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Legal Term For Slot Machines

4/8/2022
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To the untrained eye, every slot machine looks the same. But did you know there’s a huge difference between class ii vs class iii slot machines?

Almost every country in the world regulates some form of slot machines. They are offered to the adult public within licensed land-based casinos, online casinos, taverns, clubs, airports and/or charitable gaming facilities. While they all tend to look the same, there may be some very distinct, almost imperceptible differences between them. It all depending on whether they are Class II orClass III slot machines.

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  • Theoretical Hold Worksheet (Gaming Law) Law and Legal Definition Theoretical hold worksheet is a document provided by a manufacturer, as required by law, for all slot machines sold. It is the main method by which machines are legitimized by governments and is used to display the payout schedule of a machine.

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The legal delineation between class ii vs class iii slot machines is a purposeful one. They gives regulators more control over what types of games – and exactly how much winnings – players have access to. The decision to place one type or another in various facilities is often determined by the type of license an operator possesses, and the laws of the jurisdiction.

In many cases, especially throughout Canada, only full-scale casinos are permitted to host class iii slot machines. These are the kind found in major gambling destinations like Las Vegas, Atlantic City and Macau. Charitable gaming facilities, like the 30+ provincially regulated bingo halls across Ontario, are restricted to class ii slot machines.

Class II vs Class III Slot Machines

The easiest way to describe the difference between class ii and class iii slot machines is to compare the traditional class iii variety – those found in Vegas – to a scratch off lottery ticket. When a lottery agency prints tickets, they know exactly which ones are winners, and exactly how much profit they’re going to make once they are all sold.

That’s how class ii slot machines work. They are programmed like instant win lottery tickets. Every spin is predetermined as a winner or loser, and every winning spin’s value is already programmed into the machine.

Class iii slot machines are built on the foundation of a Random Number Generator (RNG). Patented in 1984 by Norwegian mathematician Inge Telnaes, the RNG is capable of giving a slot machine complete and utter unpredictability, while giving manufacturers control over the probability of outcomes.

Before Telnaes invented the first virtual reels with RNG technology, a slots’ payout percentage was based entirely on the number of reels, and the number of symbols on each reel. If a 3 reel game had 8 symbols per reel, there would be exactly (8x8x8) 512 possible combinations, meaning it would pay its jackpot, on average, 1 in every 512 spins.

Slot Machine Classes By the Law Books

Any educated gambler would prefer to play class iii slot machines. Their odds of hitting a large jackpot are always higher. The RNG ensures that a jackpot can pay out at any given moment, not when the machine decides it’s time. But in many jurisdictions, the availability of class ii and class iii slot machines is determined by local and/or federal law.

The classifications of slot machines was first introduced by the Indian Gaming Regulatory Act of 1988, which defines class ii vs class ii slot machines. Note that Class I gaming refers to traditional Indian gaming based on a tribe’s cultural ceremonies and/or celebrations, thus has no bearing on any type of slot machines.

IGRA Definition of Class II Slot Machines

The term ‘‘class II gaming’’ means—

(i) the game of chance commonly known as bingo…pull-tabs, lotto, punch boards, tip jars, instant bingo, and other games similar to bingo…

The definition explicitly excludes:

“…electronic or electromechanical facsimiles of any game of chance or slot machines of any kind”.

IGRA Definition of Class III Slot Machines

The term ‘‘class III gaming’’ means all forms of gaming that are not class I gaming or class II gaming.

Knowing the Difference Between Classes

A I said before, class ii and class iii slot machines look exactly the same. They use the exact same style of reels and graphics, and present the same types of features. A mere glance at the game screen, and you’d never know one from the other.

The easiest way to tell the difference between class ii vs class iii slot machines is to look at the signage in the gaming facility. By law, only class iii slot machines can actually be called “slot machines”. All class ii games will be referred to by another name.

Common names for class ii slot machines include Video Lottery Terminals (VLTs) and Bingo Liners (machines programmed to pay out like a bingo card game). In Ontario, they are called TapTix machines (because it’s like tapping a button to play a scratch off ticket).

Whatever name they may go by, if the casino or gaming facility doesn’t call them “slot machines”, they are not real class iii slot machines.

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Introduction to Wisconsin Slot Machine Casino Gambling in 2020

Wisconsin slot machine casino gambling consists of 24 tribal casinos. Illegal video gambling machines exist in bars and taverns throughout Wisconsin.

Tribal-state gaming compacts have minimum and maximum theoretical payout limits. Annual return statistics are publicly available for all tribal casinos.

This post continues my weekly State-By-State Slot Machine Casino Gambling Series, an online resource dedicated to guiding slot machine casino gambler to success. Now in its third year, each weekly post reviews slots gambling in a single U.S. state, territory, or federal district.

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Relevant Legal Statutes on Gambling in Wisconsin*

The minimum legal gambling age in Wisconsin depends upon the gambling activity:

  • Land-Based Casinos: 21
  • Poker Rooms: 18
  • Bingo: 18
  • Lottery: 18
  • Pari-Mutuel Wagering: 18

Tribal casinos in Wisconsin have negotiated tribal-state gaming compacts. However, each city or county must agree to both the development of a local tribal casino as well as the games offered at its site.

Further, many bars and taverns in Wisconsin have illegal video gaming machines. Having up to five machines results in civil forfeiture without legal repercussion while more than five machines are, instead, a criminal offense.

Anyone playing pay-to-play, bar-based slot machines must be at least 21. Otherwise, owners break a different law, this one having severe legal consequences for their business.

Electronic gaming machines in bars and taverns which are free to play with no prizes of any value are not illegal under Wisconsin’s gaming regulations.

*The purpose of this section is to inform the public of state gambling laws and how the laws might apply to various forms of gaming. It is not legal advice.

