Dennis Bailey, the former Executive Director of Maine’s Casinos No!, wrote the excellent piece below which details how slot machines are heavily weighted in the casino’s favor.
Slot Machines
Montana Gambling Study Commission Report
This report prepared by the University of Montana’s Bureau of Business and Economic Research for Montana Gambling Study Commission found that gambling addicts account for 36% of video gambling revenues.
Montana Gambling Study Commission Report 1
Montana Gambling Study Commission Report 2
Montana Gambling Study Commission Report 3
Montana Gambling Study Commission Report 4
Montana Gambling Study Commission Report 5
Montana Gambling Study Commission Report 6
Misrepresented Game Outcomes and Problem Gambling
This research by Prof. Kevin A. Harrigan at the University of Waterloo looked at how slot players’ perceptions were influenced by a technique that has been used since 1983 in North America, called “clustering.” By observing the player perceptions (the frustration effect, the perception of early wins, illusion of control, biased evaluation of outcomes, entrapment, and irrational thinking) as well as looking at transcripts from Nevada hearings where proponents were aware of the psychological effect on players from near misses and virtual reels, the researchers raise concerns over the connection with misrepresented game outcomes and problem gambling.
Slot Machines – Pursuing Responsible Gambling Practices for Virtual Reels and Near Misses
Slot Machines: Distorted Player Views of Payback Percentages
This paper by Prof. Kevin A. Harrigan at the University of Waterloo presents a sample three-reel three-coin slot machine game with a bonus for three coins, and a true payback percentage of 85.6% when one or two coins are wagered and 92.5% when three coins are wagered. The player sees the winning or losing combination of three symbols on the payline as well as (a) the physical reels as they scroll by and (b) what is just above and just below the payline at the end of play.
The Design of Slots and the Implications for Problem Gamblers
This research by Prof. Kevin A. Harrigan at the University of Waterloo examines characteristics of Ontario slots and what the implications are for problem gamblers, including analysis of the probability accounting reports (or PAR sheets) to see how the games are designed. One of their key findings include: “Bonus modes are highly salient environments associated with wins that are in the view of the gambler a very good place to be. Because entering these arousing and highly rewarding bonus environments is rare, only those who gamble frequently will become classically conditioned to these environments and experience the combined effects of operant and classical conditioning – a situation that could preferentially target problem gamblers.”
PAR Sheets, Probabilities and Slot Machine Play – Implications for Problem and Non-Problem Gambling
Survey of the Nature and Extent of Gambling and Problem Gambling in the Australian Capital Territory
This study by Australian Institute for Gambling Research and the University of West Sydney reported that 48% of gambling machine revenue and 37% of all commercial gambling revenue was attributable to problem gamblers.
Survey of the Nature and Extent of Gambling and Problem Gambling in the Australian Capital Territory
Costs and Treatment of Pathological Gambling
This study by Henry Lesieur from the Annals of the American Academy of Political and Social Sciences found that pathological and problem gamblers account for an average of 30.4 percent of total gambling expenditures in the four U.S. states and three Canadian provinces he examined (the low was 22.6 percent, the high was 41.2 percent in Louisiana). The study identified which games were associated with problematic play and identified “video machines” (as opposed to old-style slots) in that group. Lesieur concluded: “When a state decides to shift from lotto to instant or scratch lottery tickets to video machines as a revenue-raising measure, it is taking a greater and greater percentage of money from problem gamblers.”
The Relationship Between Crime and Electronic Gambling Expenditures
Here is a study on the relationship between crime and electronic gambling expenditures in Victoria, Australia. It shows a consistent positive and significant relationship between gambling and crime rates, especially income-generating
crime rates, at the local level.
The Relationship Between Crime and Electronic Gambling Expenditures
Report finds that 60% of gambling machine revenue was derived from problem gamblers
This report prepared for the Ontario Problem Gambling Research Centre found that 60% of machine revenue was derived from problem gamblers and that 35% of total gambling revenue was derived from moderate and severe problem gamblers.
Natasha Schull writes about the design and technology behind electronic gambling machines in Washington Post
MIT Professor Natasha Schull writes about the design and technology behind electronic gambling machines in this must-read Washington Post essay.