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Many gambling enthusiasts in the United States are at least vaguely familiar with the Indian Gaming Regulatory Act, US law Pub.L. 100–497, 25 U.S.C. § 2701.

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VGT sites are should double to 40 by the end of 2020, which would bring total machines to 200. Eventually, there should be more than 60 VGT locations in the state. Perhaps 120 truck stops might meet the qualifying criteria, though not all have applied. Founded in 1991, Video Gaming Technologies, Inc. (VGT) is a leading developer, manufacturer and distributor of Class II (Native American bingo-based gaming) casino games in North America. With over 20,000 terminals in more than 140 locations across the U.S., VGT offers exceptional customer service and some of the highest ‘uptimes’ in the.

Passed in 1988, this federal law established how Indian (Native American) gaming would be managed and regulated. The act included definitions for 3 types or classes of gambling games. They are usually referred to as:

1. Class I games
2. Class II games
3. Class III games

Congress passed the law to help Native American tribes and nations improve their economic status after more than a century of oppression and exclusion in mainstream US society. Many Native American groups wanted to build land-based casinos, which would not only attract tourists but create jobs.

There was considerable resistance to this movement in many states, most of which did not allow gambling of any kind. To help resolve the conflicts and provide some clarity between treaties, state law, and federal law, the US government established a framework that eliminated some barriers to Native American investment in gambling industries. The law also provided some regulatory limits to respect state laws.

The Indian Gaming Regulatory Act introduced some confusion into the worldwide lexicon of gambling games because the distinctions are only observed within US jurisdictions. Other nations regulate gambling with different definitions.

But as the internet became a worldwide communications network in the 1990s and 2000s, most of the content published about gambling dealt with US law and casinos. Although non-US casinos have to observe their own laws and regulations, players who research gambling law on the internet must be careful to distinguish between USA gambling definitions and other gambling definitions.

What Are the 3 Classes of Gambling Games?

Class I gambling includes all traditional Native American gambling games, most of which are only used for ceremonial purposes or in the contexts of cultural-specific celebrations and ceremonies. These games, which are only available at small stakes, are completely regulated by the Native American tribes and nations.

Class II gambling includes all variations of bingo games, player-vs-player card games like poker (where the house does not play a hand in the game), tip jars, pull-tab games, punch card games, and anything similar. Some people mistakenly include lottery games in this category, but the law clearly excludes state-run lotteries and similar games from Class II.

Class III gambling consists of everything that is not included under Class I gambling or Class II gambling. That means the lottery games you play are Class III gambling games. Slot games, roulette, dice games, and card games like blackjack where the house is also a player all fall under the Class III gambling games category.

So How Can There Be Class II Slot Machine Games?

If you’ve ever visited a Native American casino–like the Winstar Casino in Oklahoma, you’ve almost certainly played some Class II slot machine games. They look much like traditional slot machine games. They have 3 to 5reels with symbols on them, they pay jackpots, and they do everything else you expect of a slot game.

And yet, they are not slot machine games.

A clever company in Franklin, TN, known as Video Gaming Technologies, or VGT, developed electronic bingo games for Native American casinos that use the results of those bingo games to emulate slot game action.

In other words, the slot machine cabinets contain two screens, one that displays the results of the bingo game and one that displays the results of the simulated slot game. This dual visualization of the gambling game takes advantage of the fact that at the core of all gambling games is a simple principle:

You’re making a wager on an unknown outcome. What the Class II slot games do is take the result of the bingo game to determine what happens in the slot game.

What’s cool about this approach is that VGT was able to add bonus games to the bingo games that work like slot machine bonus games. They’ve developed a huge selection of bingo games that play like slot games. VGT is so successful they were acquired by Aristocrat Leisure Limited in 2014, although the former VGT still operates as an independent subsidiary company of Aristocrat.

How Do Class III Slot Machine Games Work?

The key to the hybridization of bingo and slot machine games is the Random Number Generator. Mathematicians have been developing algorithms to calculate unpredictable numbers for hundreds of years. For a detailed look at the concept, read “How Do Random Number Generators Work?” on Jackpots Online. Although the RNG does not produce a truly random number, in typical circumstances the number is random enough. Even so, slot game designers use random numbers in multiple ways.

Before I continue, I should mention that US law requires slot game designers to work by different rules from other countries’ slot games. In the United Kingdom, for example, the outcome of a slot game is determined by a single random number. In the United States, the outcome of the Class III slot game is determined by several random numbers.

