"Losses disguised as wins" in slot machines occur when players receive payouts that are less than their total bets, yet the machines present these outcomes with celebratory effects. For example, if a player bets $1 and wins $0.75, the machine may celebrate this, creating a misleading sense of success. This tactic leverages psychological cues to encourage continued play, as the excitement of a perceived win can mask actual losses. As a result, players may chase real wins, which enhances the addictive nature of slot machines and leads to increased spending.