New Classification of Gambling Products
Updated: Mar 21
Introduction
Gambling is a popular pastime activity worldwide, and its popularity continues to grow. With the advent of technology, gambling has become more accessible, diverse, and convenient. Gambling products come in different forms and can be classified into four categories. This article will discuss the classification of gambling products based on their characteristics.
Richard Owoyemi, the founder of PeerGaming, classifies gambling products into four categories based on two broad benchmarks:
whether the bettor is betting against the house or not, and
whether the game requires great skill or luck to win.
Skill-Based Gambling Products
Skill-based gambling products require great skill to win. These games offer a challenge that goes beyond mere luck. In these games, players can improve their chances of winning by developing their skills and knowledge of the game. They are divided into two categories based on whether the bettor is betting against the house or other players.
Skill-Based Traditional Gambling: These betting products require great skill to win and are played against the house. Examples include blackjack and fixed-odds betting.
Skill-Based Peer-to-Peer Gambling: These are wagering products that require great skill to win and are played among players. Examples include poker, betting exchange, daily fantasy, and x-league.
Chance-Based Gambling Products
Chance-based gambling products are those whose outcome is based purely on luck. These games do not require skill or strategy; the result is entirely random. In these games, players have no control over the outcome, wholly determined by luck. They are divided into two categories based on the player’s opponent:
Chance-Based Traditional Gambling: These betting products require great luck to win and are played against the house. Examples include slot machines, keno, and roulette.
Chance-Based Peer-to-Peer Gambling: These wagering products require great luck to win and are played among players. Examples include scratch-off, lotteries, and bingo.
Conclusion
In conclusion, gambling products can be classified into four types based on two broad benchmarks: whether the game requires great skill or luck to win and whether the player competes against other players or the house. Skill-based gambling products require great skill to win, while chance-based gambling products are entirely based on luck. Traditional gambling products involve betting against the house, while peer-to-peer gambling products involve betting against other players. It is essential to understand the different types of gambling products to make informed decisions and gamble responsibly.