American Slot Machines
In the United States, slot machines are 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. States like Illinois, Indiana, Iowa, 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 racing tracks, which are regulated by the state lottery commission.
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 percentage of the gross revenue from slot machines.
Slot machine classes
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 slots 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 nearly regulated by the state.
Class II game characteristics
- The player is playing against other players and competing for a common prize.
- There is certain to be a winner in each game. The game continues until there is a winner.
- In a given set there are a certain number of wins and loses. Once a certain combination has happened it cannot happen again until a new batch is initiated. This is most obvious in scratch card games that come in a pack. Once a card has been pulled those winning combinations cannot occur again until a new pack of cards is installed. One game is dependent on previous games.
- 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.
- All players play from the same set of numbers as they are announced.
Class III game characteristics
- The player is playing against the house.
- There is a very real possibility that the player may lose the game.
- 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 small percentage of the amount of money that is bet in the form of "comps" (complimentary food, drinks, hotel rooms, or merchandise), or sometimes as cash back (sometimes with a restriction that the cash be redeemed at a later date). These clubs require that players use a card that is inserted into the slot machine, to allow the casino to track the player's "action" (how much the player bets and for how long), which is often used to establish a level of play that may make a player eligible for additional comps. Comps or cash back from these clubs can make a significant difference in the maximum theoretical return when playing slot machines over a long period of time.
