Are gaming machines rigged? The answer in Australia is definitely 'no'. Gaming machines are regulated to a surprising degree, and governments vigorously scrutinise their operation. Clubs, hotels and casinos that operate gaming machines are required to provide much information to government about their operation. They can be fined for any defect, even a malfunctioning light can break the law.

Casinos don’t make claims about slot machines that are blatantly untrue. If a game has a maximum jackpot of $1 million, you do have a chance of winning that much money. What you don’t know is how likely or unlikely it is to win that amount.

The starting point is the Australian/New Zealand Gaming Machine National Standard, a 119 page document that sets out all sorts of rules, requirements and standards for gaming machines. It's purpose is to ensure that gaming machines are fair, secure and auditable. The state and territory regulators, as well as the Kiwis, get together regularly to revise the Standard which is currently up to version 10.0 (as at December 2008). The Standard covers the cabinet, computer, screen, money-handling, metering, artwork, screen displays, game play, note acceptors and lots more.

• Does That Mean the Slot Machines are Rigged? The answer to whether all electronic slot machines are rigged is yes. Yes, they are “rigged” to put the odds in the casino’s favor more often than the player’s favor. Casinos ARE a business, after all. However, the slot machine is not rigged to purposely make you, personally, lose.
• A machine is “rigged” if it is manipulated to operate differently from the way it was designed to operate, with the intention being to favour either the house or the gambler. The reason for that specific definition is that all casino games are, to some extent, rigged. Consider the nature of online pokies design.
• The answer to whether all electronic slot machines are rigged is yes. Yes, they are “rigged” to put the odds in the casino’s favor more often than the player’s favor. Casinos ARE a business, after all. However, the slot machine is not rigged to purposely make you, personally, lose. They’re built to make everyone lose except.

The Standard states that 'A game must follow a constant set of rules and must at no time deviate from those rules.' So it is illegal for a manufacturer to put extra little things in the programs of computers.

Also 'events of chance within the games must be independent of (i.e. not correlated with) any other events within the play or any other events within previous plays.' This means that each game you play on a machine is completely independent of the previous game. If machines were more likely to pay because they had not done so for some time, they would be breaking the law.

Each State can take what they want from the National Standard and have their own variations. For example, in South Australia, note acceptors are not lawful. In NSW, note acceptors are legal and we have the NSW Appendix to the National Standard, which explains that NSW has some different requirements for hardware, software, multi-terminal gaming machines etc.

The National Standard is only the starting point, as each State and Territory have added their own additional requirements. In NSW we have the Gaming Machines Act (2001) and Gaming Machines Regulation (2002), which are special laws just for gaming machines. The objects of these laws are:

1. to minimise harm associated with the misuse and abuse of gambling activities,
2. to foster responsible conduct in relation to gambling,
3. to facilitate the balanced development, in the public interest, of the gaming industry,
4. to ensure the integrity of the gaming industry,
5. to provide for an on-going reduction in the number of gaming machines in the State by means of the tradeable poker machine entitlement scheme.

The Gaming Machines Act doesn't just regulate the technical side of gaming machines, but also provides some responsible gaming regulations, including a law that requires clubs and hotels to shutdown their gaming machines for a few hours every night. The laws also apply to individuals too. For example, the Gaming Machines Act makes it an offence to interfere with a gaming machine and people who try to alter the operation of machines using magnets or strings could go to prison for up to a year.

In addition, NSW has additional restrictions on gaming machines through the regulator, the NSW Casino, Liquor and Gaming Authority (CLGA). The CLGA considers each new game to see whether it is acceptable to the gamblers of our state. Not all games are approved. Recently games have been rejected because they were non-linear (didn't have same average return for any bet size), had too many free games (40 is the max. in NSW) and displayed legal tender in the artwork (might encourage people to gamble irresponsibly).

Gaming machines are not perfect. Sometimes they go wrong or have 'bugs' in the program. If you think your machine is malfunctioning, then you should talk to the Duty Manager and explain your concerns. If you are right, then the gaming venue will switch off your machine and call a repairman. They must cash in any credits you had in the machine at the time of the malfunction. If you are not satisfied with the response of the gaming venue, you can contact the government regulator and they may send an inspector to check the machine. Each state and territory have their own government regulator. For example in NSW, it is the Office of Liquor, Gaming and Racing (OLGR). They have inspectors and gaming machine expertise and can discuss with you any concerns you have about gaming machines. There is no point in continuing to play a defective machine, because if you win a major prize on a defective gaming machine, you forfeit the prize. That would be painful!

