Article how gambling works
Series: How Gambling Works

Learn about gambling

7 min read

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Do you want to learn more about gambling?

If you’re worried that you might be gambling too much or if you’re thinking about gambling for the first time, it’s a good idea to get accurate information about how gambling works. This information can help you make decisions about how much to gamble and which games to play. It can also help you figure out what steps to take if you decide you need to change your gambling.

Do you want to learn more about gambling?

If you’re concerned that a family member or friend has an issue with their gambling, a good place to start is to get accurate information about how gambling works. By learning how gambling works, you can provide better support to your family member or friend who’s struggling with their gambling.

Do you want to learn more about gambling?

If you’re a professional working with someone who has an issue with their gambling, a good place to start is to get accurate information about how gambling works. You can use this information to educate them about the odds of winning and provide better support to the person you’re concerned about.

How does gambling work?

Gambling is big business. A recent national gambling survey suggests that about 57% of adults in Australia participate in some form of gambling each year and the Australian Gambling Statistics tells us we spend around $21.2 billion on gambling each year. Using these statistics, take a look at the most common gambling activities.

Lotteries, instant scratch tickets, and keno.

Lotteries and keno are games of chance that involve the random drawing of numbers for a prize. Many types of lotteries are available in Australia, such as Lucky Lotteries, Powerball, Oz Lotto, and 6 from 38 Pools. Instant scratch tickets, which are sometimes called scratchies, are also games of chance in which people scratch cards to see if they win a prize. Australian adults spend around $2.9 billion each year on these forms of gambling. Lotteries are the most popular, with about 42% of adults playing them each year. Each year, instant scratch tickets are played by about 16% of adults and keno is played by about 8% of adults.

Poker machines.

There are nearly 200,000 poker machines in Australian hotels, clubs, and casinos. 16% of adults play annually, but we spend $10.2 billion on them. Each machine has a computer program creating thousands of possible outcomes every second. When we press the button, the machine randomly picks one of the possibilities. This happens every second, day and night. Each spin is completely random. Poker machines have addictive features that cause the most gambling harm in our communities. Players play quickly and receive small payouts often, but rarely big ones. Poker machines provide near-misses, where the outcome is close to a win but falls short, and losses disguised as wins, where payouts are less than the amount bet. They appeal with light and sound effects. Players can bet on multiple lines and multiple credits per line, which creates faster losses, and use credits instead of money, which makes it hard to keep track of the amount spent. Free spins and jackpots encourage people to continue playing and ultimately, spend more money.

Casino games.

Casino games include games of chance – like baccarat, sic bo, roulette, pai gow (Chinese dominoes), and the big wheel – and games that also include some skill – like blackjack and poker. In Australia, around 6.0% of adults gamble on casino games each year and 3.5% of adults bet on poker each year. Despite the low percentages of people gambling on casino games, the total amount Australians spent per year on casino games high, at around $3.5 billion. Casino table games can be really harmful because players can play quickly and receive wins every so often. They allow players to place large bets on multiple outcomes, which results in faster losses, and use chips instead of money, which makes it hard to keep track of the amount spent.

Sports and race betting.

Sports betting involves betting on the outcomes of sporting games - like AFL, rugby, soccer and tennis. Although only around 10% of Australian adults bet on sports each year, it is one of the fast growing forms of gambling, especially for young men. This is because it’s easy to access on smartphones and is heavily promoted in advertising on TV and social media. Race betting involves betting on horse, harness or greyhound racing. The availability of online betting apps have also made race betting more accessible – about 17% of adults in Australia bet on the races each year. Australians spend around $4.6 billion each year on these forms of gambling. Sports and race betting cause a considerable amount of harm in our communities. In addition to being convenient and heavily advertised, players can place bets quickly and receive payouts every so often. They allow players to place large bets on multiple outcomes, sometimes using credit cards, which can increase the amount that players spend.

The chances of winning on most gambling activities is extremely low. The gambling industry is in the business of making money, not for players to win money.

When gambling on an activity run by the gambling industry, the ‘house’ will take a cut of the total money bet and the balance is shared between the players. This is called the house edge.

