The current study uses a simulation approach and an empirical investigation of real-world slot machine play systematically varying the three dimensions (i.e., monetary return, volatility, and hit probability) would be an invaluable direction for future research on this topic.

The risk–return framework permits investigators to examine the different types of gambling behaviour that might theoretically occur. For any given slot machine, these three measures vary based on the number of lines played and the amount bet per line (both of which are selected by the player).Įach type of slot machine can be depicted by a three-dimensional risk–return curve that represents the various trade-offs between risk and return that are presented to a player through the selection of the number of lines to play and the total amount to bet. Three fundamental measures of risk and return were used: the expected monetary value of any payouts, the volatility or uncertainty around those payouts, and the excitement or entertainment value of play.

Also, to highlight the implications that being able to play an increasingly large number of slot machine lines at once (made possible due to technological advances in graphical interfaces) has for statistical modelling in the slot machine industry.Ī Monte Carlo simulation (i.e., a computerized mathematical technique) was used to evaluate slot machine performance. This paper describes a simulation to describe various aspects of slot machine play. attractive audiovisual displays) rather than on statistical characteristics of the machines. Research into the roots of persistent gambling has also tended to focus more on characteristics of the gambler or on qualitative aspects of the slot machine (e.g. Previous research has indicated that gambling behaviour likely persists because the act of gambling is a form of entertainment and because gamblers consistently make use of cognitive distortions (i.e., errors in thinking) so that they may explain away or even be unaware of the extent to which they are losing money. How are gambling behaviours related to the statistical characteristics (e.g., probability of winning) of slot machines?

Slot machine method