Understanding gambling and gaming skill and its implications for the convergence of gaming with electronic gaming machines

Skill-Based Electronic Gaming Machines: Features that Mimic Video Gaming, Features that could Contribute to Harm, and Their Potential Attraction to Different Groups

New gambling products have been developed over time as technology permits. For example, early mechanical slot machines were later replaced by electronic gaming machines (EGMs), which enabled a faster speed of play and more immersive experience. EGMs have in the decades since their invention become one of the main drivers of gambling expenditure worldwide and are one of the gambling products most strongly associated with harm. This literature review considers research relevant to a new subcategory of EGM, 'skill-based' EGMs, termed 'SGMs' here. SGMs can be highly varied in content, with some representing a minimal departure from EGMs, where the typical bonus round is replaced by some skill-based activity, such as a simple video game, which could increase the machine's appeal. Other SGMs feature more radical departures from conventional EGMs, such as multiplayer games using intellectual property from popular TV shows or video games. These skill-based elements could tap into common gambling fallacies such as the illusion of control, and therefore facilitate harmful engagement. SGMs could also be less harmful than current EGMs, if skill-based elements break the dissociative states associated with EGM gambling. The intellectual property used in SGMs may increase their appeal among people who generally do not gamble, and the skill-based elements could increase their interest among gamblers who predominately prefer skill-based gambling formats such as sports betting. The novelty and varied content of SGMs present many open questions, which research should aim to address in future.

Relationship of Cryptocurrencies with Gambling and Addiction

Cryptocurrencies has been considered as both an investment tool and a great invention that will replace money and change the world order. Although crypto currency trading has been investigated in many aspects, the psychological dimension that directly affects investors has often been ignored. Control of cryptocurrency trading is in the hands of investors rather than a central authority or institution. Thus, the value of cryptocurrencies changes with the reactions of investors. This situation suggests that psychological factors may be more prominent in cryptocurrency trading. Cryptocurrency trading has many similarities with gambling and betting, such as risk taking, getting quick returns, extreme gains or losses. Some significant components of behavioral addiction are also seen in individuals who spend so much time with cryptocurrency trading. The purpose of this article is to provide a better understanding of the psychological effects of cryptocurrency trading, which has entered our lives over a relatively brief period of time and reached millions of investors.

Engineered highs: Reward variability and frequency as potential prerequisites of behavioural addiction

Influential learning-based accounts of substance addictions posit the attribution of incentive salience to drug-associated cues, and its escalation by the direct dopaminergic effects of drugs. In translating this account to disordered gambling, we have noted how the intermittent nature of monetary rewards in gambling (i.e. the variable ratio) may allow for analogous learning processes, via effects on dopaminergic signalling. The aim of the present article is to consider how multiple sources of reward variability operate within modern gambling products, and how similar sources of variability, as well as some novel sources of variability, also apply to other digital products implicated in behavioural addictions, including gaming, shopping, social media and online pornography. Online access to these activities facilitates not only unparalleled accessibility but also introduces novel forms of reward variability, as seen in the effects of infinite scrolls and personalized recommendations. We use the term uncertainty to refer to the subjective experience of reward variability. We further highlight two psychological factors that appear to moderate the effects of uncertainty: 1) the timecourse of uncertainty, especially with regard to its resolution, 2) the frequency of exposure, allowing temporal compression. Collectively, the evidence illustrates how qualitative and quantitative variability of reward can confer addictive potential to non-drug reinforcers by exploiting the psychological and neural processes that rely on predictability to guide reward seeking behaviour.

Self-Generated Motives of Social Casino Gamers

Social casino games have achieved widespread popularity, and are accessed by more than 85 million people each day. Yet, why people play social casino games is largely unknown. To address this gap, an inductive approach was taken to better understand the motives for playing social casino games, as well as the motives for transitioning from social casino gaming to gambling and vice versa. To this end, 269 social casino gamers were asked to provide a ranked list of their motives for playing social casino games. Additionally, we asked participants their motivations for transitioning from gambling to social casino gaming (n = 202) or vice versa (n = 67). A total of 795, 605, and 201 unique responses describing motives for playing social casino games, transitioning from social casino gaming to gambling, and transitioning from gambling to social casino gaming, respectively, were analyzed using a thematic content analysis. The most frequently endorsed motive for playing social casino games was for enhancement (e.g., fun, challenge). Participants also noted playing to earn rewards, including money, and for social reasons. Several motives linked social casino game play to gambling. These included: to hone gambling-related 'skills', a desire to transition to gambling to win real money, and as a gambling harm-reduction strategy. Motives for playing social casino games did not differ significantly between those who first gambled and then transitioned to social casino gaming and vice versa, suggesting that once people begin playing social casino games, they have similar motives for continued engagement. The present study contributes to understanding the immense popularity of social casino games and their links to gambling.

