Skill-Based Electronic Gaming Machines: Features that Mimic Video Gaming, Features that could Contribute to Harm, and Their Potential Attraction to Different Groups.

New gambling products have been developed over time as technology permits. For example, early mechanical slot machines were later replaced by electronic gaming machines (EGMs), which enabled a faster speed of play and more immersive experience. EGMs have in the decades since their invention become one of the main drivers of gambling expenditure worldwide and are one of the gambling products most strongly associated with harm. This literature review considers research relevant to a new subcategory of EGM, 'skill-based' EGMs, termed 'SGMs' here. SGMs can be highly varied in content, with some representing a minimal departure from EGMs, where the typical bonus round is replaced by some skill-based activity, such as a simple video game, which could increase the machine's appeal. Other SGMs feature more radical departures from conventional EGMs, such as multiplayer games using intellectual property from popular TV shows or video games. These skill-based elements could tap into common gambling fallacies such as the illusion of control, and therefore facilitate harmful engagement. SGMs could also be less harmful than current EGMs, if skill-based elements break the dissociative states associated with EGM gambling. The intellectual property used in SGMs may increase their appeal among people who generally do not gamble, and the skill-based elements could increase their interest among gamblers who predominately prefer skill-based gambling formats such as sports betting. The novelty and varied content of SGMs present many open questions, which research should aim to address in future.

The Effectiveness of Sinking Lid Policies in Reducing Gambling Expenditure.

In many countries, problem gambling is a significant public health concern. Gambling addiction has been linked to poor health, psychological distress, financial difficulties, and strained interpersonal relationships. In New Zealand, problem gambling is estimated to affect over 10% of the population. To minimize harm, the Gambling Act of 2003 was introduced to limit the number of electronic gaming machines in non-casino establishments. Beyond national-level restrictions, local governments were required to adopt gambling policies of their own and review them every three years. One specific policy that emerged at the local level, found exclusively in New Zealand, is the sinking lid. Sinking lids are designed to gradually reduce machine caps by prohibiting the transfer of gaming licenses. This study leverages variation in the geography and timing of local policy interventions to estimate the effect of sinking lids on gambling expenditure. Results suggest that sinking lids reduce gambling expenditure by 13% relative to regions not adopting policies beyond national-level restrictions.

Do EGMs have a Stronger Association with Problem Gambling than Racing and Casino Table Games? Evidence from a Decade of Australian Prevalence Studies.

Although it is often assumed that electronic gaming machines (EGMs) are associated with the highest level of risk, it has proved difficult to find reliable evidence in support of this proposition. In this paper, we analysed statistics from major Australian community prevalence studies for the period 2011-2020 to investigate whether EGMs (in comparison to racing and casino table games) have a stronger association with problem gambling. All prevalence studies reviewed used telephone sampling and the Problem Gambling Severity Index to assess problem gambling. In this paper, we examine the principal hypothesis using several lines of evidence, including whether problem gamblers are more likely to gamble and gamble regularly on EGMs as opposed to racing and casino games and if the EGM-problem gambling association was maintained after controlling for other forms of participation. Results showed that of all gambling activities, EGMs do appear to have the strongest association with problem gambling. Despite having a disproportionately higher level of participation on racing and casino games as compared with other gamblers, problem gamblers are more likely to report regular or weekly participation in EGM gambling and this may be the reason why this activity emerges most strongly as a predictor of problem gambling in multivariate models. This finding is particularly salient, given the very high prevalence of EGM participation, compared to other risky gambling forms. The findings underscore the importance of survey reporting that presents results in a form that can inform policy relevant research relating to the potential impact of different gambling activities.

Return-to-Player Percentage in Gaming Machines: Impact of Informative Materials on Player Understanding.

