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The Gambling Commission currently requires online operators to include “information that may reasonably be expected to enable the customer to make an informed decision about his or her chances of winning” for virtual gambling games such as online roulette.
This information is almost always displayed as what is known as the “return-to-player” percentage, e.g., “This game has an average percentage payout of 90%”, meaning that for every £100 bet, on average £90 will be paid back out as prizes. However, the Gambling Commission regulations also allow this information to be displayed as the “house-edge” percentage, e.g., “This game keeps 10% of all money bet on average”, meaning that gamblers will on average lose £10 for every £100 bet.
A return-to-player of 90% and a house-edge of 10% are therefore factually equivalent, but psychologically they are quite different. Dr Ludwig, Dr Newall, and Dr Walasek told us that research they had conducted showed that gamblers think they will have a better chance of winning when given return-to-player information than when given equivalent house-edge information.