How Much Does The Average Slot Machine Gambler Lose

Penny slot machines appeal to many players because they seem to offer the lowest cost to play. For just a cent, you could spin the reels and win big.

How Much Does The Average Slot Machine Gambler Lose Weight
How Much Does The Average Slot Machine Gambler Lose Bet

The more you lose, the more casinos win. ( Joe Raedle/Getty Images)

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Gambling is good business, or at least a profitable one. According to the American Gaming Association, in 2012 the 464 commercial casinos in the U.S. served 76.1 million patrons and grossed $37.34 billion.

Each year gaming revenues in the U.S. yield more profits than the theatrical movie industry ($10.9 billion) and the recorded music industry ($7 billion) combined. Even the $22.5 billion combined revenue of the four major U.S. sports leagues is dwarfed by earnings from the commercial casinos industry.

Gambling is such good business that despite reported negative impacts — such as increased poverty and unemployment, higher crime rates, and decreased property value in nearby neighborhoods — the state of Illinois early this year passed a law to allow slot machines in all establishments that sell alcohol.

Gambling is not just common, it's also accepted. Despite the fact that for an estimated 4 percent of the population gambling represents a problematic and even pathological addiction, 85 percent of Americans feel that gambling is either perfectly acceptable for themselves or if not themselves for others in a country where more than 20 states now allow some form of commercial casino.

It's not too hard to see why casino lobbyists believe casinos make a positive contribution to the communities in which they operate.

It's far less easy to understand why so many Americans enjoy gambling even though it tends to result in the loss of money.

You lose, the casino wins

As a general rule, we tend to repeat behavior that produces desirable results and avoid behaviors that result in loss. We repeat jokes that people laughed at, choose jobs that we enjoy and that pay the most money, and avoid behaviors that produce fines. Following this logic, one would expect a gambler to only play as long as they are winning and then cut their losses when they begin to lose.

Yet gambling appears to operate differently; players play faster after losses and bet persistently regardless of the percentage of payback, magnitude of return, or the lack of winning entirely. So what encourages gambling behavior if losing occurs more frequently, and payouts do not exceed buy-ins?

One explanation is that gamblers poorly judge the actual probability of winning, even as their pile of tokens and coins dwindles before them.

Some examples of this phenomenon can easily be seen in the language of gamblers. 'My luck is going to turn,' 'A win is coming,' or 'I am on a hot streak,' are all statements that speak to an over-confidence in one's ability to predict functionally random events.

Gamblers will often say these things after an unusual series of outcomes, for example, ten straight losses on red at roulette. The gambler may then proceed to bet more on red, in the false hope that the next spin is more likely to come up red due to the overall probability of the game (50 percent chance of red).

This flawed logic is called 'The Gambler's Fallacy.' It stems from a misunderstanding of how probabilities are assessed; in fact the outcome of the previous spin of the roulette wheel has no influence on the outcome of the next spin. The probability of red remains stubbornly fixed at 50 percent.

Missed it by that much

Another example of how gamblers misjudge losing outcomes can be seen when individuals respond to losses that are similar in appearance to a win. Receiving two out of three symbols necessary to win on a slot machine is a loss but players often respond to this 'near miss' with excitement, increased betting and more persistent play.

Winning and almost winning are such similar events to many people that they respond in the same way to both. People pause, for example, for longer after a win than a loss. This is known as a 'post-reinforcement pause.' People often pause for longer after a near-miss.

How much does the average slot machine gambler lose my car

It's no accident near misses are pretty common on slot machines.Mark/Flickr, CC BY-SA

Winning and almost winning are so alike in gamblers' brains that research on the dopamine-transmitting pathways of anticipation and reward show remarkably similar activation patterns for a near-miss and a win.

Near-miss effects are not limited to outcomes that look similar to win. Outcomes that are closer to a win in a more abstract sense also cause a similar response.

For instance, the near-miss effect has been demonstrated in games where 'nearly winning' might relate to scoring a number that is close to a winning number, such as in blackjack.

Near-miss outcomes are not the only form of almost winning that contributes to the behavioral confusion faced by gamblers. Modern slot machines also present a myriad of features that are designed to confuse outcomes.

