Losses disguised as wins on the pokies

Ding ding ding! The reels stop, the lights flash, a happy tune plays and the credit number climbs. You won!

Except you bet $1 and got 40c back. You lost 60c.

Researchers call this a loss disguised as a win. It's one of the sneakiest tricks a poker machine has, and one of the best at keeping you there.

How a loss ends up looking like a win

Old machines had one line. They paid when you won and stayed quiet when you didn't. Simple.

Modern machines let you bet on lots of lines at once, often 20, 25 or more, with your bet split between them. On most spins, a few low symbols line up on at least one line and pay a little. Meanwhile the rest of your bet is lost on all the other lines. Add it up and the spin lost money.

The machine won't tell you that. It shows you what it paid, and throws the same party it throws for a real win.

On a machine with lots of lines, these fake wins come up all the time. On our see-through pokie, about one spin in four pays something back, but less than you bet.

Why your brain falls for it

Your brain learns from feedback. Here, the machine gives you winning feedback for losing.

Studies have found people's bodies react to a loss disguised as a win much like they react to a real win, with the same physical buzz. Ask them afterwards and they tend to remember winning more often than they really did, especially when the winning sounds were on.

So a session feels full of wins. Your money drains away steadily, but you hardly ever get a clear, quiet loss that makes you stop and think. Plenty of spins feel like you're getting somewhere.

How to see through it

Every time the machine celebrates, check the win against your bet. If the win is smaller, it was a loss. Bet $2, get $1.20 back, and you're 80c down.

Better still, ignore the wins and watch your balance. The only number that matters is what you've got now compared with what you started with.

Turn the sound down if you can. Without the music, a small payout looks like what it is.

You could also bet on fewer lines. That won't change how much the machine takes in the long run, but losses will at least look like losses.

Betting apps do it too

A cash out that hands back part of your stake can feel like getting something back. So can a "bonus bet" refund after you lose. Either way, you've still lost money.

Whenever something is dressed up as a win, ask yourself one question. Compared with what I put in, am I up or down?