Slot Machine Private Ownership in Wisconsin

It is legal to own a slot machine privately in Wisconsin if it is 25 years old or older.

Gaming Control Board in Wisconsin

Wisconsin’s Gaming Division has gaming regulatory responsibilities including:

  • Licensing procedures
  • Background investigations
  • Regulatory enforcement activities

The Division’s area of focus for tribal gaming is the Office of Indian Gaming and Regulatory Compliance created by tribal-state gaming compacts. The Office’s purpose is to ensure regulation of Class III games at casinos operated by Wisconsin’s eleven tribes.

Legal Term For Slot Machines

Casinos in Wisconsin

There are 24 American Indian tribal casinos in Wisconsin.

The largest casino in Wisconsin is Potawatomi Hotel & Casino with over 2,500 slot machines.

The second-largest casino is Ho-Chunk Gaming Wisconsin Dells with 2,200 slot machines.

Commercial Casinos in Wisconsin

There are no commercial casinos in Wisconsin.

Tribal Casinos in Wisconsin

There are 24 tribal casinos in Wisconsin:

  1. Bad River Lodge Casino in Odanah, 45 miles east of Duluth.
  2. Grindstone Creek Casino in Hayward, 140 miles northeast of Minneapolis.
  3. Ho-Chunk Gaming Black River Falls, 110 miles northwest of Madison.
  4. Ho-Chunk Gaming Nekoosa, 50 miles north of Wausau.
  5. Ho-Chunk Gaming Tomah, 81 miles north of Madison.
  6. Ho-Chunk Gaming Wisconsin Dells in Baraboo, 40 miles northwest of Madison.
  7. Ho-Chunk Gaming Wittenberg, 30 miles east of Wausau.
  8. Lake of the Torches Resort Casino in Lac du Flambeau, 225 miles north of Green Bay.
  9. Legendary Waters Resort & Casino in Red Cliff, 80 miles east of Duluth, Minnesota.
  10. Menominee Casino Resort in Keshena, 40 miles northwest of Green Bay.
  11. Mole Lake Casino & Lodge in Mole Lake, 100 miles northwest of Green Bay.
  12. North Star Mohican Casino Resort in Bowler, 55 miles northwest of Green Bay.
  13. Oneida Casino – Irene Moore Activity Center (IMAC) in Green Bay.
  14. Oneida Casino – Main-Airport in Green Bay.
  15. Oneida Casino – One-Stop Packerland in Green Bay.
  16. Oneida Casino – Travel Center in Pulaski, 12 northwest of Green Bay.
  17. Oneida Casino – W. Mason in Green Bay.
  18. Potawatomi Hotel & Casino in Milwaukee
  19. Potawatomi Carter Casino Hotel in Wabeno, 85 miles north of Green Bay.
  20. Sevenwinds Casino, Lodge & Convention Center in Hayward, 75 miles southeast of Duluth, Minnesota.
  21. St. Croix Casino – Danbury, 62 miles south of Duluth near the border to Minnesota
  22. St. Croix Casino – Hertel in Webster, 83 miles south of Duluth near the border to Minnesota.
  23. St. Croix Casino – Turtle Lake, 76 miles northeast of Minneapolis near the border to Minnesota.

Other Gambling Establishments

As an alternative to enjoying Wisconsin slot machine casino gambling, consider exploring casino options in a nearby state. Bordering Wisconsin is:

  • North: Michigan Slots
  • East: Lake Michigan
  • South: Illinois Slots
  • West: Iowa Slots and Minnesota Slots

Each of the links above will take you to my blog for that neighboring U.S. state to Wisconsin.

Our Wisconsin Slots Facebook Group

Legal term for slot machines for sale

Are you interested in sharing and learning with other slots enthusiasts in Wisconsin? If so, join our Wisconsin slots community on Facebook. All you’ll need is a Facebook profile to join this closed Facebook Group freely.

There, you’ll be able to privately share your slots experiences as well as chat with players about slots gambling in Wisconsin. Join us!

Legal term for slot machines machine

Payout Returns in Wisconsin

Written into Wisconsin’s tribal-state gaming compacts are minimum and maximum theoretical payout limits. These limits apply over the expected lifetime of the game.

Each tribal-state compact has set minimum and maximum payout limits. However, there are two sets of limits, both of which apply over the expected lifetime of the game:

  • Games-of-chance (slot machines): 80% and 100%
  • Games-of-skill video games (poker, blackjack, etc.): 83% and 103%

For each machine, tribal casinos report to the state both its theoretical payout and actual return statistics. However, this valuable information is not available to the public.

An annual return statistic is publicly available for all tribal casinos combined in Wisconsin, although casino hold% comes from dividing Tribal Net Win by Handle Data. Player win% is from subtracting hold% from 100%.

In 2019, the most recent year available, the annual return statistic was 92.76%. This player win% is up from 2017’s 92.48% and 2018’s 92.61%.

Summary of Wisconsin Slot Machine Casino Gambling in 2020

Wisconsin slot machine casino gambling consists of 24 tribal casinos. Illegal gaming machines exist at many bars and taverns, but only five or more machines results in a criminal offense.

Tribal-state gaming compacts have established two sets of theoretical payout limits, including minimum and maximums. For games-of-chance such as slot machines, these limits are 80% and 100%. The 2019 return statistic was 92.76%.

Annual Progress in Wisconsin Slot Machine Casino Gambling

In the last year, there has been no significant changes to the slots gaming industry in Wisconsin.

Related Articles from Professor Slots

Other State-By-State Articles from Professor Slots

  • Previous: West Virginia Slot Machine Casino Gambling
  • Next: Wyoming Slot Machine Casino Gambling

Have fun, be safe, and make good choices!
By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC