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Showing posts with label near misses. Show all posts
Showing posts with label near misses. Show all posts

Thursday, January 5, 2017

The devil in my casino





The devil in my casino
 Columnist

On a recent night, I yielded to temptation and paid a visit to my neighborhood den of sin: the newly opened casino at MGM National Harbor.
From my house in Fort Washington, the road to Hades is four miles. Barring traffic jams, I can be at a slot machine in less than 10 minutes. With my first dollar, I received a cash-out voucher for 50 cents and five free spins. It wasn’t a win, but it didn’t quite feel like a loss, either.
I played on, excited by the unexpected new chances to hit the jackpot.

I had been warned.
Living within 10 miles of a casino more than doubles the rate of problems from excessive gambling, according to researchers at the University of Buffalo.
Baby boomers like me are said to be among the fastest-growing group of problem gamblers.
“Older adults view the casino as a place where they can socialize, escape their loneliness, and escape their grief,” researchers Fayetta Martin, Peter A. Lichtenberg and Thomas N. Templin wrote in a journal for the National Institutes of Health. “Given that their primary choices of games are slot machines, these social needs, however, may not be getting met. . . . It may be worthwhile for church groups to assess the reasons for older adults wanting to go to casinos and helping them to determine how their social needs might be met in alternative ways.”
And then there’s the race factor.
As the National Center for Responsible Gaming has noted, “Gambling and gambling related problems are common among all racial and ethnic groups in the United States, but there is new evidence that African Americans are more likely to experience gambling-related problems than white Americans.”
That’s three strikes. Still, there is something to be said for being mesmerized.
Along with the casino, MGM National Harbor features several luxury retail stores and fancy restaurants the likes of which Prince George’s County, Md., had never seen. At the Sarah Jessica Parker store, for instance, a pair of purple high heels goes for $355. For a county more accustomed to seeing Kmart stores, the high-end goods suggest that there may be something royal about Prince George’s after all.
At the opening of MGM’s Marcus restaurant, chef Marcus Samuelsson cooked up a meal worthy of an establishment in the nation’s most affluent, predominantly black county. The dinner included an “Obama short rib slider” along with “China Afro funk and sweet potato puree, St. Hill Shrimp N Grits with Carolina shrimp, shoe box ham and creamy grits.”
Of course, these offerings also pose potential problems. Gambling is not the only behavior that can lead to addiction. Shopaholism and food addiction can be just as costly.
Nevertheless, the primary attraction at MGM National Harbor is the casino — that 125,000-square-foot cavern of iniquity.
There are more than 3,000 slots and hundreds of card and craps tables.
I took my free spins and came close to winning each time. Barbara Dafoe Whitehead, director of civil society initiatives at the Institute for American Values, has suggested that such titillation is just part of the casino con game.
“One way these computerized pickpockets milk their customers is by generating near misses, whereby the spinning symbols on the machine stop just above or below the winning payline,” she says. “The feeling of having come oh so close to a win prompts further play.”
I had spent a total of $4 during the visit and won five free spins and a 50-cent voucher. But I have since discovered several books and articles on how to beat the slot machine.
As for my maiden voyage to the casino, I confess that the devil made me do it. However, when I learn those winning techniques, Lady Luck could make me do it again.

Thursday, March 6, 2014

'Almost winning': how near misses for gamblers fire off a 'win' response in the brain



'Almost winning': how near misses for gamblers fire off a 'win' response in the brain

05 March 2014
Scientists at Swansea University and Exeter University have discovered that near misses experienced by gamblers on slot machine games promote similar neural responses to winning and could lead to further gambling.
Dr Simon Dymond, Reader in Psychology at Swansea University, who led the research, explains, ''Near-misses are actually losses, but previous research shows they may promote continued gambling because the brain interprets them as being similar to wins.

''New research now shows that near-misses are underpinned by changes in the brain's electrical activity, particularly in the theta (4-7 Hz) frequency range, a frequency known to be involved in processing win and loss outcomes. These changes occur in similar brain regions to actual wins and are linked to both how severe someone's gambling history might be and how susceptible they are to developing a future gambling problem.''

''Slot machine games, as found on the fixed odds betting terminals of many high street betting shops, have subtle ways of telling players not just whether they have won or lost, but also whether they ''almost won''.
 
"One of the best-understood ways is called the near-miss effect - that is, when the display on a losing slot machine physically resembles an actual win display (such as two out of three matching symbols on the pay-line). Near-misses are actually losses, but previous research shows they may promote continued gambling because the brain interprets them as being similar to wins.''

The researchers studied male gamblers and non-gamblers and exposed them to simulated slot machines presenting win, loss and near-miss outcomes. They underwent a brain scan using a technique called magnetoencephalography (MEG), which measures both the timing and location of brain responses to different gambling outcomes. The team found that theta activity increased in response to near-misses relative to other losses in brain regions such as insula and orbitofrontal cortex (OFC), which was linked to gambling severity.

Dr. Natalia Lawrence, senior lecturer at Exeter University, and joint first author on the study says, ''These findings show, for the first time, that ''gamblers have an exaggerated theta response to 'almost winning' in brain regions related to reward processing, which could contribute to them continuing to gamble despite their losses''. If replicated, these brain activity changes could help us identify those vulnerable to gambling addiction and might be a useful measure of the effectiveness of therapy for gambling related problems''.

Dr Dymond says, ''Problem gambling is a growing social concern, and the brain and behavioural effects of 'almost winning' are now well documented. Advances in brain imaging techniques mean we are now able to pinpoint the precise brain regions involved in the near-miss effect and identify how they interact with people's vulnerability to problem gambling.

''It is important to point out that this study does not show that brain responses to near misses cause gambling problems; that vulnerability to gambling problems can be predicted by theta changes or that the present findings apply to everyone as only males with some gambling experience were included in the study.

''We can, however, conclude that brain responses to near-misses resemble those to actual wins; that brain responses to near-misses are associated with increased theta activity in gamblers and that gamblers' level of reported gambling severity and susceptibility to thoughts about gambling predicted activity in brain regions are responsible for the near-miss effect.''

This article has been published in the latest issue of leading neuroscience journal, NeuroImage.

http://www.domain-b.com/technology/Health_Medicine/20140305_almost_winning.html


Sunday, February 2, 2014

Casino slot machines are highly addictive



February 1, 2014

Casino slot machines are highly addictive


In my last two columns, I wrote about the negative aspects of gambling and the destructive effects of casinos on both human lives and the economy. Those columns focused mainly on why the economic benefits of casinos fade over time, how casinos hurt surrounding businesses, and what consequences problem-gambling brings to individuals, families and society. This column will discuss the unique, addictive nature of slot machines.

Slot machines — called “one-armed bandits” back when the player manually pulled down an actual lever on the side of the machine — are the heart and primary moneymaker of casinos and “slots parlors.” Physically, they are vertical screens that display the edges of three or more spinning drums on which are printed pictures of fruits, faces, numbers or other symbols. When matching symbols align, the gambler wins his wager.

The machines are not the relatively primitive assemblies of 30 years ago. They have been transformed by the amazing capabilities of the computer. Along with the sounds, lights, themes and general glitz of the machines, the apparent randomness of where the spinning drums stop has been carefully programmed by the manufacturer. Microchips — not luck or your favorite casino shirt — control the frequency and level of winnings.

Other than in nature, there is actually no such thing as true randomness. Complex, computer-derived algorithms determine the long, seemingly infinite sequences and combinations — displayed simultaneously in multiple, multi-directional lines — of spinning fruits and other icons.

Additionally, slot machines have been designed to keep the gambler seated at the device. The behavioral and cognitive psychologists and neuroscientists utilized by slots manufacturers have been able to study and learn how many “near misses” and how much intermittent, “random” reward — and at what monetary values — are necessary to keep a player emotionally reinforced and neurally hooked by his experience at the machine.

To add to the allure of the devices, manufacturers have introduced lots of features designed to appeal to every taste. A player can choose theme-based machines, selecting one that plays the hit songs of a favorite rock group, or shows video clips of recent movies, or mimics the animation and action of current video games. A gambler can interact with the features, inserting himself into a gaming character or tying his gambling wins into progress toward rewards and goals in a video game.

Gamblers can even “save” this progress for use on the same machine next time they come to the casino.

There is another factor at work with many regular slots players. The speed and intensity of the machines have become so fast and strong that many gamblers actually go into a trancelike, hypnotic state, mindlessly yet rhythmically playing bet after bet. This state is known in the trade as “the zone,” and it results in the player being in a disassociated condition where he loses touch with time, space, money, his own body, and any outside distractions.



Being in the zone becomes so pleasurable to the gambler that he actually views winning — when the action must be interrupted for a payout procedure — as something undesirable. For winning disrupts his flow, and breaks into his blissful isolation.

Slots manufacturers are well aware of this phenomenon and encourage it with incredible machines that can accommodate intense speed — the placing of one bet every three seconds (the player is simply tapping buttons) or roughly 1,000 spins per hour.

But whatever type of gambler is seated at the machine, it has been designed to exploit the full range of human tendencies. Manufacturers use the phrase, “playing to extinction” — meaning the gambler loses all his money — to describe the goal behind the clever programming inside a slot machine.

Studies have shown that it is the machine design, not character defects in individuals, that is responsible for slots addictions. Problem gamblers comprise 20 to 40 percent of all slots players, and not surprisingly, slot machines produce 65 to 80 percent of total casino revenues.'

