Gambling on HI-LO: an evaluation of alternative playing strategies

Gambling (betting and gaming) is an increasingly important sector of the UK leisure industry and gaming machines are a key category of licensed activi ty. Players' motivation to gamble is significantly influenced by game novel ty so that machine manufacturers invest considerably in developing new stat e-of-the-art game designs. The statistical properties of HI-LO, a game used in many machine applications, are explored here and appropriate theory dev eloped. A series of EXCEL-based macros enable an analysis of payoffs for an y HI-LO game to be undertaken across a range of contrasting playing behavio urs.