Class III: a catch-all category of games that can’t be considered Class I or II, like slots, roulette, blackjack, etc. Knowing the hurdles Native American casinos faced to allow Class III slots, gaming companies began developing Class II gaming machines: games that play like regular slots but are technically fancy versions of bingo.
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Class II gaming machines have the appearance of slot machines, but are actually games of bingo. The machines spinning reels are actually for “entertainment purposes only.” Currently there is no public information available concerning the payback percentages on gaming machines in Florida’s Native American casinos. Some video slot machines have up to 25+ lines that can be played at once. However, many physical slot machines have somewhere between 3-5 lines, and classic models only have a single line. More Lines, More Chances to Win. In general, the more lines you play, the more chances you have to win. But the more lines you play to, the more each spin is.
To the untrained eye, every slot machine looks the same. But did you know there’s a huge difference between class ii vs class iii slot machines?
Almost every country in the world regulates some form of slot machines. They are offered to the adult public within licensed land-based casinos, online casinos, taverns, clubs, airports and/or charitable gaming facilities. While they all tend to look the same, there may be some very distinct, almost imperceptible differences between them. It all depending on whether they are Class II orClass III slot machines.
The legal delineation between class ii vs class iii slot machines is a purposeful one. They gives regulators more control over what types of games – and exactly how much winnings – players have access to. The decision to place one type or another in various facilities is often determined by the type of license an operator possesses, and the laws of the jurisdiction.
In many cases, especially throughout Canada, only full-scale casinos are permitted to host class iii slot machines. These are the kind found in major gambling destinations like Las Vegas, Atlantic City and Macau. Charitable gaming facilities, like the 30+ provincially regulated bingo halls across Ontario, are restricted to class ii slot machines.
Class II vs Class III Slot Machines
The easiest way to describe the difference between class ii and class iii slot machines is to compare the traditional class iii variety – those found in Vegas – to a scratch off lottery ticket. When a lottery agency prints tickets, they know exactly which ones are winners, and exactly how much profit they’re going to make once they are all sold.
That’s how class ii slot machines work. They are programmed like instant win lottery tickets. Every spin is predetermined as a winner or loser, and every winning spin’s value is already programmed into the machine.
Class iii slot machines are built on the foundation of a Random Number Generator (RNG). Patented in 1984 by Norwegian mathematician Inge Telnaes, the RNG is capable of giving a slot machine complete and utter unpredictability, while giving manufacturers control over the probability of outcomes.
Before Telnaes invented the first virtual reels with RNG technology, a slots’ payout percentage was based entirely on the number of reels, and the number of symbols on each reel. If a 3 reel game had 8 symbols per reel, there would be exactly (8x8x8) 512 possible combinations, meaning it would pay its jackpot, on average, 1 in every 512 spins.
Slot Machine Classes By the Law Books
Any educated gambler would prefer to play class iii slot machines. Their odds of hitting a large jackpot are always higher. The RNG ensures that a jackpot can pay out at any given moment, not when the machine decides it’s time. But in many jurisdictions, the availability of class ii and class iii slot machines is determined by local and/or federal law.
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The classifications of slot machines was first introduced by the Indian Gaming Regulatory Act of 1988, which defines class ii vs class ii slot machines. Note that Class I gaming refers to traditional Indian gaming based on a tribe’s cultural ceremonies and/or celebrations, thus has no bearing on any type of slot machines.
IGRA Definition of Class II Slot Machines
The term ‘‘class II gaming’’ means--
Samsung blackjack ii. (i) the game of chance commonly known as bingo…pull-tabs, lotto, punch boards, tip jars, instant bingo, and other games similar to bingo…
The definition explicitly excludes:
“…electronic or electromechanical facsimiles of any game of chance or slot machines of any kind”.
IGRA Definition of Class III Slot Machines
The term ‘‘class III gaming’’ means all forms of gaming that are not class I gaming or class II gaming.
Knowing the Difference Between Classes
A I said before, class ii and class iii slot machines look exactly the same. They use the exact same style of reels and graphics, and present the same types of features. A mere glance at the game screen, and you’d never know one from the other.
