An Australian study into how skill-based gambling machines (SGMs) impact on gambling behavior, designed to help determine how such products should be handled by regulators, has found the “illusion of control” could put people at risk for greater long-term losses.
It also suggests delaying the introduction of SGMs into the Australian market, arguing, “There is no unique opportunity lost in temporarily forgoing SGMs as they represent only a small fraction of the EGM market in places like Nevada and New Jersey where they are widely available.”
Funded by Gambling Research Australia, “The Skill-Based Gambling in Australia” study was undertaken by Central Queensland University in response the introduction of such games into the US market over the past decade. SGMs have so far been slower to work their way into Australian clubs and casinos, with only one title, “Pop Shots Witches Coven”, currently approved in more than one Australian jurisdiction according to information from the Department of Enterprise, Investment and Trade.
“Skill-based gambling machines represent a real change to how gaming machines operate,” said Alison Parkinson, Director of the NSW Office of Responsible Gambling. “As with any new product, it’s important we understand whether these innovations may increase the risk of gambling harm,” Ms Parkinson said.
“This study shows that skill has little impact on the outcome of these games, and that participants should be aware of their real chances of winning.”
While it is no secret that the advent of SGMs has at least in part been an effort to attract a younger demographic, the study found that SGMs only give the illusion of outcomes being influenced by skill when in fact they are largely influenced by chance. This illusion of control heightened a gambler’s belief they could affect game outcomes and therefore could put people at risk for greater long-term losses.
The study found people who already played EGMs were the most attracted to SGMs but that the games also have the potential to attract new players, with younger people and those with gambling problems likely to be attracted to all features of these games.
“Participants had a very poor understanding that skill has little actual impact on game outcomes for SGMs,” the study revealed. “Most participants overestimated, while the rest were unsure of, the degree to which skill influenced wins and losses.
“SGMs are likely to increase gambling harm because of these illusions of control and encourage repeated play among those already experiencing a gambling problem.”
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