Slot machines burst onto the American gambling scene in the 1930’s and have captivated risk-takers with their bright lights, shiny reels and a chance of striking it rich with their jackpots. Fast-forward to the 1980’s, and slot machines were deemed to be more profitable than table games like black jack or craps. For the most part the same remains true today. From Las Vegas, Reno and Atlantic City casinos to racetracks, barges and riverboats along the Mississippi River, slot machines are still big business.

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• Class 2 Vs Class 3 Slot Machines
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I've been getting a lot of questions about class 2 slot machines lately! Class 2 slot games are regulated so they involve a game of chance. Bingo is that gam. Class II is restricted Gaming, and does not allow 'real' Slot Machines, which are based on a Random Number Generator Program. Class III is pretty much full gaming, but each state can regulate things. For example, traditional Craps and Roulette can't be offered in California, though electronic or alternative version can be offered.

How Does a Slot Machine Work?

Named after the slot where cash, tokens or even modern paper tickets are inserted, slots is a game for all skill levels. The object of the game is to win money from the machine. This happens by matching a set of symbols that roll and stop at random once its lever is pulled or button is pressed. The amount bet on each spin varies between machines. Most offer a variety of winning combinations which are linked to different rewards (extra spins, cash, etc.) and usually displayed on the machine itself.

There are several kinds of slots available nowadays, from the classic lever-and-spinning-reel variety to vivid display video slots. Regardless of their technological advancement since the 1930’s, slot machines are still categorized into two groups: class II or class III.

Class II Slot Machines

• All machines or terminals are linked together so that players end up competing against each other for a common prize.

• Winners are determined via a Video Lottery Terminal (VLT), much like a lottery scratch card.

• With a set quantity of wins and losses, they are preprogramed to pay out at particular times.

• Not every game is guaranteed to have a winner, but play will continue until a winner is determined.

• Machines are interactive and, just like with the game of Bingo, players must announce their win in order to claim their reward. Prizes are not given automatically.

• These types of slot machines can be found primarily on Indian gaming reservations and ‘Racinos’, which are establishments that not only allow class II slots on premises but also have a live horse racetrack.

Class III Slot Machines

• Typically known as ‘Vegas-style’ or traditional slots, these are what most people think of when they envision a slot machine.

• Each terminal is independent from the rest, with players competing against the house or casino for a pay-out prize.

• Winners are determined via a Random Number Generator (RNG), giving every terminal the same chance of winning during every game.

• Despite misconceptions about a slot machine being ‘due to hit’, they aren’t preprogramed to pay out at any particular time.

• If a player uses a terminal that someone else just abandoned and wins the jackpot, the likelihood that the previous player would have won if they stayed longer is very low. The RNG is timed down the millisecond of when a button is hit or lever is pulled, which must be done at a precise time in order to win each particular game.

• Wins are instantaneous and prizes are doled out immediately.

Slot machines seems to work on a fairly simple concept. Anyone who’s ever played one is probably quite sure that they know exactly how they work, at least on a basic level. You pull the lever or push the button and the reels spin. When the reels stop, if they land in one of a number of predetermined positions, you win something. Simple, right?

What if I told you, though, that not all slot machines work that way? Many gamblers don’t know that in the U.S. there are two different type of slot machines. They are known as class II and class III slots.

The divide between the two came about because of the U.S. federal Indian Gaming Regulatory Act. This act establishes different classes for different types of gambling, with class II being defined as, “the game commonly known as bingo (whether or not electronic, computer, or other technological aids are used in connection therewith) and, if played in the same location as the bingo, pull tabs, punch board, tip jars, instant bingo, and other games similar to bingo.” Class III gaming is defined as any gaming not already labeled class I or class II.”

Class 2 Slot Machines Explained

The basic result of this law is that in most jurisdictions where gambling is legal and regulated, you’ll find class III slots and games. In Indian casinos, however, they can only offer games based on bingo. So whether you realize it or not, if you’re playing slot machines in an Indian casino, you’re actually playing bingo.

Of course this split doesn’t refer to USA online money slots.

The Birth Of Class II Slot Machines

Originally, Indian casinos did just what the law stated. They offered bingo in large warehouse-type halls. These bingo games were generally high stakes, offering much bigger risks and rewards than typical bingo games held all over the country. Still, it was only bingo. The games just didn’t provide the excitement that many gamblers were looking for. Eventually, the Indian casinos decided that if they were going to survive and thrive they needed to find a way to recreate the real Las Vegas experience.

The Hard Rock properties operated on Seminole land in Florida worked especially hard to devise a way to bring the slot machine experience into casinos where slot machines were technically illegal. They enlisted the help of engineers who had previously worked with some of the biggest class III slot machine production companies to design a backend system that would keep them within regulations. At the same time, they needed to work with slot manufacturers to design machines that would work with their new system.

The Inner Workings Of Class II Slot Machines

Today, class II and class III slot machines look virtually identical. The giveaway that you’re playing on a class II slot machine is the presence of an LED bingo card in the corner of the screen that shows results with each spin.

The reason that little bingo card is there is because that’s what is really determining whether you win or not. You’re not actually playing a slot by yourself the way you would in a Vegas casino. You’re playing along with a pool of players, in a game of bingo.

The Vice President of Operations at the Seminole Hard Rock Casino explains how it works like this, “We have a 20-millisecond window, and anyone (in the casino) pushing the Play button during that window is put in the game for that common ball draw. It must be at least two players, but the maximum is unlimited. If it is a minimum of two, one of them gets a bingo—a winning pattern.”

So, in reality, it is the bingo draw that determines if you win, not the reels. The symbols that land on the reels are really just reporting the bingo results in a way that replicates the class III slots. They are not based on an individual random number generator unique to that machine like their class III counterparts. Now, cleverly and perfectly disguised, we have a class II game that replicates the results and experience of class III gaming.

Class II Slots Vs. Class III Slots

Some people feel that class III slots are somehow “more fair” to the player because they are standalone machines that deliver results based on their own random number generator. In reality, however, the payout percentages on both types of machines are basically identical.

The class II systems can be programmed to replicate the payout combinations and rates of any class III machine. Just like there are certain odds of any one winning combination hitting on a class III slot machine, there are certain odds of any winning combination occuring in a bingo game. The programmers can match the different bingo results with the hit rate and payout scheme of any class III slot to replicate results exactly.

The bottom line is that neither type of slot is “more fair” than the other. Players will get the same odds and payouts on both type of machines. The only difference is in how the results are determined. Think of it as two roads that both go to the same destination.

Class 2 Vs Class 3 Slot Machines

To find out more about slot machines and how they work, check our Slots Guide page. Meanwhile, here are the best online casinos to play slots. Btw, online, all slots can be considered Class 3 slot machines.

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