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Slot machine A slot machine, fruit machine (British English), poker machine or pokie (Australian English and New Zealand English) is a gambling machine that creates a game of chance for its customers. A slot machine's standard layout features a screen disp ...
terminology, characteristics and regulations vary around the world.


Slot machines by country


Australia

In Australia "poker machines" or "pokies" are officially termed gaming machines. Australian-style gaming machines frequently use video displays to simulate physical reels, usually five. These machines have additional bonusing and second-screen features such as free games and bonus levels. They also allow for multiple lines (up to 200) or multiple ways (up to 3,125) to be played. On multiway games, players play the entire position of each reel instead of fixed lines or patterns. For instance, if a player plays 1 reel on a 243 way game, they receive three symbols in the first reel which pay anywhere in the three positions, while all other reels pay in the centre only, with unused areas darkened. On the other end of the scale, if the player plays 5 reels, symbols can appear anywhere in the window and will pay as long as there is one in each reel. Most games however still require the symbols appearing left to right, sometimes this even includes scatters. Scatter symbols still pay the same as per conventional games, multiplying their pay amount by the total bet and the number of ways/reels played. Other multiway games give you even more ways by using a 4x5 or 5x5 pattern, where there are up to 5 symbols in each reel, allowing for up to 1,024 and 3,125 ways to win respectively. Aristocrat calls these games ''Xtra Reel Power'' and ''Super Reel Power'' respectively. These games typically cost more than their 243 way ''Reel Power'' counterparts. Recently, IGT has also started to manufacture multiway games. Gaming machine manufacturer Konami Australia also made an alternative way of gaming by using patterns, where symbols pay adjacent to one another. Most of these games have a hexagonal reel formation, and much like multiway games, any patterns not played are darkened out of use. On both systems, scatter symbols still pay in the darkened areas just like standard machines where scatters don't have to appear on a payline. The laws regulating the use of gaming machines in Australia are a matter for state governments, and as such they vary between states. Gaming machines are found in casinos (approximately one in each major city) as well as
pubs A pub (short for public house) is in several countries a drinking establishment licensed to serve alcoholic drinks for consumption Licensing laws of the United Kingdom#On-licence, on the premises. The term first appeared in England in the ...
and clubs in some states (usually sports, social, or RSL clubs). The first Australian state to legalize this style of gambling was
New South Wales New South Wales (commonly abbreviated as NSW) is a States and territories of Australia, state on the Eastern states of Australia, east coast of :Australia. It borders Queensland to the north, Victoria (state), Victoria to the south, and South ...
in 1956 when they were made legal in all registered clubs in the state. There has been huge research into proving that the proliferation of poker machines has led to increased levels of
problem gambling Problem gambling, ludopathy, or ludomania is repetitive gambling behavior despite harm and negative consequences. Problem gambling may be diagnosed as a mental disorder according to DSM-5 if certain diagnostic criteria are met. Pathological ...
; however more research is certainly required to understand exactly what the impacts will have on society into the future.Productivity Commission 1999,   AusInfo, Canberra. In 1999 the Australian Productivity Commission reported that Australia had nearly 185,000 poker machines, more than half of which were in New South Wales. This figure represented 20% of comparable machines in the world or 2.4% of all the varying gambling and prize based machines in the world (excluding those that are illegal), and on a per capita basis, Australia had roughly five times as many gaming machines as the United States. Revenue from gaming machines in pubs and clubs accounts for more than half of the $4 billion in gambling revenue collected by state governments in fiscal year 2002 – 03 In
Queensland Queensland ( , commonly abbreviated as Qld) is a States and territories of Australia, state in northeastern Australia, and is the second-largest and third-most populous state in Australia. It is bordered by the Northern Territory, South Austr ...
, gaming machines in pubs and clubs must provide a return rate of 85% while machines located in casinos must provide a return rate of 90%. Most other states have similar provisions. In Victoria, gaming machines must provide a minimum return rate of 85% (including jackpot contribution), including machines in Crown Casino. As of December 1, 2007, all gaming machines with support for $100 notes were banned due to an amendment to the gaming laws; all gaming machines made since 2003 comply with this rule. This new law also banned machines which would automatically play with the button held. One exception to these laws exists in Crown Casino, any player with a VIP loyalty card can still insert $100 notes and use the autoplay feature, whereby the machine will continue to play without player intervention until credit is exhausted or the player intervenes. All gaming machines in Victoria have an information screen accessible to the user by pressing the 'i key' button, showing the game rules, paytable, return to player percentage, and the top and bottom five combinations, with the odds shown. These combinations are stated to be played on a minimum bet (usually 1 credit per line, with 1 line or reel played), excluding feature wins.
Western Australia Western Australia (WA) is the westernmost state of Australia. It is bounded by the Indian Ocean to the north and west, the Southern Ocean to the south, the Northern Territory to the north-east, and South Australia to the south-east. Western Aust ...
only permits the use of particular forms of gaming machine in
Burswood Casino Crown Perth (formerly Burswood Island Casino, Burswood Island Complex and Burswood Entertainment Complex) is a resort and casino located in Burswood, Western Australia, Burswood, Western Australia, near the Swan River (Western Australia), Swan ...
, and no gaming machines may be used elsewhere. This policy (the most restrictive in Australia) had a long historical basis, and was reaffirmed by the 1974 Royal Commission into Gambling:


