Industry Research Briefing Vol.1 (1) — Volatility in Online Slots

The research note compares player behaviour changes when starting to play online slots with higher or lower volatility than usual.

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The research investigates how player behavior changes when switching to online slot games with different levels of volatility, using real-world data from ~4,000 UK players. Key findings:

• Higher Volatility = Faster Losses: Players tend to lose money at a faster rate when switching to higher volatility games.
• Session Lengths Adjust: Lower-spending players often shorten their sessions to compensate, but higher-spending players do not, leading to increased daily losses.
• Risk Signals: Moderate increases in volatility are sometimes associated with more declined deposits and behaviors similar to those who later self-exclude.
• Volatility Is One of Many Factors: While volatility influences behavior, it explains only a small portion of overall variability—other factors also play significant roles.

Implications for industry and policy: 

• Avoid Blanket Bans: Risk varies by player and context; simple rules (e.g. banning high-volatility games) may not be effective.
• Monitor Player Volatility Exposure: Operators could track players’ average volatility exposure and intervene when significant shifts occur.
• Diversify Game Portfolios: Ensure a balanced mix of low, moderate, and high volatility games, and avoid over-promoting high-volatility titles.
• Educate Players: Volatility should be included in player education efforts. Playtech and William Hill have piloted volatility labelling to support informed play.
• Use Volatility in Risk Models: Volatility exposure could be a useful input in player risk classification systems.

These insights support a more nuanced, player-specific approach to managing product risk in online slots. For full details, please refer to the complete document.