Slots Tutorial: Losses Disguised As Wins Explained

Uploaded by uwslotstutorial on 24.02.2011

On modern slot machines, players can wager on more than one line such as
3 5
or 15 lines.
On these multiline games, a loss disguised as a win occurs when the payback on a spin
is less than the amount wagered. LDWs can only happen when players bet on more
than one line.
When a regular loss occurs, the player is paid back nothing. Here, the player has bet
on 15 lines and wagered 5 credits on each of them, for a total wager of 75 credits.
After spinning, the player is paid back nothing. This is a regular loss.
The player has lost 75 credits. The machine goes into a state of quiet.
When a win occurs, the player is paid back more than they wagered.
[winning bells]
Here, the player was paid back 125 credits. This is more than the wager of 75 credits.
The player has come out ahead by 50 credits.
A loss disguised as a win falls somewhere in between these two scenarios.
[winning bells] Here, the machine pays 25 credits.
This is less than the player wagered, so it is technically a loss of 50 credits.
However, the machine celebrates this outcome as if it were a win.
[winning bells] Here is another example.
The player wagered 75 credits and the machine paid back 50, making it a loss of 25 credits.
When a player wagers on 15 lines, regular losses happen on about 68% of spins, wins
happen on about 14%, and losses disguised as wins happen on about 18%.
Thus, LDWs are more common than regular wins.
On modern slot machines, players can make approximately 1,000 spins per hour.
Thus, on average in one hour the player is exposed to:
680 losses
140 regular wins
and 180 LDWs
A concern for problem gambling is how often LDWs occur. On average, in one hour the player
is rewarded 180 times with flashing graphics and positive sounds,
even though these are technically 180 losses. The concern is highlighted by one gaming industry
employee who said, “positive reinforcement hides loss,”
and one elderly slots player who said, “if I keep on winning I’m going to go broke!”