Fighting losses disguised as wins with responsible gambling tools

Slots, gambling machines that are also known as fruit machines, poker machines or pokies, have been popular for more than 100 years. In the last few decades, the classic slot that featured drums that spin has seen a significant improvement with the advancement of technology. This helped deliver electronic gambling machines (EGMs), which became the modern version of the classic slot machines.

Modern-day slots offer a new level of entertainment thanks to video and audio sound effects, light schemes and animations. All such features help build the excitement that is created whenever the player spins the reels, hoping to win a big prize. Keeping in mind the ongoing growth of online gambling activities, the online equivalent of slots also enjoys high levels of engagement and popularity.

Regardless of whether the slot game is played online or via a retail gambling venue, there's an option for the player to hit a prize that is less than the sum wagered. This comes as no surprise, considering that different slots offer a return to player rate (RTP) that can vary, but it is never 100%. Still, securing a win that is less than the actual money wager can be counted as a net loss, but in reality, some online and retail slots also celebrate such payouts as actual wins.

Losses disguised as wins, misinterpreted by slot players

The so-called losses disguised as wins (LDWs), represent a payout that is less than the actual wager but is presented in a way that resembles a win. LDWs can be accompanied by cheers such as claps, ringing bells or other sound effects. At the same time, LDWs can present animations that are similar to actual wins and can be accompanied by effects such as lights and other methods that help build thrill and excitement.

The role of LDWs is incredibly important for online and retail slots as users can misinterpret the outcome of the game for an actual win, rather than a net loss. Consequently, slots players can engage in prolonged gambling sessions, not realizing that they may be losing more than they can afford. In fact, a study uncovered that LDWs for multiline slot machines can serve as positive reinforcement for gamblers. That study found that LDWs, accompanied by sound and visual effects that present them as winnings, made players see them as wins, rather than net losses. When asked about their opinion about LDWs, a majority of the participants misinterpreted them as winnings. Additionally, the study uncovered that "the more LDWs players were exposed to, the higher their win estimates." The white paper also pointed out that LDWs could increase the reinforcement of the players while at the same time not increasing the payouts, creating an illusion of winning more.

Combating LDWs with responsible gambling tools

Gamblers that want to reduce their losses and combat the positive reinforcement created by LDWs can use a variety of responsible gambling tools. Currently, many operators offer different responsible gambling tools and such efforts are a part of their programs related to sustainable growth and reducing problem gambling and gambling harm.

For example, Kindred, the global gaming and entertainment company, leads by example by tackling problem gambling and effectively seeking to reduce the share of revenue from such gambling activities. The company posts quarterly reports, revealing progress and insights on its Journey towards Zero, a gambling industry-first initiative that seeks to eliminate the revenue from problem gambling.

Undoubtedly, loss limits, as well as deposit limits can be an effective method to reduce losses. Even if gamblers see LDWs as actual wins, using both loss limits and deposit limits may help reduce their losses. This, in turn, can help gamblers better understand the technology behind LDWs and identify them as actual losses, rather than wins. The options for deposit limits and loss limits allow users to set daily, weekly or monthly limits. Once a specific threshold set by the user is met, they are no longer allowed to deposit more funds or are restricted from losing more than a pre-set sum for the given period.

Changes to gambling regulations to reduce excessive gambling

Effective and robust regulation can also help users reduce their losses to gambling, even if LDWs are not prohibited. For example, lawmakers in Victoria, Australia, are seeking to implement a series of changes to the gambling sector that seek to protect gamblers. One such change is a significant reduction in the amount a gambler can deposit at a single time via a poker machine. With the current limit at AU$1,000, changes to the sector seek to reduce the sum to AU$100.

Elsewhere, in the UK, the review of the Gambling Act that sought to make the main gambling law fit for the digital age resulted in a series of proposals. Ultimately, the overhaul of the sector, similarly to Australia, seeks to protect consumers and reduce excessive gambling. One important change proposed involves online slot limits. The proposal calls for the reduction of online slot limits to between £2 and £15. Additionally, the UK government seeks to implement tighter affordability checks and allocate more resources toward gambling research and treatment.

The decisive efforts of lawmakers to reduce excessive gambling and gamblers that use responsible gambling tools can bring meaningful change and benefits. However, it is most important that losses disguised as winnings are not perceived as net wins by the gamblers.

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