Iowa Gambling Task Instructions

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NOTICE: The DIA website is available only for filing an online annual gambling report. If you want to apply for a social or charitable gambling license, you will need to fill out a paper application. Please download the appropriate application below and mail the completed packet including payment to our office.

The Iowa Gambling Task is a computerized version of Bechara and Damasio's gambling task (Bechara et al., 1997) which consists of 4 decks of cards labeled A to D, with each card representing either a win or loss of money. Initially, the instructions were simplified to maintain the blind of the study's purpose. This is both a guide and tutorial, so each step will relate back to an example task, the Iowa Gambling Task, which will be reviewed in the next section. Iowa Gambling Task. First, let us run through a brief overview of the task we will be using; the Iowa Gambling Task (IGT). If you are familiar with this task, you can skip to the next section. Ability to make long-term advantageous decisions on a task called the Iowa gambling task (IGT; Bechara et al.,1994). In order to rule out reward and punishment sensitivity as an alternative expla-nation for decision making on the task, Bechara et al. (2000b) compared reward and punishment variants of the IGT to demon.

You may obtain a paper copy of the annual gambling report by contacting our office either by phone at 515.281.6848 or by email at scg@dia.iowa.gov. This report is due on Jan. 31 each year and covers the previous calendar year. A notice is mailed in early January each year to all nonprofit organizations that had a license at any point during the reporting period. The notice includes instructions on where and how to complete the annual report.

The Social and Charitable Gambling Unit administers Iowa Code Chapter 99B, which regulates games of skill or chance, raffles, bingo, social gambling and amusement devices. Qualified organizations may obtain a social or charitable gambling license to conduct fund-raising activities benefiting educational, civic, public, charitable, patriotic, or religious purposes.

Sales Tax Information

Gambling receipts are subject to Iowa sales tax, even for nonprofit organizations. All taxes are payable to the Iowa Department of Revenue, and should not be submitted to DIA. More information about taxes on gambling receipts can be found on the Iowa Department of Revenue website.

Types of Gambling Licenses

In order to conduct charitable gambling activities, a nonprofit organization will first need to obtain a Charitable Gambling License. The Charitable Gambling License applications describe the various types of gambling activity that are permitted by the licensees. The only gambling activities authorized under these licenses are bingo, raffles, and games of skill and chance.

A license must be issued by DIA before gambling takes place, including the promotion and sale of tickets. Applications should be received by DIA at least 30 days prior to the intended start of activity.

The type of license you need will depend on the period of time for which you plan to conduct gambling activity in your organization.

• Qualified Organization License, 14-Day($15)
• Qualified Organization License, 90-Day($40)
• Qualified Organization License, 180-Day($75)
• Qualified Organization License, One-Year($150)
• Qualified Organization License, Two-Year($150)
• Bingo at a Fair or Festival License($50)
• Very Large Raffle License ($100)

*An organization requesting a Two-Year Qualified Organization License must have been in existence for at least five years.
**In addition to a One-Year or Two-Year Qualified Organization License, organizations wishing to conduct a Very Large Raffle will need to complete a separate Very Large Raffle License Application.

Definitions

1. Bingo Conducted at a Fair or Community Festival – License that allows bingo to be conducted for the duration of a fair or community festival of no more than six consecutive days in length held by a community group. Bingo occasions held under this license shall not be counted in determining whether a qualified organization has conducted the maximum three occasions per week or 15 occasions per month.
2. Community Festival – A festival of no more than six consecutive days in length held by a community group.
3. Community Group – An Iowa nonprofit, tax-exempt organization which is open to the general public and established for the promotion and development of the arts, history, culture, ethnicity, historical preservation, tourism, economic development, festivals or municipal libraries. 'Community group' does not include a school, college, university, political party, labor union, fraternal organization, church, convention or association of churches or organizations operated primarily for religious purposes, or which are operated, supervised, controlled or principally supported by a church, convention of association of churches.
4. Games of Skill and Chance – Includes but not limited to carnival-style games. They do not include casino-style games (See Game Night).
5. Game Night – An event at which casino-style games may be conducted, in addition to games of skill and games of chance, within one consecutive 24-hour period.
6. Raffle – A lottery in which each participant buys an entry for a chance at a prize with the winner determined by a random method and the winner is not required to be present to win. For raffles, the license duration must include your advertising, ticket sales, and drawing of the winner(s). A combination of licenses may be used to obtain the requested length of time.
7. Very Small Raffle – A raffle where the total value of cash and/or merchandise prizes is $1,000 or less and the value of all entries sold is $1,000 or less, or the total value of donated merchandise prizes is $5,000 or less and the value of all entries sold is $5,000 or less.
8. Small Raffle – A raffle where the total value of cash and/or prizes is more than $1,000 but not more than $10,000.
9. Large Raffle – A raffle whether the total value of cash and/or prizes is more than $10,000 but not more than $100,000.
10. Very Large Raffle – A raffle where the total value of cash and/or prizes is more than $100,000 but not more than $200,000 or if the prize is real property.