The easiest way to tell the difference between class ii vs class iii slot machines is to look at the signage in the gaming facility. By law, only class iii slot machines can actually be called “slot machines”. All class ii games will be referred to by another name.
Common names for class ii slot machines include Video Lottery Terminals (VLTs) and Bingo Liners (machines programmed to pay out like a bingo card game). In Ontario, they are called TapTix machines (because it’s like tapping a button to play a scratch off ticket).
Whatever name they may go by, if the casino or gaming facility doesn’t call them “slot machines”, they are not real class iii slot machines.
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If you’ve ever visited a Native American casino, chances are you’ve seen a Class II slot machine. They’re the games that display a bingo card somewhere on the screen.
So what are Class II slots and how are they different from the slot machines you’d find in Las Vegas?
A Brief History
In 1988 the United States enacted the Indian Gaming Regulatory Act (IGRA), establishing the framework governing Native American gaming laws. The act established 3 classes of gaming:
- Class I: traditional and social games for minimal prizes
- Class II: games of chance based off bingo
- Class III: a catch-all category of games that can’t be considered Class I or II, like slots, roulette, blackjack, etc.
Knowing the hurdles Native American casinos faced to allow Class III slots, gaming companies began developing Class II gaming machines: games that play like regular slots but are technically fancy versions of bingo.
Difference between Class II Games and Regular Slots
Regular (class III) slots use a random number generators (RNG) that generate thousands of random numbers each second. When you hit spin, that RNG locks in the value at that moment. Then the slot assigns reel positions to parts of the random number and evaluates your win (if there is one). We covered this in more detail here.
To be legally considered as such, class II slots have to be based on bingo. This is where class II game developers have been creative, often implementing different approaches. On some, like WMS and Multimedia Games, your machine’s “bingo card” remains constant and the drawn numbers change each time. On others (like VGT), you stay in the same game while your card randomly changes each spin.
The implementation doesn’t especially matter. What matters is that the game has the necessary elements required to be bingo: more than 1 player (class II slots must be networked together) and a set of numbers drawn that must match a pattern to result in a win that ends the game (a game-ending pattern).
The fact is Class II slots still rely on RNG to generate the cards and drawn numbers. It doesn’t matter if the RNG is creating simulated bingo cards/numbers on a class II game or virtual reel positions on a class III slot – the results are still random. Payouts are determined on regular slots by adjusting the reels and likelihood of landing on any position. Payouts on class II slots are defined by specifying the bingo patterns that must be matched and within what number of numbers drawn.
Why NA Casinos Prefer Class II
While many modern NA casinos have a mix of class II and III games, the numbers almost always skew heavily towards class II games. Why?
For one, the IGRA granted tribes the power to self-regulate Class II gaming, whereas tribes have to enter state compacts to offer class III games.
But the big reason NA casinos prefer class II games is that tribes don’t owe taxes on class II revenue like they do on class III games.
Licensed slots and most of the fancy new, popular games aren’t available in class II form, so NA casinos keep a mix. However, slot manufacturers are taking an increased interest in offering Class II games. Aristocrat bought Oklahoma-based bingo game developer VGT and used their technology to start offering some Aristocrat favorites in Class II form.
The Bottom Line on Class II Games
Modern class II games can look, act, sound, and feel like typical class III, Vegas-style slots.
Class II games are sometimes criticized for their mysterious nature, leading some to believe they can be rigged. They’re networked together as a central server determines the wins.
Class III slots go through rigorous third-party and government testing to ensure their randomness and resistance to rigging. Class II slots go through some of the same tests, but the self-regulating nature and lack of transparency of NA casinos have historically raised questions about their fairness.
Though their back-end operates different, both class II and class III games still ultimately rely on RNG. Casinos don’t need to rig the machines because the games’ math is already in their favor. That’s not to say their games’ programmed payout percentage is going to be to your liking, but the notion of some casino worker selectively deciding who’s going to win and lose on class II games is just a myth that doesn’t make sense.
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Do you love or hate class II slots? Tell us about your experiences in the comments below!