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Australia gripped by poker machine addiction, report says | Australia news | The Guardian
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Australian Gambling Research Centre
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Australia's Gambling Crisis - A Current Affair

Like other forms of gambling, EGMs have a price, a kind of negative return on investment known as the "return to player" ratio. In a simulation of the popular game Black Rhino, the Productivity Commission b undertook an exercise to calculate the mean and median "time on device" with a given stake. Improved access to actual game data would be supported by the introduction of comprehensive pre-commitment systems, enabling de-identified data sets to be generated. In some Australian jurisdictions, RTP must be displayed on a user information screen, while others prescribe that such information must be available at a venue upon request. The latter game would be regarded as more volatile than the former. The prescribed method of calculation for this to be achieved varies between jurisdictions. His interest is in the relationship between poker machine gambling and socio-economic disadvantage and health inequity, and in the development and implementation of relevant harm minimisation policies and strategies. It also makes "losses disguised as wins" see below possible. Most EGM games have a very large number of potential outcomes - frequently 50,, or more. But even when disclosed, the question remains whether EGM users understand the meaning of RTP or its relevance to their outcomes. EGM characteristics are not accidental aspects of game design, nor are they immutable. This can be derived from the number of symbols on each of the five reels utilised by the game 30x30x30x30x Thus, the time to traverse the full repertoire of possible outcomes of such a game would require a minimum of 5. EGMs have evolved rapidly in recent years to utilise many characteristics known to increase the addictive potential of games, and, as a corollary, increase the likelihood of harmful consequences for a substantial proportion of those who use them. In either case, if the jackpot is what is known as "progressive", the game makes a pre-determined contribution to the jackpot pool, which is then paid out to the user who achieves the successful combination of symbols. This means that no "winning" line will be missed. The numbers correspond to a position on a "reel map" - the number and order of symbols on each virtual reel - and a "pay table" - the prizes awarded for each combination of symbols appearing on a line. In fact, the "price" calculation is best conceived as the deduction of the price factor 1-RTP on average for each bet wagered i. Linked jackpots contribute to an aggregate prize pool, which is accessible as a single jackpot for any user of a linked machine. For example, if the random process generates three Kings, this will be mapped to the pay table to pay, e. This concept relates to the extent to which an EGM game conforms in the short term to its programmed overall long-term outcomes. Gambling regulation has become overtly aligned with public health principles in recent years. A game's TRTP can be readily determined mathematically, but it is important to note that TRTP is very unlikely to be achieved on an EGM game in the scale of an individual user's interaction with the game. Australian jurisdictions outsource game approval testing to licensed private agencies, which certify games as compliant. Facilitating researchers' understanding of the new generation of EGMs would assist regulators in the crafting and application of standards. Although in casinos alternative gambling forms, such as somewhat lower priced table games, are readily available, EGM users continue to utiliseEGMs - which may cost as much as 10 times the price of a table game Productivity Commission, a. If a user bets only one credit on one "line", they may experience extended time on the game compared to the above examples. The betting "strategy" of users will influence time on device. EGMs in casinos generally have a higher minimum RTP reflecting their greater turnover and higher bet limits. Australian regulators have all "outsourced" game testing to commercial operators who determine whether games meet the standards, and issue certification. If rewards are awarded regularly, the game is likely to have a lower maximum prize, or to provide that maximum prize only very rarely; this may permit users with a fixed stake to use the game for a longer period than a more volatile game. Electronic gambling machines EGMs , known colloquially as "pokies", have their origins in older style lever-operated machines which spun a series of physical reels, on which were portrayed a number of winning symbols. It is not without its problems. The maths behind major prizes are just as stark. Access to better information and real-world data would be of great benefit in achieving this goal. However, a game with regular modest rewards may also have a large maximum reward if it does not have a spread of rewards in the middle ranges, or if that maximum reward is very rare. When the winning symbols lined up, a prize was delivered, usually via a coin dump into the tray at the bottom of the machine. This is identical to challenges arising when developing policy and regulation for other consumer goods, services and public practices e. They may also have an addictive or habituating effect on users. Stand-alone jackpots apply to a single machine. However, the probability that even such a time commitment would produce all possible results in an EGM game is very close to zero. The structure of rewards is also related to volatility and frequency of rewards. Raise the price and lower the demand. A game with many modest rewards may have a lower or rarer jackpot than a more volatile game. Given the rapid and continuing evolution of EGM design, it appears that regulators are not always aware of the implications of some aspects of game design. The effect of this is to lower the actual return to player RTP to users who use the game without achieving a jackpot payout.