Home List of Titles Applying mathematics to poker machine regulations to increase consumer protection
Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.3/204579
- Applying mathematics to poker machine regulations to increase consumer protection
- Barnett, Tristan
- Casino games are comprised of mathematical formulations which can be found readily in the literature. The percent house margin (or return to player) establishes how much a player is expected to lose in the long run. While the percent house margin is important to consumers (players are consumers of casino games) in determining the choice of games or how long to play a particular game, there is other information which could also influence these decisions. For example, the probability of the consumer ending up in profit after 100 games, or the probability of the consumer losing more than $100 after 200 games, would be valuable information. These results are classified as the distribution of payouts, and to calculate these results requires three pieces of information from the casino game: 1) the initial cost; 2) the payouts for each possible outcome; and 3) the probability associated with each outcome. The initial cost (the cost to play) is given directly for any casino game. The payouts for each possible outcome are also given directly for every casino game, either in the form of odds or prices. On the other hand, the probabilities associated with each outcome are not given directly for a casino game. However, these probabilities can usually be derived from the playing rules. For example, in single zero roulette, the probability of a particular number coming up can easily be calculated as 1/37, since there is one favorable outcome out of 37 possible outcomes. It can therefore be argued that games where the probabilities associated with each outcome can be obtained from the playing rules are 'fair', since the distribution of payouts can be readily obtained using mathematics. On the contrary, casino games where the probabilities associated with each outcome cannot be obtained from the playing rules could be considered as 'unfair', since important information is hidden from the player. This is the situation for poker machines in Australia.
- Publication type
- Journal article
- Gaming Law Review and Economics, Vol. 14, no. 8 (Oct 2010), pp. 601-607
- Publication year
- FOR Code(s)
- 1801 Law
- Consumer protection; Gambling regulation; Poker machines; Probability
- Mary Ann Liebert
- Publisher URL
- Copyright © Mary Ann Liebert, Inc. (2010).
- Peer reviewed