Various embodiments of the present disclosure provide a gaming system and method providing a wagering game including a skill-based game having a player-selected difficulty level and duration. The skill-based game contributes to the average expected payback percentage of the wagering game such that the average expected payback percentage of the wagering game can vary within a predetermined range from player-to-player based on the players' skill levels. The gaming system enables each player to obtain the AEP%WAGERING GAME at or near the upper end of the predetermined range, regardless of the player's skill level.