All commercial gambling games are constructed so that the average gambler will lose money over time. This fact is often communicated to gamblers on virtual gambling games as the “return-to-player.” A return-to-player of 90% means that for every £100 bet, on average £90 is paid back out in prizes. In previous work, gamblers were better informed, and perceived a lower chance of winning, when this information was equivalently reframed as a “house-edge” of 10%, whereby the game keeps 10% of all money bet on average. This paper explores whether there are further risk communication advantages to using currency framing for the house-edge format, by directly stating the amount kept as: “This game keeps £10 for every £100 bet on average.” Online gamblers (N = 1,007) reported their perceived chances of winning for hypothetical games with house-edges of either 0.5%, 7.5%, or 15%, presented as either percentages or currency units. Gamblers’ perceived chances of winning were unaffected by this framing of house-edge information. Link to the article
Citation: Newall, W.S., Walasek, L., & Ludvig, E.A. (2020). Percentage and currency framing of house-edge gambling warning labels. Experimental Gambling Research Laboratory, School of Health, Medical and Applied Sciences, CQ University, Melbourne.