How to Identify and Avoid ‘Losses Disguised as Wins’ While Gambling Responsibly

Slot machines, also known as fruit machines, poker machines, or pokies, have been a popular form of gambling for over 100 years. The classic mechanical slot machine featured drums that would spin and was a gaming staple in bars, casinos, and arcades. In the last few decades, the advent of advanced technology transformed the classic mechanical slots into electronic gambling machines (EGMs), bringing slots into the modern digital era.

Modern slots now feature exciting video graphics, stereo sound, and innovative bonus features made possible by computer technology. Animated graphics, customizable lighting schemes, and celebratory sounds when a winning spin occurs all enhance player enjoyment and excitement. The online gambling boom has also allowed players to access endless varieties of slot games from home. Whether playing in a bricks-and-mortar casino or online, slots continue to be one of the most played and profitable casino games.

The Issue of Losses Disguised as Wins

A troubling issue that has arisen from modern multi-line slot machine design is the occurrence of what is known as a loss disguised as a win (LDW). An LDW happens when the amount won on a spin is less than the total wagered across all bet lines. Even though the player has still lost money on that spin, many slots will celebrate an LDW with flashing graphics and upbeat sounds just as they would an actual win. This creates a misconception for the player that they have won on that spin, rather than lost.

Research has shown that LDWs can have serious impacts on players. A study found that LDWs, when enhanced with celebratory audio and visual feedback, lead players to categorize the outcome as a win rather than a loss. Participants also overestimated how much they were winning when exposed to higher frequencies of LDWs. These “false wins” provide players with positive reinforcement that can facilitate riskier gambling behavior and lead to greater losses.

Combating LDWs with Responsible Gambling Tools

To counteract the issues created by LDWs, many gambling operators now offer responsible gambling tools to give players more control over their play. These tools can help players better track their spending and prevent excessive losses from LDWs or overall play.

Some key responsible gambling tools include:

• Deposit limits – Players can restrict how much they deposit into their account per day, week, or month. Once the limit is reached, no more funds can be deposited during that time period. This prevents players from continuously depositing and losing unaffordable sums.
• Loss limits – Players can set a cap on how much they can lose per day, week, or month. Once the loss limit is reached, the player is prohibited from gambling further during that time frame. This directly counters losing streaks and LDWs.
• Transaction histories – Players have access to detailed records of their wagers, wins, losses, deposits etc. This helps them accurately track where their money is going rather than relying on perception.
• Self-exclusion – Players can voluntarily block themselves from gambling sites for a set period of time if they feel they are developing unhealthy play habits. This gives them time away to evaluate their gambling.

Many responsible operators, like Kindred Group, are taking active measures to reduce problem gambling, such as using analytics to minimize harmful play and providing extensive responsible gambling resources. Utilizing responsible gambling tools empowers players to gamble more sensibly within their means.

Regulatory Changes to Curb Excessive Gambling

In addition to voluntary responsible gambling programs, governments worldwide are updating gambling regulations and legislation to offer further protection from gambling’s risks and harms. By setting legal standards for the industry, regulation can establish important safeguards against issues like LDWs and excessive gambling.

For instance, in Victoria, Australia, lawmakers are working to implement a $100 cap on the amount that can be deposited at one time into a poker machine, down drastically from the former $1000 limit. In the UK, proposed updates to the Gambling Act recommend reducing online slot betting limits to £2-£15 per spin. The UK proposals also call for strengthened affordability checks and increased funding for treatment and research.

Other regulatory techniques can include:

• Banning features like auto-play that facilitate excessive continuous play
• Mandating pop-up messages that alert players to how long they’ve been gambling
• Requiring operators to prominently display responsible gambling resources
• Restricting certain high intensity slot features like LDWs
• Enforcing strict standards for advertising and promotions
• Funding programs to identify and assist problem gamblers

A comprehensive regulatory framework allows governments to establish balanced standards that make gambling safer while preserving recreational choice for adults. Ongoing modernization of regulations is important as technology and new risks like LDWs continue to emerge.

The Path Forward

Losses disguised as wins represent a deceptive and potentially harmful manipulation in modern slot machine design. While further restrictions may be needed, the most immediate path forward is increasing player awareness of LDWs and enabling players to utilize responsible gambling tools.

Players should educate themselves on how to identify LDWs by carefully monitoring their overall wins and losses rather than relying on a slot’s audio and visual feedback. Taking advantage of available responsible gambling tools gives players the power to control their own experience based on their personal boundaries and budget.

For the industry, upholding ethical standards and player welfare must remain the top priority. Transparency about LDWs and proactive responsible gambling features can help build player trust and long-term sustainability. With players making informed choices and exercising their own judgment, slot machines can retain their entertainment value and the industry can progress down a responsible path into the future.