Interactive Effects of Problem-Gambling Severity, Gender and Alcohol Consumption on Electronic Gaming Machine Behaviour

While comorbidity of problematic alcohol and gambling use is well established, much less is known about the way in which alcohol consumption while gambling interacts with problem-gambling severity and other individual differences. We hypothesised three factors that would interact with alcohol consumption while gambling on electronic gaming machines (EGMs) to influence four behavioural gambling measures: preferred number of lines bet, average duration of play, average spend per session and preferred electronic gaming machine denomination. The latter is a measure of gambler’s preference for the monetary denomination in which EGM bets are placed (e.g. 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, $1), with higher denomination EGMs being higher risk since bets can be placed in larger amounts and money can be lost more rapidly. The three hypothesised interacting factors were problem-gambling severity, presence/absence of alcohol use disorder and biological gender. A total of 1557 male and female participants completed a questionnaire, measuring their problem-gambling status, problem alcohol status, consumption of alcohol at the gambling venue, preferred EGM denomination, preferred number of lines bet, average duration of play and average spend per session. We found the anticipated gender-differential spending effect with males spending more than females, but we also found a surprising reverse differential spending effect for problem gamblers such that females spent more than males. We also found that alcohol consumption while gambling was generally associated with a preference for higher denomination machines and that those players without alcohol problems who drank at the venue preferred to bet on more lines, suggesting a double-max strategy amongst gamblers who drank at the venue. Finally, for non-problem and low-risk gamblers, concurrent alcohol consumption was related to preference for higher denomination EGMs in female players, but not for male players. These findings are discussed in the context of the physiological and psychological effects of alcohol.

Short-term cognitive impacts of electronic gaming machines with and without a skill-based component: A comparative laboratory study

This study aimed to compare how consumers understand the role of skill and chance, experience cognitive distortions, and experience immersion based on use of either electronic gaming machines (EGMs) or skill gambling machines (SGMs; EGMs with a skill-based component). Participants (N = 246, M _age = 34 years, 56.91% female) in a laboratory experiment were randomly assigned to play a real EGM or SGM without funds and self-reported measures including intention to gamble, understanding of the role of skill and chance, erroneous gambling beliefs, previous gambling and gaming, and problem gambling severity. Participants demonstrated different deficits in understanding of the role of skill vs. chance in determining outcomes following play. SGM players were more likely to increase their belief that a skill impacts outcomes and focused more on the game play experience. EGM players focused more on wins and personal performance. Intention to play both machines was predicted in both groups by greater experience of immersion during play and breadth of previous gambling, but breadth of previous gaming experience only predicted intent to play SGMs. The results revealed that both EGM and SGM players fail to understand how outcomes are determined, which is likely more problematic for EGM players as this reflects clear cognitive distortions. Further real-world testing is required to understand the extent to which SGMs harms may be different than EGMs, however, these initial findings suggest that their risks appear comparable to EGMs while attracting individuals with more gaming experience.

Cryptocurrency trading, gambling and problem gambling

Some forms of speculative trading share similarities with gambling. Decisions are often based on limited information, short-term motives for gain, and highly volatile and uncertain outcomes. Given these similarities, there is evidence to show that people who are attracted to gambling are also statistically more likely to engage in higher risk speculation such as day-trading of stocks and crypto-currency trading. In this study, involving 543 people (M = 388, F = 155, 85% aged 18-40 years) who reported at least monthly sports-betting, crypto-currency trading or both, we examined whether gambling and problem gambling were reliable predictors of the reported intensity of crypto-currency trading. The results showed that gambling and problem gambling rates were highest among those who reported both activities and that problem gambling scores (PGSI) and engaging in stock trading was significantly related to measures of crypto-currency trading intensity as based on the time spent per day, number of trades and level of expenditure. Future research should examine whether gambling history and involvement influences how people manage their investments in crypto-currencies, including their propensity for making riskier decisions and experiencing more negative outcomes.