Slot confusion

One feature present in almost every modern slot machine is the partial win or 'loss disguised as a win.'

Since slot machines have gone from the traditional 3-reel 1-line slot machine to the modern 5-reel video slot, often with 25 or more winning lines, near-miss outcomes have become almost unidentifiable from other losing outcomes.

By encouraging individuals to play on more than one line, casinos have created a scenario where players are awarded a win on almost every spin.

Despite the increased frequency of winning, the proportion of money returned is often far less than the entire bet, such as winning 10 cents on a 50 cent bet. This 80 percent loss is accompanied by the same sounds on the machine as a real win and occupies the same area of the screen that wins are reported in.

Since noticing near-misses on modern slot machines is difficult, game makers have incorporated other game features such as free-spin symbols, mini-games, and progressive awards, which create new near miss situations while often not guaranteeing any increased value of a win themselves.

For example, special symbols might be placed on the reels that provide 10 free spins whenever three appear anywhere within the game screen. These symbols will often make a special sound, such as a loud thud when they land; and if two symbols land, many games will begin to play fast tempo music, display flashing lights around the remaining reels, and accelerate the rate of spin to enhance the saliency of the event.

When you win these sorts of outcomes you feel as though you have won a jackpot; after all, 10 free spins is 10 times the chances to win big money right? The reality is that those 10 free spins do not change the already small probability of winning on any given spin and are still likely to result in a loss of money. For many games, features such as this have entirely replaced standard jackpots.

These features share one important characteristic: they allow the casinos the ability to provide more outcomes that feel like a win while not increasing the actual payout. The effect of these features is so significant that in 1989 the Nevada Gaming Commission banned algorithms that purposefully increased the prevalence of near-miss outcomes. Of course, this only applied to the intentional increasing of near misses when a loss is already determined, i.e. artificially producing a near miss instead of what the reels would have normally landed on.

Unfortunately, these laws do not preclude the intentional design of reel layouts that, without additional manipulation, produce frequent near misses and losses disguised as wins. These laws also do not apply to the newer game features which either highlight the near miss, such as accelerating reels, or create entirely new topographies of outcomes, as is the case with free-spins or mini-games.

While the question of how to best manage artificial manipulations of near misses may be a topic of future regulatory discussion, the decision to play games with these illusions will ultimately fall upon the end user.

As long as you are willing to expose yourself to the game in the first place, the casino need only sit back and wait. And with increasing availability of casinos across the U.S., they won't need to wait long.

The authors do not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article. They also have no relevant affiliations.

More from The Conversation US...

Introduction to Kentucky Slot Machine Casino Gambling in 2020

Kentucky slot machine casino gambling does not include games of chance, which are strictly illegal. Instead, Kentucky has competition-based electronic gaming machines at four out of its five pari-mutuel wagering racetracks.

Theoretical payout limits are not available but monthly return statistics are available for electronic gaming machines.

This post continues my weekly State-By-State Slot Machine Casino Gambling Series, an online resource dedicated to guiding slot machine casino gambler to success. Now in its third year, each weekly post reviews slots gambling in a single U.S. state, territory, or federal district.

Keep Reading … or Watch Instead!

Or … Listen Instead!

Relevant Legal Statutes on Gambling in Kentucky*

The minimum legal gambling age in Kentucky depends upon the gambling activity:

Land-Based Casinos: Not available
Poker Rooms: Not available
Bingo: 18
Lottery: 18
Pari-Mutuel Wagering: 18

Kentucky’s interpretation of legal gambling requires the competitor’s level of skill “must sufficiently govern the results.”

Therefore, competition-based games are legal as well as pari-mutuel wagering. Traditional slots are illegal, including those referred to as Class III, Vegas-style, and games-of-chance slot machines.

Kentucky has competition-based electronic games available in a few of their pari-mutuel facilities. These skill-based games are anonymously-based historical race results.

Historically, Kentucky has had a fascinating relationship with gambling. While casino gambling was never legal, gambling dens were prevalent before the Great Depression of 1929. To this day, the open display of illegal gambling from that time in American history continues to negatively affect the perception of gaming in Kentucky.

