Market Cannibalization Within and Between Gambling Industries: A Systematic Review
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.
Journal Contributors Agreement
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
The parties intending to be legally bound (the principal author [Author] and the Journal of Gambling Issues [Publisher]), agree as follows:
1. The Author grants exclusively to the Publisher all world-wide rights in this Contribution; including the full copyright therein, the right to publish it as part of the JGI in all forms, languages and media now or hereafter known or developed and including, but not limited to, the right to license subsidiary rights such as granting rights to reprint in anthologies issued by other publishers or to photocopy for classroom use.
2. The Author guarantees that he or she is the sole owner of the Contribution and has full authority to make this agreement; and that the Contribution does not contain any copyright; does not violate any other property rights; does not contain any scandalous, libelous or unlawful matter; does not make any improper invasion of the privacy of another person; and has not been published before, and is not now being considered for publication elsewhere.
If the Contribution has been published previously, the Author guarantees that permission has been obtained, and any fee required has been paid, for publication in the JGI and shall submit proof of such permission and any required credit line to the Publisher with the signed agreement. The Author agrees to indemnify and hold harmless the Publisher against any claim or proceeding undertaken on any of the aforementioned grounds.
3. The Author shall allow the Editor of the JGI and the Publisher to make the Contribution conform to the style of presentation, spelling, capitalization, punctuation and usage followed by the JGI. The Author agrees to review and correct the copyedited manuscript and proofs and to return them to the editor by the date set by the Editor. If the Editor has not received them by that time, the Author agrees that production of the JGI in which the Contribution is to be included may proceed without waiting for the Author's approval of the manuscript or the proofs.
4. If the Author wishes to publish this Contribution elsewhere, the Publisher shall grant to the Author, for no fee, a nonexclusive License to republish the Contribution in the same form in any language in a book or other media written or edited by the Author after the issue of the JGI containing the Contribution has been published, subject only to the conditions that a credit line, to be supplied by the Publisher, will be printed in the Author's book: to indicate the first publication of the Contribution in the JGI. The Author shall inform the Publisher 30 days before the Contribution is released in any other form.
5. This agreement shall be construed and interpreted through the laws of the province of Ontario, Canada. This agreement shall be binding upon and operate to the benefit of the parties thereto, their heirs, successors, assigns, and personal representatives. Where the Contribution is the product of more than one person, all of the obligations of the Author hereby created shall be deemed to be the joint and several obligations of all such persons as testified by their signatures.
6. The Author shall receive no payment from the Publisher for use of the Contribution.
7. The Author agrees to reference this article using its full and accurate name: Journal of Gambling Issues.