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Slot Machines Vs Video Lottery Terminals

All Oregon Lottery® video poker games have an auto-hold feature in which the game recommends a card-holding strategy during each individual game.Oregon slot machine casino gambling consists of 9 American Indian tribal casinos with video lottery terminal style slot machines run by the Oregon Lottery. Oregon state law also permits a half-dozen VLTs in bars, with racinos allowed to have up to ten VLTs.oregon lottery slots.

Slot Machines and Video Lottery Terminals look the same but don’t function or pay out the same way.

Slot Machines generally use a random number generator (RNG) , which is basically a “computer chip ” inside generating random numbers and telling the reels where to stop.

Here is an excerpt from an American Gaming Association White Paper in 2010 regarding slots:

HOW DOES A SLOT MACHINE WORK?
Although a single play of a slot machine takes but a few seconds, it involves many steps inside the machine. The player selects the amount he wishes to bet on each play. Once play begins, the machine’s random number generator identifies a number for
each field of the machine’s screen. Through a two-step process, the computer processor within the machine (the “gameprocessor”) translates each number into the symbol that will display in each field.First, based on a program developed for the game by its designer, the game processor assigns each randomly-generatednumber to a “reel stop.” (In a mechanical slot machine, a reel stop is a location on the spinning reel; in a video slot machine, a
reel stop is a location on a virtual reel.) Each reel stop is designed to produce a specific symbol for display on the screen.Whenthe game’s audio and visual effects are completed, the symbols are displayed.At the same time, the game processor evaluates those symbols that will display on the “paylines” of the game’s screen. Ifany symbol or group of symbols matches a winning combination, that payline or field is marked as a win. The processor
calculates the amount won based on the odds incorporated into the game and the amount the customer bet. The screen notifiesthe player of the win, and also if a bonus is awarded. Every win is added to the player’s credit meter. The machine’s accounting
meters record the result of the play, which also is transmitted to the casino’s accounting and player reward system.After each game, a player can decide to play again — using the same wager configuration or a different one — or completethe gaming session by cashing out the credit meter for a redeemable ticket or currency. If the player makes another wager, this
process repeats in the same manner, independent of the results of any prior games.

Video Lottery Terminals are more akin to a computer generated “scratch off” ticket.They are connected to a central computer system run by the lottery. Every time you pull the lever or press the button you are “scratching off ” another lottery ticket with a predetermined win or loss.. This includes the video poker VLT’s.
If you have ever played the video poker games you’ll know that there is a “genie” or some other gimmick that occasionally switches a card or cards at the end of your second spin to give you a winning hand or a better winning hand. This is because the outcome is already known to the terminal and it will pay out the predetermined win no matter what you do; assuming this hand was a predetermined winning hand and not a predetermined losing hand according to the information sent from the lottery central system.
So , one example is, if your poker machine is sent a signal for a winning hand and you have three Ace’s and you discard all three aces and end up with a losing hand the “genie” will change your cards after the second spin to show a hand of at least three Ace’s or a similar hand that will pay out the same as three Ace’s.

This is from a NYS Government Accounting audit report concerning VLT’s :

VLTs resemble “casino” slot machines. The fundamental difference is that the results of each play on a VLT are determined by a central computer located at a Lottery facility to which all VLTs are connected. A predetermined random formula is used for each play of the machine………

……..The VLTs are required to pay bettors a minimum return of 90 percent of credits played, theactual monies bet by patrons. The remaining VLT funds (“net win”) are distributed to education;the respective VLT Facility operators and NYRA for purses, marketing, and capital projects; and the Lottery, to cover its costs of administering the VLT program. The VLT operators also retain a percentage of net win as a commission for administering the VLTs.

From NYS Gaming Commission:Video Lottery Terminals and Electronic Table Games: Similar in appearance to classic slot machines or as simulated classic table games, these terminals are linked to a centralized system maintained by the Gaming Commission that tracks the game play and earnings for each game.

Video lottery gaming operations began in 2004 at Saratoga Gaming & Raceway in Saratoga Springs and have since expanded to eight additional facilities. As of January 1, 2013, there were 17,213 such machines operating in New York State.

casino payout

Payout:
As noted in the NYS Government Accounting white paper, Video
Lottery Terminals (VLT’s) , in NY are required to payout a minimum of 90% return on credits played. Looking at recent statistics the nine racinos have been paying just under 91% to as high as 94% at times. Slot machines in NY are only found in the Indian Casinos at this time (Three new commercial casinos are due to be operational in NY in 2016) and I don’t see any slot machine payout information for them and they are not required to post it , as far as i know.

