Work detail

Lottery Premium in Video Gaming Environment

Author: Bc. Tomáš Karhánek
Year: 2021 - summer
Leaders: Michal Šoltés
Work type: Bachelors
Language: English
Pages: 57
Awards and prizes:
Abstract: Gambling, as well as many traditionally physical forms of entertainment, has become
popular in a digital form. In the recent years it has found its way to video games. In the
environment the gambling element is represented by so called loot box, virtual vessel
containing random digital rewards that are in most cases purchasable strictly for real world
currency. The writer hypothesizes an existence of a variable, lottery premium, that can help
him well explain the decision making process of gambling participants in this environment.
The author collects data from the loot box buyers to help him determine the other
significant factors influencing the amount of money spent on loot boxes. Using OLS
regression he estimates the size and direction of effects of mentioned variables as well as
their significance. The lottery premium variable is determined as a significant in terms of the
amount spent. Therefore, the author performs a second OLS regression to determine factors
influencing size of the lottery premium. The significant variables influencing the amount
spent are: age, participation in risk involving activities, searching for the odds of the loot
boxes, amount of friends that purchase loot boxes as well, the value of the most expensive
item ever received from the loot box, disposable income and already mentioned lottery
premium. The variables significantly influencing the size of lottery premium are: a type of
risk attitude the individual expresses when purchasing loot boxes, education level, if the
person watches the loot box openings and if the person purchases loot boxes at least once a
month. The author presents a suggestion for a future research in the field.


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