We are learning more and more about gambling and why it is to attractive to humans. It has long been thought that gambling – in whatever form – was a natural part of human instinct. However, a recent study shows that the instinct and the urge to gamble is not just present in humans, but in animals as well.

A recent study published in the October 13 edition of Proceedings of the Royal Society B – a biological sciences journal – found that gambling is a natural behavior for pigeons. The research, conducted by University of Kentucky psychologist Thomas Zentall, found that, given a choice, pigeons would rather have a 20% chance of getting a 10-pellet jackpot than a 100% chance of getting three pellets.

In the study, pigeons were trained to peck white lights to obtain food pellets. Once they were classically conditioned to expect the response of getting food from pecking the light, the payouts changed. There was a light on the left side of the cage and one of the right side. On the right side, when the pigeons pecked the light, they would see a yellow or blue color and, after a 10 second delay, they would receive three food pellets. They would receive that three-pellet payout every time.

On the left side, when the pigeons pecked the light, they would see either a red color or a green color. If the color was red, 10 seconds later they would receive 10 food pellets. If the color was green, they would not receive any pellets. The red color appeared 20% of the time.

In the experiment, after enough trial runs to learn the pattern, the pigeons “went after the 10-or-nothing outcome 82% of the time,” according to the study. Though getting three pellets 100% of the time is both a safer bet and, in the long run, provides more food, it was a less attractive bet for the pigeons.

The experiment was then conducted in various other ways to add more variables, yet the result was always the same. The pigeons were more interested in the possibility of a big payout than in the assurance of getting something. Similar behaviors have been found in monkeys as well, as in a study by Duke University neurobiologist Michael Platt.

Zentall believes that the driving force behind the pigeons’ gambling is that they are motivated by a change from their expectations. Because they always get what they expect from one side (three pellets), it is less attractive than the side where getting 10 pellets is a welcome surprise from the possibility of getting none. Zentall believes that the same phenomenon can explain why humans can ignore money lost on casino games and focus on the wins. Though the wins happen less often, they are more surprising and thus, more exciting.

A recent study on US gambling habits claims to show that while visits to brick and mortar casinos are declining, there is an increase in online casino business. This is despite the belief that online gambling is illegal in America (wrong: it is only banned in 4 states) and the worry that the passage of the UIGEA in 2006 means the government can prosecute online gamblers and confiscate their winnings (it gives the authority for neither).

A survey by a media study group called Mintel International Group showed that 30% of Americans visited a land-based casino in 2009, which is down from 35% in 2001. Mintel also reports that 12% of Americans visited an online casino in 2009, which they say is an increase from an undisclosed amount. In truth, there is no way to accurately determine how many Americans gamble online, since so many think it is illegal or at least vague (to say that some states’ gambling laws are unclear on the subject is an understatement).

So what does this all mean? Perhaps nothing. You may recall that in 2009 the economy started getting pretty bad, with the bank bailouts and the housing bubble bursting and everything. Job losses, fear of job losses, depleted savings accounts and 401(k)’s led to a decrease in tourism everywhere, and that includes hotspots like Las Vegas.

Many in the online gambling community, including some of our competitors, have looked at this information and concluded that it means online casinos are taking business away from brick and mortar casinos. It means people have decided to gambling online instead of taking a trip to a casino. That’s possible, but it’s impossible to tell conclusively. Maybe if we were certain that the online gambling figure of 12% was a significant increase, that would mean something. However, with no previous number given, maybe the 12% figure is a decrease as well. Also, one year isn’t a big enough sample to conclude that former land-based gamblers are now playing online. In one year, any shift could be because of the economy. Even if more people are gambling online, it could be because it’s cheaper and if/when the economy improves they will go back to taking trips to Vegas and Atlantic City.

But for the sake of argument, let’s say that it’s true that people who once gambled in land-based casinos are now exclusively playing online. Why would that be? It’s probably because of price and convenience. Blockbuster is fighting tooth and nail to keep every possible customer right now amid their massive store closings, while people flock to Netflix and Pay-Per-View. Those services are cheaper and don’t require the customer to leave their house. Remember, Americans are lazy. Similarly, iTunes and internet piracy has led to closings of countless music stores. I even went into Best Buy recently with a list of about 20 CD’s I was looking for and couldn’t find one. They had nothing but bare shelves with one copy of a few current hit albums. It’s a sad day when a music store doesn’t fully stock CD’s anymore. They did, however, have lots of iTunes gift cards.

Whether the trend toward online gambling, if it’s a trend, continues or not, this study does tell us something: At least 12% of the country is gambling online at casinos that are operating in the jurisdiction of other countries. That is a lot of tax revenue that the government is losing. If there’s one thing our power-hungry government hates, it’s missing out on the ability to take someone’s money. Therefore, you can probably expect a federal regulation of online gambling in the near future.