To begin with, an electronic slot machine or online slot game uses a software concept called an array to represent each reel. Computer arrays work like rows of boxes, where each box holds one piece of information. The arrays for slot reels may have anywhere from 22 to 256 slots. Each slot in the array holds a symbol marker that tells the slot machine game what to display on the screen.

Slot game designers use special algorithms to decide how often each type of symbol should appear in each slot array. The frequency of the symbol’s use in the array and the size of the array determine how likely or unlikely it is for any single spin of the slot game reels to create one or more winning combinations. The game’s software may award prizes for one or more winning combinations at a time, depending on how many pay lines the game offers.

The random number generator produces a new number every few milliseconds. The number is placed in a temporary memory location called a register. The slot game software grabs the latest random number from the register and uses that to determine what happens next. For example, a 5 reel slot game needs 5 random numbers to pick how many slot positions will be spun on each reel before the reels stop in new locations. If the slot game awards random prizes like progressive jackpots, these are determined by additional random numbers.

How Class II Slot Machine Games Differ from Class III Slot Machine Games

What VGT did was create bingo game software that determines the actual prizes awarded to players.

But to make the bingo games look like slot games, they used the bingo game’s random results as if they are the random numbers that Class III slot games use.

To ensure that the slot game winning combinations match the bingo game prize values the VGT games work more like slot games in the United Kingdom. The game determines what prize was won and then creates a short video simulation of the slots landing on that winning combination.

Conclusion

How do class II slot machines work?

Either way, the slot games award prizes on a random basis. You could say that US gaming laws are paranoid in that Class III slot game software is required to closely emulate the physical spinning of slot reels. In fact, physical slot reel games have been displaying results of these virtual, in-memory array games for more than 20 years. So even when you see physical reels spinning, their stop positions have already been determined within microseconds of your pressing SPIN.

The Class II slot gaming experience is a fun gaming experience.

But the bingo game is displayed on a small screen, because VGT’s designers have found that players don’t enjoy looking at bingo patterns as much as they enjoy looking at 3 to 5 reels spinning and stopping on various symbols.

For the player, what matters is that they’re gambling for real money on an unpredictable outcome–and they can enjoy an entertaining evening with friends or loved ones.

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Video gambling terminals (VGTs) are opening monthly throughout Pennsylvania, though the average gambler may never notice them.

They are under the radar. Machines can operate only at approved diesel fuel truck stops.

The first went into service in August 2019. Now there are 34 locations, each with just five machines, the maximum allowed in an approved location. That means 170 machines are in service.

Four operators are approved as of early August 2020: Commonwealth Gaming; Marquee by Penn, a subsidiary of Penn National; Second State Gaming; Golden Route Operators.

The PlayPennsylvania revenue tracker tabulates how much the machines bring in for the state each month.

According to the Pennsylvania Gaming Control Board (PGCB), VGTs are very similar to the slot machines you might find at any one of 12 Pennsylvania casinos. Every VGT play has a randomly generated outcome from the previous play, the same way it does at a slot machine.

VGTs accept only cash, no credit or debit cards. By law, the maximum bet allowed on a VGT is $5. The maximum payout is $1,000.

The law requires a minimum theoretical payout percentage for VGTs of 85 percent. That’s the same return to player rate slot machines must provide in Pennsylvania casinos. That means that over the long haul, VGTs in PA should pay out 85 cents of every dollar put into them.

Illegal VGTs in PA

Researchers estimate there are 20,000 to40,000 illegal VGTs operating at various bars, restaurants, and social clubs across Pennsylvania today.

To stop this illegal activity and start collecting taxes, the state considered several options before striking a compromise. Both the House and the Senate passed a comprehensive gambling expansion package. It includes the authorization of VGTs at certain truck stops. Gov. Tom Wolf signed the bill into law soon after.

PGCB has since detailed regulations for VGTs at the truck stops.

But in early summer, 2020, a PA State Senator recently unsuccessfully floated a major expansion during closed-door discussions in the Republican caucus. His proposal would have expanded VGT licensing to include bars, social clubs, and other locations with liquor licenses.

His proposal failed to gain traction before the legislative recess. Both sides believe the proposal could be back around November – budget time.

Legal and regulated VGTs in PA

The gaming board opened the application process on May 7, 2019. New locations are frequently added.

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To host VGTs, the truck stops must:

• Have diesel islands
• Sell, on average, 50,000 gallons of diesel or biodiesel fuel every month. Or project sales of an average of 50,000 gallons for the next 12 months
• Have at least 20 parking spaces dedicated for commercial motor vehicles;
• Maintain a convenience store
• Be a PA Lottery Sales Agent
• Sit on a lot no smaller than three acres not owned by Pennsylvania Turnpike.