If you’re ever in Newport, directly across the Ohio River from Cincinnati, consider walking the Newport Gangster Tour.

*The purpose of this section is to inform the public of state gambling laws and how the laws might apply to various forms of gaming. It is not legal advice.

Slot Machine Private Ownership in Kentucky

In Kentucky, it is legal to own a slot machine privately.

Gaming Control Board in Kentucky

The Kentucky Horse Racing Commission (KHRC) regulates skill-based games at pari-mutual racetracks in the Commonwealth of Kentucky.

These devices are Historic Horse Racing (HHR) electronic gaming machines. The KHRC reports Kentucky offers 2,981 HHR machines.

Casinos in Kentucky

There are five pari-mutuel racetracks in the Commonwealth of Kentucky. Of these, only four sites offer skill-based HHR electronic gaming machines.

The largest casino in Kentucky is Derby City Gaming with 1,000 HHR gaming machines.

The second-largest casino is Red Mile Gaming & Racing, an HHR parlor in partnership with Keeneland Race Course, with 938 gaming machines.

Commercial Casinos in Kentucky

The four out of five of Kentucky’s pari-mutuel racetracks with skill-based HHR electronic gaming machines are:

Derby City Gaming in Louisville located 74 miles west of Lexington on the Indiana border.
Ellis Park Racing and Gaming in Henderson located 105 miles northwest of Bowling Green.
Kentucky Downs Gaming in Franklin located 29 miles south of Bowling Green.
Red Mile Gaming & Racing in Lexington.

Tribal Casinos in Kentucky

The Commonwealth of Kentucky has no federally-recognized American Indian tribes and, therefore, no tribal casinos.

How Much Does The Average Slot Machine Gambler Lose Weight

Other Gambling Establishments

As an alternative to enjoying Kentucky slot machine casino gambling, consider exploring casino options in a nearby state. Bordering Kentucky is:

North: Indiana and Ohio Slots
East: West Virginia Slots
Southeast: Virginia Slots
South: Tennessee Slots
West: Missouri Slots

Each link above will take you to my blog for that neighboring U.S. state to Kentucky.

Our Kentucky Slots Facebook Group

Are you interested in sharing and learning with other slots enthusiasts in Kentucky? If so, join our new Kentucky slots community on Facebook. All you’ll need is a Facebook profile to join this closed Facebook Group freely.

There, you’ll be able to privately share your slots experiences as well as chat with players about slots gambling in Kentucky. Join us!

Payout Returns in Kentucky

The Commonwealth of Kentucky does not offer any theoretical payout limits for their competition-based HHR gaming machines.

The Kentucky Horse Racing Commission offers statistics for HHR gaming under Quick Links entitled Wagering on Historical Horse Races. Its December 2019 report indirectly offers actual return statistics including comparisons to past actuals.

How Much Does The Average Slot Machine Gambler Lose Bet

To calculate a player’s win percentage from the report, divide Less: Return to Public by Total Handle. For December 2019, the monthly Player’s Win% for HHR machines were:

State-wide: 91.5%
Derby City: 90.9%
Ellis Park: 93.9%
Keeneland/Red Mile: 91.3%
Kentucky Downs: 92.0%

From this December 2019 report, Ellis Park had the highest player win% at nearly 94% while Derby City had the lowest at nearly 91%.

How much does the average slot machine gambler lose money

Summary of Kentucky Slot Machine Casino Gambling in 2020

Kentucky slot machine casino gambling exists as competition-based, games-of-skill Historical Horse Racing (HHR) electronic gaming machines instead of games-of-chance slot machines.

No minimum or maximum theoretical payout limits have been set. Monthly return statistics are publicly available for each pari-mutuel racetrack with HHR games.

Annual Progress in Kentucky Slot Machine Casino Gambling

In the last year, Kentucky increased its HHR machines by 9% to 2,981 devices. However, the average daily handle for HHRs increased by 46%. For 2020 so far, it’s an amazing 59% increase compared to 2019.

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