Pragmatic 26A: Gambling Machines Follow-up 1

20 July, 2014

CURRENT

Follow up (Part A) to Gambling Machines where I talk briefly about why I left Zero-Sum games out of the episode, how Italy is facing the similar problems with slot machines and insurance vs gambling. Thanks to Jordan, Nick, Andrew and Frank (from Italy).

Transcript available
This is pragmatic follow-up pate episode 26 gambling machines I'm John Geagea and follow-up for the month of July is proudly sponsored by life X spelt LIF X it's a smart energy-efficient Wi-Fi enabled LU lightbulb that you can control your smart phone you can change the brightness, tone et cetera from the app that comes with a range of cool effects and it's great fun to use that life X spelt LIF X.co/pragmatic and use the coupon code pragmatic 15% of the total price of your order if you develop it as an SDK of iOS Andrew and Ruby and is a competition currently open until 25 July 2014 if you submit an app for controlling life X bulbs by the deadline you are in the running to win enough life X bulbs to fill every light socket in your house as well as get free advertising to your app through life X checkout blog.life X.co for more information and be quick so has a follow-up from our a few a few people about this particular episode soul start with the Jordan Cooper who does the blender had our podcast as well as our tech dish bags are the latter of which is now in 5 x 5 and days had involvements are with poker in the past and in quite some depth and I also got some small feedback from our Nicholas Radcliffe also along the same lines which is to talk about zero-sum gambling is in your gambling between a group of friends or whatever whereby there is a fixed amount of money on steaks on and so on and there is only so much to go around whereas the gambling when there is a year with a rake arouses as Nicholas puts it anyhow is a very different thing I specifically avoided talking about that regarding and I stuck with slot machines and I suppose the reason I did this is that you claim offers will be playing a machine you not playing another person which is with slot machines I want to separate those to a signal that the biggest single biggest source of government gambling revenue in my country and as will see little bit that in other countries as well as it's quite significant but there are also very widespread and hence there's a lot of people in the house have access to them so if you count the number of people automatically play poker machine versus the number people have played poker game card game then I think you'd find a more people play pokies and play poker are certainly with money so I can sort of I may consider other topics like poker in the future since when I was a child later played at a poker quite a lot but now we play with matchsticks but you never with real money and also ago also had some feedback from Frank R from Italy about some of their machines so their payout rates were at only 74% and only recently tweeting is in 2011 and it was to was increased 74% that's still much less than our payout rate and in Australia so as of the arm as of mid-last year that would actually apply to what they call, 6A slot machines also known as new slot 3 also known as AWP's so mad that particular class a poker machine in Italy has a maximum bid of one euro and has €100 maximum payout boats arm there is slightly different from video lottery machines that those that they call the other poker machines that in these ones can be installed in the gaming walls betting shops bingo halls so arm the ABP's however can be installed in bars and restaurants and hotels so they're very very widespread in fact there they're probably more widespread are then here in Australia and if they're not to be pretty close the numbers are quite staggering survey those particular machines in Italy alone raised €32 billion in 2010 that's just insane to me is a lot of money so I suppose the point is that that's just Italy I talked about Australia little bit about the US but most about Australia so that there there some figures from from Italy so it is a worldwide problem and it's getting worse not just Australia it's it's happening everywhere and it states a bit of a worrying trend setting out our I also got some wonderful feedback are from another listener are called Andrew Rose and he addressed the issue out because of his background with insurance regarding a comment I made early in the episode about my grandmother seeing insurance is a form of gambling so I obey I really think the way that Andrew wrote this is arm is just it's worth reading verbatim so I'm gonna do that although one can view insurance is a simple financial gamble between the insured and the insurance company and in which the house always wins there is a key difference that exists in that insurance contracts are used to make uncertain cash flow is more predictable for the consumer to be explicit one should view insurance as a volatile volatility hedge let us take the example of burglary insurance the purchaser of burglary insurance pays a premium to the insurance company these cash flows are predictable to the consumer as their timing and magnitude unknown in advance this certainty replaces the alternative situation where the individual is exposed is exposed to potential cash flows which are unknown in both timing and in magnitude in the example I would have no idea when my house may be burgled nor any idea what will be stolen if anything so although the insurance company charges a premium such that on average policyholders will make an overall loss over time they are also providing some amount of predictability and certainty as recompense for this so I mean beautifully put thank you Andrew and I could not put about examine why read it Word for Word so near bottom line is are some people will simplistically see insurance as a form of gambling the reality is it's not although one of the things I do find frustrating about insurance are has to do with the all the different clauses that insurance companies can use and will regularly use in order to wriggle their way out of actually paying out 70 do have a claim there's all sorts of ways that they can get out of it and if the small claims that they typically don't bother but for the bigger claims it can get quite nasty so in any cases are the apps I was about insurance but I submitted that mentioned as as an aside during apps I thought was worth revisiting and and thank you very much Andrew for responding so far this woman thing is want to throw in there as well and that is that there are just as quickly on the poker thing is that there is an excellent film called rounders are by John Dahl and it so it is a really good movie as Matt Damon in it for at just a "one of the big names in there and anyhow are it's just about poker and I'm of wrapup illnesses that term his character during game server and was describing poker someone and says arm is what is it you think the five guys who reach the World Series poker final every year edges the luckiest guys in the world know it it's about skill and some our luck whereas gambling machines it's all about the statistics and the statistics are that you'll never win not the long-term and asset�
Duration 7 minutes and 21 seconds Direct Download

Show Notes

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People

John Chidgey

John Chidgey

John is an Electrical, Instrumentation and Control Systems Engineer, software developer, podcaster, vocal actor and runs TechDistortion the Engineered Network and technical whitepapers at Control System Space. John is a Chartered Professional Engineer in both Electrical Engineering and Information, Telecommunications and Electronics Engineering (ITEE) and a semi-regular conference speaker.

John has produced and appeared on many podcasts including Pragmatic and Causality and is available for hire for Vocal Acting or advertising. He has experience and interest in HMI Design, Alarm Management, Cyber-security and Root Cause Analysis.

You can find him on the Fediverse sometimes called Pleroma or Mastodon.