Social Gambling License for Beer and Liquor Establishments

Authorizes small stakes card and parlor games between individuals (i.e., euchre, hearts, pitch, pinochle, gin rummy, poker, cribbage, pepper, darts, and billiards). Additionally, this license allows the establishment to conduct sports betting pools.

A license must be issued by DIA before gambling takes place, including the promotion. Applications should be received by DIA at least 30 days prior to the intended start of activity.

• License duration: Two years
• Cost: $150

Access the Social Gambling License Application.

Social Gambling License for Public Place, No Alcohol Allowed

Authorizes patrons to socially gamble amongst themselves in the licensed establishment on small stakes card and parlor games (i.e., euchre, hearts, pitch, pinochle, gin rummy, poker, cribbage, pepper, darts, and billiards). This license does not allow sports betting pools.

A license must be issued by DIA before gambling takes place, including the promotion. Applications should be received by DIA at least 30 days prior to the intended start of activity.

• License duration: Two years
• Cost: $100

The following activities are NOT permissible under this license:

• Raffles
• Bingo
• Poker tournaments
• Poker runs
• Roll-of-the-day
• Bookmaking
• Casino-style games other than poker

Cambridge Gambling Task

Access the Social Gambling License Application.

Iowa Code section 99B.6(7) permits the those with a two-year Social Gambling License for Beer and Liquor Establishments (see tab above) to conduct a sports betting pool under certain circumstances. There is no additional cost to conduct a sports-betting pool.

Contact us with questions.

'Amusement concession' means a game of skill or game of chance with an instant win possibility where, if the participant completes a task, the participant wins a prize. 'Amusement concession' includes but is not limited to carnival-style games that are conducted by a person for profit. 'Amusement concession' does not include casino-style games or amusement devices required to be registered pursuant to section 99B.53.

Games may only be conducted after a license has been issued by DIA. Applications should be received by DIA at least 30 days prior to the intended start of activity.

• License duration: One year
• Cost: $50 per game

View or download the Amusement Concession License Application.

How is the Task Structured?

The Iowa Gambling Task is an incredibly simple test. The participant is presented with four virtual decks of cards if playing on a computer, or four real decks if doing the test in the physical domain. The participant is informed that the outcome of each choice, that being which deck they choose to draw a card from, will reward or penalize them. The aim of the game is to raise as much money as possible through maximizing the rewards and minimizing the number of penalties incurred. After several plays on each deck the participant should understand and form an intuition of how to proceed in the game. The key here is that you must use this specific set up for the test. However, you can notice the patterns of behavior while playing online blackjack or playing roulette.

Common Findings Upon Completion of the Task

The majority of participants sample a few cards from each deck to gain an understanding of the game mechanics. Once an intuition has been developed, usually at about 20-30 selections into the game, the player is generally very good at selecting the cards from the decks that will most efficiently build their reward/bank balance in the game. However, the test is designed to identify patients with an orbitofrontal cortex dysfunction (OFCD). In the case a patient playing the Iowa Gambling Test has an OFCD, the likeliness is they will fail to recognize the decks that reward them the most efficient and will continue to persevere with bad decks. Furthermore, researchers are able to monitor the reaction time of each choice on the player. Healthy patients are witnessed as displaying a stress reaction to hovering over bad decks, even after just 10 selections into the game. By contrast, players with neurological dysfunctions continue to choose outcomes that yield high immediate rewards in spite of higher losses in the future.

In order to conduct charitable gambling activities, a nonprofit organization will first need to obtain a Charitable Gambling License. The Charitable Gambling License applications describe the various types of gambling activity that are permitted by the licensees. The only gambling activities authorized under these licenses are bingo, raffles, and games of skill and chance.

A license must be issued by DIA before gambling takes place, including the promotion and sale of tickets. Applications should be received by DIA at least 30 days prior to the intended start of activity.