Structural characteristics of fixed-odds sports betting products

BACKGROUND AND AIMS

A literature exists on the structural characteristics of electronic gambling machines (EGMs), which are design innovations that can promote spending excessive time and money on these games. Fixed-odds sports betting products, where bettors place sports bets against a bookmaker, have also seen significant innovations in recent years. Despite some differences between these gambling products, similar structural characteristics could also be relevant to sports betting. The aim was to review previous research on contemporary fixed-odds sports betting products, and to identify whether structural characteristics from the EGM literature are also relevant to sports betting.

METHODS

Structural characteristics uncovered by two influential reviews of EGMs were identified, and their relevance to fixed-odds sports betting products discussed via a narrative review.

RESULTS

Structural characteristics of payout interval and potential betting frequency (in-play betting), multiplier potential (accumulators, complex bets, multis), win probability and payout ratio (all bets), bettor involvement (custom sports betting products, cash out), skill required (all bets), and near-misses (accumulators, complex bets, multis) were all identified in modern fixed-odds sports betting products.

DISCUSSION AND CONCLUSIONS

Fixed-odds sports betting products have increasingly incorporated structural characteristics previously found in EGMs. Future research could further assess the extent to which these structural characteristics contribute to fixed-odds sports bettors spending excessive amounts of time and money while betting. These findings can help guide further sports betting research, contribute to an improved understanding of the potential universality of gambling product design, and inform policy.

Overconfidence in Understanding of How Electronic Gaming Machines Work Is Related to Positive Attitudes

Previous research has demonstrated that attitudes are a primary determinant of intention to gamble on electronic gaming machines (EGMs) consistent with the Theory of Reasoned Action. This paper aims to address how biases in judgment can contribute to attitudes and subsequently behavior, including maladaptive problematic gambling behavior. We take a novel approach by viewing overconfidence in one's understanding of how outcomes are determined on EGMs as an indication of cognitive distortions. The novelty of this paper is further increased as we compare attitudes to existing EGMs with novel EGMs which include a skill component, referred to as skill-based gaming machines (SGMs), which enables a better controlled comparison between actual and perceived skill. In Study 1, 232 US-based participants were recruited online who were shown various slot machines and SGMs and asked a series of questions about perceived skill and chance in determining outcomes to assess their understanding, then were asked their confidence in their understanding, attitudes toward the machines and they completed the Problem Gambling Severity Index. In Study 2, 246 Australian participants were recruited through community and university student samples; they attended a laboratory where they were randomly allocated to play a real EGM or SGM without money and completed the same measures as in Study 1. In Study 2, participants were randomly told that the outcomes on the machine they would play were determined entirely by chance, skill, or a mixture of both. In both studies, our findings suggest that there are more extreme values in overconfidence in how EGMs work, whereas individuals are more similar in their confidence in understanding SGMs. We also find a relationship between overconfidence in EGM understanding and positive attitudes toward EGMs, but no such relationship with SGMs. There was no impact from controlling for demographics, problem gambling severity, or labeling of machines on these relationships.

Predicting Intention to Play Random and Skill-based Electronic Gambling Machines Using the Theory of Reasoned Action

Hybrid gambling machines (HGMs) are a new gambling activity that combine the skill element of traditional video games with the random pay-out schedule of electronic gaming machines (e.g., slots). Developed to increase gambling by younger generations that favor video games, there is currently no empirical evidence regarding consumer views of HGMs to guide policy-decision making related to this new gambling activity. We use the theory of reasoned action (TRA) to investigate factors that motivate intentions to play these machines in two studies: (1) among 43 casino patrons and (2) among 184 US online participants residing in states where HGMs were available. Both samples completed surveys after exposure to actual or explanations of HGMs and slots. Analyses supported the prediction that positive attitudes towards HGMs and positively perceived subjective norms would predict intention to play HGMs and slots. The results suggest that the TRA is a useful framework for explaining intentions to gamble on traditional slot machines and new HGMs. The absence of research on HGMs makes these studies an important and necessary contribution to the empirical literature on machine gambling. Understanding individuals' intentions to engage with HGMs is important to guide development of harm-minimisation practices and evaluate impact of policy changes.