Here is a clip from the Empire Raceway fiscal year 2014/2015 report (click to enlarge):

You will see that the payout percentage (credits won) is over 92% for this time period. This clip of the report also shows the “net win” for Empire City Casino.

Looking at other slot payout information throughout the country it appears that slot payout can run from 89% up to a high of 97% in some Las Vegas casinos. A bad or tight pay out for slots only hurts the casino in the long run as it appears that slots make up a large portion of their earnings and if there is a lot of competition , I would assume that, players will move towards the casinos with better payouts.

Dotty's is a chain of slot machine parlors with about 175 locations in Nevada, Oregon and Montana and another 150 locations planned in Illinois.^[1] The business model is controversial, with sites 'offering minimal food and beverage choices with a heavy focus on gambling.'^[2] The chain caters to women aged 35 and older, with a clean, well-lit atmosphere meant to invoke 'your grandmother's kitchen'.^[3]

History[edit]

Oregon[edit]

The chain was founded in Oregon in 1991 by Craig Estey, whose family owned a major vending machine and food distribution service.^[3] The Oregon Legislature that year had authorized video poker machines to be installed in bars and taverns, under the aegis of the Oregon Lottery.^[3] The first poker machines began operation in March 1992,^[4] and by the next month, five Dotty's delis were open.^[5] The Oregon State Police, responsible for background checks on lottery retailers, objected to licensing the delis, arguing that they were not the type of business intended by the Legislature to have video poker, but its concerns were overruled by the lottery's director, Jim Davey.^[5]

In late 1993, when Dotty's sought to open its sixteenth outlet, Davey's successor, Dan Simmons, sought an opinion from the Attorney General as to whether he could deny the license on the basis that Dotty's was primarily a gambling business.^[5] A rule was instituted requiring a business to be at least a year old before becoming a lottery retailer, but Estey sued the state and was granted a waiver from this new requirement.^[3] Another rule was enacted requiring retailers to earn no more than two-thirds of their total income from the lottery, and a 1997 audit found that 21 of the 22 Dotty's outlets were in violation.^[6]

As of 2005, Dotty's had 26 locations in Oregon, and earned $6.4 million in lottery commissions.^[7]

In 2006, Estey came under investigation by the Lottery for alleged incidents of domestic violence against his wife, and for lying to Nevada gaming regulators about the incidents.^{[8][9][10][11]} Faced with the threat of losing Dotty's lottery retailer contract,^[10][12][13] Estey was forced to sell Dotty's locations in Oregon to a group of investors from South Dakota, including Dan Fischer and Marwin Hofer, at a sales price reportedly higher than $15 million.^[14] The new owners took possession in March 2007, with the Lottery itself agreeing to operate the stores on a temporary basis.^[15]

Nevada[edit]

Estey made his move into Nevada in 1995, gaining approval from the Nevada Gaming Commission for six Dotty's bars built along the model of the Oregon chain.^[16] By 2002, there were eight Dotty's locations in the state, and the chain was pushing into Northern Nevada with three planned locations in Reno and Carson City.^[17]

Opposition to Dotty's arose in 2010,^[18] led by locals casino operators Station Casinos and Boyd Gaming.^[19] Most Dotty's locations operate under a 'restricted' gaming license, allowing up to 15 slot machines in a business such as a bar or convenience store, where gaming is 'incidental' to the main business.^[18] Opponents argued that Dotty's violated this restriction, with gaming accounting for more than 90 percent of revenue at some locations.^[18]

Dotty's opponents were successful in April 2011, convincing the Clark County Commission to adopt rules that taverns with slot machines must have at least 2,500 square feet of space, at least eight bar-top slot machines, and a kitchen operating at least 12 hours a day, none of which would be satisfied by the typical Dotty's location.^[20] Similar restrictions were adopted months later at a statewide level by the Gaming Commission.^[21] By mid-2013, Dotty's was close to opening new locations with bar and restaurant facilities to comply with the stricter regulations, with the total number of locations in Nevada set to grow to 97.^[22]

Old Oregon Lottery Slot Machines Jackpots

In August 2013, Dotty's agreed to acquire the Hacienda Hotel and Casino near Boulder City, its first full hotel-casino.^[23] In July 2014, Dotty's agreed to buy the River Palms in Laughlin.^[24]

Oregon Live Keno

Illinois[edit]

