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Structural characteristics define the capacity of EGMs to induce substantial expenditure in users. If gamblers’ demand for EGM gambling were highly responsive to price – that is, if users changed their behaviour as prices rose – then the conclusion would be that EGMs had significant price elasticity. In fact, the “price” calculation is best conceived as the deduction of the price factor (1-RTP) on average for each bet wagered (i.e., for each spin). The price of EGM games can be defined as 1-RTP, so that an RTP of 85% (or 0.85) produces an average price per wager of 0.15 or 15%. It is, however, rare for such an outcome to be achieved in the short term.
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In Figure 1, the first image illustrates the first three lines (1, 2 and 3) available for wagers. The reels appearing on contemporary electronic EGMs are a simulation of mechanical reels of older-style mechanical gambling machines.
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A 2¢ game with the same characteristics will permit a $10 maximum bet. See “The reality of player returns”, above, for more information on different betting strategies. These devices used mechanical stops to arrest the spin of the reels in order, usually from left to right. When the winning symbols lined up, a prize was delivered, usually via a coin dump into the tray at the bottom of the machine.
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Increasing the combinations upon which bets may be placed brings more reels and lines into play. ReelPower games allow up to 243 (or in some cases more) bets to be placed. The effect of this is to increase average bet sizes, and the rate of losses, quite substantially (Livingstone & Woolley, 2008). The effect of this is to lower the actual return to player (RTP) to users who use the game without achieving a jackpot payout.
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