The debate between skill-based games and games of chance has raged for decades. Both offer entertainment value and the chance to win money, leading many to lump them together under the umbrella of “gambling.” However the two types of games have key differences that set them apart when examined more closely.
In skill-based games, players rely on their knowledge and talent to influence the outcome. The more skill a player has, the better their odds of winning. In games of chance, random luck determines the results regardless of the player’s ability. Understanding these differences is key to choosing the type of game that best fits your interests and goals.
Role of Skill in Shaping Outcomes
The most fundamental difference between the two game types traces back to how outcomes are determined. Skill-based games at PlayAmo, as the name suggests, rely heavily on skill. The players’ decisions and ability shape their odds of winning. In contrast, games of chance depend wholly on random luck and outside factors determine the results.
Take poker as an example of a skill-based game. Sure, players cannot control which cards they are dealt. But knowledgeable players make smart decisions about which hands to play, how much to bet, when to fold and using strategies like bluffing. Their skilled play directly influences whether they walk away a winner. On the other hand, in a classic game of chance like roulette, the outcome depends completely on where the ball lands. The player’s choices make no difference whatsoever.
To quantify the role of skill, analysts often use a statistic called Return to Player (RTP). Games of skill have a widely variable RTP, while games of chance generally have a fixed theoretical RTP. For example, blackjack may have an RTP range from 99% for poor strategy to 102% for excellent card counting skills. Compare that to slots with a locked-in 94% RTP for all players regardless of “skill.”
Edge of Skillful Players
In skill-based games, knowledgeable players gain an edge that they can leverage for profit over the long run. Their experience and talent put the odds of winning in their favor compared to novice players. If you’ve ever watched a professional poker tournament, it’s clear the expert players consistently best the amateurs. Over time, the skilled players’ edge plays out.
Conversely, no such advantage exists in games of chance. Whether a player is just learning craps or has bet on snake eyes thousands of times, they have precisely equal odds on every roll. The results depend solely on randomness, not the player’s skill level.
To demonstrate, let’s examine the revenue of professional esports gamer Kuro Takhasomi. He has amassed over $4 million in prize money during his career from skillful Dota 2 tournament play over less talented competitors. Even the world’s longest craps roll record holder Garry Crystal can’t claim to have used skill to earn that kind of cash prize consistently.
Game Knowledge Is Power
Dedicated players can learn optimal strategies to gain an advantage in skill-based games. It takes study time to master the odds, calculate probabilities, memorize ideal play decisions and more. For example, Backgammon has over 300 established opening moves for players to know. Even something as simple as Tic Tac Toe has defined optimal play to achieve at least a draw.
In comparison, no amount of practice improves the odds in games of chance. Dice, wheels and random number generators don’t care what players have memorized. In fact, several games including keno and certain slots intentionally change probabilities between rounds to defeat any potential tracking. Player actions make no difference, so game knowledge is essentially powerless.
Earning vs Entertainment
Skill-based games hold profit potential for knowledgeable gamblers. Players willing to put in the hours to study can gain an edge they turn into tangible earnings over time. So for many professionals, it becomes less about entertainment and more about profit driving their gameplay.
Meanwhile games of chance focus solidly on their entertainment value rather than earnings. The odds remain fixed no matter what to ensure the house maintains their advantage. Casual players enjoy these games for fun, not to try making a living. In fact, the randomness gives everyone an equal shot at winning big in any given round.
Game Type by Revenue Share 2024
| Game Type | 2024 Revenue | % Change Since 2019 |
| Skill-Based Games | $192 billion | 16% |
| Games of Chance | $148 billion | 3% |
As this table shows, skill-based games have continued gaining revenue share year-over-year compared to slower growth for chance-based play. This trend reinforces that players seem increasingly drawn to the profit potential from games of skill rather than just entertainment.