Casinos love to publicize how much money is “paid out” in winnings to slots players. They also love to explain how slot machines are programmed to deliver 80 to 95 percent “payout rates.” But most gamblers go home with much less money than they walked in with, and the rare jackpots are comprised of everybody else’s losses. The reality is, the longer you play, the more you will lose.

There are roughly 250,000 problem gamblers in Massachusetts today. After the state permits three casinos and one slots parlor, that number is likely to grow to 400,000 and more. Staggering numbers of slot machines will be in these proposed facilities – 4500 in either Revere or Everett, 4500 in Springfield, 4500 in a third location, and 1250 in the slots parlor. Despite the claims of the casino developers that these facilities will be grand, destination “resorts,” most of the patrons will be day-trippers who will come from within a 50-mile radius of the gambling hall. The patrons will be the residents of our communities.

If we can understand the nature of contemporary slot machines, and understand that they prey on our neural circuitry, we will be less likely to view them as harmless entertainment.

http://www.salemnews.com/opinion/x1262664825/Casino-slot-machines-are-highly-addictive

 

Wednesday, October 30, 2013

UBC scientists build slot machine for rats and learn how to curb their compulsive gambling



UBC scientists build slot machine for rats and learn how to curb their compulsive gambling



By Staff Reporter, The Province
OCTOBER 29, 2013



Lab rats at UBC have shown behaviour similar to that of compulsive gamblers, but researchers reduced it by blocking their dopamine D4 receptors.



At UBC, the lab rats do more than get shots — they play slots.

A team of University of B.C. brain researchers have been teaching the rodents to become high rollers, as they study solutions to problem gambling in rats.

The scientists set up little rat casinos to examine ways to reduce gambling behaviours in the animals, in hopes of providing answers for similar compulsive behaviours in humans.

Their research has been successful in reducing addictive gambling behaviours in rats using drugs that block dopamine D4 receptors. The scientists have reported their findings in a recent edition of Biological Psychiatry journal.

“Pathological gambling is increasingly seen as a behavioural addiction similar to drug or alcohol addiction, but we know comparatively little about how to treat problem gambling,” Paul Cocker, lead author of the study and a PhD student in UBC’s pyschology department, said in a statement.

“Our study is the first to show that by blocking these receptors we might be able to reduce the rewarding aspects of near-misses that appear to be important in gambling.”

The researchers had the animals work at a slot-machine style apparatus with flashing lights and levers where the rats gambled for sugar.

http://www.theprovince.com/health/scientists+build+slot+machine+rats+learn+curb+their+compulsive+gambling/9096872/story.html


Wednesday, July 24, 2013

Gambling Addicts Are Easy Prey For Massachusetts Casinos + Slots



Gambling Addicts Are Easy Prey For Massachusetts Casinos + Slots
Monday, July 22, 2013

As Science Daily reported on April 8, “Fascinating new studies into brain activity and behavioral responses have highlighted the overlap between pathological gambling and drug addiction. The research, which presented at the British Neuroscience Association’s Festival of Neuroscience, “has implications for both the treatment and prevention of problem gambling.”

The very next month, American psychiatrists began officially referring to this sort of addiction as “gambling” instead “behavioral.” The historic shift makes gambling the first mental disorder listed in the fifth and latest edition of Diagnostic and Statistical Manual of Mental Disorders. DSM-5, as it’s known for short, is the textbook for psychiatry that’s widely used by doctors, courts, and insurance companies.

The addictive nature of gambling is precisely why casino and slots operators prey on gamblers with addictive behaviors–marketing directly to them. For these easy marks, it’s not a game when it’s an addiction.

Bay State shrinks must be salivating

The Commonwealth of Massachusetts is New England’s biggest pusher of legalized gambling. As such, it is now in the market for four betting joints–promoting the ploy as a way to create good jobs at good wages and expand the tax base.

The two-year-old Expanded Gaming Act authorizes the state Gaming Commission to license three regional casinos and one statewide slots parlor. In Central Massachusetts, two gaming developers are betting on the state’s only slots license and one other developer is rolling the dice for one of the state’s three casino licenses.

The licensing fee for each casino will be a minimum of $85 million and requires a capital investment, to include a hotel facility, of at least $500 million. The Commonwealth will receive 25 percent of gross gaming revenues. The slots facility, which can hold up to 1,250 slot machines, has a $25-million license fee, and a minimum capital investment of $125 million. The slots facility will be taxed at 40 percent of its gross gaming revenue.

On July 15, representatives of Rush Street Gaming, parent of Mass Gaming and Entertainment, unveiled plans for a $200-million slots parlor in Millbury. Under the Expanded Gaming Act, the Board of Selectmen and Rush/MG&E have until July 26 to negotiate and sign a host-site agreement. If such a pact is inked, voters in that Blackstone Valley town would go to the polls sometime in September to cast ballots in a referendum election.

Three days later, Leominster Mayor Dean Mazzarella announced the signing of a host-site agreement with The Cordish Cos., parent of PPE Casino Resorts MA, to locate a $125-million in that North County city. PPE has requested September 24 as the date for a referendum election. This evening, the City Council will vote on whether to approve that date.

Three other slots developers are vying to secure the state’s sole license. The proposals–all, for Eastern Mass.–are for Plainville, Raynham and Tewksbury. Six other proposals have been floated for a total of three regional casinos, which, unlike slots parlors, contain other games such as blackjack and roulette. Two are for Eastern Mass. (Boston and Everett), one, for Central Mass. (Milford) and three, for Western Mass. (Palmer, Springfield and West Springfield).

The Everett and Springfield casino developers are leading the pack, with both a host-site agreement signed and a referendum vote held. On June 22, Everett voters, by a margin of 6 to 1, approved a $1.2-billion casino proposal by Wynn Resorts Holdings. On July 17, Springfield voters, by a margin of 58 to 42 percent, gave thumbs-up to an $850-million downtown plan by MGM Grand.

Once a referendum question is approved by local voters, the casino or slots developer will have until October 4 to submit a Phase 2 plan to the Gaming Commission for approval. The Commission, which expects to release Phase 2 regulations sometime this summer, will make its one slots selection by next December and the first of its three casino choices by no later than next April.
Bay State shrinks must be salivating over the addict jackpot they are about to hit.

Fooled into thinking that losing is winning

Our state’s Expanding Gaming Act seeks to address gambling addiction. The law, according to the Gaming Commission, provides “a myriad of mitigation efforts, which includes public health and addiction services and community and cultural mitigation.”

Gambling addiction accounts for an estimated $7 billion a year in added health-care and criminal-justice costs, according to the National Council on Problem Gambling (NCPG). Gaming-industry critics charge that casinos and slots use deceptive practices to attract gamblers, depend on addiction for profits, and should, therefore, be held liable for resulting social costs.

Gambling addicts can get fooled into thinking that losing is winning, according to award-winning science writer Steve Kotler. He co-authored with innovation pioneer Peter Diamandis the best-selling Abundance: The Future Is Better Than You Think.

Scientists long believed that dopamine was pure pleasure, Kotler reports in a blog titled High As Hell: The Evolution of Our Gambling Addiction, and they thought of it as the reward portion of the body’s need/reward system. “You wanted something fundamental to survival—like a next meal or a sexual partner—and when you got that thing, the brain released a little dopamine,” Kotler explains, “so the next time you were faced with a similar situation (like being hungry) you would remember that feeding yourself felt damn good.”

But lately, Kotler continues, we are learning otherwise–thanks to the work of people like Greg Berns, an Emory University associate professor of psychiatry and behavioral sciences. “We now know that dopamine is not released after you’ve gotten the thing you so desired,” Kotler writes, “but rather when you take the risk to do the thing that gets you what you desire.”

Dopamine helps us to associate risk with reward, which, as Kotler writes, is “a gambler’s bread and butter. ” So much so, he reports, that, in 2005, Mayo Clinic psychiatrist M. Leann Dodd found that 11 of her Parkinson-disease patients developed pathological gambling addictions. The cause, she discovered, was the anti-tremor medicine pramipexole. Since dopamine also helps the body to coordinate motor function, the drug works by blocking the reuptake of dopamine. “Unfortunately, Kotler writers, “that extra chemistry boost was all it took to push these Parkinson’s patients over that big-bet edge.”

Dopamine further works against gamers, Kotler adds, because of “the gambler’s fallacy.” This, he explains, is “the idea that, odds being odds, a long losing streak can only mean the next hand has to be a winner. But odds don’t work that way. Every spin of the roulette wheel is independent of every other, but the brain’s pattern-recognition system is built around short-term gains not long-term prediction.”

“The brain is good at understanding sudden environmental changes,” Berns, of Emory University, tells Kotler, “but bad at lingering, slow developments—which is why people and animals always overestimate a long-shot.” This, Berns adds, is why we buy lottery tickets even though the odds against winning are often roughly 100 million to one.

Liability lawyers eye suing Big Gaming

As we saw with Big Tobacco, class-action lawsuits can be a wonderful experiment in behavior modification. This legal approach is now being eyed for Big Gaming.

While the Commonwealth is taking a mitigation approach to gambling addiction, a group of 10 lawyers and academics with experience in prior liability cases is considering a litigation angle to the problem. The group met in April in Indianapolis to discuss whether to file a class-action suit charging that online gaming promotes gambling addiction. The legal strategy would be modeled on the class-action suits that forced cigarette companies to shell out $206 billion over 25 years to pay for medical costs for smoking-related illnesses as well as to fund anti-smoking campaigns.

