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Measuring Skill in Games with Random Payoffs: Evaluating Legality

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Author Info
Steven Heubeck (Ohio State University)

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Abstract

Games, such as carnival or electronic/video games, may award prizes in some U.S. states only if the game's outcome depends sufficiently on skill. Otherwise, the game is classified as a gambling device and therefore illegal in most jurisdictions and states. This paper offers a practical methodology to determine what percentage of a game's payoff deviation can be attributed to skill. This measure of skill is designed to apply to a new class of games that have come to market in which a player in given a task, with no hidden elements, to complete. For completing this task, a random prize is awarded.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Review of Law & Economics.

Volume (Year): 4 (2008)
Issue (Month): 1 ()
Pages: 2
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Handle: RePEc:bep:rlecon:4:2008:1:2

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Related research
Keywords: games of skill games of chance gambling

References listed on IDEAS
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  1. Marcel Dreef & Peter Borm & Ben van der Genugten, 2004. "A new relative skill measure for games with chance elements," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(5), pages 255-264. [Downloadable!]
    Other versions:
  2. Womer, N Keith & Patterson, J Wayne, 1983. "Estimation and Testing of Learning Curves," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(4), pages 265-72, October.
  3. Peter Borm & Ben Genugten, 2001. "On a relative measure of skill for games with chance elements," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 9(1), pages 91-114, June. [Downloadable!] (restricted)
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This page was last updated on 2008-9-20.


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