Japan

Japanese slot machines, known as pachisuro or pachislo ( portmanteaus of the words "
pachinko is a mechanical game originating in Japan that is used as an arcade game, and much more frequently for gambling. Pachinko fills a niche in Gambling in Japan, Japanese gambling comparable to that of the slot machine in the West as a form of l ...
" and "slot machine"), are a descendant of the traditional Japanese
pachinko is a mechanical game originating in Japan that is used as an arcade game, and much more frequently for gambling. Pachinko fills a niche in Gambling in Japan, Japanese gambling comparable to that of the slot machine in the West as a form of l ...
game. Slot machines are a fairly new phenomenon and they can be found in mostly in pachinko parlors and the adult sections of
amusement arcade An amusement arcade, also known as a video arcade, amusements, arcade, or penny arcade (an older term), is a venue where people play arcade games, including arcade video games, pinball machines, electro-mechanical games, redemption games, mercha ...
s, known as game centers.


New Zealand

Slot machines, commonly called "pokies", were introduced into
New Zealand New Zealand () is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and List of islands of New Zealand, over 600 smaller islands. It is the List of isla ...
in 1991. A 2009 study linked the prevalence of slot machines with high crime levels.


United Kingdom

The provision of slot machines is covered by the
Gambling Act 2005 The Gambling Act 2005 (c. 19) is an act of the Parliament of the United Kingdom. It mainly applies to England and Wales, and to Scotland, and is designed to control all forms of gambling. It transfers authority for licensing gambling from the m ...
. This superseded the
Gaming Act 1968 Gaming may refer to: Games and sports The act of playing games, as in: * Legalized gambling, playing games of chance for money, often referred to in law as "gaming" * Playing a role-playing game, in which players assume fictional roles * Playing ...
. Slot machines in the UK are categorised by definitions produced by the
Gambling Commission The Gambling Commission is an executive, non-departmental public body of the Government of the United Kingdom responsible for regulating gambling and supervising gaming law in Great Britain. Its remit covers arcades, betting, bingo, casin ...
as part of the legislation brought in with the Gambling Act of 2005. Casinos built under the provisions of the 1968 Act are allowed to house up to twenty machines categories B to D or any number of C or D machines instead. As defined by the 2005 Act, large casinos will have a maximum of one hundred and fifty machines of any combination of machines in categories B to D, within the total limit of one hundred and fifty (subject to machine to table ratio of 5:1) and small casinos will have a maximum of eighty machines of any combination of machines in categories B to D, within the total limit of eighty (subject to machine to table ratio of 2:1).


Category A

Category A games were defined in preparation for the planned " Super Casinos". Despite a lengthy bidding process, with
Manchester Manchester () is a city and the metropolitan borough of Greater Manchester, England. It had an estimated population of in . Greater Manchester is the third-most populous metropolitan area in the United Kingdom, with a population of 2.92&nbs ...
being chosen as the single planned location, the development was cancelled soon after
Gordon Brown James Gordon Brown (born 20 February 1951) is a British politician who served as Prime Minister of the United Kingdom and Leader of the Labour Party (UK), Leader of the Labour Party from 2007 to 2010. Previously, he was Chancellor of the Ex ...
became
Prime Minister of the United Kingdom The prime minister of the United Kingdom is the head of government of the United Kingdom. The prime minister Advice (constitutional law), advises the Monarchy of the United Kingdom, sovereign on the exercise of much of the Royal prerogative ...
. As a result, there are no lawful Category A games in the UK.


Category B

Category B games are divided into subcategories. However, the differences between B1, B3 and B4 games are mainly the stake and prizes as defined in the above table. Category B2 games – Fixed odds betting terminals (FOBTs) – have quite different stake and prize rules. FOBTs are mainly found in licensed betting shops, or bookmakers, in the form of electronic
roulette Roulette (named after the French language, French word meaning "little wheel") is a casino game which was likely developed from the Italy, Italian game Biribi. In the game, a player may choose to place a bet on a single number, various grouping ...
. The games are based on a
random number generator Random number generation is a process by which, often by means of a random number generator (RNG), a sequence of numbers or symbols is generated that cannot be reasonably predicted better than by random chance. This means that the particular ou ...
(e.g. through the application of the
uncertainty principle The uncertainty principle, also known as Heisenberg's indeterminacy principle, is a fundamental concept in quantum mechanics. It states that there is a limit to the precision with which certain pairs of physical properties, such as position a ...
) and thus the probability of getting the jackpot in each game is independent of any other game, and these probabilities are all equal. If a
pseudorandom number generator A pseudorandom number generator (PRNG), also known as a deterministic random bit generator (DRBG), is an algorithm for generating a sequence of numbers whose properties approximate the properties of sequences of random number generation, random n ...
is used instead of one that is truly random, the probabilities are not truly independent, since each pseudorandom number is determined at least in part by the one generated before it.