In response, David Stewart, general counsel of the American Gaming Association, told Reuters at the time, "Nobody's made Nordstrom reimburse somebody who is a shopaholic.” Because gambling is gambling, he added, “when you gamble, you lose."

As the Association asserts on its website, “Responsible gaming is an issue of prime importance to the gaming industry, and the AGA, its member companies and their employees are committed to making responsible gaming a priority.” By funding scientific, peer-reviewed research on gambling disorders, following the guidelines of the AGA Code of Conduct for Responsible Gaming and educating the public about the odds of games and making responsible decisions about when and how to gamble, “the gaming industry demonstrates that responsible gaming is a fundamental part of how it does business.

To a certain degree, NCPG agrees with AGA. “The casino or lottery provides the opportunity for the person to gamble,” the Council states. “It does not, in and of itself, create the problem any more than a liquor store would create an alcoholic.”

Still, NCPG maintains that this does not let the gaming industry off the hook. “Everyone who provides gambling opportunities has a responsibility to develop policies and programs to address underage and problem gambling issues,” the Council notes.

In fact, the vast majority of Americans are able to gamble responsibly, according to both NCPG and AGA. As the Association observes, “a small percentage of people–approximately 1 percent of the adult population–cannot” and the gaming industry “recognizes how serious this is and is taking concrete steps to address it.”

The 1-percent figure represents the two million U.S. adults whom the NCPG reports “are estimated to meet criteria for pathological gambling in a given year.” However, the Council adds that “another four to six million (2 to 3 percent) would be considered problem gamblers; that is, they do not meet the full diagnostic criteria for pathological gambling, but meet one of more of the criteria and are experiencing problems due to their gambling behavior.”

As part of the gaming industry’s commitment to responsible gaming, AGA reports that members of the commercial casino industry work with a wide variety of stakeholders–problem-gambling researchers, treatment providers, state problem-gambling councils and government and community leaders. The purpose of this collaboration, the Association states, is “to make sure that those people who cannot gamble responsibly get the help they need and those who can understand the importance of gambling responsibly.”

All of this may be true, and would be fine if the trade group for Big Gaming had stopped there. But AGA goes on to assert boldly, “The industry doesn’t want people who don’t gamble responsibly to play at its casinos, period.”  [Studies have determined: The majority of Gambling Industry profits are derived from Gambling Addicts - people who have a problem with gambling.]

If you believe that, we’ve got a London Bridge on the Vegas strip to sell you.

Steven Jones-D'Agostino is chief pilot of Best Rate of Climb: Marketing, Public Relations, Social Media and Radio Production.

http://www.golocalworcester.com/news/gambling-addicts-are-easy-prey-for-bay-state-casinos-slots/


Related Articles

Wednesday, May 8, 2013

Worcester Slot Barn Mitigation



Tuesday, May 7, 2013

Slots parlor's impacts requires mitigation, council told


WORCESTER — City Manager Michael V. O'Brien says he will be looking well beyond the limits of the proposed slots parlor site off Kelley Square looking for ways to mitigate its impact to nearby neighborhoods.

In a related matter, Dr. Michael P. Hirsh, the city's acting commissioner of public health, said research he has done into electronic gaming machines, which includes slots, suggests they are far more addictive compared to other forms of gambling.

He said studies have shown that slot machines can lead to addiction at a rate more than three times faster than other gaming.

If a slots parlor is to be built on the 14-acre former Wyman-Gordon property on Madison Street, Mr. O'Brien said the city would need to develop and implement revitalization plans for several neighborhoods in and around that site and focus resources to accelerate their stability and safety.

In addition to Green Island, which is where the slots parlor would be sited, Mr. O'Brien said other neighborhoods that would need to be included in the mitigation discussion are Union Hill, Vernon Hill, the Canal District, Grafton Hill, part of Main South and lower Chandler Street.

The manager said mitigation efforts in those areas would include investments in economic development, housing (home ownership), new infrastructure (streets, sidewalks and parks), additional public safety programs and other additional service.

He said that will likely equate to dedicated mitigation funds for those purposes resulting from the slots parlor siting, and to a dedication of city, state and federal funding over a five- to seven-year period to accomplish the required goals.

He said all the goals would be part of an approved plan overseen by the city.

"These systematic issues are not insurmountable," Mr. O'Brien wrote in a report that goes before the City Council tonight.

"We would need to approach this slots parlor siting, if approved, with single-mindedness as a community to lift this entire section of the city up with economic development and neighborhood revitalization programs, as prioritized first for this area, working side-by-side with area stakeholders," he added.

The manager said it is a "work in progress" in determining what parts of that agenda would be covered through the community host agreement with the developer, and what parts would have to be done by the city on its own.

"The conversation must now include how we as a community would ensure that the neighborhood stabilization and revitalization efforts required — beyond those covered by the host agreement — would be implemented," Mr. O'Brien said.

"This will be a difficult conversation for there are priorities across the city, in neighborhoods throughout, that will likely have to be restructured to meet the immediate infusion to Union Hill/Vernon Hill/Canal District/Green Island/Grafton Hill/Main South and Chandler Street if a slots parlor approved and built," he wrote.

Mass Gaming and Entertainment LLC has proposed a 120,000-square-foot building on the Wyman-Gordon property that would have up to 1,250 slot machines.

The building would also house two restaurants, a food court, a bar and possibly a day spa. Meanwhile, a full-service hotel would be built in conjunction with the slots parlor development at a yet-to-be announced downtown location.

The total investment for the slots parlor and hotel is pegged at $240 million, along with the creation of more than 600 jobs. The project is also expected to generate millions of dollars in property tax revenues for the city.

While the developer presented some general details about the proposal to the City Council Economic Development and Public Safety committees two weeks ago, Mr. O'Brien said he is still waiting to receive more specific details about the slots parlor and hotel proposals.

He said he cannot begin negotiations on a community host agreement until city officials receive the details they need.

Meanwhile, Dr. Hirsh said electronic gaming machines, such as slots, are designed to stimulate the gamer in such a way to promote and prolong play.

He said the addictiveness of slots is because of their ability to rapidly deliver doses of play; up to 1,200 plays per hour.

"Studies show that (electronic gaming machines) can lead to addiction after one year, while other types of gambling take an average of 3 1/2 years to develop and addiction," Dr. Hirsh wrote in a report that also goes before the City Council tonight.

"Incorporation of the 'near-miss' into the electronic gaming machines essentially 'tricks' the player to feel satisfaction as long as they continue to play, regardless of wins or losses," he added. "All of these points evidence to addictiveness of EGMs, including slot machines."
http://www.telegram.com/article/20130507/NEWS/305078783/1116

Wednesday, April 17, 2013

Getting into the ‘zone’......



April 16, 2013

Getting into the ‘zone,’ and why slot machines are a magnet for problem gamblers


Julie Jacobson/AP Photo Casino industry professionals browse
through the newest slot machines on display at the Global
Gaming Expo Last October in Las Vegas.

Related:


Human beings, like rats in lab, are programmed to seek rewards, which means we react when a slot machine tells us we’ve won—we sweat, the heart rate briefly slows.

“It goes back to fundamental psychology, the same as rewarding pigeons or dogs in a lab, it really works,” said Kevin Harrigan, who runs the Gambling Research Lab at the University of Waterloo.

“When you do something, in this case push the button, and you frequently get some kind of reward, it makes you want to do that activity.”

The research lab is investigating why slot machine gambling causes more harm than other forms of gambling. According to the lab, problem gamblers account for 60 per cent of slot machine revenue in Ontario, about $1.8 billion annually.

  • Toronto Casino: Ontario has 300,000 problem gamblers, CAMH says

  • One of the major factors is the speed of slot machine gambling and the frequency of “wins,” said Harrigan. Players will do 600 spins an hour, with many of them registering as a “win” even as the player loses money.

    “Usually when you win it’s actually as loss,” he said, explaining that many machines will signal with lights and sound that a partial payout of, for example, 20 cents on a dollar bet is a win, even though the person lost money.

    “Even if mentally they know it was a loss, their body still reacts to it as win,” he said.

    Then there are the “near wins,” where the result is almost a jackpot but not quite—for example two of three “7s” and a third just off the line. In Ontario, slot manufacturers are allowed to create machines where near-wins occur more than is statistically probable, he said.

    “Players are reacting to these stronger than regular wins, because regular wins are quite small and these near wins are always almost the big win, or the jackpot,” said Harrigan.

    Despite the allure of the “big win,” when MIT professor Natasha Dow Schüll interviewed problem gamblers at slot machines in Las Vegas she heard over and over that instead of being overjoyed when they win big, they’re annoyed.

    “It really surprised me because people always assume that if people are gambling persistently that it must be that they think they can win,” said Schüll. “But over and over, people suggested to me that they were gambling, not because they had hopes of winning, but to get into ‘the zone’ and stay there.”

    Schüll’s research, published in her book Addiction by Design: Machine Gambling in Las Vegas, turns conventional thinking about gambling addition on its head.

    “‘The zone’ is a place where time falls away, space falls away, you forget about your everyday worries, you forget the sense of your body, in extreme cases,” she said.

    Winning big—when the sirens blare, the lights flash and the play stops—irritated the gamblers because it broke the flow of their game, bringing them back to reality.

    “Really what they were after was that state of the repetitive, numbing, trance-like zone, not the excitement, the thrill and the hope of winning,” she said.

