Video Lottery Terminals

VLT Discussion - Linda Boyd

VLT Discussion - Bill Coleman

There are two types of VLTs, Tribal and Non-tribal.

I.  Non-Tribal: Run by the state's lottery division

Video Lottery Terminal (VLT): An electronic gaming device that's networked and can be monitored, controlled and audited by a central computer system. Some devices look like slots and some look like video poker machines.

Video Poker:Each state determines the payback maximum/minimum range as well as the characteristics of their gaming devices. Randomness does not necessarily mean a random number generator (RNG); it could be referring to the selection process--meaning you're getting the next ticket in the batch. If the regulations require a RNG, then you still can't assume it has the same characteristics as those in Nevada and Atlantic City, where each virtual card has an equal chance of being selected. The best way to know is to either contact the state lottery office or read the regulations.

Venues: VLTs may be found at two venues: Racinos and Non-casinos Racino: Combination of a racetrack or jai-alai fronton and casino

Eight states have approved gaming devices at 23 racetracks nationwide;in Florida, Oklahoma, and Pennsylvania racinos are legal, but non-operational.

1. Delaware
2. Iowa
3. Louisiana
4. Maine (Bangor's harness track)
5. New Mexico
6. New York
7. Rhode Island
8. West Virginia

Non-casino: Primary business is not gambling, but a specified number of devices are allowed

Nine states allow gaming devices in non-casinos; the state's authorization decal should be on the machine. (Unauthorized devices have been removed from some establishments.)

1. Iowa
2. Louisiana
3. Montana
4. New Mexico
5. North Carolina
6. Oregon
7. South Carolina
8. South Dakota
9. West Virginia

Considerations: Some states have different regulations for racinos and non-casinos.

Don't assume that the RNG requirements are the same for every jurisdiction. You need to know whether or not each virtual card has an equal chance of being selected, like in Nevada or Atlantic City, before you use the pay table to determine the game's ER (expected return).

One sure way to know there's no RNG is if a final hand is magically changed by a 'genie' or a 'match card', or there's an automatic hold feature that can't be disengaged.

Note: Commercial casinos, both riverboat and land based, do not have VLTs. These devices are authorized by the voters, have mandates written by the state legislature and are regulated by the state's gaming commission. Video poker devices in these venues are just like those in Nevada and Atlantic City.


II.  Tribal: Run by individual tribes, considered sovereign nations

Video Lottery Terminal (VLT): A gaming device found in some Indian casinos that may or may not have a random number generator.

Video Poker: Tribal casinos may have Class II and Class III machines--Class II machines are VLTs and Class III machines may be VLTs.

Class I: Usually small prizes and awarded as part of a tribal ceremony; no regulations required.

Class II: Games are VLTs and although 'random' as far as the selection process there is no RNG. These games include electronic bingo, pull tabs, punchboards, scratch tickets and other electronic versions of paper games. There is no skill involved and the device you're playing isn't even the one that selects the winners - that's done by a central system. No compact with the state is required and there are no limitations on the number of devices or the specifications.

Class III: A compact with the state is required and that agreement specifies both the number of devices and the mechanical requirements. Although some are VLTs, most are not and are just like the machines found in Nevada or Atlantic City.

Final Thoughts: VLTs run by the state lottery system are very different from those found in tribal casinos. If you're referring to a VLT in a racino or non-casino, then your questions should be addressed to the proper authorities within the state lottery system. If you're referring to VLTs in a tribal casino, then you will have to either read the compact or contact the proper authority from either the state or the tribe.

Linda Boyd
Author: 'The Video Poker Edge'
www.squareonepublishers.com
Toll Free: 1-877-900-2665
Amazon.com/Bookstores: Stocked or By Order
Best Tutorial Software: WinPoker
www.videopokerpractice.com

* * * * * * * * * * * * * * * * * * * * * *

VLT Discussion - Bill Coleman

Until a year or so ago IGT licensed Class II and the type of VLT found in Washington State and NY to another company so the IGT name did not appear on the machines. They now ship them under their own name.

Perhaps a revised statement is that any machine manufactured by IGT will conform to the regulations of the jurisdiction in which it is found. In a Class II jurisdiction it will fairly run a bingo game, in Washington State and NY it will fairly play a lottery scratch ticket to determine the result. In all Class III jurisdictions it will deal fairly as if it were hand-dealt from a complete deck.

And, for the record, not all VLT's work like those in Washington and NY. Also, they are not 'Class II' machines. Washington and NY are Class III states. Class I, II and III refer to the types of games permitted in a casino on an Indian reservation and are based upon any legal wagering permitted in that state. If a state permits charity events to have games like blackjack and roulette then it cannot prohibit a tribe from opening a Class III casino. If it only permits Bingo and the like then it will be Class II. (Note: Florida tribes are trying to overcome this restriction and, if they succeed, Federal law is likely to change).

The Federal laws governing Indian casinos have no effect on State laws. Therefore each state is free to permit other types of wagering by the State or by commercial interests in that State. In NY and Washington, slot machines off the reservation are part of the state lottery which is why they are not 'Nevada-style'. I understand, but am not sure, that machines on the reservation in Washington are also part of the lottery system. I do not know if that is true in NY. Does anyone?

Let's try this one more time - just because it is a Bingo (class II) or a VLT does not mean it doesn't have an RNG, it just means it does not deal from a randomly selected 52-card deck but, instead, generates a random Bingo Card or picks a winner similarly to a slot machine. It is still random, it is not cheating, it is simply that you cannot determine the payback from the pay table.

Bill Coleman
(May 2005)