Electronic Gaming Machines (EGMs)

Consumer Protection & Product Safety Issues

Background

All EGMs, including slot machines, video slots, video lottery terminals (VLTs) and video poker are now all basically computer games
All EGMs utilize a random number generator (RNG) to ensure they are a “fair game of chance”, where each and every play of the game has the exact same probabilities of winning the various prizes
EGM payback percentages and paytables vary from machine to machine but are never disclosed

Consumer Rights Issue

The central tenet of consumer protection is “informed choice”.

The odds of winning various prizes are never disclosed on EGMs, unlike other regulated gambling games. Players cannot determine the probabilities of winning any prize by looking at or playing an EGM.
EGMs are computer games that do not disclose how the outcomes are determined or how the machines work.
EGMs create misrepresentations of the true probabilities of winning.
Centrally, computer-controlled “bonusing systems” that reward players based on predetermined criteria unknown to the players, gives some players an advantage over other players and may well constitute “cheating at play” - Criminal Code of Canada, Section 209.
EGMs are promoted as “entertainment” without disclosure of the multiple known risk factors. These risks include biological, psychological and social risks factors that players may possess, but are not necessary to develop problems. Concealed game attributes may directly cause gambling problems by themselves.

Players simply cannot make an informed choice without knowing the true odds of winning the various prizes on each EGM; how the games work; and what all the known risks factors are for playing EGMs. This includes concealed and addictive game attributes.

Product Safety Issues

EGMs are highly addictive because of the way they reward players. Operant conditioning produced by the outcomes from EGMs is a powerful addictive process that is hard to extinguish.

Outcome sequences, though a collection of random outcomes, do not “feel” random and form a predictable, emotional “roller coaster” effect that mimics known addictive processes. Creating complex pay structures, such as those that are now found in multi-line, multi-reel video slot machines intensify this addictive effect.
EGMs outcome displays produce illusions and distortions of the true probabilities of winning. These illusions create misrepresentations of the true odds of winning that distort players’ perceptions of their likelihood of winning various prizes.
Virtual reels and virtual reel mapping also distort players’ perceptions of the true probabilities of winning, plus they create an over-abundance of near-miss effects.
Displaying winning symbols of large prizes that over-reflect their probabilities of coming up under a payline, creates the perception that these prizes are highly likely or soon to occur when they are not.
Displaying winning symbols of small prizes that under-reflect their probabilities of coming up under a payline, creates the perception that the player is “beating the odds”.
Operant conditioning coupled with intense outcome sequences that mimic known addictive processes, along with distortions and illusions of the true probabilities of winning, all combine to produce a lethal addictive potential that players MUST be warned about.
Players of EGMs simply cannot make rational decisions based on distortions and illusions, and what they hear, see and experience while playing EGMs. This inability to make rational decisions while playing EGMs facilitates loss of control, which is a natural occurrence that results in excessive play and unintentional loss of money.

Consumer protection standards found in the Canadian Competition Act and the Criminal Code MUST be applied to EGMs immediately. Players have an absolute right not only to know the odds of winning every prize, but more importantly they also have a right to know all the known and specific risk factors that makes everyone vulnerable who plays EGMs, especially those risks that stem from the designs of EGMs that creates powerful addictive processes and potentials for all who play EGMs. Obligatory product safety labeling, warnings and protective measures must be immediately implemented. Anything less needlessly furthers the endangerment of consumers and does not allow for informed choice.



	Electronic Gaming Machines (EGMs) Consumer Protection & Product Safety Issues Background All EGMs, including slot machines, video slots, video lottery terminals (VLTs) and video poker are now all basically computer games All EGMs utilize a random number generator (RNG) to ensure they are a “fair game of chance”, where each and every play of the game has the exact same probabilities of winning the various prizes EGM payback percentages and paytables vary from machine to machine but are never disclosed Consumer Rights Issue The central tenet of consumer protection is “informed choice”. The odds of winning various prizes are never disclosed on EGMs, unlike other regulated gambling games. Players cannot determine the probabilities of winning any prize by looking at or playing an EGM. EGMs are computer games that do not disclose how the outcomes are determined or how the machines work. EGMs create misrepresentations of the true probabilities of winning. Centrally, computer-controlled “bonusing systems” that reward players based on predetermined criteria unknown to the players, gives some players an advantage over other players and may well constitute “cheating at play” - Criminal Code of Canada, Section 209. EGMs are promoted as “entertainment” without disclosure of the multiple known risk factors. These risks include biological, psychological and social risks factors that players may possess, but are not necessary to develop problems. Concealed game attributes may directly cause gambling problems by themselves. Players simply cannot make an informed choice without knowing the true odds of winning the various prizes on each EGM; how the games work; and what all the known risks factors are for playing EGMs. This includes concealed and addictive game attributes. Product Safety Issues *EGMs are highly addictive because of the way they reward players. Operant conditioning* produced by the outcomes from EGMs is a powerful addictive process that is hard to extinguish.** Outcome sequences, though a collection of random outcomes, do not “feel” random and form a predictable, emotional “roller coaster” effect that mimics known addictive processes. Creating complex pay structures, such as those that are now found in multi-line, multi-reel video slot machines intensify this addictive effect. EGMs outcome displays produce illusions and distortions of the true probabilities of winning. These illusions create misrepresentations of the true odds of winning that distort players’ perceptions of their likelihood of winning various prizes. Virtual reels and virtual reel mapping also distort players’ perceptions of the true probabilities of winning, plus they create an over-abundance of near-miss effects. Displaying winning symbols of large prizes that over-reflect their probabilities of coming up under a payline, creates the perception that these prizes are highly likely or soon to occur when they are not. Displaying winning symbols of small prizes that under-reflect their probabilities of coming up under a payline, creates the perception that the player is “beating the odds”. Operant conditioning coupled with intense outcome sequences that mimic known addictive processes, along with distortions and illusions of the true probabilities of winning, all combine to produce a lethal addictive potential that players MUST be warned about. Players of EGMs simply cannot make rational decisions based on distortions and illusions, and what they hear, see and experience while playing EGMs. This inability to make rational decisions while playing EGMs facilitates loss of control, which is a natural occurrence that results in excessive play and unintentional loss of money. Consumer protection standards found in the Canadian Competition Act and the Criminal Code MUST be applied to EGMs immediately. Players have an absolute right not only to know the odds of winning every prize, but more importantly they also have a right to know all the known and specific risk factors that makes everyone vulnerable who plays EGMs, especially those risks that stem from the designs of EGMs that creates powerful addictive processes and potentials for all who play EGMs. Obligatory product safety labeling, warnings and protective measures must be immediately implemented. Anything less needlessly furthers the endangerment of consumers and does not allow for informed choice.

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