Category C

Category C games are often referred to as fruit machines, one-armed bandits and AWP ( amusement with prize). Fruit machines are commonly found in
pubs A pub (short for public house) is in several countries a drinking establishment licensed to serve alcoholic drinks for consumption Licensing laws of the United Kingdom#On-licence, on the premises. The term first appeared in England in the ...
, clubs, and
arcade Arcade most often refers to: * Arcade game, a coin-operated video, pinball, electro-mechanical, redemption, etc., game ** Arcade video game, a coin-operated video game ** Arcade cabinet, housing which holds an arcade video game's hardware ** Arcad ...
s. Machines commonly have three reels, but can be found with four or five reels with around sixteen to twenty-four symbols printed around them. The reels are spun each play, and if certain combinations of symbols appear then winnings are paid by the machine, or a subgame is played. These games often have many extra features, trails and subgames with opportunities to win money; usually more than can be won from just the payouts on the reel combinations. Fruit machines in the UK almost universally have the following features, generally selected at random using a
pseudorandom number generator A pseudorandom number generator (PRNG), also known as a deterministic random bit generator (DRBG), is an algorithm for generating a sequence of numbers whose properties approximate the properties of sequences of random number generation, random n ...
: * A player (known in the industry as a ''punter'') may be given the opportunity to ''hold'' one or more reels before spinning, meaning that the reel will not be spun at the next play, but will instead retain its setting at the previous spin. This can sometimes increase the chance of winning, especially if two or more reels are held. * A player may also be given a number of ''nudges'' following a spin (or, in some machines, as a result in a subgame). A nudge is a single step rotation of a reel of the player's choice (although the machine may not allow all reels to be nudged for a particular play). * ''Cheats'' can also be made available on the internet or through emailed newsletters for subscribers. These cheats give the player the impression of an advantage, whereas in reality the payout percentage remains exactly the same. The most widely used cheat is known as Hold after a nudge and increases the chance that the player will win following an unsuccessful nudge. The cheats give the player an incentive to play the latest games. It is known for machines to pay out multiple jackpots, one after the other (this is known as a streak or rave) but each jackpot requires a new game to be played so as not to violate the law about the maximum payout on a single play. The minimum payout percentage is 70%, with pubs often setting the payout at around 78%. These machines also operate differently from truly random slot machines. The latter are programmed to pay a percentage over the long run. Fruit machines in the UK are usually based on a compensated mathematical model, which means that a machine that has paid out above its target percentage is less likely to pay out than were it to have paid out below that percentage.


