Slot machines and video lottery machines are often identical in nature. The only difference in most states is where the type of device is located. The exact definition requires the associated state law.

Differences Between Video Lottery State Laws

There are eight states with legal video lottery. Those are Delaware, Georgia, Illinois, Louisiana, Montana, New York, Oregon, South Dakota and West Virginia. Seven of those states permit cash payouts on video lottery. Georgia is the exception. Delaware and New York require video lottery to be played only at the state’s race tracks. The others permit it in bars and/or gas stations. Georgia and West Virginia do not permit advertisement of the on-premises gambling.

• . Video Lottery Terminals (VLTs) have the same appearance as slot machines. VLTs must receive winning outcomes transmitted by the central system. Electronic Table Games (ETGs) offer video versions of popular casino games like roulette, craps, and baccarat. ETGs are capable of generating winning outcomes at each table.
• The State Lottery and Gaming Control Agency regulates gaming operations at Maryland cainos Maryland Video Lottery Program (slots gambling), & table games.The process by which licenses were issued to operate video lottery facilities in those jurisdictions, however, was conducted by the Video Lottery Facility Location Commission.Current law also allows video lottery terminal licensees to.

The final machine type we’ll explore is most diverse because the jurisdiction is different than the others, and that is the Video Lottery Terminal (VLT). In some states, like New York, they refer to them as Video Gaming Machines (VGMs) but we’re basically talking the same thing here. Differing Approaches, Just Like Lotteries.

The maximum bet is typically $2 on these machines. The exceptions are Delaware and New York because these devices are located in traditional casinos located at the state’s racetracks. There is no limit there.

The maximum individual win is $500 in Illinois, $600 in Oregon, $800 in Montana and $1,000 in South Dakota. West Virginia leaves this to the operator, although most cap it at $1,200. Georgia video lottery machines only print vouchers for merchandise and have no maximum bet or win.

The answer is yes, except in Georgia. Players in that state may only win gift cards, merchandise, gasoline or lottery tickets. Alcohol and tobacco may not be purchased with video lottery winnings in Georgia.

The video lottery machine itself does not pay cash or coins, even in states where payouts are legal. Each device prints a ticket. The player gives it to an employee of the establishment that pays the winner in cash, where permitted. Otherwise, the player wins a gift card or merchandise.

Randomness of Slot Machines versus Video Lottery Games

Many states require that video lottery machines produce random results. This means that a video poker game uses a random number generator and is not purely luck-based when using cards. Slot symbols must also line up as they would in a casino. The same goes for keno numbers. In fact, the only difference most players will notice between video lottery machines and devices found in real casinos is the percentage returned to the player.

Georgia is one exception. Georgia has no commission to enforce fair games. The owners of the machines can set the payout to whatever they would like. Some reports imply that returns are as low as 80% at some locations. Louisiana is another state with video lottery that offers machines that are not studied to determine randomness.

Most video lottery terminals return 90-98%. The cap in South Dakota is 92%. Louisiana permits returns up to 94%. Oregon machines pay up to 96%. Players have reported games as high as 98% in Illinois. Delaware and New York video lottery machines may pay up to 100%.

Video lottery terminals typically spread video poker, keno, and slot machines. Georgia is the exception. That state only permits skill-based slots. Video poker and keno for money are explicitly illegal under law.

Georgia players must make a move after the original slot symbols are dealt. The bettor must choose the correct setting, if there is one, to win. If the player chooses the wrong move, the hand is a loss. The winning move is obvious in most cases. There are bonus rounds where the player’s input changes the outcome. The skill element of these rounds is debatable.

Why Would Someone Play a Video Lottery Machine?

Convenience is the most common reason for playing video lottery terminals. These games are often located in bars in Illinois, Louisiana, Montana, Oregon, West Virginia and South Dakota. Gas stations can often spread these games if alcohol is sold. Georgia permits virtually any business to spread video lottery machines as long as it sells lottery tickets. That means that many people live right around the corner from a video lottery casino.

Drawbacks to Playing Video Lottery Machines

The biggest problem with playing video lottery machines is the low payouts. Games often return around 90%. Games with skill involved may return slightly more, however, the games may be unusual and require a different skill set than a normal video poker game. The maximum payout can also hurt player returns. Never bet more than the amount that returns the highest win permitted by law. Many machines will permit the player to bet more coins without increasing the payout for big keno jackpots or a royal flush.

Avoid Video Lottery Terminals

Some people get bored and simply want to gamble. In most cases, it is better to take the extra drive to the casino as opposed to playing video lottery games in a bar or gas station. The returns can be as high as 10 percentage points better in the casino compared to the video lottery machines. At a $1 bet, that is $.10 a hand. The difference is $60 in theoretical losses per hour when choosing video lottery over a casino.

If you must play video lottery, only wager the minimum bet. There is rarely, if ever, a higher return-to-player between denominations on video lottery machines. On the other hand, casino slots and video poker often reward playing maximum coins and higher denominations with better overall returns.

Slot Machines Vs Video Lottery Terminals

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 Terminals (VLTs) have the same appearance as slot machines. VLTs must receive winning outcomes transmitted by the central system.

• Electronic Table Games (ETGs) offer video versions of popular casino games like roulette, craps, and baccarat. ETGs are capable of generating winning outcomes at each table.

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):

Vlt Slot Machines

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.

Vlt Vs Slot Machine

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.