Illinois began video gambling operations in October 2012, with bars allowed to install as many as five slot machines.^[25] Dotty's soon made its move into the state, announcing plans to open 150 Dotty's Cafes, mostly in strip malls in the suburbs of Chicago.^[1]

References[edit]

1. ^ ^abAlison Burdo (May 23, 2013). 'Chain of 'homey' gambling cafes makes big suburban push'. Crain's Chicago Business. Retrieved 2013-09-18.
2. ^Howard Stutz for the Las Vegas Review-Journal July 26, 2014. Dotty’s taverns are simply complex
3. ^ ^abcdSteve Mayes (July 21, 1996). 'A sure hand'. The Oregonian. – via NewsBank (subscription required)
4. ^Hill, Gail Kinsey (March 24, 1992). 'Video poker comes on line'. The Oregonian. Portland: via NewsBank. Retrieved 2012-06-06.(subscription required)
5. ^ ^abcJim Kadera (November 12, 1993). 'Lottery, liquor commissions take hard look at Dotty's delis'. The Oregonian. – via NewsBank (subscription required)
6. ^Steve Suo (February 12, 1998). 'Lottery says Dotty's delis take too big a bite'. The Oregonian. – via NewsBank (subscription required)
7. ^Steve Duin (February 28, 2006). 'Lying in Nevada, laying low in Oregon'. The Oregonian. – via NewsBank (subscription required)
8. ^Steve Duin (December 17, 2006). 'Oregon Lottery scratches Dotty's Delis owner'. The Oregonian. – via NewsBank (subscription required)
9. ^Steve Duin for The Oregonian. January 02, 2007 Dotty's, Yes; Estey, No
10. ^ ^abWill Evans for National Public Radio and The Center for Investigative Reporting. Oct 31, 2008 RightChange gets money from controversial businessman
11. ^John L. Smith for the Las Vegas Review Journal. March 30, 2011. Dotty's seems to be 'grandmothered in,' able to ignore the rules
12. ^Letter from Oregon Lottery to R Craig Estey, December 13, 2006Archived 2014-12-09 at the Wayback Machine, linked from NPR article already cited and Mirrored article at CIR websiteArchived 2014-12-09 at the Wayback Machine
13. ^'Oregon Lottery tells chain owner to sell or lose state contract'. Associated Press News Service. January 4, 2007. – via NewsBank (subscription required)
14. ^Steve Duin (March 1, 2007). 'Craig Estey exits with wallet bulging'. The Oregonian. – via NewsBank (subscription required)
15. ^'One of largest lottery retailers in state under new ownership'. Eugene Register-Guard. AP. March 7, 2007.
16. ^Sean Whaley (December 22, 1995). 'Station Casinos Inc.'s brewery approved'. Las Vegas Review-Journal. – via Factiva (subscription required)
17. ^'Nevada regulators may revise 'post time' bets for horse races'. Associated Press Newswires. May 16, 2002. – via Factiva (subscription required)
18. ^ ^abcHoward Stutz (December 17, 2010). 'Dotty's: A tavern or slot parlor?'. Las Vegas Review-Journal. Retrieved 2013-09-20.
19. ^Howard Stutz (March 6, 2011). 'Too much success catches up to Dotty's'. Las Vegas Review-Journal. Retrieved 2013-09-20.
20. ^Howard Stutz (April 7, 2011). 'Gaming board won't change licensing procedures'. Las Vegas Review-Journal. Retrieved 2013-09-20.
21. ^Howard Stutz (August 25, 2011). 'Dotty's casino business plan stalled by regulation changes'. Las Vegas Review-Journal. Retrieved 2013-09-20.
22. ^Cy Ryan (August 8, 2013). 'Dotty's meets new law's requirements, gets OK to open two more taverns'. Las Vegas Sun. Retrieved 2013-09-20.
23. ^Howard Stutz (August 2, 2013). 'Tavern operator Dotty's to acquire Hacienda near Boulder City'. Las Vegas Review-Journal. Retrieved 2013-09-20.
24. ^'Agreement struck to sell River Palms'. Laughlin Nevada Times. 2014-07-02. Retrieved 2014-07-06.
25. ^Erin Meyer (October 9, 2012). 'It's official: Video gambling now legal in Illinois'. Chicago Tribune. Retrieved 2013-09-20.

External links[edit]

Old Oregon Lottery Slot Machines Winning

• Dotty's (Nevada)
• Dotty's Cafe (Illinois)