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• Structural characteristics define the capacity of EGMs to induce substantial expenditure in users.

Structural characteristics define the capacity of EGMs to induce substantial expenditure in users. 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. In fact, the “price” calculation is best conceived as the deduction of the price factor (1-RTP) on average for each bet wagered (i.e., for each spin). The price of EGM games can be defined as 1-RTP, so that an RTP of 85% (or 0.85) produces an average price per wager of 0.15 or 15%. It is, however, rare for such an outcome to be achieved in the short term.

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A $5 maximum bet (that is, the most that can be wagered in one “spin’) applies in Victoria, Tasmania, South Australia, and Queensland. In casinos, however, many jurisdictions permit unrestricted maximum bets, though in some cases with the proviso that insertion of a loyalty card is required to permit this.

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Increasing the combinations upon which bets may be placed brings more reels and lines into play. ReelPower games allow up to 243 (or in some cases more) bets to be placed. The effect of this is to increase average bet sizes, and the rate of losses, quite substantially (Livingstone & Woolley, 2008). The effect of this is to lower the actual return to player (RTP) to users who use the game without achieving a jackpot payout.

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A large reward will be accompanied by a lengthy melody, aligned with the game’s theme. 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, 1953). However, the probability that even such a time commitment would produce all possible results in an EGM game is very close to zero.

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In Figure 1, the first image illustrates the first three lines (1, 2 and 3) available for wagers. The reels appearing on contemporary electronic EGMs are a simulation of mechanical reels of older-style mechanical gambling machines.

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