This means the odds are always in the gambling industry’s favour. The cut is usually around 10%. But this doesn’t mean the person will get $90 back for every $100 they bet. They may have some small wins along the way. But because the house continues to take its cut, the longer they gamble, the more they will lose.

Find out the odds

Do you know what the chances of winning really are? Take a look at the odds of winning on some common forms of gambling in Australia. To put these odds in context, consider how these odds compare to being struck by lightning! This is a 1 in 12,000 chance, which is much more likely than almost all forms of gambling.

Lotteries, instant scratch tickets and keno.
  • Lotto division 1: 1 in 8.1 million
  • Powerball first division: 1 in 134.5 million
  • Oz Lotto first division: 1 in 62.9 million
  • Set for Life first division: 1 in 38.3 million
  • Lucky lotteries super jackpot: 1 in 18.4 million
  • Lucky lotteries mega jackpot: 1 in 9.4 million
  • Lotto Strike (only available in New South Wales and ACT) first division: 1 in 3.6 million
  • Super 66 first division: 1 in 1 million
  • 6 from 38 pools first division (6 winning match numbers on one game): 1 in 2.8 million
  • Instant scratchies top prize (on a $2 ticket): 1 in 825,000
  • Keno 10-number jackpot: 1 in 8.9 million
Poker machines.
  • $5000 jackpot on a $1 poker machine: 1 in 9.7 million.
Casino games.
  • Caribbean stud poker jackpot with a royal flush: 1 in 250
  • Roulette winning straight up bet: 35 to 1
  • Biggest Big Wheel prize (with 1 spin): 47 to 1.
Sports and race betting.
  • Horse number 1 wins race ($1 bet) trackside: 21 in 100
  • Horse number 12 wins race ($1 bet) trackside: 2 in 100

Can you improve the odds of winning?

It may seem like it’s possible to increase the likelihood of winning but this isn’t the case. Common beliefs are that we will eventually win if we play for long enough or that there is something that we can do to change the outcome. But these beliefs aren’t true. Find out more about whether it’s possible to improve the odds of winning on:

Games of chance – like lotteries, instant scratch tickets, keno, poker machines, most casino games.

When we talk about "games of chance," we're referring to games where the outcome is determined purely by luck. Each bet made in these games has a completely random outcome. That means that what happened before doesn't matter at all. It doesn't matter if they won or lost the last bet, or if they’ve been playing for hours. Each bet is completely unrelated to the ones that came before it. This randomness also means that there's no way to predict what will happen next. They can't use any strategies or techniques to improve their chances of winning. No matter what they do, there's no way to influence the outcome.

Games of chance and skill - like poker, blackjack and sports or race betting.

Some types of gambling may require some level of skill to win, but there are many other factors that can influence the outcome. These factors include the skill of other players, the weather, how the jockey or team members are feeling on the day, and even the behaviour of the horse or greyhound on the day. The house edge also plays a part. It’s impossible for a player to take all of these factors into account, making it more about chance than skill. Even the best players can and do lose because there are so many variables that are out of their control.

Do you want more help?

To learn more about gambling, you can start an online chat with us or call the Gambling Helpline on 1800 858 858 – free, confidential, 24 hours a day, 7 days a week. These services are available to support anyone affected by gambling harm, including family members or friends.

Do you want more help?

To learn more about gambling, you or your family member or friend can start an online chat with us or call the Gambling Helpline on 1800 858 858 – free, confidential, 24 hours a day, 7 days a week.

These services are available to support anyone affected by gambling harm, including family members or friends like you. It’s not only the person who gambles that can be affected, but the people close to them too. It’s important to take care of yourself when you’re supporting someone else. Check out the family and friends section in our peer support community to connect with people who understand.

Do you want more help?

To learn more about gambling, you or the person you’re working with can can start an online chat with us or call the Gambling Helpline on 1800 858 858 – free, confidential, 24 hours a day, 7 days a week.

These services are available to support anyone affected by gambling harm, including family members, friends, and professionals like you. It can be hard for professionals to support people with gambling issues. To learn more about how you can help, go to our section on How Professionals Can Help

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