las Vegas Hotel Casino. Journal of Travel & Tourism Marketing, 18, 53–68.

 Google Scholar

Marfels, C. (2010). Complimentaries as an instrument of product promotion in U.S. casinos. Gaming Law Review and Economics, 14, 161–164.

 Google Scholar

Palmer, R., & Mahoney, E. (2005). Winners and losers: Segmenting a casino loyalty programme. International Gambling Studies, 5, 271–287.

 Google Scholar

Prentice, C., & Wong, I. A. (2015). Casino marketing, problem gamblers or loyal customers? Journal of Business Research, 68, 2084–2092.

 Web of Science ®Google Scholar

Narayanan, S., & Manchanda, P. (2011). An empirical analysis of individual level casino gambling behaviour (Report No. 2003 R1). Stanford: Stanford Graduate School of Business.

 Google Scholar

Barsky, J., & Tzolov, T. (2010). The effectiveness of casino loyalty programs – Their influence on satisfaction, emotional connections, loyalty and price sensitivity. Marketing, Paper 1. Retrieved from http://repository.usfca.edu/ml/1

 Google Scholar

Gómez, B. G., Arranz, A. M. G., & Cillán, J. G. (2012). Drivers of customer likelihood to join grocery retail loyalty programs. An analysis of reward programs and loyalty cards. Journal of Retailing and Consumer Services, 19, 492–500.

 Google Scholar