nesses target particular market segments. For example, whereas racetracks traditionally attracted men and people who could or would take time off from work, casinos may offer baby-sitting facilities for parents and weekend package getaways for working people to reduce their effort and concerns about budget and time. Casinos also evaluate how to use floor space in relation to their market (Dandurand, 1990). For example, they may identify a market niche, such as elderly women who gamble $2 slots, and design safe places for these women to put their purses. Lotteries may attract gamblers who are female, minority, low income, or elderly because they are practically effort-free and do not require risky social behaviors or large investments (Lorenz, 1990).

During the period when legalization and the open marketing of gambling opened large new markets to gambling, technical advances in computing and telecommunications made possible the creation of new automated gambling devices and services, better casino security and policing against cheating, development of remote gambling services, consolidated operations across states and venues, and better collection and use of market data from such information sources as credit ratings, Internet hits, and membership (club card) records. The rapidly growing high-technology gambling industry suggests that future advances in multimedia, digitization, satellites, and the like will lead to many future technological changes in gambling.

Technological change is evident even in the traditional horse racing industry. A decade ago, competition with other forms of legal gambling threatened the owners of horses, training facilities, and racetracks with slimmer profits as new forms of gambling gave customers new entertainment options. New technology in the form of satellite wagering facilities or "betting parlors," simulcast races, and video poker machines that could run 48 hours a day may have saved some racetracks. Racetracks today offer new wagering options on chance-based games made possible by computers (e.g., picking the exact order of finishing or wagering that an even-numbered horse will win). New games such as picking the winner of six races can offer large payoffs with low probabilities of a win, approaches that increase profits and attract customers. Changes in computers and telecommunications are changing the way racing games are being distributed.



The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement