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Market Cannibalization Within and Between Gambling Industries: A Systematic Review

Virve Marionneau, Janne Nikkinen


In economics, cannibalization refers to a process in which a new product or service partly or completely substitutes for those in existing markets. This systematic review analyses the existing evidence on cannibalization within gambling markets to determine whether such substitution takes place between different types of gambling. The analysis shows that new gambling products substitute to a certain extent for existing gambling products. The sector in which the evidence is most convincing is the casino industry, which cannibalizes lotteries and pari-mutuel racing. There is also evidence that casinos substitute for other casinos and for non-casino electronic gaming machines. Lotteries substitute for casinos, other lotteries, sports betting, and pari-mutuel or racing industries. In other cases, the evidence is less conclusive and sometimes non-existent, or industry relationships are more complicated. This review also found that even in cases where substitution does occur, it is incomplete, and thus the introduction of new products tends to expand the overall gambling market. We discuss these market dynamics and identify gaps in the available research. 



En économie, on entend par cannibalisation un processus par lequel un nouveau produit ou service se substitue partiellement ou complètement à des produits ou services existants. Cet examen systématique analyse les données dont on dispose sur la cannibalisation dans les marchés du jeu pour déterminer si une telle substitution a lieu entre différents types de jeux de hasard. L’analyse montre que les nouveaux produits de jeux de hasard remplacent, dans une certaine mesure, certains produits de jeu existants. La preuve la plus convaincante est celle portant sur le secteur du casino qui cannibalise les loteries et les courses de pari mutuel. Il est également prouvé que les casinos accaparent légèrement le marché d’autres casinos et d’appareils de jeu hors casino. Les loteries s’approprient une part de marché des casinos, d’autres loteries, de paris sportifs et mutuels ou des secteurs de la course. Dans d’autres cas, les preuves sont moins concluantes, voire inexistantes, ou les relations entre les divers secteurs sont plus compliquées. Cet examen a également révélé que, même dans les cas où il y a un accaparement du marché, il n’est pas total et, par conséquent, le lancement de nouveaux produits tend plutôt à élargir le marché global du jeu. Nous abordons ces dynamiques de marché et cernons les lacunes dans la recherche disponible.

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