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Video Lottery Terminals

#1

Harry and Bill discussed VLTs on this forum--both are very knowledgeable on this topic. I'm going to add my two cents worth.

A video lottery terminal, VLT, is an electronic game played on a video terminal -- it's networked and can be monitored, controlled and audited by a central computer. (The central computer, for example, has a shut down command that can disable every device within a jurisdiction--this ensures compliance with legislated operating hour mandates. Most states use GTECH.) It's up to the state to determine whether or not each device will have a RNG--random number generator. So far, all states, except New York, have opted for a RNG for their VLTs. Here's the tricky part. VLTs are authorized through the state lottery and considered by law to be lotteries and not commercial gaming. Furthermore, the definition they use for RNG is different from the one I use. They define a random number generator as a mechanism inside the computer of Class III games that ensures that each pull has an equal chance of hitting the jackpot. Also, the officials I spoke with made it clear that the VLTs found in non-casinos within the state were on the same network as those at racinos--they followed the same regulations. However, you need to be sure the device in a non-casino has the state's decal so you know it was licensed and legally installed. (Be aware that many devices in Georgia, North Carolina and South Carolina have literally been dragged into courtrooms--they were unlicensed and illegally installed.)

Specifically:

Rhode Island: RNG--No Minimum Payback %: I was told that the payback was around 92.9% by Joe Doersey, a lottery official.

New Mexico: RNG--they call their devices EGMs, Electronic Gaming Machines--80%-No Maximum, per Donovan Lieurance

Delaware: RNG--87%-95% Payback, per Jim Logue

West Virginia: RNG--80%-90% Payback, per Deputy Director Arnold--Allow 5 devices in non-casinos, except fraternal organizations, where 10 are allowed.

These minimum/maximum percentages can be changed by the legislature. Make sure you understand that commercial casinos are separate entities and may have different minimum/maximum regulations.

Harry pointed out that the tax rates are so high in many jurisdictions that the VLTs are not worth playing. Keep in mind that the more people in on "revenue sharing" the less left over for players. Some jurisdictions have two partners--the state lottery and the track or jai alai fronton owner--others have three--track owner, state lottery and the device owner. In other words, if lots of people are sharing the profits plus the tax rate is high, then you can expect a machine with a poor pay table, even if there is a RNG.

According to gaming attorney I. Nelson Rose, tribes can only use VLTs if the state has a lottery. We already know that Florida's tribes use devices without RNGs and likewise Washington State. There are many other tribal casinos with VLTs that don't have RNGs.

Linda Boyd
Author: "The Video Poker Edge"
www.squareonepublishers.com
Games/Gambling
Amazon link
Toll Free: 877-900-BOOK

[Non-text portions of this message have been removed]

#2

Linda,

I'd like to add / clarify this a little. As I said in a post to Harry
that by definition, the distinction between a VLT and other gaming
machines is the accounting regulations. My sources with the
manufacturers have told me that a VLT must always be in communication
with the central accounting computer or it shuts down. Non-VLT
Nevada-style machines will continue to operate and store information
until they can communicate with central accounting.

Florida's tribes along with all other Class II jurisdictions operate
machines that run bingo games in the background. While there are a
few (very few) of these machines that run a bingo-style game
internally, the overwhelming majority all play a centralized bingo
game on a central computer. So you can, for all intents and purposes,
say that all Class II machines do not have their own internal RNG.
However, this DOES NOT define them as a VLT and, in fact, no Class II
machine is a VLT. (In an interesting sideline, if a class II casino
has only one player the machines will not work. You need at least 2
to play Bingo).

The compact negotiated between the Tribes and Washington State
uniquely required each tribal casino to act as if it is a lottery
jurisdiction. Each machine in a Washington casino is a part of that
lottery system. Each tribal casino in Washington is a separate
lottery system and does not communicate with any other, not even the
Washington State lottery.

As some of you know there is a test going on right now in Nevada to
have dumb terminals with games downloaded from a central server. I
don't know if they have independent RNG's or not nor does it really
matter. These games are NOT VLT's, they are simply controlled centrally.

Linda has done significantly more research than I have and I have
total respect for her knowledge. This stuff is so complex and
convoluted (it also changes rapidly over time) that we all get
conflicting information. It is also very difficult to understand that
from a consumer standpoint whether a machine is a VLT or not is
irrelevant, the rules of each regulatory authority are what
determines differences.

B

···

At 03:46 PM 5/17/2006, you wrote:

According to gaming attorney I. Nelson Rose, tribes can only use
VLTs if the state has a lottery. We already know that Florida's
tribes use devices without RNGs and likewise Washington State. There
are many other tribal casinos with VLTs that don't have RNGs.

Linda Boyd
Author: "The Video Poker Edge"
www.squareonepublishers.com
Games/Gambling
Amazon link
Toll Free: 877-900-BOOK

[Non-text portions of this message have been removed]

#3

Linda Boyd wrote:

Harry and Bill discussed VLTs on this forum--both are very
knowledgeable on this topic. I'm going to add my two cents worth ...

Linda, could you address a couple of things and share what information
you have ...

You wrote:

Furthermore, the definition they use for RNG is different from the
one I use. They define a random number generator as a mechanism
inside the computer of Class III games that ensures that each pull
has an equal chance of hitting the jackpot

This suggests a potential loophole in which generated hands aren't
fully random -- a mechanism that would produce a RF once in every
100,000 hands would see consistent twith that definition.

-- Assuming that it's known that a vp machine in play is a VLT (i.e.,
the dealing mechanism is centrally based), is there some means by
which to know with confidence that the machine is "fair" and operates
analogously to a standard LV-certified machine when it comes to the
randomness of the deal?

-- Bill has indicated that while DE/WV equipment may be VLT based,
it's reasonable to assume that the machines deal randomly. Do you
hsve information to support this?

-- Finally, is a player at any risk at a DE/WV in playing a non-random
game, or can they rely upon a paytable as providing their actual
playing odds.

- Harry

#4

I was just in West Virginia yesterday and the hotel I stayed in had 2 slot
machines in the bar. Each machine had about 6-8 games on it including
"Little Green Men, and several Keno type games. There was a letter posted
on the machines from the WV authority that gave the payback for the games in
the machines. All of the machines had a maximum and minimum. They were
equal except for the Keno games. The paybacks for most machine were 92%
plus or minus a fractional amount. The Keno games could go down to about
85%. This agrees with what I have read in the past for West Virginia
Racinos. Most machines pay back 92%. I was in Charles Town this morning
and they had new Video poker. I just ran the payback schedule and it came
to just over 92%.

I am surprised that Deputy Director would quote 80-90% unless he was just
rounding things off.

[Non-text portions of this message have been removed]

···

On 5/17/06, Linda Boyd <maggie2194@comcast.net> wrote:

West Virginia: RNG--80%-90% Payback, per Deputy Director Arnold--Allow 5
devices in non-casinos, except fraternal organizations, where 10 are
allowed.