Pennsylvania counties hosting one of the state’s 12 casinos have opted-out of having VGTs at truck stops. Which explains why VGTs are in the less populous parts of the state.

As of the end of 2019, the PGCB had reported there were 20 facilities, each with five legal VGTs in operation. VGT sites are should double to 40 by the end of 2020, which would bring total machines to 200.

Eventually, there should be more than 60 VGT locations in the state. Perhaps 120 truck stops might meet the qualifying criteria, though not all have applied.

The state is charging operators a hefty 52 percent tax on all revenues. Of that 42 percent of the gross revenue generated by VGTs is going into a newly established Video Gaming Fund. The state will then deposit this money in its General Fund.

Another 10 percent of the gross revenue from VGTs is earmarked for grants to various counties through the Commonwealth Finance Agency.

VGTs bring tax revenue increases in other states

In some states, such as Illinois, VGTs are widely authorized for any establishment serving alcohol. Since 2012, they have become major revenue generators, surpassing riverboat casinos.

VGT locations

NORTHEAST PA

• Bald Eagle Truck Stop: 612 McElhattan Drive, McElhattan, PA 17748, Clinton County
• Kwik-Fill: 5574 PA-8, Harrisville, PA 16038, Butler County
• Love’s Travel Stop: 440 West Third Street, Mifflinville, PA 18631, Columbia County
• Travel Center of America: 5600 Nittany Valley Drive, Lamar, PA 16848, Clinton County
• Travel Centers of America: 6 Buckhorn Road, Bloomsburg, PA 17815, Columbia County

SOUTHEAST PA

• Love’s Travel Stop:22 Old Forge Road, Jonestown, PA 17038, Lebanon County
• Love’s Travel Stop: 1165 Harrisburg Pike, Carlisle, PA 17013, Lebanon County
• Love’s Travel Stop: 3700 Mountain Road, Hamburg, PA 19526, Berks County
• Rutter’s Store: 100 Grand Street, Hamburg, PA 19526, Berks County
• Rutter’s Store: 20 Commerce Drive, York, PA 17403, York County
• Rutter’s Store: 201 Cool Springs Road, Wrightsville, PA 17368, York County
• Rutter’s Store: 2125 Susquehanna Trail, York, PA 17403, York County
• Rutter’s Store: 27335 Route 75 North, Mifflintown, PA 17059, Juanita County
• Rutter’s Store: 3050 Heidlersburg Road, York Springs, PA 17372, Adams County
• Rutter’s Store: 362 North Main Street, York, PA 17403, York County
• Rutter’s Store: 362 North Main Street, York, PA 17403, Cumberland County
• Rutter’s Store: 4425 West Market Street, York, PA 17404, York County
• Rutter’s Store: 20 Commerce Drive, Milroy, PA 17063, Mifflin County
• Rutter’s Store: 15 New Enterprise Drive, Leesport, PA 19533, Berks County
• Travel Centers of America: 1201 Harrisburg Pike, Carlisle, PA 17013, Cumberland County
• Rutter’s Store: 77 Benvenue Road, Duncannon, PA 17020, Perry County
• Rutter’s Store:2215 Old Trail Road, Etters, PA 17319, York County
• Rutter’s Store: 2115 East Berlin Road, East Berlin PA, 17316, Adams County

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SOUTHWEST PA

• Keystone Restaurant & Truck Stop: 190 Keystone Road, Loretto, PA 15940, Cambria County
• Lawrence Exxon: 13305 Highway 44, Lawrenceville, PA 16929, Tioga County
• Liberty Exxon: 8489 Rt. 414, Liberty, PA 16930, Tioga County
• Rutter’s Store: 234 Kuhn Lane, Duncansville, PA 16635, Blair County
• Travel Centers of America:10835 John Wayne Drive, Greencastle, PA 17225, Franklin County

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NORTHWEST PA

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• Emlenton Truck Plaza: 6446 Emlenton-Clinton Road, Emlenton, PA 16373, Venango County
• Kwik-Fill: 73 Rolling Stone Road, Kylertown, PA 16847, Clearfield County
• Kwik Fill: 1001 East Spring St., Titusville PA 16354, Crawford County
• Snow Shoe Travel Plaza: Interstate 80, Snow Shoe, PA 16874, Centre County
• Travel Centers of America: 245 Allegheny Boulevard., Brookville, PA 15825, Jefferson County
• Geneva Truck Stop: 17400 Smock Drive, Cochranton PA 16314,Crawford County