    Schüll argues that seeking “the zone” isn’t unique to problem gamblers, just more extreme in those with gambling addictions. She said there is a gambling industry-wide shift away from a corporate model based on “play to win” gambling to a model based on the zone.

    Like Harrigan, she points to the way digital slot machines are built for the speed and continuity of play and encourage players to spend a lot of time at the machine, piling up small “wins” while losing a steady flow of money.

    “Nothing too different is happening and you’re getting the same rewarding signals of winning, even through you’re steadily losing,” she said.

    As for the decision about casinos and slot machines facing Toronto city councillors, Schüll warned about the impact of convenience gambling on the host community.

    “It has been shown that convenience gambling—the big slot barn that’s not a very diversified destination-resort but basically just more machines—you’re not creating jobs, you’re just creating a gambling market that appeals to local players,” she said. “The research has continued to show that that model has the worst outcomes in terms of social ills like problem gambling.”

    Harrigan said slot machines that come with casinos are his biggest concern when it comes to the expansion of gambling, but the addition of slot-like electronic gaming machines being added to new bingo halls are also concerning.

    http://metronews.ca/news/toronto/634752/getting-into-the-zone-and-why-slot-machines-are-a-magnet-for-problem-gamblers/

    Sunday, March 24, 2013

    Sunday, January 13, 2013

    Engineering Addiction



    Digital Domain

    I’m Losing Money. So Why Do I Feel So Good?

     
    Lloyd Miller

     
    What may not be so evident is how a shift in casino gambling to screen-based games contributes to gambling addiction. It’s a story that would fill a book — and just such a book has arrived: “Addiction by Design: Machine Gambling in Las Vegas” by Natasha Dow Schüll, an associate professor in the Program in Science, Technology and Society at M.I.T. The book offers a history of digital technology in casino gambling and shows how it grabs hold of players in ways never before available to equipment makers.
     
    Professor Schüll, a cultural anthropologist, spent considerable time in Las Vegas casinos as part of her research. She met players who told her how they sought to enter a mindless state, a “zone,” in which all else is obliterated, and to stay there as long as possible.
     
    “You aren’t really there — you’re with the machine and that’s all you’re with,” one subject said, describing the zone “where nothing else matters.”
     
    This isn’t the only place where gamblers can reach such a state of mind. It’s also known to occur at table games and at the racetrack. But casino machines arguably supply the most immersive, distraction-free gambling experience.
     
    Speed is one design element of modern gambling machines that helps preserve that zone. When the machines’ gear-driven handles were replaced by electronic push-buttons, the number of games that could be played in an hour doubled. On today’s video slots, played with credit cards instead of coins, players can complete a game in as little as three seconds. There is virtually no pause between plays, and virtually no opportunity to process what has just transpired.
     
    In an interview, Professor Schüll expressed skepticism that players were making careful choices to keep playing each time they pressed the button. “It’s not just those who are vulnerable to addiction,” she said. “I don’t think any human being sitting there, two hours in, playing 1,200 games an hour, can be described as ‘making decisions.’ ”
     
    The random-number generator at the heart of the electronic slot machines is neither visible nor well understood by many players. Some machines allow players to choose the exact moment when the reels stop spinning, but a sense of control is illusory. The outcome is determined when the reels start spinning and has absolutely nothing to do with what the player does or does not do.
     
    Kevin A. Harrigan, a research associate professor at the University of Waterloo in Ontario, Canada, has examined how electronic machines cause players to think that they’ve almost won — when they haven’t.
     
    Multi-line slot machines, for example, invite players to bet on different pay lines at the same time.
     
    These can be more addictive than an older, single-line slot machine, which has just one pay line, because they produce not just clear wins and clear losses but also “false wins,” in which players receive less than they’ve bet.
          
    In a typical multi-line slot setup, a player can bet on up to 20 different pay lines in a single game. If a player wins on 9 of the 20 lines, resulting in a net loss, the machine still celebrates the occasion with sound and video effects.
     
    “It’s brilliant,” Professor Harrigan says. “I’m not a gambler myself, but I was playing ‘Money Storm’ in our lab and ‘won’ — nine lines were flashing — and it was cognitively difficult to appreciate that I had actually lost.”
          
    THE American Gaming Association, the industry trade group, maintains that compulsive gambling on slot machines should be attributed to the psychological makeup of the players.
          
    “Some people have difficulty gambling responsibly, as others are prone to use credit cards irresponsibly, or to drive cars recklessly,” the group said in a white paper in 2010. “The problem is not in the products they abuse, but with the individuals.”
     
    The group says slot machines haven’t created more cases of pathological gambling as the number of machines has increased. It cites surveys that say the prevalence of such behavior has remained approximately the same over time.
     
    But Jon E. Grant, a professor of psychiatry at the University of Chicago, says these surveys may not be fully current and may not reflect the full extent of problem gambling. “The gambling problems of the people who are coming in for treatment, or who we see in our research, appear to be more severe than they were 10 or 15 years ago,” he says, and the popularity of multi-line slot machines is one reason.
     
    Addiction specialists are concerned that the near-wins and false wins served up by digital gambling technology set off the same reward mechanism in the brain that is activated by actually winning a game.
     
    In 2010, aiming to counteract this effect, the Queensland government in Australia enacted regulations that forbid display of a congratulatory message after a false win.
     
    That’s a small improvement. An even better solution would be for machines to clearly label a loss as a loss.

    Randall Stross is an author based in Silicon Valley and a professor of business at San Jose State University. E-mail: stross@nytimes.com.

    http://www.nytimes.com/2013/01/13/business/how-slot-machines-raise-our-hopes-even-when-were-losing.html?_r=0

    Saturday, July 14, 2012

    Stoking Addiction




    Slot Machine Near Misses Are Perfectly Tuned to Stoke the Addiction




    near missTo a gambler’s brain, a near miss provides almost the same high as a win, according to a new study that helps explain the allure of slot machines and the difficulty that some gamblers have in walking away. “The near-miss is quite a paradoxical event,” [researcher Luke] Clark says. Gamblers who almost win put “their head down in their hands — they can’t believe it. And then the next thing they do is place another bet” [Science News].

    In the small study, published in Neuron [subscription required], researchers had 15 volunteers play a slot machine while their brain activity was recorded with fMRI scans. When the researchers compared the scans, they found that near misses drew more blood to reward regions such as the insula and the ventral striatum than full misses did [ScienceNOW Daily News]. These areas are also activated by rewards like chocolate and cocaine; when the near misses partially activated the so-called reward pathway, it released pleasant doses of the brain chemical dopamine.

    Researchers say it makes sense for the brain to respond to almost hitting a target. For some tasks, such as learning to kick a soccer ball into a goal or firing an arrow at a target, near-misses are informative. “You’re acquiring the skill, and the brain should pay attention to near-misses,” Clark says. But in gambling, almost winning has no effect on the next pull of the lever or roll of the dice. “Games of chance tell you nothing about future success,” he says [Science News]. Gambling has essentially hijacked the natural reward system, Clark says, and he adds that it’s not only gambling addicts who have to worry about being tricked by their own brains. “Importantly, our volunteers in this study were not regular or problem gamblers, and so these findings suggest that the brain may naturally respond to near misses in this way” [Telegraph]. 

    Slot machine makers capitalize on the near-miss effect. Researchers have found that they program their games to tease players with near misses about 30% of the time–a number previous studies have found optimal for getting gamblers to keep coming back [ScienceNOW Daily News]. The researchers also found that when they gave the test subjects a sense of control over the game’s outcome by letting them choose when to stop the first reel of the slot machine, the effect of near misses was heightened.

    That’s another stratagem that Vegas got wise to some time ago.

    http://blogs.discovermagazine.com/80beats/2009/02/12/slot-machine-near-misses-are-perfectly-tuned-to-stoke-the-addiction/
    Related Content:
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    DISCOVER: The New Math of Gambling
    Reality Base: Brain Research for Sale? Gaming Industry Looks to Science to Beat Class Action

    Saturday, June 16, 2012

    The Tug of the Newfangled Slot Machines





    The Tug of the Newfangled Slot Machines


    When Anthony Baerlocher makes his monthly visit to the Atlantis Casino Resort in Reno, Nev., he always starts with a ritual he calls ''taking inventory,'' walking several laps around the casino's sprawling 32,000-square-foot gambling floor and noting which machines sit unloved, vainly burping out their come-hither sounds, and which machines have captured players' attention. The Atlantis is home to more than 1,400 slot machines, but so vivid is the mental snapshot that Baerlocher, 35, carries in his head that he immediately registers the presence of a new machine on the floor.

    Although Baerlocher is a trained mathematician, his interest is far from academic. He is the chief game designer for the country's largest maker of slot machines, International Game Technology of Reno. At the first sign of a new slot machine from a competitor, he goes into action. ''Give me 30 minutes and $60,'' he says, ''and I can tell you pretty much anything you want to know about another company's machine.''

    At 8 p.m. on a warm midsummer's night, Baerlocher watched a woman dressed in green polyester pants and a yellow-and-white-striped short-sleeved top play a slot machine he designed called ''The Price Is Right.'' At first, the woman's body language was noncommittal: she stood half-turned from the game, as if no more than mildly curious about the outcome of her wager. ''Price'' is what slot pros call ''a cherry dribbler,'' a machine that dispenses lots of small payouts while it nibbles at your stash rather than biting off large chunks of it. ''You want to give the newbie lots of positive reinforcement -- to keep 'em playing,'' Baerlocher told me. As if on cue, the woman hit a couple of small jackpots and took a seat. ''Gotcha,'' Baerlocher said softly under his breath.