The addictive potential of electronic gaming machines (EGMs) is currently explained within a cognitive-behavioural framework. This framework explains that various erroneous cognitions regarding players' likelihood of winning contribute to persistent EGM gambling behaviour. Related to these cognitions is the pervasive misunderstanding among players regarding the operation of EGMs. However, little research has focussed specifically on player understanding of the theoretical proportion returned to players over the lifetime of a machine; return to player percentage. This study aimed to investigate the extent to which players understand the concept return to player percentage presented in different educative formats. A sample of 112 university students were randomly allocated to one of four conditions pertaining to a different mode of information delivery; infographic, vignette, brochure, or mandated legislation (control). Participants completed post-intervention measures to determine changes in knowledge. As predicted, participants exhibited a lack of understanding of the concept of return to player at baseline. However, contrary to predictions, exposure to any of the experimental conditions did not result in a greater understanding of return to player than controls. The study findings emphasise the difficulty individuals have in understanding complex concepts related to return to player percentages when presented in current formats and content. Treatment and responsible gambling policies need to adopt strategies to effectively improve knowledge of this aspect of the structural characteristics of gaming machines.

Proximal and Distal Risk Factors for Gambling Problems Specifically Associated with Electronic Gaming Machines.

Electronic gaming machines (EGMs) are widely used and the gambling product most commonly associated with harmful gambling. Understanding factors that increase the risk of problematic EGM play is therefore important. Previous studies into risk factors for EGM gambling have used measures of problem gambling based on an individual's total gambling activity, which therefore do not distinguish harmful gambling specifically associated with EGMs. This study used an EGM-specific measure (PGSI-EGM) to achieve its aim of identifying risk factors specifically associated with problematic EGM play. By removing nuisance effects from other gambling forms that higher-risk gamblers typically engage in, this approach provides a more accurate assessment of the determinants of EGM-related problems. An online survey was completed by 1932 at-least monthly EGM players in Australia. It measured demographics, EGM gambling behaviour, motivations, gambling urges, gambling fallacies, trait self-control, alcohol misuse, and the PGSI-EGM. A penalised regression model identified the most important proximal predictors of higher-risk EGM gambling as: higher gambling urges, higher levels of erroneous cognitions, playing EGMs more frequently, higher session expenditure, longer sessions, usually playing EGMs alone, and playing EGMs in more venues. Lower trait self control was the strongest distal determinant. Higher-risk EGM players tended to be younger, male, more educated, never married, to have higher (although still modest) incomes, and be more likely to have alcohol problems. These findings can inform interventions such as treatment, consumer education and venue interventions.

Making EGMs Accountable: Can an Informative and Dynamic Interface Help Players Self-regulate?

Electronic gaming machines (EGMs) are recognised as one of the most harmful gambling forms, because they promote high-speed repetitive gambling and automatically reinvest winnings. These features, amongst others, make it difficult for EGM gamblers to keep track of their play. Tools to assist gamblers exist, but have limited effectiveness because they require user registration and manual activation, leading to low uptake. The present study aimed to evaluate the effect of a more informative interface (including removal of automatic reinvestment of winnings) and pop-up messages on gambling behaviour, and on player experience. A total of 213 Australian participants, recruited through social media, played a simulated online EGM. The experiment was a two (standard vs. informative interface) × two (pop-ups absent vs. present) between-subjects design. The informative interface: promoted keeping track of spins played; increased accurate estimation of amount spent (as did pop-up messages) and time played; and provided game usage figures which acted as cues to quit play. Once the initial deposit (but not winnings) was expended, informative interface users could opt to reinvest their winnings, although many opted to exit at that point. No difference in total spending or dissociation was observed between experimental groups. Informative interface users reported no reduction in enjoyment. Pop-up messages reduced enjoyment with the standard interface, but increased enjoyment when paired with an informative interface. These findings indicate that a more informative interface and pop-up messages may be useful in reducing the harmful nature of EGMs.

Predicting Intention to Play Random and Skill-based Electronic Gambling Machines Using the Theory of Reasoned Action.