{/INSERTKEYS}{/PARAGRAPH} A machine's theoretical return to player ratio TRTP is determined by its "game maths": the interaction of the configuration of the game's "reel maps", the number and order of symbols on each virtual reel, and the "pay table", the prizes awarded for each combination of symbols appearing on a line. The effect is cumulative. Understanding the mechanism by which a characteristic of EGM design boosts reinforcement e. Rapid progress in understanding the impacts and effects of EGM design could be facilitated by providing bona fide researchers with regular access to probability accounting reports PAR sheets , and actual game data. When a button or touch screen is activated, the computer accesses the numbers generated at that point in time and converts them to a display on the screen. The issue for policy-makers is to balance this consideration against the harm generated by an EGM characteristic. If gamblers' demand for EGM gambling were highly responsive to price - that is, if users changed their behaviour as prices rose - then the conclusion would be that EGMs had significant price elasticity. The standard currently applies to all Australasian jurisdictions and specifies a range of technical standards required for approval by regulators. In Victoria, the actual RTP is calculated by assessing the aggregated wagers and total returns paid to users over the course of a year for all EGMs operating within a specific venue Gambling Regulation Act Vic , p. Some EGM characteristics may add to the enjoyment of those who derive pleasure from the machines. At the core of any EGM is a random number generator. However, there is already ample evidence available of the relationship between some important EGM structural characteristics, and the harms associated with the use of EGMs. Gaming machine standards and other requirements for approval of EGM games provide an important set of tools to incorporate practical and highly effective mechanisms for the prevention and reduction of harm, and the improvement of consumer protection measures. They are the "building blocks" of an EGM game. Structural characteristics define the capacity of EGMs to induce substantial expenditure in users. All psychological characteristics are amenable to modification, given the computer-based nature of EGMs. Dolphin Treasure, a relatively old-style EGM game still provided in many Australian venues, has 35,, possible outcomes. {PARAGRAPH}{INSERTKEYS}These characteristics have the effect of increasing the addictive potential of EGMs. Australian machines' PAR sheets their game maths are not directly scrutinised or retained by Australian regulators. The Productivity Commission a has noted a lack of evidence of price elasticity for gambling in general, and in particular for EGMs. Every country has its own regulations governing EGM design. Australian jurisdictions prescribe a range of minimum RTP. He has also researched the structural characteristics of poker machines and the relationship of these, and the structure of gambling systems, to the development of gambling problems. Dr Charles Livingstone is a gambling researcher. Arguably the biggest problem with the standard is that understanding of specific "structural characteristics" of EGMs and their relationship to gambling harm and behaviours is not well reflected in it. However, many are still reminiscent of older style games, being housed in large upright boxes and utilising "reels" that appear to spin. Acting on this understanding would provide considerable benefits. He is a regular contributor to public debate on the issues of gambling reform. Many games offer jackpots, which may be either stand-alone or linked. These characteristics deliver "reinforcement" to users; render games attractive to, or popular with, users; and appear to be associated with the establishment of persistent game utilisation or addiction. A better understanding of the role and importance of EGM structural characteristics could help develop better policy and deliver more effective harm prevention or minimisation interventions. His current research is focused on mechanisms of gambling industry influence in relation to public policy, and on regulatory issues around development of best practice gambling policy. In other jurisdictions, an individual machine must return at least the minimum RTP over its game cycle. These devices used mechanical stops to arrest the spin of the reels in order, usually from left to right. EGM structural characteristics see below for more detail are discrete but integrated elements of game design that in the aggregate constitute the game portrayed on an EGM. Today, EGMs are computers. There are many such characteristics delivering game outcomes, and it is appropriate to consider them as relevant to harm minimisation interventions. RTP represents an average deduction from the user's wager for each bet, calculated over the game cycle. They were rapidly adopted by American casino operators after being introduced there in the s. Basic psychological characteristics underpin all EGM designs. Understanding the effects of EGM structural characteristics, and re-orienting the national gaming machine standards towards harm prevention and reduction priorities, represents a reflection of a fundamental principle of the public health approach. Operant conditioning is a key element of EGM design and is incorporated in EGM games via their "game maths": the interplay of random outcomes and the reward schedule of the game. However, each jurisdiction requires slightly different parameter settings return to player ratio, maximum bet, credit load-up limit etc. Each jurisdiction also requires EGM games to be approved separately, although some regulators take notice of game approvals in other Australian jurisdictions. It is, however, rare for such an outcome to be achieved in the short term. The game cycle, however, may be many years, because of the large number of possible outcomes, as discussed below. Frequency of rewards is related to the volatility of a game and its prize structure. As well as protecting gamblers, minimising harm would permit the development and continuation of a sustainable EGM gambling industry, where the benefits of EGM use are largely retained. For a discussion of typical EGM wagering strategies, see "Wagering strategies", below. In psychology, reinforcement means anything that increases the likelihood that a response will occur Boundless, Operant conditioning is a psychological concept related to the provision of an irregular, variable or random schedule of reinforcement - that is, of rewards or "prizes" Skinner, It has been repeatedly demonstrated that animals including humans develop habitual behaviour when exposed to an unpredictable pattern of rewards in response to specific activities. But on the basis of available evidence, the Productivity Commission concluded that demand for EGMs was most likely price inelastic, because of the lack of price information and the lack of substitutability.