Systems and methods in accordance with embodiments of the invention operate a skill normalized hybrid game. One embodiment includes a skill normalized hybrid game, including: a gambling game; an entertainment game; a game world engine constructed to manage the entertainment game and communicate gameplay gambling event occurrences based upon a player's skillful execution of the entertainment game that trigger randomly generated payouts for the gambling game to the gambling game; and a skill normalization module constructed to: receive player performance measurements for at least one player from the game world engine; assign a handicap to the at least one player based at least in part upon the performance measurements for the at least one player from the game world engine; and send information concerning handicaps to the game world engine that configures the game world engine to implement each assigned handicap within the skill normalized hybrid game.