Hybrid gambling machines (HGMs) are a new gambling activity that combine the skill element of traditional video games with the random pay-out schedule of electronic gaming machines (e.g., slots). Developed to increase gambling by younger generations that favor video games, there is currently no empirical evidence regarding consumer views of HGMs to guide policy-decision making related to this new gambling activity. We use the theory of reasoned action (TRA) to investigate factors that motivate intentions to play these machines in two studies: (1) among 43 casino patrons and (2) among 184 US online participants residing in states where HGMs were available. Both samples completed surveys after exposure to actual or explanations of HGMs and slots. Analyses supported the prediction that positive attitudes towards HGMs and positively perceived subjective norms would predict intention to play HGMs and slots. The results suggest that the TRA is a useful framework for explaining intentions to gamble on traditional slot machines and new HGMs. The absence of research on HGMs makes these studies an important and necessary contribution to the empirical literature on machine gambling. Understanding individuals' intentions to engage with HGMs is important to guide development of harm-minimisation practices and evaluate impact of policy changes.

Cognitive neuroscience can support public health approaches to minimise the harm of 'losses disguised as wins' in multiline slot machines.

Video slot machines are associated with both accelerated transition into problematic forms of gambling, as well as psychosocial harm above and beyond other forms of gambling. A growing body of evidence is uncovering how key design features of multiline slot machines produce an inflated experience of reward, despite the fact that these features offer no overall financial benefit to the player. A pernicious example of this are 'losses disguised as wins' (LDWs), which occur when simultaneous bets placed on multiple lines result in a winning combination that returns an amount greater than zero, but less the total wager. These events are usually accompanied by the same celebratory sounds and animations that accompany true wins. We argue that LDWs may leverage neuropsychological phenomena that underlie reinforcement learning and contribute to extended or repetitive use and gambling-related harm. While other characteristics of slot machine gambling have been examined by cognitive neuroscientists, this feature has not yet received attention. Neuroscientific methods can be used to assess the impact of LDWs on the human reward system, to assess the claim that these events are a reinforcing and contributing factor in the development of harmful play. Positive findings would provide further persuasive evidence in support of strategies to minimise gambling harm through the regulation of machine design.

The impact of pop-up warning messages of losses on expenditure in a simulated game of online roulette: a pilot study.

BACKGROUND: 'Pop-up' warning messages have potential as a Responsible Gambling tool, but many warning messages in the literature are generic. The present study simulated digital roulette to compare the effectiveness of expenditure-specific, generic and control messages, during online roulette. METHODS: Forty-five casual gamblers participated in a laboratory setting. Gambles were 'rigged' such that participants suffered a net loss. Total 'play money' wagers from individual bets after the presentation of the messages were measured. RESULTS: Expenditure-specific warning messages demonstrated significant reductions in wager amounts compared with other message types - Generic (p = .035) and Control messages (p < .001). No significant differences were found between Generic and Control messages (p > .05). Thus expenditure-specific warning messages about current losses were more effective than generic messages for reducing expenditure. CONCLUSIONS: Expenditure-specific warning messages exhibit potential for ameliorating potentially harmful gambling behaviour. Expenditure-specific messages should be tested in a broader range of gambling contexts to examine their generalizability and potential for implementation in the gambling industry.

Isolating the impact of specific gambling activities and modes on problem gambling and psychological distress in internet gamblers.

BACKGROUND: Gambling disorder is related to high overall gambling engagement; however specific activities and modalities are thought to have stronger relationships with gambling problems. This study aimed to isolate the relationship between specific gambling activities and modalities (Internet and venue/land-based) to gambling disorder and general psychological distress. Past-month Internet gamblers were the focus of this investigation because this modality may be associated with gambling disorders in a unique way that needs to be separated from overall gambling intensity. METHODS: Australians who had gambled online in the prior 30 days (N = 998, 57% male) were recruited through a market research company to complete an online survey measuring self-reported gambling participation, problem gambling severity, and psychological distress. RESULTS: When controlling for overall gambling frequency, problem gambling was significantly positively associated with the frequency of online and venue-based gambling using electronic gaming machines (EGMs) and venue-based sports betting. Psychological distress was uniquely associated with higher frequency of venue gambling using EGMs, sports betting, and casino card/table games. CONCLUSIONS: This study advances our understanding of how specific gambling activities are associated with disordered gambling and psychological distress in users of Internet gambling services. Our results suggest that among Internet gamblers, online and land-based EGMs are strongly associated with gambling disorder severity. High overall gambling engagement is an important predictor of gambling-related harms, nonetheless, venue-based EGMs, sports betting and casinos warrant specific attention to address gambling-related harms and psychological distress among gamblers.

Role Reversal: The Influence of Slot Machine Gambling on Subsequent Alcohol Consumption.

Experimental studies examining the relationship between alcohol use and gambling have focused predominantly on alcohol's influence on gambling behavior. There has been little consideration of the reverse pathway: whether gambling influences subsequent alcohol use. Two experiments examined whether gambling and gambling outcomes (i.e. profits during a gambling session) influenced subsequent alcohol consumption. Experiment 1 (n = 53) used an ad libitum consumption test, in which participants could request beverages during a 30 min window. Experiment 2 (n = 29) used a beer taste test procedure, in which participants were asked to rate a series of beers. In both studies, male regular gamblers were assigned to watch a television show or play a modern slot machine for 30 min, before being provided with access to alcohol. On the ad libitum procedure, gambling significantly increased the number of alcoholic drinks ordered, the volume of alcohol consumed, the participants' speed of drinking, and their intention to drink alcohol. These effects were not corroborated using the taste test procedure. Across both studies, gambling outcomes were not associated with alcohol consumption. In conjunction with prior findings, the observation that gambling can promote alcohol consumption under certain conditions highlights a possible feedback loop whereby gambling and alcohol reinforce one another. However, the divergent results between the ad libitum and taste test experiments point to boundary conditions for the effect and raise methodological considerations for future work measuring alcohol consumption in gambling environments.

A meta-regression analysis of 41 Australian problem gambling prevalence estimates and their relationship to total spending on electronic gaming machines.

BACKGROUND: Many jurisdictions regularly conduct surveys to estimate the prevalence of problem gambling in their adult populations. However, the comparison of such estimates is problematic due to methodological variations between studies. Total consumption theory suggests that an association between mean electronic gaming machine (EGM) and casino gambling losses and problem gambling prevalence estimates may exist. If this is the case, then changes in EGM losses may be used as a proxy indicator for changes in problem gambling prevalence. To test for this association this study examines the relationship between aggregated losses on electronic gaming machines (EGMs) and problem gambling prevalence estimates for Australian states and territories between 1994 and 2016. METHODS: A Bayesian meta-regression analysis of 41 cross-sectional problem gambling prevalence estimates was undertaken using EGM gambling losses, year of survey and methodological variations as predictor variables. General population studies of adults in Australian states and territory published before 1 July 2016 were considered in scope. 41 studies were identified, with a total of 267,367 participants. Problem gambling prevalence, moderate-risk problem gambling prevalence, problem gambling screen, administration mode and frequency threshold were extracted from surveys. Administrative data on EGM and casino gambling loss data were extracted from government reports and expressed as the proportion of household disposable income lost. RESULTS: Money lost on EGMs is correlated with problem gambling prevalence. An increase of 1% of household disposable income lost on EGMs and in casinos was associated with problem gambling prevalence estimates that were 1.33 times higher [95% credible interval 1.04, 1.71]. There was no clear association between EGM losses and moderate-risk problem gambling prevalence estimates. Moderate-risk problem gambling prevalence estimates were not explained by the models (I 2 ≥ 0.97; R 2 ≤ 0.01). CONCLUSIONS: The present study adds to the weight of evidence that EGM losses are associated with the prevalence of problem gambling. No patterns were evident among moderate-risk problem gambling prevalence estimates, suggesting that this measure is either subject to pronounced measurement error or lacks construct validity. The high degree of residual heterogeneity raises questions about the validity of comparing problem gambling prevalence estimates, even after adjusting for methodological variations between studies.

The Effects of Pop-up Harm Minimisation Messages on Electronic Gaming Machine Gambling Behaviour in New Zealand.

In New Zealand a simple pop-up message feature that provides gambling session information and forces a break in play is mandatory on all electronic gaming machines in all venues (EGMs). Previous research has demonstrated small effects of more sophisticated pop-up messages tested predominantly in laboratory environments. The present research examined gambler engagement with and views on the New Zealand pop-up messages and on the relationship between pop-up messages and EGM expenditure. A sample of gamblers was recruited at casino and non-casino (pub) EGM venues. Most participants were aware of pop-up messages (57 %) and many saw them often (38 %). Among gamblers who reported seeing pop-up messages, half read the message content, and a quarter believed that pop-up messages helped them control the amount of money they spend on gambling. Participants who reported being likely to stop gambling in response to pop-up messages spent significantly less money on gambling when variables that were independently associated with EGM expenditure were controlled for. A modest harm minimisation effect of the pop-up message feature that has been operating in New Zealand for 5 years was evident. Suggestions for improvement of the harm minimisation potential of the current pop-up message feature are discussed.

Electronic gaming machine accessibility and gambling problems: A natural policy experiment.

Background: Electronic gaming machines (EGMs) are one of the most harmful forms of gambling at an individual level. It is unclear whether restriction of EGM functions and accessibility results in meaningful reductions in population-level gambling harm. Methods: A natural policy experiment using a large (N = 15,000) national dataset weighted to standard population variables was employed to compare estimates of gambling problems between Australian residents in Western Australia (WA), where EGMs are restricted to one venue and have different structural features, to residents in other Australian jurisdictions where EGMs are widely accessible in casinos, hotels and clubs. Accessibility of other gambling forms is similar across jurisdictions. Results: Gambling participation was higher in WA, but EGM participation was approximately half that of the rest of Australia. Aggregate gambling problems and harm were about one-third lower in WA, and self-reported attribution of harm from EGMs by gamblers and affected others was 2.7× and 4× lower, respectively. Mediation analyses found that less frequent EGM use in WA accounted for the vast majority of the discrepancy in gambling problems (indirect path = -0.055, 95% CI -0.071; -0.038). Moderation analyses found that EGMs are the form most strongly associated with problems, and the strength of this relationship did not differ significantly across jurisdictions. Discussion: Lower harm from gambling in WA is attributable to restricted accessibility of EGMs, rather than different structural features. There appears to be little transfer of problems to other gambling forms. These results suggest that restricting the accessibility of EGMs substantially reduces gambling harm.

Unambiguous evidence that over half of gambling problems in Australia are caused by electronic gambling machines: Results from a large-scale composite population study.

Background and aims: It is well understood that engagement with some forms of gambling, like EGMs, is riskier than other forms. However, while reports of associations are common, few studies have attempted to evaluate and compare the relative risk of all available forms, and none have estimated the relative contribution of each form to the total burden of gambling problems (GP) in a population. Methods: Using an aggregated dataset of national and state-based prevalence studies in Australia (N = 71,103), we estimated prevalence and unique effects of frequency of engagement on each form on GP. Two alternative numerical methods were then applied to infer the relative contribution of each form to the total amount of GP. Results: EGMs are responsible for 51%-57% of gambling problems in Australia, and 90% of gambling problems are attributable to EGMs, casino, race, and sports betting. Casino table games and EGMs are equally risky at the individual level, but the former contribute far less to problems due to low participation. Bingo and lottery play show no statistically detectable risk for GP. Discussion and conclusion: The results illustrate which forms present the greatest population burden and illuminate the reasons why. EGMs have an outsized impact. EGM uniquely combines high risk conditional on play, with a high participation rate and a high frequency of play among participants. This is in contrast to risky but less commonly played casino games, and prevalent but non-risky forms like lotteries. We conclude that EGM regulation should be a primary focus of policy action in Australia. More innovative policy ideas relating to EGMs should be tested due to the disproportionate impact of this product type.

