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.
Class II slot machines were devised to mimick the Las Vegas styled Class III machines for the areas where such gambling simply isn’t legal. This called for engineers from major slot machine manufacturers to develop system that would make possible to experience Class III type of gambling in a jurisdiction that would only allow Class II. WHAT ARE CLASS II SLOT MACHINES. Simply put, Class II slot machines attempt to replicate the traditional ‘Las Vegas style‘ Class III slot machine experience while staying within regulatory guidelines.The Class system is outlined by the Federal Government in The Indian Gaming Regulatory Act and this act defines Class II as “the game commonly known as bingo (whether or not electronic. Slot machines have come a long way since then. With the rise of modern technology, the traditional slot machine has given way to newer, more advanced mechanics. Inside each machine is a computer that operates on a code or mathematical equation. This slot machine algorithm works as a random number generator, also known as an RNG.
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:
- Class I games
- Class II games
- 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.
Introduction to Kentucky Slot Machine Casino Gambling in 2020
Kentucky slot machine casino gambling does not include games of chance, which are strictly illegal. Instead, Kentucky has competition-based electronic gaming machines at four out of its five pari-mutuel wagering racetracks.
Theoretical payout limits are not available but monthly return statistics are available for electronic gaming machines.
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 Kentucky*
The minimum legal gambling age in Kentucky depends upon the gambling activity:
- Land-Based Casinos: Not available
- Poker Rooms: Not available
- Bingo: 18
- Lottery: 18
- Pari-Mutuel Wagering: 18
Kentucky’s interpretation of legal gambling requires the competitor’s level of skill “must sufficiently govern the results.”
Therefore, competition-based games are legal as well as pari-mutuel wagering. Traditional slots are illegal, including those referred to as Class III, Vegas-style, and games-of-chance slot machines.
Kentucky has competition-based electronic games available in a few of their pari-mutuel facilities. These skill-based games are anonymously-based historical race results.
Historically, Kentucky has had a fascinating relationship with gambling. While casino gambling was never legal, gambling dens were prevalent before the Great Depression of 1929. To this day, the open display of illegal gambling from that time in American history continues to negatively affect the perception of gaming in Kentucky.
If you’re ever in Newport, directly across the Ohio River from Cincinnati, consider walking the Newport Gangster Tour.
*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 Kentucky
In Kentucky, it is legal to own a slot machine privately.
Gaming Control Board in Kentucky
The Kentucky Horse Racing Commission (KHRC) regulates skill-based games at pari-mutual racetracks in the Commonwealth of Kentucky.
These devices are Historic Horse Racing (HHR) electronic gaming machines. The KHRC reports Kentucky offers 2,981 HHR machines.
Casinos in Kentucky
There are five pari-mutuel racetracks in the Commonwealth of Kentucky. Of these, only four sites offer skill-based HHR electronic gaming machines.
The largest casino in Kentucky is Derby City Gaming with 1,000 HHR gaming machines.
The second-largest casino is Red Mile Gaming & Racing, an HHR parlor in partnership with Keeneland Race Course, with 938 gaming machines.
Commercial Casinos in Kentucky
The four out of five of Kentucky’s pari-mutuel racetracks with skill-based HHR electronic gaming machines are:
- Derby City Gaming in Louisville located 74 miles west of Lexington on the Indiana border.
- Ellis Park Racing and Gaming in Henderson located 105 miles northwest of Bowling Green.
- Kentucky Downs Gaming in Franklin located 29 miles south of Bowling Green.
- Red Mile Gaming & Racing in Lexington.
Tribal Casinos in Kentucky
Slot Machines How They Work
The Commonwealth of Kentucky has no federally-recognized American Indian tribes and, therefore, no tribal casinos.
Other Gambling Establishments
How Do Electronic Slot Machines Work At Home
As an alternative to enjoying Kentucky slot machine casino gambling, consider exploring casino options in a nearby state. Bordering Kentucky is:
- North: Indiana and Ohio Slots
- East: West Virginia Slots
- Southeast: Virginia Slots
- South: Tennessee Slots
- West: Missouri Slots
Each link above will take you to my blog for that neighboring U.S. state to Kentucky.
Our Kentucky Slots Facebook Group
Are you interested in sharing and learning with other slots enthusiasts in Kentucky? If so, join our new Kentucky 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 Kentucky. Join us!
Payout Returns in Kentucky
The Commonwealth of Kentucky does not offer any theoretical payout limits for their competition-based HHR gaming machines.
The Kentucky Horse Racing Commission offers statistics for HHR gaming under Quick Links entitled Wagering on Historical Horse Races. Its December 2019 report indirectly offers actual return statistics including comparisons to past actuals.
To calculate a player’s win percentage from the report, divide Less: Return to Public by Total Handle. For December 2019, the monthly Player’s Win% for HHR machines were:
- State-wide: 91.5%
- Derby City: 90.9%
- Ellis Park: 93.9%
- Keeneland/Red Mile: 91.3%
- Kentucky Downs: 92.0%
From this December 2019 report, Ellis Park had the highest player win% at nearly 94% while Derby City had the lowest at nearly 91%.
Summary of Kentucky Slot Machine Casino Gambling in 2020
Kentucky slot machine casino gambling exists as competition-based, games-of-skill Historical Horse Racing (HHR) electronic gaming machines instead of games-of-chance slot machines.
No minimum or maximum theoretical payout limits have been set. Monthly return statistics are publicly available for each pari-mutuel racetrack with HHR games.
How To Slot Machines Work
Annual Progress in Kentucky Slot Machine Casino Gambling
How Do Electronic Slot Machines Work
In the last year, Kentucky increased its HHR machines by 9% to 2,981 devices. However, the average daily handle for HHRs increased by 46%. For 2020 so far, it’s an amazing 59% increase compared to 2019.
Other State-By-State Articles from Professor Slots
How Do Electronic Slot Machines Work Without
- Previous: Kansas Slot Machine Casino Gambling
- Next: Louisiana Slot Machine Casino Gambling
How Do Electronic Slot Machines Work In
Have fun, be safe, and make good choices!
By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC