
The Foxwoods Casino in Ledyard, Connecticut.In the United
States, the public and private availability of slot machines is highly regulated
by state governments. Many states have established gaming control boards to
regulate the possession and use of slot machines. Nevada is the only state that
has no significant restrictions against slot machines both for public and
private use. In New Jersey, slot machines are only allowed in hotel casinos
operated in Atlantic City. Several states (Illinois, Indiana, Iowa, Louisiana
and Missouri) allow slot machines (as well as any casino-style gambling) only on
licensed riverboats or permanently-anchored barges. Since Hurricane Katrina,
Mississippi has removed the requirement that casinos on the Gulf Coast operate
on barges and now allows them on land along the shoreline. Delaware allows slot
machines at three horse tracks; they are regulated by the state lottery
commission. For a list of state-by-state regulations on private slot machine
ownership, see U.S. state slot machine ownership regulations.
Native American casinos
Native American casinos located in reservations are not
permitted to have slot machines unless the tribe first reaches a pact with the
state in which it is located (per Indian Gaming Regulatory Act). Typically, a
pact entitles the state to receive a fraction of the gross revenue from slot
machines.
Slot
machine classes
The following statements are generalities, not actual laws
for every jurisdiction. These classifications may vary from state to state. 15
U.S.C. 1171 et seq. governs gambling machines or "slot" machines. This provision
is known as the Johnson Act.
Some states have restrictions on the type (called "class") of
slot machines that can be used in a casino or other gaming area. "Class III" (or
"traditional") slot machines operate independently from a centralized computer
system and a player's chance of winning any payout is the same with every play.
Class III slot machines are most often seen in Nevada or Atlantic City and are
sometimes referred to as "Vegas-style slots".
"Class II" slot machines (also known as "video lottery
terminals" or "VLTs") are connected to a centralized computer system that
determines the outcome of each wager. In this way, Class II slot machines mimic
scratch-off lottery tickets in that each machine has an equal chance of winning
a series of limited prizes. Either class of slot machines may or may not have a
player skill element.
In general a game must have all characteristics of a Class II
game to be a Class II game. Any characteristic of a Class III game makes it a
Class III game. The casino pays a fee to the state for each Class III game and
can only purchase so many Class III licenses. There is no such restriction for
Class II games. Class II games are not so tightly regulated by the state.
Class II game
characteristics
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The player is playing against other players and competing
for a common prize.
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There is not necessarily a winner in each game. The game
continues until there is a winner.
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In a given set there are a certain number of wins and
losses. Once a certain combination has occurred it cannot occur again until
a new batch is initiated. This is most obvious in scratch-card games using
cards that come in packs. Once a card has been pulled from a pack, the
combinations on that card cannot occur again until a new pack of cards is
installed. One game is dependent on previous games.
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The player must be an active participant. They must
recognize events as they occur and must recognize when they have won and
announce their winning. Bingo is an excellent example here.
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All players play from the same set of numbers as the
numbers are announced.
Class III game
characteristics
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The player is playing against the house.
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Each game is independent of previous games. Any possible
outcome can occur in any game.
-
Wins are announced automatically.
Slot clubs
Many American casinos offer free memberships in "slot clubs,"
which return a fraction of the amount of money that is bet in the form of comps
(complimentary food, drinks, hotel rooms, or merchandise), or sometimes as cash
or a promise to pay cash at a later date. These clubs require that players use
cards that are inserted into the slot machines, to allow the casinos to track
the players' "action" (how much each player bets and for how long), which is
often used to establish levels of play that may make players eligible for
additional comps. Comps or "cash back" from these clubs can make significant
differences in the maximum theoretical returns when playing over long periods.
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