Comorbid psychiatric diagnoses and gaming preferences in US armed forces veterans receiving inpatient treatment for gambling disorder.

Armed Forces Veterans are uniquely vulnerable to problem gambling and gambling disorder. Even so, research regarding the full clinical profile of veterans with gambling problems lags. Gambling activities vary widely from each other, but most gambling activities can be understood as either strategic (i.e., involving some measure of skill and decision-making as a part of the gambling practice) or non-strategic (i.e., gambling activities that are entirely based on chance). Prior works have found that gamblers that prefer strategic gambling activities and those that prefer nonstrategic gambling activities often differ from each other in key ways, with the two preferences being linked to varying motivations for gambling, varying cognitions about gambling, and the course of gambling disorder. The present work sought to examine how preferences for strategic vs. nonstrategic gambling might be related to psychiatric comorbidities among U.S. Armed Forces Veterans receiving inpatient treatment for Gambling Disorder. Data from U.S. Armed Forces Veterans (N = 401) receiving residential treatment for GD between the years of 2010-2016 were analyzed. Results demonstrated that gamblers that preferred strategic gambling, as opposed to non-strategic gambling, were more likely to be younger, more likely to be men, less likely to have a nicotine use disorder, and less likely to have PTSD. Such findings suggest that gamblers with PTSD are likely to prefer nonstrategic games and may imply a unique vulnerability to gambling problems related to non-strategic gambling among armed forces veterans.

Short-term cognitive impacts of electronic gaming machines with and without a skill-based component: A comparative laboratory study.

This study aimed to compare how consumers understand the role of skill and chance, experience cognitive distortions, and experience immersion based on use of either electronic gaming machines (EGMs) or skill gambling machines (SGMs; EGMs with a skill-based component). Participants (N = 246, M age = 34 years, 56.91% female) in a laboratory experiment were randomly assigned to play a real EGM or SGM without funds and self-reported measures including intention to gamble, understanding of the role of skill and chance, erroneous gambling beliefs, previous gambling and gaming, and problem gambling severity. Participants demonstrated different deficits in understanding of the role of skill vs. chance in determining outcomes following play. SGM players were more likely to increase their belief that a skill impacts outcomes and focused more on the game play experience. EGM players focused more on wins and personal performance. Intention to play both machines was predicted in both groups by greater experience of immersion during play and breadth of previous gambling, but breadth of previous gaming experience only predicted intent to play SGMs. The results revealed that both EGM and SGM players fail to understand how outcomes are determined, which is likely more problematic for EGM players as this reflects clear cognitive distortions. Further real-world testing is required to understand the extent to which SGMs harms may be different than EGMs, however, these initial findings suggest that their risks appear comparable to EGMs while attracting individuals with more gaming experience.

Affective impulsivity moderates the relationship between disordered gambling severity and attentional bias in electronic gaming machine (EGM) players.

Background and aims: Attentional bias to gambling-related stimuli is associated with increased severity of gambling disorder. However, the addiction-related moderators of attentional bias among those who gamble are largely unknown. Impulsivity is associated with attentional bias among those who abuse substances, and we hypothesized that impulsivity would moderate the relationship between disordered electronic gaming machine (EGM) gambling and attentional bias. Methods: We tested whether facets of impulsivity, as measured by the UPPS-P (positive urgency, negative urgency, sensation seeking, lack of perseverance, lack of premeditation) and the Barratt Impulsiveness Scale-11 (cognitive, motor, non-planning) moderated the relationship between increased severity of gambling disorder, as measured by the Problem Gambling Severity Index (PGSI), and attentional bias. Seventy-five EGM players participated in a free-viewing eye-tracking paradigm to measure attentional bias to EGM images. Results: Attentional bias was significantly correlated with Barratt Impulsiveness Scale-11 (BIS-11) motor, positive urgency, and negative urgency. Only positive and negative urgency moderated the relationship between PGSI scores and attentional bias. For participants with high PGSI scores, higher positive and negative urgency were associated with larger attentional biases to EGM stimuli. Discussion: The results indicate that affective impulsivity is an important contributor to the association between gambling disorder and attentional bias.

