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Measuring Skill in Games with Random Payoffs: Evaluating Legality


  • Heubeck Steven

    (Ohio State University)


Games, such as carnival or electronic/video games, may award prizes in some U.S. states only if the games 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 games 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.

Suggested Citation

  • Heubeck Steven, 2008. "Measuring Skill in Games with Random Payoffs: Evaluating Legality," Review of Law & Economics, De Gruyter, vol. 4(1), pages 25-34, February.
  • Handle: RePEc:bpj:rlecon:v:4:y:2008:i:1:n:2

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