United States

In the United States, the public and private availability of slot machines is highly regulated by state governments. Many states have established
gaming control board A gaming control board (GCB), also called by various names including gambling control board, casino control board, gambling board, and gaming commission, is a government agency charged with Regulation, regulating casino and other types of gaming i ...
s to regulate the possession and use of slot machines.
Nevada Nevada ( ; ) is a landlocked state in the Western United States. It borders Oregon to the northwest, Idaho to the northeast, California to the west, Arizona to the southeast, and Utah to the east. Nevada is the seventh-most extensive, th ...
is the only state that has no significant restrictions against slot machines both for public and private use. In
New Jersey New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...
, slot machines are only allowed in hotel casinos operated in
Atlantic City Atlantic City, sometimes referred to by its initials A.C., is a Jersey Shore seaside resort city in Atlantic County, in the U.S. state of New Jersey. Atlantic City comprises the second half of the Atlantic City- Hammonton metropolitan sta ...
. Several states (such as
Indiana Indiana ( ) is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders Lake Michigan to the northwest, Michigan to the north and northeast, Ohio to the east, the Ohio River and Kentucky to the s ...
,
Iowa Iowa ( ) is a U.S. state, state in the upper Midwestern United States, Midwestern region of the United States. It borders the Mississippi River to the east and the Missouri River and Big Sioux River to the west; Wisconsin to the northeast, Ill ...
,
Louisiana Louisiana ( ; ; ) is a state in the Deep South and South Central regions of the United States. It borders Texas to the west, Arkansas to the north, and Mississippi to the east. Of the 50 U.S. states, it ranks 31st in area and 25 ...
and
Missouri Missouri (''see #Etymology and pronunciation, pronunciation'') is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. Ranking List of U.S. states and territories by area, 21st in land area, it border ...
) allow slot machines (as well as any casino-style gambling) only on licensed
riverboat A riverboat is a watercraft designed for inland navigation on lakes, rivers, and artificial waterways. They are generally equipped and outfitted as work boats in one of the carrying trades, for freight or people transport, including luxury ...
s or permanently anchored
barge A barge is typically a flat-bottomed boat, flat-bottomed vessel which does not have its own means of mechanical propulsion. Original use was on inland waterways, while modern use is on both inland and ocean, marine water environments. The firs ...
s. Since
Hurricane Katrina Hurricane Katrina was a powerful, devastating and historic tropical cyclone that caused 1,392 fatalities and damages estimated at $125 billion in late August 2005, particularly in the city of New Orleans and its surrounding area. ...
,
Mississippi Mississippi ( ) is a U.S. state, state in the Southeastern United States, Southeastern and Deep South regions of the United States. It borders Tennessee to the north, Alabama to the east, the Gulf of Mexico to the south, Louisiana to the s ...
has removed the requirement that casinos on the
Gulf Coast The Gulf Coast of the United States, also known as the Gulf South or the South Coast, is the coastline along the Southern United States where they meet the Gulf of Mexico. The coastal states that have a shoreline on the Gulf of Mexico are Tex ...
operate on barges and now allows them on land along the shoreline.
Delaware Delaware ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic and South Atlantic states, South Atlantic regions of the United States. It borders Maryland to its south and west, Pennsylvania to its north, New Jersey ...
allows slot machines at three horse tracks; they are regulated by the state lottery commission. Illinois would legalize a wider expansion of video gambling outside casinos in 2009. The
Indian Gaming Regulatory Act The Indian Gaming Regulatory Act (, ''et seq.'') is a 1988 United States federal law that establishes the jurisdictional framework that governs Indian gaming. There was no federal gaming structure before this act. The stated purposes of the ...
generally prohibits
Native American casinos Native American gaming comprises casinos, bingo halls, slots halls and other gambling operations on Indian reservations or other tribal lands in the United States. Because these areas have tribal sovereignty, states have limited ability to fo ...
from offering "Class III" gaming without entering into a tribal-state compact approved by the
Department of the Interior The United States Department of the Interior (DOI) is an executive department of the U.S. federal government responsible for the management and conservation of most federal lands and natural resources. It also administers programs relatin ...
. Class III gaming covers all other games that are not otherwise regulated as "Class I" (traditional tribal social games played for small prizes) and "Class II" ( bingo and games "similar to bingo" played competitively against other players, such as pull-tabs or punch boards, and explicitly excluding slot machines and card games played solely against the house) under the law. Class I and II games are regulated by the
National Indian Gaming Commission The National Indian Gaming Commission (NIGC; ) is a United States federal regulatory agency within the Department of the Interior. Congress established the agency pursuant to the Indian Gaming Regulatory Act in 1988. The commission is the only ...
and individual tribes, and do not require state approval to run if they already permit tribal gaming. As a workaround, gaming companies developed slot machines compliant with Class II operation, which abstract the result of an electronic bingo game (conducted between other players using a centralized computer system) to generate a pre-determined result for the reels as an entertainment display, allowing for a similar experience to an RNG-based "Vegas-style" slot machine. Some " Instant Racing" or "historic racing" games operate in a similar manner; their results and payouts are based upon wagers on the outcomes of previously-held horse races, using the
parimutuel betting Parimutuel betting, or pool betting, is a betting system in which all bets of a particular type are placed together in a pool; taxes and the ''house-take'', or ''vigorish'', are deducted, and payoff odds are calculated by sharing the pool among a ...
system. These machines also typically use slot reels as entertainment displays. In some regions of the U.S., such as
Pennsylvania Pennsylvania, officially the Commonwealth of Pennsylvania, is a U.S. state, state spanning the Mid-Atlantic (United States), Mid-Atlantic, Northeastern United States, Northeastern, Appalachian, and Great Lakes region, Great Lakes regions o ...
, a variety of unregulated slot machines marketed as being a
game of skill A game of skill is a game where the outcome is determined mainly by mental or physical skill, rather than chance. Alternatively, a game of chance is one where its outcome is strongly influenced by some randomizing device, such as dice, spinn ...
have become common, usually located in restaurants, bars, and convenience stores. They add a basic skill-based mechanic, requiring players to play a "wild" on one of 9 symbols in a 3-by-3 grid to form a matching pay combination. The legality of these machines have been questioned, with critics having accused their manufacturers and operators of using the games to skirt gambling laws.


See also

* United States state slot machine ownership regulations * European Gaming & Amusement Federation * Quiz machine


References

{{reflist


External links


U.S. slot machines laws by state
Slot machines Gambling by country