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Consider the innocuously labeled SB 1256 the opening salvo of the Pennsylvania budget battle: Part Two.
When the Pennsylvania Senate left Harrisburg for their home districts on Sept. 22, lots of unfinished business remained. Chiefly, that’s passing a state budget for the rest of the fiscal year after having approved a stopgap spending measure at the end of May covering only part of the year.
So brace yourselves for a dark and bumpy ride.
The state’s second budget season commences on Oct. 5. The biggest and heaviest lift is passing a budget during November, likely not until sometime after Election Day on Nov. 3. And a reminder: PA has a long, strange tradition of sometimes bizarre last-minute deal-making on the eve of passing a budget.
As the Pennsylvania Capital Star put it in a recent opinion piece:
“A fall debate on the commonwealth’s budget is going to be painful for everyone in Pennsylvania. Relations between the Administration and the Republican majority in the General Assembly are frayed, making negotiations difficult.”Senate holds a hearing on VGTs and skill games bill Oct. 6
As part of the windup, the Senate goes back to work in the capital on Oct. 5. And while it’s not strictly a budget measure, there’s a much-anticipated hearing the next day on an important bill, Senate Bill 1256.
That’s pet legislation of Sen. Jake Corman, the Republican majority leader (pictured, lead image). The 29-page legislative proposal focuses on expanding video gaming terminals, or VGTs, and expressly legalizing games of skill.
But the bill assigns no taxation level to the machines it seeks to allow and does not state how many devices might be allowed.SB 1256 gets first hearing in public after a lull
Through July, Republicans secretly discussed the bill behind closed doors. But it failed to gain traction. Despite the shroud of backroom secrecy, Spotlight PA scrutinized some of the machinations.
Corman had characterized the bill to Spotlight as a way to control and license the proliferation of illegal gambling machines in PA. He claimed expanding VGTs’ presence was somehow a matter of fairness, given the bill’s aim to widely allow skill games.
He also said the move would raise revenues but never named an amount.Corman now has a casino coming to his district
Since Corman spoke to Spotlight in late June, there’s been one significant change and two additional developments.
First, a mini-casino license was auctioned off in his Centre County district for $7.5 million to Philadelphia real estate development and financial consultant Ira Lubert.
Next, Spotlight has written more recently about Corman and a so-called “dark money” fund overseen by a lobbyist he’s connected with. And then there was also his hiring of a lobbyist with deep ties to out-of-state VGT makers to lead his staff.
Meanwhile, the VGT and skills games bill has lain dormant since July.
That’s about to change.Senator from Philly suburbs plans a hearing
Republican state Senator Thomas Killion‘s Community, Economic and Recreational Development Committee is holding a hearing on Bill 1256 beginning at 10 a.m. on Oct. 6.
Killion, who represents part of the Philadelphia suburbs in Delaware and Chester counties, is running for re-election in November. He did not respond to a request for comment. Neither did the committee’s co-chair, state Sen. Lindsey M. Williams, a Democrat who represents the Pittsburgh area.Casinos and POM hate SB 1256
Proving that politics makes for strange bedfellows, all 13 PA casinos, which include the yet-to-open Live! properties, have opposed the Corman bill, but then so has Pace-O-Matic, the PA company that makes and distributes Pennsylvania Skills games.
The industry letter went out on Sept. 17 and was signed by the leaders of casino properties employing more than 20,000 Pennsylvanians. The casinos are:
*Mohegan Sun Pocono
*Harrah’s Philadelphia Casino and Racetrack
*Meadows Racetrack and Casino
*Hollywood Casino at Penn National Race Course
*Valley Forge Casino Resort
*Rivers Casinos in Pittsburgh and Philadelphia
*Parx Casino
*Presque Isle Downs & Casino
*Mount Airy Casino Resort
*Wind Creek Bethlehem, Lady Luck Casino Nemacolin
*Live!Casinos’ position on SB 1256
In part, the casinos’ letter opposing the bill reads:
“Expanding VGTs to liquor licensees would result in as many as 85,000 gambling machines being added to the state — which is more than three times the current number of slot machines in all of Pennsylvania’s casinos combined. Similarly, legalizing (and thereby rewarding) the currently illegal skill game slot machines that are prevalent in bars, convenience stores, gas stations and other businesses would cause tremendous damage to our industry and the nearly 20,000 Pennsylvanians we are proud to employ, as well as negatively impact the Pennsylvania Lottery and the public interest. SB 1256 does exactly that.”