Do losses disguised as wins create a "sweet spot" for win overestimates in multiline slots play?

Multiline slots are popular electronic gaming machines. Research suggests that particular outcomes on these games, namely losses disguised as a wins or LDWs, may make these games particularly alluring to gamblers. LDWs occur when one wins less than they wager, but the machine celebrates these net losses with flashing lines and winning sounds (e.g., bet a dollar, win back a dime). Players are known to somatically, psychologically, and behaviourlly miscategorize LDWs as wins rather than losses. Furthermore, LDWs lead players to overestimate how many times they thought they won during a playing session - leading to what is known as the LDW-triggered win-overestimation effect. In this paper, we analyzed experienced players' win-overestimates from 13 studies after playing slots with different LDW percentages. The combined data showed an inverted U-shaped function for win-overestimates. There appears to be a "sweet spot" for the LDW-triggered win-overestimation effect; wherein, a moderate number of LDWs maximizes this effect, but a high number of LDWs decreases the effect. In Study 2, we confirmed with 132 experienced gamblers that there appears to be maximal win overestimates at around 19.6% LDWs. We conjecture that a high number of LDWs may lead players to see a disconnection between the running total on the machine going down and the number of "wins", leading to more accurate win estimates. This inverted "U" effect for win-overestimates parallels previous research showing that gamblers continue to play for longer during a losing streak following a playing session with a moderate (versus low or high) number of LDWs. LDW-triggered win-overestimates may contribute to the allure of multiline slots -games that cause significant problems for a subset of gamblers.

Association between density of gaming venues in a geographical area and prevalence of insolvency: longitudinal evidence from Australia.

BACKGROUND AND AIMS: Problem gambling can lead to a myriad of harmful consequences, including unmanageable amounts of debt and serious financial problems. The aim of this study was to examine whether changes in the number of electronic gaming machine (EGM) venues within a local area (due to venue openings and closings) are associated with changes in the rates of serious financial problems. DESIGN: Area-level longitudinal multivariate regressions controlling for possible confounders (fixed and time-varying local area characteristics). SETTING: Australia's three largest states (New South Wales, Victoria, Queensland), during the period 2011-18. PARTICIPANTS: A total of 225 local areas (Statistical Area 3 level) within the three states. MEASUREMENTS: Serious financial problems were measured by administrative data on total number of personal insolvencies (bankruptcies, debt agreements and insolvency agreements) in each local area per annum. The number of EGM venues in each local area was the regressor of primary interest. Area-level covariates included the number of non-gaming pubs and clubs, unemployment rate, population count, local area dummies, local area linear time trends and a separate set of state dummies for each year. FINDINGS: A one-venue decrease over time within a local area decreased the number of personal insolvencies by 1.8 per year [95% confidence interval (CI) = 0.4-3.2]. The result is robust to alternative specifications, including allowing for geographical spillovers (ß = 2.2, 95% CI = 0.7-3.7), temporal lagged effects (ß = 1.6, 95% CI = 0.6-2.8) and the spatial variability of venues within areas (ß = 2.7, 95% CI = 0.9-4.5). CONCLUSIONS: There is a positive association between the number of gaming venues in a local geographic area and the number of personal insolvencies in that area. Reducing the number or accessibility of gaming venues could help to reduce financial harms associated with problem gambling.