Volatility under the spotlight: panel regression analysis of online slots player in the UK

Volatility refers to the variability of bet outcomes in gambling and has been recognized as a potentially important influence on behavior. The research literature has developed competing ideas for how different behavioral responses to volatility might influence player risk. However, few empirical studies have investigated how volatility influences player behavior in a live-play, real-money environment. This paper studies 4,281 regular online slot players from two operators in the UK – one casino-focused, one bingo-focused. Longitudinal panel regressions analyze variation in players’ daily session time, financial loss and declined deposits as they switched among slots games with different volatilities relative to their usual play. The findings indicate that the relationship between game volatility and player behavior is complex and often non-linear. For slots players in the casino-focused sample, lower levels of volatility than usual were typically associated with lower than average losses, declined deposits and session time. However, significant relationships were not detected in the bingo-focused operator sample. Collectively, these findings suggest that while volatility may be an important influence on behavior, this influence is not necessarily uniform or easily generalized from one population of players to another.