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An examination of consumer reactance to daily fantasy sport and sport gambling regulatory restrictions

Author

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  • Stephen L. Shapiro
  • Joris Drayer
  • Brendan Dwyer

Abstract

•Psychological reactance theory was examined in the context of sports gambling and daily fantasy sport.•An experimental design was used to test the impact of proposed restrictions on consumer behavioral intentions.•Significant differences were found between high and low levels of consumer reactance to proposed government restrictions.•Results regarding restrictions to freedom were contrary to previous literature on consumer reactance.•Consumer reactance should be considered as governments decide on sports gaming legislation.According to psychological reactance theory (PRT), when an individual’s freedom is threatened or eliminated, a state of reactance will occur in an attempt to have the freedom restored. Consumer reactance to firm marketing strategies and governmental restrictions have been examined in a variety of contexts. However, an examination of consumer reactance regarding participation in sport gaming activities, such as daily fantasy sport and sport gambling is non-existent. Two studies were developed using experimental designs to: (a) identify whether sport gaming participation intentions were influenced by government restrictions; (b) examine the influence of reactance tendencies on behavioral intentions; and (c) test whether consumer reactance moderates the relationship between government restrictions and gaming intentions. Our results showed significant differences in intentions based on government restrictions for both daily fantasy sport (DFS) and sport gambling participants. Mean intention scores were highest in the scenarios where the activities were legal, which is contrary to previous consumer reactance literature. However, varying state regulations may be playing a role, as individuals can participate in these activities in states where they are legal. Additionally, consumer reactance played a moderating role for groups that were discouraged or restricted from the activity. Consumers with high reactance tendencies reacted unfavorably to threats of freedom as anticipated, extending our knowledge of the impacts of consumer reactance within the sport gaming industry.

Suggested Citation

  • Stephen L. Shapiro & Joris Drayer & Brendan Dwyer, 2020. "An examination of consumer reactance to daily fantasy sport and sport gambling regulatory restrictions," Sport Management Review, Taylor & Francis Journals, vol. 23(5), pages 797-809, December.
    • Handle: RePEc:taf:rsmrxx:v:23:y:2020:i:5:p:797-809
    DOI: 10.1016/j.smr.2020.02.006
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    Cited by:

    1. Vojtech Kotrba, 2023. "Testing “hot hand” hypothesis at the individual athletes' level in soccer," Economics Bulletin, AccessEcon, vol. 43(3), pages 1356-1365.

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