Role of Technology in Sustainable Gambling: Policy Effects of Electronic Card System and Limit Setting

Abstract

With the rapid expansion of the gambling industry in Asian markets over the past decade, South Korea has implemented policies seeking to expand entertainment gambling while simultaneously seeking to reduce possible harms from problem gambling. In 2016, the mandatory electronic players’ card (EPC) system was adopted into specific Korean horse and cycling venues to discourage problem gambling behaviors since it prohibits large bets, while permitting other venues to autonomously operate EPC systems. This study compares preliminary data from mandatory versus autonomous venues to explore how EPC systems impact gambling behaviors, revenues, and policies. Overall, electronic cards were more widely adopted in mandatory venues for horse betting and in autonomous venues for cycling betting. Analyses indicate that larger bets were placed at both horse- and cycle-betting venues with autonomous card registration versus mandatory venues. While the EPC system mitigated problem gambling behaviors in horse betting, this impact was not observed for cycle betting. Such differences indicate that users across different types of sport betting exhibit somewhat distinct characteristics and behaviors in using electronic cards, which could shed light on the sustainable gambling strategy of adopting technology-driven EPC systems in sport betting not only in South Korea but also elsewhere around the world.