The type of license you need will depend on the period of time for which you plan to conduct gambling activity in your organization.

• Qualified Organization License, 14-Day($15)
• Qualified Organization License, 90-Day($40)
• Qualified Organization License, 180-Day($75)
• Qualified Organization License, One-Year($150)
• Qualified Organization License, Two-Year($150)
• Bingo at a Fair or Festival License($50)
• Very Large Raffle License ($100)

*An organization requesting a Two-Year Qualified Organization License must have been in existence for at least five years.
**In addition to a One-Year or Two-Year Qualified Organization License, organizations wishing to conduct a Very Large Raffle will need to complete a separate Very Large Raffle License Application.

Definitions

1. Bingo Conducted at a Fair or Community Festival – License that allows bingo to be conducted for the duration of a fair or community festival of no more than six consecutive days in length held by a community group. Bingo occasions held under this license shall not be counted in determining whether a qualified organization has conducted the maximum three occasions per week or 15 occasions per month.
2. Community Festival – A festival of no more than six consecutive days in length held by a community group.
3. Community Group – An Iowa nonprofit, tax-exempt organization which is open to the general public and established for the promotion and development of the arts, history, culture, ethnicity, historical preservation, tourism, economic development, festivals or municipal libraries. 'Community group' does not include a school, college, university, political party, labor union, fraternal organization, church, convention or association of churches or organizations operated primarily for religious purposes, or which are operated, supervised, controlled or principally supported by a church, convention of association of churches.
4. Games of Skill and Chance – Includes but not limited to carnival-style games. They do not include casino-style games (See Game Night).
5. Game Night – An event at which casino-style games may be conducted, in addition to games of skill and games of chance, within one consecutive 24-hour period.
6. Raffle – A lottery in which each participant buys an entry for a chance at a prize with the winner determined by a random method and the winner is not required to be present to win. For raffles, the license duration must include your advertising, ticket sales, and drawing of the winner(s). A combination of licenses may be used to obtain the requested length of time.
7. Very Small Raffle – A raffle where the total value of cash and/or merchandise prizes is $1,000 or less and the value of all entries sold is $1,000 or less, or the total value of donated merchandise prizes is $5,000 or less and the value of all entries sold is $5,000 or less.
8. Small Raffle – A raffle where the total value of cash and/or prizes is more than $1,000 but not more than $10,000.
9. Large Raffle – A raffle whether the total value of cash and/or prizes is more than $10,000 but not more than $100,000.
10. Very Large Raffle – A raffle where the total value of cash and/or prizes is more than $100,000 but not more than $200,000 or if the prize is real property.

Social Gambling License for Beer and Liquor Establishments

Authorizes small stakes card and parlor games between individuals (i.e., euchre, hearts, pitch, pinochle, gin rummy, poker, cribbage, pepper, darts, and billiards). Additionally, this license allows the establishment to conduct sports betting pools.

A license must be issued by DIA before gambling takes place, including the promotion. Applications should be received by DIA at least 30 days prior to the intended start of activity.

• License duration: Two years
• Cost: $150

Access the Social Gambling License Application.

Social Gambling License for Public Place, No Alcohol Allowed

Authorizes patrons to socially gamble amongst themselves in the licensed establishment on small stakes card and parlor games (i.e., euchre, hearts, pitch, pinochle, gin rummy, poker, cribbage, pepper, darts, and billiards). This license does not allow sports betting pools.

A license must be issued by DIA before gambling takes place, including the promotion. Applications should be received by DIA at least 30 days prior to the intended start of activity.

• License duration: Two years
• Cost: $100

The following activities are NOT permissible under this license:

• Raffles
• Bingo
• Poker tournaments
• Poker runs
• Roll-of-the-day
• Bookmaking
• Casino-style games other than poker

Cambridge Gambling Task

Access the Social Gambling License Application.

Iowa Code section 99B.6(7) permits the those with a two-year Social Gambling License for Beer and Liquor Establishments (see tab above) to conduct a sports betting pool under certain circumstances. There is no additional cost to conduct a sports-betting pool.

Contact us with questions.

'Amusement concession' means a game of skill or game of chance with an instant win possibility where, if the participant completes a task, the participant wins a prize. 'Amusement concession' includes but is not limited to carnival-style games that are conducted by a person for profit. 'Amusement concession' does not include casino-style games or amusement devices required to be registered pursuant to section 99B.53.

Games may only be conducted after a license has been issued by DIA. Applications should be received by DIA at least 30 days prior to the intended start of activity.