    Baerlocher also watched players nearby at another machine he designed for I.G.T., ''Wheel of Fortune.'' I.G.T. is to the slot industry as Microsoft is to computer software, and no product contributes more to I.G.T.'s bottom line than what industry insiders simply call ''Wheel.'' How big is it? In its 14-year lifetime, ''Madden N.F.L. Football,'' from Electronic Arts, has made roughly $1 billion, making it one of the most successful home video games ever produced. ''Wheel of Fortune,'' by contrast, takes in more than a billion dollars each year.

    As in the televised game show, there is an actual wheel, which spins whenever a player reaches the bonus round, on average once in every 42 plays. The presence of the wheel allows the slot machine to employ one of the most powerful feints in the slot designer's arsenal: the near miss. When a contestant spins the wheel on the game show and it stops one or two spots past the $1,000 mark -- that's a near miss. The slot machine version of ''Wheel,'' like many of I.G.T.'s most popular slots, is designed to produce these near misses, lots of them: though the wheel is divided into 22 pie slices of equal size, the odds are weighted so that a player is likely to land on some wedges far more often than on others.

    After a couple of minutes, an older woman, dressed in a sparkly pink sweatsuit ensemble, reached the bonus round. She groaned when the wheel nudged past the ''250 times bet'' wedge and landed on ''10 times bet.'' Her male companion cried out, ''Honey, you were so close!'' Baerlocher's starchy mien melted away, revealing an amused smile. ''You can see it on their faces every time,'' he said. ''They feel they came soooo close. They're ready to try it again, because next time they're going to get it.''
    Baerlocher shook his head and laughed in a way that suggested he never gets bored witnessing this moment. He is among a cadre of people inside I.G.T.'s giant slots factory who study addiction -- though unlike their counterparts in academia, of course, he and his colleagues work on the promotion side of things. He is so devoted to the slot machine that he has one in the front room of his town house, in the hills above Reno, and a second one downstairs in his den. We lingered another minute or so, long enough to watch the lady in pink slip another $20 into the machine, confident that this time the wheel wouldn't make those extra couple of clicks.

    Nearly 40 million Americans played a slot machine in 2003, according to an annual survey of casino gambling conducted by Harrah's Entertainment. Every day in the United States, slot machines take in, on average, more than $1 billion in wagers. Most of that money will be paid back to players, but so great is the ''hold'' from slot machines that collectively the games gross more annually than McDonald's, Wendy's, Burger King and Starbucks combined. All told, North American casinos took in $30 billion from slots in 2003 -- an amount that dwarfs the $9 billion in tickets sold in North American movie theaters that year. Pornography, the country's second most lucrative form of adult entertainment, doesn't come close, either: experts estimate that Americans spend at most $10 billion a year on live sex shows, phone sex and porn in various media from cable to DVD to video and the Internet. Is it any wonder that Baerlocher's boss, Joe Kaminkow, I.G.T.'s head of design and product development, likes to say that he's in the business of creating ''beautiful vaults''?

    Although it has frequently been controversial -- Fiorello La Guardia and Earl Warren are among those who have made headlines crusading against it -- the slot machine has traditionally enjoyed little status in the world of casino gambling. Slots were where the wives of the high rollers sat, killing time with buckets of coins. But revenues from the games have grown exponentially over the past few decades, according to Bill Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno, and now the slot machine is the undisputed king of the casino. Craps, blackjack and roulette -- which once defined organized gambling -- are going the way of tuxedos and diamonds inside the modern-day casino, where the standard dress these days tends toward polyester and athletic wear. Accounting for more than $7 out of every $10 of gambling revenues in casinos across the United States, the once lowly slot machine is the top earner even in glitzy palaces along the Las Vegas strip.

    Not only have slots been capturing an expanding share of business on gambling floors across the country -- grabbing an ever greater ''share of wallet,'' as industry insiders put it; they have also played a crucial role in expanding the footprint of casino gambling in the United States. Where casinos were legal in just 2 states at the end of the 1980's, today they are legal in more than 30 -- a trend that the slot machine, so easy to learn to play and seemingly harmless, has no doubt helped fuel. ''It's the slot machine that drives the industry today,'' says Frank J. Fahrenkopf Jr., head of the American Gaming Association. While craps, roulette and baccarat are outlawed in roughly half the states that permit casino gambling, slot machines are widely viewed as a politically palatable solution for elected officials seeking to raise revenues -- the casino equivalent, critics say, of a gateway drug. And the trend is far from exhausted: Maryland, Massachusetts, Ohio, Pennsylvania, Alabama and Kentucky are among the states that have recently considered installing slots at racetracks to generate needed tax revenue.

    Fahrenkopf is reportedly paid in seven figures to praise all things casino, but he can't seem to help taking a poke at the slot machine. He views the transition from table games to slots as symptomatic of the dumbing down of American life. Playing craps means learning a complex set of rules. Blackjack may be easy to learn, but it still requires skill and concentration, and it's not uncommon for the novice player to feel stupid in front of strangers. ''I don't know if it's the education system, or maybe it's that we as a society have gotten intellectually lazy,'' says Fahrenkopf, who headed the Republican National Committee under Ronald Reagan. ''But people would rather just sit there and push a button.'' When I asked one elderly man to explain the allure of playing slots, he replied, ''I don't have to think.''
    Slot machines are in fact for those well into the second half of life. Manufacturers design games primarily for women over 55 with lots of time and disposable income, and casinos near retirement communities in and around places like Phoenix and San Diego operate small fleets of jitneys that shuttle back and forth to assisted-living centers. As a come-on, one casino advertises free oxygen-tank refills for its players, and heart defibrillators are increasingly becoming standard equipment inside casinos. If a good portion of the younger set today is hooked on video games, it seems that the over-60 crowd has its own similarly hypnotic fixation. ''For older people, it's a safe environment,'' Baerlocher says. ''There are cameras and security guards everywhere. You can go to one place and shop and eat and be in a crowd even if you don't know anybody.'' As one old Las Vegas hand put it, the country's casinos are now providing ''day care for the elderly.''

    The archetypal slot machine was invented in 1899 by Charles Fey, a German immigrant, in San Francisco. But most modern-day slot machines bear little resemblance to the familiar one-armed bandit with its three reels spinning behind a pane of glass and mechanically click-click-clicking into position with each pull of a lever. Today's slot machines feature well-choreographed illusions designed to hide a fundamental truth: at heart they're really nothing more than computers whose chips randomly cycle through hundreds of thousands of numbers every second. A player's fate is determined almost the instant play begins. But to simply display a long string of numbers on a computer screen, along with an accounting of the money won or lost, would hardly prove entrancing.
    That said, the computer chip at a slot machine's core does account in part for the exploding popularity of slots -- it means flexibility for game designers. The physical size of the spinning reels in most of yesterday's mechanical machines typically limited them to 22 stops and just over 10,000 possible combinations. Computer technology lets game makers weight the reels so that winning big occurs as infrequently as, say, one in 46 million plays (the odds of hitting the big multimillion-dollar jackpot on ''Wheel of Fortune''). The increased odds make possible today's huge jackpots, which reach into the millions of dollars on some machines. You can double your wager on a hand of blackjack or win 35 times your bet on a single spin of the roulette wheel, but only the slot machine gives you the hope of turning a few dollars into a seven- or eight-figure payoff.

    Still, to maintain a sense of suspense in games that are over the moment they start, to increase what Baerlocher and his fellow game designers call ''time on device,'' I.G.T. spends $120 million each year and employs more than 800 designers, graphic artists, script writers and video engineers to find ways to surround the unromantic chips with a colorful matrix of sounds, chrome, garishly-painted glass and video effects, which include the soothing images of famous people, from Bob Denver (the actor who played Gilligan on ''Gilligan's Island'') to Elizabeth Taylor, many of whom receive hundreds of thousands, if not millions, of dollars to lend their identities to the machines. The traditional pull-handle, if it exists at all, is nothing more than a vestigial limb; most players now press a button to start the reels, often virtual, spinning. Many slot machines don't even pay out coins but issue ''credits'' on a paper receipt to be redeemed at the cashier's cage. Slot makers have found that their customers don't miss handling money -- coins are heavy and dirty, after all -- and stereo speakers can project the simulated yet satisfying ping and clink of cascading cash. ''We basically mixed several recordings of quarters falling on a metal tray and then fattened up the sound with the sound of falling dollars,'' says Bill Hecht, I.G.T.'s top audio engineer, when describing one of the audio files he programs into a machine.

    Founded in 1981, I.G.T. dominated the expanding casino slot machine industry until the mid-90's, when video slot machines suddenly appeared. WMS Gaming, based in Illinois, was the first company to cash in on these new machines in the United States. (The marriage of slot machines and video games was first consummated in Australia.) Their popularity took I.G.T. by surprise. Bob Bittman, who was then the company's chief designer, confesses that by 1999 he and his fellow executives were anxious. The company's stock had fallen precipitously, and Bittman recognized that he was hardly the one to turn things around. ''I wasn't left-brain enough -- or do I mean right brain?'' says Bittman, who remains on I.G.T.'s board. That's when the company decided to hire a talented young game designer, Joe Kaminkow, to lead them into this jazzed-up new world.

    Kaminkow began college thinking he would someday work as a TV weatherman, but soon his ambitions veered toward game making. He was a co-founder of a pinball-design firm in his 20's, and after he and his partner sold the company to Sega, the video-game giant, Kaminkow spent the next seven years overseeing that company's U.S.-based pinball operations.

