The term slot machine (short for nickel-in-the-slot machine) was originally also used for automatic vending machines but in the 20th century came to refer almost exclusively to gambling devices. The first coin-operated gambling devices in the United States date to the 1880s, although they were actually mere novelties—such as two toy horses.
A video lottery terminal (VLT), also sometimes known as a video gaming terminal, video slots, or the video lottery, is a type of electronic gambling machine. They are typically operated by a region's lottery, and situated at licensed establishments such as bars and restaurants.
VLTs typically feature a selection of multiple games, primarily video slot machines and Keno. Their exact operation depends on local law: many VLTs are stand-alone devices containing a random number generator. Each terminal is connected to a centralized computer system that allows the lottery jurisdiction to monitor gameplay and collect its share of revenue. The outcome of each wager on a VLT is random. VLT operators are not able to program the total amount wagered, or payouts, through the central computer system. A minimum percentage payout usually is written into that jurisdiction's law. That percentage is realized not by manipulation of the game, but by adjusting the expected overall payout.
In some jurisdictions, VLTs do not contain a random number generator, and display results from a fixed pool controlled by the central system (in similar fashion to scratch-off lottery tickets).
- 2United States
Canada[edit]
VLT programs are operated in eight Canadian provinces, with the only major exceptions being British Columbia and Ontario. These machines are typically governed by the region's lottery and gaming boards, and are situated inside licensed establishments such as bars.[1] In several provinces, VLTs were deployed primarily to help counter illegal underground video gambling operations, while several (particularly those whose economies are reliant on natural resources) cited economic development as a factor in their use.[1]
VLTs were first popularized in Atlantic Canada, with New Brunswick becoming the first province to introduce them in 1990, and the other Atlantic provinces following suit in 1991. In New Brunswick, sites were initially limited to a maximum of five machines each, and they were later removed from locations that did not hold liquor licenses. Since 2002, the Atlantic Lottery Corporation has been fully responsible for all VLT operations in the province, rather than having their costs covered by private owner-operators. The ALC had already operated the VLT programs in Newfoundland and Labrador and Nova Scotia since their launch, while Prince Edward Island transferred its VLTs to the ALC in 2003.[1] Quebec introduced VLTs in 1994.[1]
VLTs also began to appear in Western Canada in 1991, with Alberta trialling them during the Calgary Stampede and Klondike Days events before beginning a province-wide program the following year. Manitoba initially deployed them at rural locations only, but expanded them to Winnipeg in 1993, and the Assiniboia Downs race track.[1] Saskatchewan introduced VLTs in 1993, primarily to encourage business at establishments in smaller communities (which faced competition from out-of-province casinos, prior to the opening of several commercial and First Nations casinos in the province).[1] Saskatchewan's VLT program also includes games offering regional and province-wide progressive jackpots.[2]
To address problem gambling concerns, VLTs in Canada are typically equipped with features and restrictions as safeguards in comparison to a casino-style slot machine, including the display of a player's credits as a cash value rather than units of a denomination, on-screen display of the current time, maximum session lengths with mandatory cash-out after time expires, limits on hours of operation, no Stop button (to regulate the pace of play), wager limits, limits on the amount of cash that can be deposited during a single session, and problem gambling resources.[1] Some VLTs may also offer integrated account systems for tracking usage and setting limits on cash spent.[3] In 2012, Nova Scotia began to mandate that users enroll in an account card system known as My-Play in order to use VLTs. The government discontinued the scheme in 2014, citing its decision to allow players to register anonymously without personal information ('light' enrollment) as having defeated the purpose of the system—as many players only used the cards temporarily before disposing them. The government claimed it would save $200,000 a year by removing the system.[4][5]
Each province has imposed caps on the number of VLTs that may operate in their province, and Nova Scotia has enforced a moratorium on new VLT sites and attrition on existing sites outside of First Nations reservations (taking VLTs out of service permanently if a site closes or removes them). In the 2000s, Alberta reallocated some of its VLTs to increase the number allowed at specific sites, in effect reducing the total number of sites in operation. Some provinces also have regulations that allow individual municipalities to hold referendums to opt out of VLT operation in their communities.[1][3][6]
United States[edit]
Lotteries in the U.S. were considering VLTs as early as 1981, when a planned experiment with 20 machines by the New York State Lottery was scrapped, after the Attorney General determined they would be illegal.[7] A similar plan by the New Jersey Lottery died in 1983 after ties between state officials and VLT manufacturers raised conflict of interest concerns.[8]
The first VLTs in the country were installed in late 1983 by Bellevue, Nebraska as part of its municipal lottery. Eleven other local lotteries in Nebraska followed suit, until the state banned the devices, effective 1985.[9]
South Dakota became on October 16, 1989, the first state to adopt VLTs. In a unique arrangement with private industry, the machines are owned by private companies but monitored by the South Dakota Lottery via a centralized computer system that assures the integrity of the games. South Dakota imposes a substantial tax on the net income (gross income minus player winnings) of the games. Beginning in 1992, four attempts were made to repeal South Dakota's video lottery; all were widely rejected by public votes. Most recently, in May 2006, petitions were filed containing over 21,000 signatures in order to place the issue on the November ballot; voters again agreed to keep video lottery, by a 66%-34% margin.
Other US jurisdictions which have had legal video lottery include Oregon, South Carolina (formerly), Rhode Island, Delaware, New York, Ohio, West Virginia, Louisiana, Maryland, Montana and Illinois. Of these, Delaware, Rhode Island, and West Virginia formerly participated in a shared VLT game, Cashola.
The U.S. Virgin Islands also has a legalized video lottery, managed by Southland Gaming of the Virgin Islands.[10] The local governments in St. Thomas and St. John use the funds generated by the video lottery to fund various government programs on the islands; primarily focusing on educational efforts.
Racinos[edit]
In 1990, West Virginia introduced the concept of racinos when it allowed MTR Gaming Group to add VLTs to Mountaineer Race Track & Gaming Resort in Chester.
Racinos differ from traditional VLTs in that all video lottery games are played on a gaming machine.
Other states that have legalized VLTs in racinos are Delaware, Rhode Island, Louisiana, New York, Ohio, and West Virginia.
Non-lottery[edit]
In Montana, VLT-type poker, keno and bingo machines are legal to operate in the private sector. Since the 1970s, Montana was the first state, other than Nevada and New Jersey, to legalize machine gaming.
Keno and Bingo machines were first introduced in Montana in 1975. Although subject to legal challenge, these machines were deemed legal in 1976 after the Montana Supreme Court ruled in favor of Treasure State Games, a private company that brought the first games of this type to the state. (See Justia.com - Treasure State Games v. State of Montana)
Unlike in other states, the gaming devices are not under the jurisdiction of the state lottery. In 2011 the state legislature added another class of games, so-called 'line games', to the list of approved games.
All establishments licensed for the on-premises consumption of alcohol within the state of Montana are allowed to operate such machines provided they have the correct permits. In addition, there are some Montana establishments (such as some truck stops) that do not possess 'on-sale' licenses but hold 'grandfather' licenses allowing them to operate gaming machines.
The maximum prize awarded on these machines is $800, with a maximum bet of $2 per hand. The legal age to gamble in Montana is 18, although people under the age of 21 cannot gamble in bars.
As in Louisiana, the games in Montana are not technically part of its lottery.
Class III video lottery[edit]
Currently, only Oregon and South Dakota employ Class III gaming technology (incorporating a random number generator) into their VLT games. Oregon's VLT program was modeled upon those deployed in Canada.[1] The devices operated in Montana are also Class III machines, but as they are not connected to the Montana Lottery are technically not 'video lottery terminals'. This means that unlike any of the Class II states (which have a fixed number of winners, analogous to scratch cards), Oregon and South Dakota lottery players compete against a house edge rather than other lottery players.[citation needed] This is the same type of gaming offered in Nevada, Connecticut and Atlantic City, New Jersey as well as in the majority of tribal casinos. Currently, the state of Oregon offers its players a 91-95% payout on each of its games. South Dakota and Montana law specifies that payouts must be greater than 80%, although in reality actual payouts in these two jurisdictions are around 88-92%.[citation needed]
Most US jurisdictions do not allow VLTs and those that do have attracted the same criticism the Canadian provinces have. However, some non-players have expressed tolerance for the machines.
Other terminology[edit]
In certain jurisdictions, VLTs are known as video gaming devices (VGD) or video slot machines along with 'Video Gaming Terminal (VGT)'. Most VLTs are multi-game devices, allowing the players to select, from an on-screen menu, the game(s) they wish to play. They are also known as poker machines and fruit machines in some areas.
See also[edit]
References[edit]
- ^ abcdefghi'VLT Gaming in Canada'(.doc). Canadian Gaming Association. March 2006. Retrieved November 29, 2019.
- ^'Moose Jaw woman wins $1.2 million from VLT'. Regina Leader-Post. 2018-10-01. Retrieved 2019-11-30.
- ^ abDoucette, Keith (2011-03-25). 'New VLT moratorium to continue in Nova Scotia'. iPolitics. Retrieved 2019-11-30.
- ^'Province says My-Play system unsuccessful in helping gambling addicts'. Cape Breton Post. Retrieved 2019-12-02.
- ^'John Xidos calls province's My-Play figures 'far-fetched''. CBC News. August 26, 2014. Retrieved December 1, 2019.
- ^'Provincial VLT revenues slow after four years of growth'. CBC News. March 21, 2018. Retrieved November 29, 2019.
- ^'Video lottery plan scrapped'. New York Times. via LexisNexis. September 11, 1981. p. B6. Retrieved 2012-06-02.(subscription required)
- ^Asher, James (March 6, 1983). 'Bets are off: Many say politics killed New Jersey's high hopes for video lottery'. Philadelphia Inquirer. via NewsBank. Retrieved 2012-06-02.(subscription required)
- ^Sutton Jr., William W. (March 17, 1985). 'A bet on video games pays off for one town'. Philadelphia Inquirer. via NewsBank. Retrieved 2012-06-02.(subscription required)
- ^Video lottery information page
External links[edit]
- VLTs: Nova Scotia's Billion Dollar Gamble An investigative website on VLTs in the Canadian province of Nova Scotia prepared by University of King's College students.
- Green states have passed online lottery bills.
- Red states had online lottery, but suspended sales.
- Blue states had an online lottery bill in 2017.
Breakdown of online lottery in the United States
In December 2011, the US Department of Justice released a legal opinion on the Federal Wire Act. The opinion stipulated the act only applies to sports betting.
This ultimately paved the way for individual states to allow lottery sales online. Since that time, five states have started online lottery sales programs. A handful of others are considering the idea.
Pennsylvania
Pennsylvania passed an expansive gambling law in October 2017. As part of the sweeping measure, the state authorized online casinos, online poker, and online lotteries. The first batch of online lottery games went live on May 29, 2018.
Pennsylvania currently participates in both Powerball and the MegaMillions lotto. These games are not available online yet. Instead, the only online offerings are instant win games. These online games are very similar to a real-life scratch-off game.
As part of the expansion, the Lottery also offers Keno, which also launched in May. It offers virtual sports as well.
Lawmakers hope over the course of the next five years, the lottery will bring the state roughly $250 million in revenue to primarily benefit the state’s seniors. However, legal troubles could sideline the project. Seven PA casinos banded together to sue the state over the iLottery, claiming the instant games are too similar to online slot machines.
Read more about the Pennsylvania Online Lottery.
Michigan
After a successful pilot program in the summer, the Michigan Lottery launched online lottery sales in the fall of 2014. At first, the online games available online were only Instant Keno and electronic scratch-offs.
In January 2016, the Michigan Lottery began offering online sales tickets for its most popular draw games, including Powerball, Mega Millions, Lotto 47, and Fantasy 5.
Lottery Consultant Digital Gaming Group released a report in December 2016 calling Michigan’s online lottery sales program a success. The report showed online lottery sales moved past $8 million a week as of March 2016. Meanwhile, brick and mortar retail lottery operations set all-time records.
Read more about the Michigan Online Lottery.
Georgia
After approval in the summer of 2012, and a bit of a false start, Georgia became the second state to offer online lottery ticket sales. Its lottery went online in November 2012. The Georgia Lottery Corporation offers online ticket sales for draw games, including Fantasy 5, Mega Millions, and Powerball.
Plus, there are also Keno games and a selection of games exclusive to Georgia Lottery website called Diggi Games. These interactive games constitute a hybrid of social games and electronic scratch-offs. Diggi Games include crosswords and bingo games.
Georgia is among the top states in the country in terms of per capita lottery sales. The state maintained that status through the introduction of online ticket sales.
Read more about the Georgia Online Lottery.
Illinois
Illinois launched a pilot program offering online sales of Lotto and Mega Millions tickets in March 2012. At that point, Illinois became the first state to offer online lottery ticket sales.
Illinois then added online tickets to the popular multi-state Powerball lottery in December 2012. The Illinois Lottery website later expanded to include Daily Lottery Games and Instant Games as well.
On March 31, 2014, the Internet Lottery announced online lottery sales totaled $36.9million in the first two years of the program.
Then, in March 2016, the pilot program was actually set to end if lawmakers failed to pass new legislation authorizing continued internet lottery sales. However, Illinois Lottery Communications Director Steve Rossi decided the Illinois Lottery would continue to operate online. After a detailed policy and law review, Rossi determined continued internet ticket sales were permissible under current law.
Read more about the Illinois Online Lottery.
New Hampshire
Which States Use Electronic Scratch Ticket Slot Machines Online
New Hampshire joined the group of US states with online lottery after its governor signed a bill authorizing online lottery sales in July 2017. On Sept. 18, the New Hampshire online lottery went live. Operated by NeoPollard Interactive, it features several online instant win and draw games.
Mega Millions and Powerball tickets can be purchased online, with either custom or quick number selection.
Kentucky
Kentucky became the next state to offer its lottery online in April 2016. The Commonwealth offers online sales of jackpot and daily draw games as well as instant play games.
Online ticket sales were actually approved by lawmakers in 2013. However, it took the state three years to develop a complex online ticketing system.
Kentucky also employs strict security regulations preventing players from withdrawing money deposited in a lottery account in accordance with money-laundering laws.
At the time of the launch, Kentucky Lottery President and CEO Arch Gleason claimed online lottery sales were a way to attract a younger demographic accustomed to conducting retail purchases online. He also maintained online sales were expected to help, rather than hurt, sales at 3,200 lottery retailers across Kentucky.
Read more about the Kentucky Online Lottery.
Which States Use Electronic Scratch Ticket Slot Machines 2017
Minnesota
Minnesota was actually the first state lottery to offer instant-win games online. The Minnesota Lottery launched online sales on the first quarter of 2014 without any kind of legislative approval. In addition to electronic scratch-offs, the lottery offered Mega Millions, Hot Lotto, Gopher 5, and Powerball tickets online.
Which States Use Electronic Scratch Ticket Slot Machines Near Me
However, in May 2015, Minnesota lawmakers voted to make online lottery sales illegal, and the games were ultimately pulled.