A recent study conducted by Central Queensland University and funded by the organization Gambling Research Australia (GRA) has highlighted several points of concern regarding the proliferation of so-called skill-based gambling machines (SGMs), which have long been considered controversial in the U.S.,
The study, titled Skill-Based Gambling in Australia, posited that the machines are dangerous in the sense that they give the player an illusion of control over the outcome of the game, which only accelerates problem gambling behavior.
Several U.S. jurisdictions have been entrenched in court battles over the legality of the games for years now—proponents claim that the skill-based aspect makes them legally different from traditional gaming machines, which are random and based purely on chance. Detractors, however, are adamant that the games do indeed fall under the scope of regulation, and are therefore operating illegally in bars, convenience stores and other venues throughout the country.
According to the study, the primary reason that SGMs are slowly migrating to Australia is in response to the increasingly stringent regulations being adopted by various states, especially with regards to gaming machines. Researchers said that they are seen as a way for operators to “future-proof” their revenues.
Another point of contention highlighted by the study is that most SGMs are licensed versions of well-known video or arcade games, which also makes them more enticing for players who wouldn’t otherwise play traditional games.
Even though existing gamblers were the ones most attracted to SGMs, the study pointed out that young males were especially at risk for becoming fans of the games, which promote a sense of competition by enticing players to increase their “skill” levels over time.
Regulators across the country are expected to draw future SGM regulatory guidance from the report.
“Skill-based gambling machines represent a real change to how gaming machines operate,” Alison Parker, director of the New South Wales (NSW) Office of Responsible Gambling, said in a statement. “As with any new product, it’s important we understand whether these innovations may increase the risk of gambling harm. This study shows that skill has little impact on the outcome of these games, and that participants should be aware of their real chances of winning.”
Despite the alarm, only a small number of SGMs are currently in Australian circulation—only a few venues in Queensland and Western Australia are known to have them, but there are none in the other states.
Other findings from the study include:
- Young, male video game players were the demographic most at risk for developing gambling problems though SGMs;
- Participants indicated that SGMs were attractive because of their novelty, interactiveness and audio-visual effects; and
- The majority of participants overestimated the amount of influence that skill had on the actual outcome of the game.
