Some gambling products provide messages about their average payouts. The phrasing of these messages affects how well consumers understand them. This study tested if people understood messages that used “house-edge” phrasing more than they understood the more common “return-to-player” phrasing. It also tested if people felt they had a lower chance of winning if the message included information about how volatile gambling payouts are in the short run.
Overall, participants understood the “house-edge” messages better than the “return-to-player” ones. Having information about volatility improved understanding of the return-to-player message. It had no effect on understanding of the house-edge message. However, participants felt they had a lower chance of winning if the message included information about volatility. This occurred for both return-to-player and house-edge messages. Thus, gambling products should use house-edge messages with volatility statements to help people understand the risk of gambling.
