Experiential learning as a tool to change gambling behaviour: A randomized field experiment

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Author(s): Abel, Martin ; Cole, Shawn ; Zia, Bilal

Journal: The World Bank Economic Review

Year Published: 2021

Date Added: May 11, 2022

Playing the lottery is a popular form of gambling in South Africa. People may play the lottery more often because of cognitive biases. Cognitive biases are errors in thinking that can cause people to overestimate the probability of winning the lottery. The researchers tested experiential learning as a way to address peoples’ cognitive biases to reduce gambling behaviour. A total of 841 people in the Eastern Cape and KwaZulu-Natal province in South Africa participated in the study. Half of the participants completed a traditional financial education module and acted as the control group. The other half completed a debiasing treatment, where they played an interactive dice game that simulated the chances of winning the lottery. The researchers found that people who needed many attempts to win the game played the lottery less than the control group. Those who needed fewer attempts played the lottery more often.

Citation: Abel, M., Cole, S., & Zia, B. (2021). Changing gambling behavior through experiential learning. The World Bank Economic Review, 35(3), 745-763. https://doi.org/10.1093/wber/lhaa016

Article DOI: https://doi.org/10.1093/wber/lhaa016

Keywords: behavioural economics ; biases ; causal learning ; education ; financial literacy ; gambling behaviours ; gambling experiences ; interventions ; judgement and decision-making

Topics: Gambling and the Brain ; Gambling Resources ; Information for Operators ; Information for Treatment Providers

Conceptual Framework Factors: Environment - Responsible Gambling ; Resources - Harm Reduction, Prevention, and Protection ; Gambling Environment ; Gambling Resources

Study Design: Experimental: RCT (randomized controlled trial)

Geographic Coverage: South Africa

Study Population: A total of 841 people from 27 women borrower groups and 45 burial societies in the Eastern Cape and KwaZulu-Natal province in South Africa participated in the study. The majority (over 90%) of the sample were women. Most participants had little formal education (6.3 years on average), and less than 8% were employed. About half of the participants had a bank account (55%) and savings (50%). About 12% of participants reported playing the lottery.

Sampling Procedure: People from 27 women borrower groups and 45 burial societies in the Eastern Cape and KwaZulu-Natal province in South Africa were invited to participate in the study.

Study Funding:

This study was supported by the International Labor Organization and the World Bank.