    Kaminkow knew virtually nothing about slot machines when he took the reins of I.G.T.'s design and product-development division. Yet five years later, the company has reasserted its supremacy in the slot machine industry. The majority of I.G.T.'s most popular games -- ''The Munsters,'' for example, or ''The Price Is Right'' -- now feature virtual reels spinning on video monitors, touch screens and, in the bonus rounds, video clips. The company has been so profitable during Kaminkow's tenure that if you bought $10,000 worth of stock in I.G.T. and Microsoft in the month of his arrival, January 1999, the I.G.T. shares would be worth more than $70,000 today and the Microsoft shares about $6,000. ''I'm not worthy of being mentioned in the same paragraph as Joe Kaminkow,'' says Brooke Dunn, who had been Kaminkow's equivalent at Shuffle Master, a Las Vegas-based company that made a short-term foray into the slots business. Jerald Seelig, general manager of A.C. Coin and Slot, which occasionally creates machines in tandem with I.G.T., says, ''History will certainly show he's one of the guys who changed the industry forever.''

    was granted my first hour with the man Brooke Dunn calls the industry's god in the winter of 2003. Kaminkow is on the short side, a stocky fellow with a wolfish grin who tends to sport a grizzled, haven't-shaved-in-a-day facial growth. Despite the near-freezing temperatures outside, he was dressed in jeans and a bright short-sleeved shirt that you might wear to a summer barbecue with friends. Through most of the interview, he leaned back in his chair and propped his Nikes up on a table. He wore a red baseball cap on his head. When I told him I wanted to explore the world of casino slots from inside his design unit, he didn't need convincing. From Kaminkow's point of view, it seemed high time someone followed him around with a tape recorder. ''You're very lucky,'' he said.

    ''You're going to get a million-dollar lesson. You'll be going to Joe U.''

    Kaminkow's spacious office is drenched in pop culture. On the walls hang assorted pictures of Kaminkow in the company of any number of B-list stars: Scotty from ''Star Trek,'' Bob Denver and Cassandra Peterson, who, as Elvira, has been featured on a couple of I.G.T. slot machines. His bookshelf includes a pair of collector's editions Monkees videos, several volumes of ''The Addams Family'' TV show and all five ''Rocky'' films. Behind his desk hangs a framed blowup of a photo signed by ''Sopranos'' cast members that, he said, ''cost a small fortune.''

    One wall in the office was hidden by a set of metal blinds that Kaminkow showily snapped open partway through our first meeting. ''This is our battle plan,'' he said. There were maybe 100 note cards, each printed with an idea for a game: ''Twinkies.'' ''Dilbert.'' ''That Girl.'' ''Cops and Donuts.'' ''Beverly Hillbillies 3.'' Not too long ago a big-time slots maker might introduce a dozen new games at Global Gaming Expo, the annual gambling trade show held each fall in Las Vegas. That, however, was before the arrival of Joe Kaminkow, a time he refers to as ''pre-Joe.'' By his fourth show, in fall 2002, I.G.T. unveiled 82 games at the expo, and Kaminkow, ignoring the moans from his staff, promised that the company would release 150 games a year later. (Often two years can pass between inspiration and a spot in a casino, thanks to the complications of designing a slot machine and to the onerous approval process imposed by a multitude of jurisdictions.) ''G2E,'' as everyone inside I.G.T. refers to it, is the gambling industry's equivalent of Fashion Week in Paris. And while employees work long weeks in the run-up to G2E, the atmosphere at I.G.T. resembles that of an Internet start-up at the height of the bubble: video and pinball games are scattered in hallways throughout the design building, and Kaminkow had a slush machine and a popcorn maker put in the communal kitchen.
    Included in last year's G2E lineup were two games that represented such high-stakes gambles for I.G.T. that Kaminkow at first alluded to them only cryptically as ''the big kahunas.'' Kahuna 1 turned out to be a ''Star Wars'' game -- and a coup of the first order. ''Baseball and 'Star Wars,''' Bob Bittman says, ''have long been the two untouchables'' in the world of themed slot machines. But Kaminkow had signed deals with George Lucas for ''Star Wars'' pinball and video games before, and after four years of lobbying he apparently wore down the director-producer. ''George said, 'I recognize and understand that my audience has matured,''' Kaminkow told me. '''They're spending time in Las Vegas and in other casinos and on riverboats.''' The question, though, is whether this game targeting a younger demographic will justify the millions I.G.T. has spent on what Baerlocher calls the ''most expensive title we've ever done.'' I.G.T. says it does not know when the game will appear in casinos.
    Big Kahuna 2 was ''Drew Carey's Big Balls of Cash,'' and it also represented a considerable risk. Typically, Kaminkow engages the services of a celebrity sure to provide an air of comfortable nostalgia -- for instance, Dick Clark (who holds the company record for most games, at seven) or Robin Leach, from ''Lifestyles of the Rich and Famous.'' Drew Carey is not only more expensive; his image is also far more provocative. When I.G.T. flew Carey to Reno for a day of taping at the company's state-of-the-art film studio, his caustic wit was a constant. Encouraged to improvise, Carey read only occasionally from the prepared script; instead, the comedian ad-libbed most of his own lines: ''Ohhhhhh, I'm so sorry. I guess that means another walk to the A.T.M.'' ''Don't give up, we want to build another wing on the casino.'' ''Why don't you go get another old lady so I can take her Social Security check, too?'' ''Step right up -- we need another sucker.''

    Among the first things Kaminkow did when he arrived in Reno in 1999 was spend as much time in the local casinos as he could learning more about the games he was now responsible for designing. ''I'd feed a twenty into a machine, and it'd be gone in two minutes,'' he recalls. The word he uses to describe the experience is not suitable for a family newspaper. The problem, he decided, wasn't the vanishing $20 -- taking people's money, after all, is the whole purpose of these beautiful vaults -- but the speed with which it disappeared. He instructed his mathematicians to design most of I.G.T.'s new video games so that the typical player would get at least 15 or 20 minutes on a machine before needing to reach into her purse for another bill. He also wanted games that paid more frequent, smaller payouts.

    Inside I.G.T. they call it ''Joe's $20 test.'' One of the first games released on Kaminkow's watch was based on the old television sitcom ''I Dream of Jeannie.'' It was Kaminkow who pioneered slots based on old TV shows; he chose ''Jeannie'' as his first, he says, because ''every woman wanted to be Jeannie'' (played by Barbara Eden), and every man wanted -- paraphrasing Kaminkow -- to get to know Eden's character intimately. The ''Jeannie'' machine, which made its debut in 2000, included the show's big-band theme song, Eden's voice (on small payouts you sometimes hear her say, ''I can do so much more for thee, master'') and reel icons tied to the show: a bejeweled thin-necked bottle, a space capsule splashing into water and so on. And when you have lined up the symbols just right, you enter a bonus round that includes a spinning wheel and a short clip from the show that lasts maybe 10 seconds. ''For your $20, you should at least get to see a little of Jeannie,'' Kaminkow says with a wink.

    Over the years, Kaminkow has handed down a long list of edicts that I.G.T. designers call ''Joe's rules.'' Early on, for example, the sidekick he brought with him from Sega overheard an older man complain to his companion that he had left his reading glasses in the room and couldn't see well enough to play. Kaminkow declared that henceforth the lettering on all I.G.T. machines would be large enough so that pretty much everyone but the legally blind could play. Sometimes he would reach the bonus round in a game but win no money, so that became another of Joe's rules: no zonks; players who experience the fanfare of a bonus round receive at the very least a consolation payout. He also dictated that whenever a bonus round offered players a choice, the machine would reveal the values of the options not selected. ''You want the player to have the feeling, 'I almost picked that one; I'll get it next time,''' says Randy Mead, a game designer at I.G.T. The games also include periodic free spins and other gimmicks designed, as Mead puts it, ''to give players time for a small break -- to light a cigarette, order a drink, to stand and stretch.''

    ''Joe brought this way of thinking, Look, we've got to wow them,'' says Dave Forshey, a graphic designer who arrived at I.G.T. shortly before Kaminkow. ''It's not just push the red button and watch the wheels spin. Make people want to sit there. Use sight and sound and everything at our disposal to get people's juices going.'' Before Kaminkow's arrival, I.G.T.'s games weren't quiet -- hardly -- but they didn't take full advantage of the power of special effects like ''smart sounds'' -- bright bursts of music. So Kaminkow decreed that every action, every spin of the wheel, every outcome, would have its own unique sound. The typical slot machine featured maybe 15 ''sound events'' when Kaminkow first arrived at I.G.T.; now that average is closer to 400. And the deeper a player gets into a game, the quicker and usually louder the music.

    ''I'm not sure players even notice,'' says Bill Hecht, I.G.T.'s top sound designer, ''but the effect is to get them more excited.'' Every time the reels spin on ''Jeannie,'' a player hears a few seconds of the show's theme song, and Hecht even orchestrated a bossa nova rendition heard only when someone reaches the bonus round. ''Something for the regular players to look forward to,'' he says. ''We want to get your heart rate going a little.''