Of course, some people still complain that machines are rigged because despite all the detailed regulation, standards, and gaming machine laws, they continue to lose money when they play gaming machines... unfortunately there is no law that says you are going to win when you play!

Billions of people love to gamble. For some, it’s the thrill of the chase – the possibility of winning. For others, it’s entertainment or a way to escape the day-to-day grind.

If you asked them, they’d tell you they’re not doing anything wrong. That gambling is no different or no more a waste of money than going to a movie, concert or nice dinner out.

But then there are people who disagree. That, for one reason or another, think there’s something wrong with gambling.

We thought it’d be interesting to explore the other side of the coin. So, the following are 6 arguments we’ve seen people make against gambling.

1. Religion

This is the biggest argument on our list. Do a Google search for ‘arguments against gambling’ and you’ll see what I mean.

There are different reasons why religious people are against gambling. But they all stem from different verses you’ll find in the Bible.

For example:

Keep your lives free from the love of money and be content with what you have.
Hebrews 13:5

You shouldn’t try to gain material things when all your basic needs are met.

Those who work their land will have abundant food, but those who chase fantasies will have their fill of poverty.
Proverbs 28:19

God wants you to work (for what you have). Gambling is a way to make money without working, which is fueled by greed, selfishness and laziness.

For the wicked boasteth of his heart’s desire, and blesseth the covetous, whom the LORD hateth.
Psalm 10:3

And yet another passage that condemns greed and overabundance.

The bottom line – the Bible teaches you to be selfless and not to covet (materialistic) things. And that you can save both time and money by not gambling – which you can use instead to better yourself and those around you.

But is gambling truly a sin? That depends on who you ask, how they interpret the Bible’s lessons, and whether or not they follow everything the Bible teaches.

Not surprising, some say gambling is a sin. No two ways about it; no ifs, ands or butts.

But then there are others who believe only compulsive gambling is a sin; it’s sinful to be addicted to gambling. But it’s not a sin to gamble in moderation.

“Bible-believing Christians would consider compulsive gambling a sin. That is, gambling is sinful for those who are addicted to it. Compulsive gamblers sin by wasting time. Gambling is for them such an addiction, that most or all of their spare time is spent gambling in one form or another and weekends and vacations which should be spent with family are taken up with trips to cities that have casinos. The more focus on gambling an addicted person becomes the less time he spends with his family and the less productive he becomes in his job.” (Excerpt from nolotto.faithweb.com)

2. Gambling Leads to Addiction

Another argument against gambling is that it leads to developing a gambling addiction. Statistics show that 80 percent of American adults gamble annually. What’s scary about that is they also show that every 3-5 gamblers (out of 100) struggle with a gambling problem.

Even scarier yet, statistics shows that as many as 750,000 young adults (14-21) have a gambling addiction. The risk of developing an addiction more than doubles for young adults, with people between the ages of 20 and 30 having the highest risk.

Gambling addiction – like most addictions – is destructive. It tears families apart and often leads to suicide, substance abuse, bankruptcy, crime and more.

3. It’s a Waste of Money

Here’s what Dave Ramsey (a financial expert) says about gambling in a casino:

“I don’t really have a moral problem with it, but I don’t understand the concept. Call me crazy, but I do not get a thrill from losing money I’ve worked hard to earn. That’s not my idea of entertainment.”

He goes on to say he thinks people who say they gamble for fun or recreation are delusional – that they believe they’ll actually beat the house and win – that they’re an exception to the rule.

And what about the lucky few who actually win? Well, Dave says:

“You may see a news story once in a while about someone winning big money in a casino, but that rarely happens. Think, too, about how much money those people had flushed down the toilet previously while gambling. There’s a really good chance they didn’t really ‘win’ anything. In most cases, they probably just recouped a small portion of their previous, substantial losses.”

Mark Ford (serial entrepreneur, author, real estate investor) shares similar, yet different sentiments to Dave Ramsey. Ford says he doesn’t gamble because it’s too much like work; he gets no pleasure from it; and because it’s so clear to him he’d lose money.

He goes on to say you could spend the same amount of effort into nearly any other endeavor and you’re likely to walk away richer, not poorer, as a result.

“Concentration. Focus. Calculations. Long hours. It all seems like work to me. The only difference is that in Las Vegas the odds are stacked against you.