• License duration: One year
• Cost: $50 per game

View or download the Amusement Concession License Application.

How is the Task Structured?

The Iowa Gambling Task is an incredibly simple test. The participant is presented with four virtual decks of cards if playing on a computer, or four real decks if doing the test in the physical domain. The participant is informed that the outcome of each choice, that being which deck they choose to draw a card from, will reward or penalize them. The aim of the game is to raise as much money as possible through maximizing the rewards and minimizing the number of penalties incurred. After several plays on each deck the participant should understand and form an intuition of how to proceed in the game. The key here is that you must use this specific set up for the test. However, you can notice the patterns of behavior while playing online blackjack or playing roulette.

Common Findings Upon Completion of the Task

The majority of participants sample a few cards from each deck to gain an understanding of the game mechanics. Once an intuition has been developed, usually at about 20-30 selections into the game, the player is generally very good at selecting the cards from the decks that will most efficiently build their reward/bank balance in the game. However, the test is designed to identify patients with an orbitofrontal cortex dysfunction (OFCD). In the case a patient playing the Iowa Gambling Test has an OFCD, the likeliness is they will fail to recognize the decks that reward them the most efficient and will continue to persevere with bad decks. Furthermore, researchers are able to monitor the reaction time of each choice on the player. Healthy patients are witnessed as displaying a stress reaction to hovering over bad decks, even after just 10 selections into the game. By contrast, players with neurological dysfunctions continue to choose outcomes that yield high immediate rewards in spite of higher losses in the future.

Bechara and Damasio explain these findings in great detail. The key conclusion relates to the somatic marker hypothesis, which ascertains that key decision making is often made in the heat of emotions and it is emotions that ultimately guide behavior and decision making. This obviously has particular relevance to gambling psychology which we will attempt to bring into the equation in the following section. If you want a quick break from the dense psychological analysis, have a read of this relatable article on how gamblers try to get good luck.

Can the Iowa Gambling Task Identify Gambling Addiction?

It seems like a very logical conclusion to make given the results of healthy and dysfunctional patients. The apparent inability to recognize risk whilst making a decision, and being blinded by the potential to yield larger immediate gains is a familiar problem to anyone who understands gambling addiction. Participants who are constantly choosing a deck that will yield higher gains but comes with a much higher chance of a high penalty are more likely to become gambling addicts. Players who recognize that small incremental gains at a low-risk desk are better for them in the long-run are less likely to be gambling addicts. This simple hypothesis has become the foundation of this test and remains a large reason why it is attributed to pushing advancements in the assistance of gambling addiction.

What Other Lessons Can We Learn from the Iowa Gambling Test

Whilst the conclusions drawn from the Iowa Gambling test is indeed very fascinating, they are by no means the limit of this psychological phenomenon. The test itself can be used to extrapolate many conclusions about the process of human decision making. Below we have selected some of the most interesting conclusions found by studies of the Iowa Gambling Test. In particular, there is a fundamental need to explain the connection between emotion and decision-making.

• Gain and loss frequency are in fact the most crucial features of a gambling game when determining which one to choose. Subjects in the Iowa Gambling Test who are of a healthy pre-disposition were increasingly more likely to choose the deck that gave the most wins, despite the size of the reward.
• Having the ability to memorize stuff and rules lead to favorable decision making. Subjects who are able to work something out, and at the same time remember crucial details about a task were far more likely to succeed in the Iowa Gambling Task.
• Participants who take fewer drugs either medication or recreational performed far better under the pressure of the Iowa Gambling Task. It is well-known that recreational drug use has an adverse effect on the psychology of the individual. With this in mind, it explains a lot of the detrimental connections between drugs and gambling addiction.
• Anxiety and other mental conditions of a similar nature tend to cause a negative impact on our ability to make good decisions. With the pressure of reward and risk, participants with high-anxiety are often likely to avoid risk all together at all costs. This can lead to a high opportunity cost from missing out on potential gains.

Iowa Gambling Task

A Few Final Words

The Iowa Gambling Task is by all measures a fascinating concept and study of the human decision-making process. The results gained from such a study can indeed be utilized and deployed to better understand gambling addiction and greater mysteries around the human psyche. For more wonderful reports on psychology in gambling, check out our article on the Gamblers Fallacy. If you think that you may be developing or already have unhealthy attitudes while gambling, read our guide to responsible gambling.

Iowa Gambling Task Instructions Downloads

You can find out more about the Iowa Gambling Task here.