    It wasn't Kaminkow who devised what are called multiline games -- multicoin games that allow you to win on 1, 15 or 25 lines, assuming you wager enough coins. (Picture an enlarged tic tac toe board that lets you win in any number of crazy zigzag ways.) But under his stewardship, I.G.T. has taken full advantage of whatever design changes have allowed penny and nickel games to earn like dollar machines. ''It used to be that the goal of casinos was to move their nickel players to quarters, the quarter players to dollars, the dollar players to five dollars,'' Baerlocher says. ''Now they don't bother, because we've figured out how to get nickel and even penny machines to play like dollar machines.'' How? By offering jackpots in the hundreds of thousands, if not millions, of dollars. A penny machine like I.G.T.'s ''Beverly Hillbillies'' can be played for a penny a spin, but in most jurisdictions you're eligible for the big prize, which starts at $200,000, only if you wager the maximum bet per spin of $2.50. The odds of winning that big jackpot may be in the tens of millions to one, but there's a 100 percent chance you'll be kicking yourself for eternity if you see five Beverly Hillbillies line up on the machine's reels after you bet less than the maximum needed to win. ''The truth is, nowadays you can lose more money faster on a nickel slot machine than at a $10 blackjack table,'' says Nigel Turner, a scientist at the Center for Addiction and Mental Health in Toronto. The true brilliance of the industry's emphasis on nickel and penny machines is perhaps best seen by comparing how much of ''the handle,'' or the total amount wagered, they pay out compared with dollar machines. The average nickel machine pays back to winners somewhere between 88 and 92 percent of the money wagered, Baerlocher says, compared with the roughly 95 percent that dollar machines pay out.

    Early on, Kaminkow's secretary, Pam Foster, told him, ''The way you spend money, you'd better be good.'' Apparently all the millions he spent have paid off. By the time I first visited I.G.T., in 2002, the company had a 70 percent share of the domestic slot market, and Kaminkow no longer saw himself as competing against Bally, WMS Gaming and the Australian-based Aristocrat so much as competing for the attention of the tens of millions of Americans who had yet to discover the magic of his slot machines. Although the number of men who are playing the slots is increasing, they tend to be on the far side of 60, and women in their late 50's still represent the slot machine's most trustworthy devotees. So Kaminkow is devoting a sizable portion of his time to what he benignly calls ''expanding his market.'' To appeal to a younger, male cohort, he signed licensing deals with the people behind ''South Park'' and ''Austin Powers'' (with mixed results) and then negotiated the even bigger deals with Drew Carey and George Lucas for ''Star Wars.'' At the same time, he has been pursuing the potential of the Latino market by designing a line of games that lets gamblers play in Spanish with the push of a button. ''I want my competitors to cry when they see my new games,'' he says. ''I want them unable to get out of bed because they realize, Damn, they've done what we didn't even think possible.''

    The makers of slot machines may rely on the lure of life-changing jackpots to attract customers, but the machines' ability to hook so deeply into a player's cerebral cortex derives from one of the more powerful human feedback mechanisms, a phenomenon behavioral scientists call infrequent random reinforcement, or ''intermittent reward.'' Children whose parents consistently shower them with love and attention tend to take that devotion for granted. Those who know they'll never be rewarded by their parents stop trying after a while. But those who are rewarded only intermittently -- in the fashion of a slot machine -- will often pursue positive outcomes with a persistent tenacity. ''That hard-wiring that nature gave us didn't anticipate electronic gaming devices,'' says Howard Shaffer, director of the division on addictions at Harvard Medical School and perhaps the country's foremost authority on gambling disorders.

    ''The slot machine is brilliantly designed from a behavioral psychology perspective,'' says Nancy Petry, a professor of psychiatry at the University of Connecticut School of Medicine. ''The people who are making these machines are using all the behavioral techniques to increase the probability that the behavior of gambling will reoccur.'' She refers to intermittent reward and ''second-order conditioning'' -- the lights and sounds that go off when a player wins, for example, or the two cherries in a row that convinces people they're getting closer.

    ''No other form of gambling manipulates the human mind as beautifully as these machines,'' concludes Petry, who has studied gambling treatments since 1998. ''I think that's why that's the most popular form of gambling with which people get into trouble.''

    Anti-gambling activists refer to slots as ''the crack cocaine of gambling.'' Though gambling's loudest critics tend to be alarmists, the crack analogy may be apt. Just as crack addicts have frequently seemed to self-destruct much faster than those abusing powdered cocaine, there is abundant, albeit still largely anecdotal, evidence suggesting that the same is true of today's computer-driven slot machines -- video-based slots especially. Where social workers once found that the woes of a typical problem gambler tended to mount gradually -- with a period of 20 or more years commonly passing between a first wager and a bottoming-out event like bankruptcy, divorce or even suicide -- addiction cycles of a few years are, if not typical, commonplace among slots players.

    ''Treatment folks are definitely identifying people who are experiencing what we call 'telescoping' -- a shortening of the period of time that it takes for someone to get into trouble,'' says Rachel Volberg, president of the National Council on Problem Gambling and the author of ''When the Chips Are Down: Problem Gambling in America.'' Volberg, who runs Gemini Research, an organization that specializes in gambling-related investigations, says it remains to be seen whether the problem lies in ''something special about these machines or in the people who prefer playing them.'' Female slots players in particular, Petry says, ''tend to experience this telescoping phenomenon -- and we know from research that women are quicker to seek treatment.''

    Gambling counselors regularly encounter people like Ricky Brumfield, a working-class Phoenix woman who won $3,700 the first time she ever touched a slot machine -- a day that turned out to be the unluckiest of her life. That was in 1997, when Brumfield, then 43, traveled to Las Vegas to help a friend celebrate the Fourth of July. Within nine months, she had hocked her jewelry and gone through $100,000 in cash and credit-card debt. She only stopped, she confesses, because the Sheriff's Department arrested her on child-abuse charges for leaving her two young kids locked in a car in a casino parking lot while she played the slots inside. ''I knew it was really wrong to do that, but the urge to go into the casino was stronger than my instincts as a mother,'' Brumfield says. She had only recently had back surgery, but she found that when she played, she never felt pain. ''I think the dopamine and serotonin levels, when they kicked in -- that blocked off the pain,'' says Brumfield, who now works for the Arizona Council on Compulsive Gambling. ''You feel hypnotized by the machine. You don't think of anything else.'' Near the end, the hold the machines had over her, she says, was akin to that of an unfaithful lover. She would fall into a jealous rage when a favorite machine paid a jackpot to another, less devoted player.

    ''Slot machines have a different impact on the brain than other forms of gambling,'' Howard Shaffer says. Unlike table games, which are played in groups, slots are played in isolation, and therefore they lack the same safeguards social situations provide. ''And because the video form is faster than the mechanical form, they hold the potential to behave in the fashion of psychostimulants, like cocaine or amphetamines. They energize and de-energize the brain in more rapid cycles. The faster on, faster off, the greater the risk.'' Colleagues of Shaffer have compared the brain scans of people high on cocaine with those of people while gambling: similar neurocircuitry is lighted up in both sets of images.

    Shaffer predicts that in time electronic games will ''protect players.'' Just as the car industry implemented basic technologies like seat belts to save lives, he expects the gambling industry (which finances many of his studies) to eventually employ strategies to interrupt people when they play too fast. As Bill Eadington, the University of Nevada, Reno, professor and a consultant to Indian tribes, governments and casinos around the world, puts it, ''I worry that we're burning out players too fast.''
     
    The typical slots player initiates a new game every six seconds. That works out to 10 games per minute, 600 per hour. If the average player bets $2 a spin, that player is wagering roughly $1,200 every hour. Slot designers have experimented with machines that play even faster, but the industry standard remains a six-second cycle. ''It wouldn't be much fun if we took your money any faster than that,'' Kaminkow told me with a slight shrug of his shoulder, suggesting that just how fast people play is entirely up to him.

    I asked Kaminkow if he ever worried that the potent mix of TV, technology and the prodigious talents of his creative people will produce machines that are too powerful. ''What kind of question is that?'' he replied. In his natural state, Kaminkow is a breezy and sarcastic jokester who revels in politically incorrect jokes. But he suddenly sounded as if he were addressing a Rotary Club. ''I take responsible gaming very seriously,'' he said. ''We're not an alcohol, we're not a drug.'' He is in the entertainment business, he added, a ''maker of small little movies'' that bring a touch of joy and laughter to the lives of the elderly and others.

    ''I'm not looking for people who say, 'I spent my milk money,''' he said. ''I think people need to be very responsible in their gaming habits. I know I am.''

    The million-plus-square-foot facility that houses I.G.T.'s Reno operations sits in the Sierra foothills south of downtown. Workers use bicycles and golf carts to get around a complex that is larger than the Reno airport. Roughly 1,600 employees staff the nine assembly lines that I.G.T. operates for two shifts a day, five days a week. The warehouse where parts are stored evokes the government warehouse in the final scene from ''Raiders of the Lost Ark.'' Maybe most impressive of all is what the company calls its finished goods area: hundreds of gleaming machines are stacked in row after row of shelves that reach several stories high.

    ''My job is basically to keep feeding the beast,'' Kaminkow likes to say, and toward that end he summoned a group of his top designers to his office in the fall of 2002 to discuss a game he was then calling ''Mega Money Ball.'' He loved the idea of a lottery-themed game that gave the illusion of costing just a penny to play, and he needed a big name to ensure that it was a hit. The group considered some of the company's regulars, like Dick Clark and Regis Philbin, who was already under contract with I.G.T. for two games, and also Max Baer Jr. (Jethro), who had three games, with several more on the way. Eventually Kaminkow decided they needed a comedian. Dennis Miller (too angry) and Jerry Seinfeld (too expensive) were among the names bandied about before Kaminkow suddenly bellowed, ''Nancy!'' The name that had just crossed his mind was Drew Carey; Kaminkow was so excited that he ignored the group and yelled for Nancy King, who runs the company's licensing program.