In any other field of endeavor, you could take the same people and put them to work doing virtually these same things –concentrating, figuring, calculating, and executing –and you’d have– almost certainly– a viable business.

Not in Las Vegas. Over the long haul, gambling makes you poorer. Spend the same time and effort in almost any other endeavor, and you’re likely to get richer.

So why is it that so many people like to gamble and don’t like to work?”

4. Millennials Want Control

Another argument stems from stats that show millennials (people born from 1980-2000) gamble far less than previous generations. An interesting fact is how Las Vegas and The Strip visitation is increasingly being driven by millennials, yet gaming accounts for less than 37% of the revenue generated on the Las Vegas Strip.

The Motley Fool gives several reasons (guesses) why:

• Millennials find (current) slot machines boring.
• They want to be engaged and empowered – they want some control over the outcome.
• They prefer night clubs to casino gambling.
• They’re more interesting in online gaming, poker and daily fantasy sports.
• They want skill based games.
• They demand fairness.
• They want to be more social.
• They want experiences.

The common denominator here is that millennials want more control over their outcome. They want games where skill can overcome luck – and that’s just not possible when every casino game favors the house.

And why do all casino games favor the house?

5. Casino Games are Rigged

Did you know that every casino game favors the house? It might be by as little as half a percent (.5%), but the point is, casino games are rigged against you. This is called the house edge.

“My advice is don’t waste your time and money on that stuff. One way or another, the house always wins. That’s how they’re able to build those giant, billion-dollar places called casinos”. – Dave Ramsey

In the same article referenced above (#4), the Motley Fool says that millennials wanting more skill-based games (control) isn’t the (only) problem.

In Las Vegas specifically, the house edge – or the hold percentage – has increased over the last few decades. In other words, the games were already rigged against you – but now they’re even more unfair. You can find better value gambling somewhere other than Las Vegas (at local casinos, for example).

“…the underlying assumption is that if millennials weren’t spending their money partying in Las Vegas, they would be spending it gambling in Las Vegas (either that, or millennials apparently should be gambling more to match what they’re spending on bottle service)”.

“This is 100% wrong – the reality is that if millennials weren’t spending their money partying in Las Vegas, they wouldn’t be coming to Las Vegas at all”. – The Motley Fool

The Motley Fool goes on to say that, while gambling has matured, so has the audience. Millennials have grown up using the internet – they have access to (gambling) information that past generations didn’t have access to.

“(Millennials) are more knowledgeable and generally less stupid about gambling than any generation to come before us. We are far less likely to believe, for example, that the Martingale system is valid”. – The Motley Fool

The bottom line – the internet has made us wiser about gambling. Most people now realize that casino games are (legally) rigged against us. Between this and the worsening house edge, people choose to gamble far less, if at all (evident by the decreasing gaming numbers in Las Vegas).

6. Underage Gambling

Another problem people have with gambling is the affects gambling has on kids and young adults.

This is a very real concern. Earlier (#2) we shared a stat that says nearly 750,000 young adults have developed a gaming addiction, and that they’re nearly twice as likely to do compared to adults aged 30+.

Most casinos say you need to be 18 or 21 (depending on if they serve alcohol) to gamble.

Never mind the stats that show that even adults 18-30 are twice as likely to develop a gambling addiction. What about those who are younger than 18/21, but manage to obtain a fake ID?

Want an example? What about poker pro Phil Ivey – you can’t read a bio about him without it being mentioned he used a fake ID to play poker in Atlantic City in his early days.

This problem isn’t limited to brick/mortar casinos, either. Poker pro Tom Dwan started playing online at 17. He’s not the only one, either. It’s easier for kids/teenagers to gamble online since many casinos (especially offshore) don’t check your ID until you’re ready to make your first cash out.

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Next to addiction and religious reasons, underage gambling is the strongest argument people make against gambling. The prevention of underage gambling is a cornerstone of all state (online) gambling laws, as well as a big criticism of others.

Conclusion

These are the biggest and most common arguments against gambling today.

It’s not hard to poke holes or make strong cases against any of these points. But that shouldn’t be our focus.

Instead, I think it’s a much better idea to understand why people are against it. For one, it’s easier to empathize with others – to see where they’re coming from.

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But it can also help us improve the gambling industry – to talk about it and figure out what we can do to make the industry safer and more enjoyable for those who choose to participate. That, I think, is the best action of all.