Loyalty Programs in the Gambling Industry: Understanding the Risks and Potential for Harm Minimization

The field of gambling studies has been remarkably silent on the impact of loyalty programs in the gambling industry. In this presentation, I review the scant empirical literature with an aim to stimulate discussion and research about the impact of loyalty program membership on players. Preliminary evidence suggests that disordered gamblers are more apt to join a loyalty program and be disproportionately rewarded (due to the amount of money they spend gambling) relative to recreational and at-risk gamblers. As such, loyalty programs in the gambling industry may generate harms in vulnerable individuals. However, loyalty programs may also be well positioned to facilitate harm-minimization by promoting behavioral tracking that is collected on every member—information that can be provided to players to advance responsible gambling. Additionally, members could be rewarded for engagement with responsible gambling tools, which may increase the currently low rate of tool use. That said, structuring loyalty programs to reward the use of responsible gambling instruments with time on device or even non-monetary prizes may be incompatible with harm-minimization efforts. This presentation concludes with a call for empirical research on the antecedents and consequences of loyalty program membership to better triangulate on the potential pitfall and benefits loyalty programs in the gambling industry may have on members