    Negotiations with a celebrity's people sometimes stretch over months (''Let's just say a lot of C celebrities think they're A's,'' King says), but Carey proved easier than most. ''I thought, Oh, it'd be fun to be involved in the making of a slot machine,'' Carey says, adding that he asked himself if it would hurt his chances of ever doing movies, a goal of his, and concluded that it would not. ''That's almost all the thought I put into it,'' he says. It helped, of course, that his was a multigame deal that several people inside the company confirmed is worth in the millions even before annual royalties are figured.

    Every slot machine starts with Kaminkow. ''Has Joe told you his prima donna rule?'' several people had asked by the time Kaminkow shared it with me (and then repeated on successive visits). ''I tell people I've got my one-prima-donna rule: there's room for only one prima donna here, and I've already got the job,'' he says. But when work began on the machine, the design team had received little direction from the boss beyond a broad-brush mandate to create an interesting lotterylike game that took full advantage of Carey's talents. ''We get this pile of vagueness,'' Baerlocher says, ''that we have to start making into a game.'' A core group of about a dozen people -- including Baerlocher and a junior mathematician, a couple of computer programmers and assorted artists and other creative types -- were assigned what was now being called ''Big Balls of Cash.'' They all read Carey's book ''Dirty Jokes and Beer'' and then sat down to brainstorm. ''Basically we throw a lot of stuff at the wall and see what sticks,'' says Randy Mead, the game designer charged with coordinating the multitude of moving parts that would become the Carey machine. ''So many of our gam es are based on older themes that are perfect for our audience,'' Mead explains. ''They're the same graphics, the same songs, the same voices that those ladies really desire.'' The Carey machine, though, offered a chance to work on ''something much edgier and fun.''

    Given the size of Carey's contract, ''Big Balls'' had to be an important machine, important enough to slap a wholly visible wheel on it. From almost the beginning, Kaminkow's crew understood that the main bonus round would mimic those commercial-like TV spots in which numbered Ping-Pong balls are used to pick a winning lottery number. They dressed Carey in a tuxedo and filmed him standing beside a beautiful model in a low-cut dress. Given this premise and the elaborate staging, a spinning wheel would seem superfluous -- except that in the world of slot machine design, spinning wheels are never superfluous. Baerlocher likes to recount the time a man lined up the three ''Wheel of Fortune'' symbols on a $1 machine. Bells rang, lights flashed and the machine locked up, as it is programmed to do whenever anyone hits the big jackpot. ''The casino host comes over -- 'Congratulations, sir, you've won the big jackpot. We're going to get people here to verify it.' And he was like, 'Don't I get to spin the wheel?' He had just won over a million dollars, but all he wanted to do is spin the wheel.''
    There are two basic elements to any slot machine, Baerlocher says -- the art and the math: ''The art is used to attract a player. That's our lure to get them to sit down and play. That's when the game math takes over.'' The math, he says, gives a game its personality. Baerlocher decided that ''Big Balls'' couldn't be a cherry dribbler, because it offered so bountiful a top prize, but he didn't want it to be as tight as a game called ''Megabucks,'' which was already in casinos and which rarely rewarded players with any money unless it was bestowing multiple millions of dollars on some lucky soul. The Carey game, the creators decided, would pay some small and medium jackpots, but with nothing like the frequency of machines aimed at the neophyte gambler. ''Our thinking was that people don't want to come to a machine advertising a multimillion bonus and walk away with a $20 or $40 win,'' Baerlocher says. The other big question confronting the design team was how often to initiate the bonus. Baerlocher was aiming for a bonus that would kick in once during every 10 to 15 minutes of play, but Kaminkow was pushing for something that would hit more often. ''That's Joe,'' Baerlocher says. ''He wants a machine that pays a ton of small pays, lots of medium-size plays and a huge jackpot. In other words, he wants us to do the impossible.''

    Apparently Baerlocher accomplished just that. ''Big Balls of Cash'' was a huge hit at last year's G2E, along with ''Star Wars'' and ''Elizabeth Taylor Dazzling Diamonds'' (described in I.G.T.'s press materials as an ''exciting new merchandise-dispensing game'' that allows you to wear home your winnings). I.G.T.'s designers killed many of Carey's more candid wisecracks so as not to anger its most important customers -- the casino executives who will decide the machine's fate -- but there remained an undeniable bite to the machine just the same. The company took 150 new games to G2E, but there was often a wait to play one of the two ''Big Balls'' machines. They were ''gaffed'' -- rigged -- to go immediately to the bonus round, and over the three-day show it provided endless laughs for the slots floor directors looking for new stuff. ''You've got a real winner here,'' person after person told Kaminkow, who hovered around his two big kahunas and ''Dazzling Diamonds'' like a proud father. (''Big Balls'' is expected to make its debut in casinos at the end of this year or early in 2005.)
    Most of the people I met inside I.G.T. told me they never played slot machines on their own time. Anthony Baerlocher turned out to be the exception rather than the rule. Kaminkow's wife, Kim, says she plays only ''when Joe hands me $20 and tells me I'm supposed to play some new machine.'' Even one corporate P.R. staff member couldn't resist shaking her head in disbelief as she described scenes of people lining up to play a new machine. ''It was unfathomable to me,'' she told me. When I asked one I.G.T. artist if he ever plays, he acted as if I had insulted him. ''Slots are for losers,'' he spat, and then, coming to his senses, begged me to consider that an off-the-record comment. ''Big Balls of Cash'' was designed to hold roughly 10 cents for every dollar played, but saying the obvious inside I.G.T. -- that the very math of the slot machine makes it a loser's game -- would not be a very good career move.

    Every so often during my time inside I.G.T. someone let me into a locked showroom just off the building's main lobby. Inside, I would find myriad machines clamoring for my attention. They were in what slot designers describe as ''attract mode.'' A ''Dick Clark's New Year's Rockin' Eve'' kept announcing, ''It's a cold one in Times Square tonight.'' A voice that sounded vaguely like Yosemite Sam asked: ''Do you want to be rich? Oil rich?'' A familiar voice from my TV past cried out, ''Come on down!'' Applause emanated from a machine in the corner, and I heard Frank Sinatra's voice: ''Thank you, ladies and gentlemen.''

    On my first visit to the showroom, I jumped from game to game, but on my second visit I stuck with a single game, ''The Price Is Right,'' which Baerlocher designed expressly for the uninitiated. The showroom machine had 8,000 credits on it -- $400. It wasn't my money, so I played the maximum of $2.25 per spin. The machine constantly emitted noises: clapping sounds, little bright chimes, the occasional yodel. The show's theme song never stopped, driving me batty, until finally I hit a bonus -- suddenly that theme song turned sweet. Slot designers call it a ''rolling sound'': the more credits you win, the longer the song plays. At first I seemed to be winning, gathering credits on every second or third spin. But after about 15 minutes, I was down nearly 7,000 credits. I was winning the virtual equivalent of 15 or 20 nickels every time I scored -- but I was spending more than twice that with every spin. After 45 minutes, I was down below 5,000 credits. If I were playing for real money, I would have lost more than $150.

    Playing free credits is nothing like playing with your own money, of course, so at 2 a.m. one sleepless night I slipped a 20-dollar bill into a ''Jeannie'' machine in the Sands casino in Reno. That bought me a full 25 minutes on the machine and one brief bonus glimpse of Jeannie. I'm pretty much the age of those Kaminkow is targeting with his newer machines -- and in fact I grew up dreaming of Jeannie -- but it's hard to imagine being seduced by any celebrity he might trot out, even Neil Young or Lou Reed.

    My brief crack at slots left me feeling somewhere between stupid and glum. At that hour there were no cheery tourists in brightly-patterned shirts amid the chirping of the slots, no sunny smiles on the faces of elderly women happy for a few hours out on the town. Several machines down from me an older man sat slumped in his chair. His T-shirt was riding up his overabundant belly, but he didn't seem to care. He stared at the video screen in front of him in a toddler-staring-at-television kind of way. Other players around me were dressed in sweatsuits and slippers, and there was even a woman in curlers. The hairstyles were generally what you would expect if a fire alarm forced people out of bed in the middle of the night. It wasn't pleasure I saw on their faces so much as determination.

    The scene called to mind an evening one year earlier when I spent time with several undercover cops who work for Colorado's division of gambling. Walking the casinos of Black Hawk and Central City, a pair of side-by-side mountain towns with dozens of casinos, we came across a woman who had just won $5,000 playing a dollar slot machine. The people at the Isle of Capri Casino had trotted out a photographer and an oversize poster-board check, but the woman wasn't smiling. In fact, she looked sad. ''I'll tell you,'' said Michael Lask, one of the undercover officers, ''she probably lost $10,000 to win that $5,000. And she knows that next week she'll be giving that $5,000 right back.'' For the most part, the only smiling faces I saw while delving into the realm of slot machines were on the faces of I.G.T.'s designers, unless you count the players posing on the oversize pictures that hang in the atrium of the company's entrance.

    Gary Rivlin covers Silicon Valley for The New York Times. He is the author of ''The Plot to Get Bill Gates.''

    http://www.nytimes.com/2004/05/09/magazine/09SLOTS.html?pagewanted=all