Consumer Profile Segmentation in Online Lottery Gambling Utilizing Behavioral Tracking Data from the Portuguese...

The present study is the first to examine account-based tracking data of Portuguese online lottery players comprising the gambling activity of all active players over a one-year period (N = 154,585). The main research goal was the identification of groups or segments of players by their engagement levels (high, neutral, low) and to assess preferences in product category with the use of CHAID (Chi-Square Automatic Interaction Detection) segmentation models, based on expenditure and sociodemographic variables. Findings showed that (1) age was found to be the most influential differentiating variable in player segmentation and had a positive correlation with expenditures and wagers, (2) gender was the second most influential variable (males represented 78.7% of players), (3) education the third most influential variable and had a negative correlation with expenditure, and (4) region was the least relevant variable. The models generated several players segments that engaged in different games. Older males (54-64 years; ≥ 65 years) were the most engaged overall. Younger males (18-34 years) were the least engaged but showed preferences for lotto as did females (35-49 years). Lower educated males and older males (49 years+) with a high school education were the most engaged in instant lottery games. These findings show that Portuguese lottery players can be grouped into several segments with distinct demographic characteristics and corresponding engagement levels. These findings help support more effective marketing segmentation and will help in the targeting of responsible gambling approaches.