The letter also points out the recent economic losses the licensed casino industry — and the state — are still struggling with:
“Collectively, casinos suffered approximately $968.8 million in revenue losses from slot machines and table games (due to the virus shutdowns), $424.2 million of which would have been payable to the Commonwealth.”Casinos reference “good faith” by the state
Additionally, the letter claims:
*“Stores, golf courses, microbreweries and a variety of other businesses could all potentially become miniature casinos.”
*“This bill would come at the expense of the Commonwealth in the form of lost tax revenue, gaming industry job losses and lost local share revenue.”
The letter concludes by pointing out the Commonwealth is a better than 50% stakeholder in the casino industry via fees and tax revenue, and finally, that the casino license holders invested in PA with the state “a good-faith partner.”Legislative leaders mum on SB 1256
All members of the legislature got the letter.
But the letter addressed Corman in particular, as well as:
*Senate President Pro Tempore Joseph Scarnati III
*Senate Democratic Leader Jay Costa
*Assembly Speaker Bryan Cutler
*House Majority Leader Kerry A. Benninghoff
*House Democratic Leader Frank Dermody
PlayPennsylvania sought comments from all of the legislative leaders. None responded.
But a spokeswoman for Scarnati referred the request back to Corman. “Any questions regarding VGTs and skill games would be best directed at Senate Majority Leader Corman’s office,” she said.
Scarnati is retiring at the end of the session in December. Corman is seen as his likeliest successor should the Republicans maintain their majority in the PA Senate.Dianaevoni Slot VideosWolf also stays quiet
Governor Tom Wolf, a Democrat who is frequently at odds with the Republican-led Legislature, has expressed quiet opposition to expanding gambling further as contemplated in the bill.
His spokesperson did not respond to a request for comment.Pennsylvania Skills game distributor has its say
Pace-O-Matic of PA, or POM, hates the bill.
The Williamsport company, which distributes Pennsylvania Skills machines, has been taking its opposition to rival skill games and VGTs to the streets. POM is outing what it says are illegal casinos openly operating in small towns around the state. POM is holding press conferences in front of the businesses. Dossiers on those businesses were handed off to district attorneys in Lancaster, Schuylkill and Beaver counties recently.
POM’s pitch is that its games are legal and its rivals’ are not. That’s because the Beaver County Common Pleas Court six years ago found that an element of skill was necessary to win the three games found on one seized POM device.
For a time, POM used that court win and a subsequent injunction as it distributed more machines and even sued a competitor, saying the rival did not offer a skill game.
But then another court in November 2019 labeled skill games as slot machines. The enforcement injunction was lifted in January 2020. POM has appealed the lifting of the injunction, but that case is plodding through the courts.PGCB and PA State Police take stances against skill games
The Pennsylvania Gaming Control Board (PGCB) has definitively labeled skill games, including POM machines, as illegal slot machines under the state’s gaming laws.
The PA State Police unequivocally say all gambling devices outside casinos, other than licensed truck stop VGTs, are illegal and subject to seizure.
POM continues, though, to try to differentiate itself from rival wagering device companies, most recently at a Harrisburg press conference.POM: It’s not us, it’s those other guys
Mike Barley, a spokesman for POM, issued a written statement to PlayPennsylvania when asked about SB 1256:
“While we believe the regulation of skill games will greatly benefit small businesses, restaurants, bars, fraternal clubs and the Commonwealth, SB 1256 promotes the widespread proliferation of VGTs on every corner of Pennsylvania. This legislation would kill the legal skill game industry and countless Pennsylvania small businesses, many [of] which are multigenerational family businesses, in the coin-op industry. SB 1256 puts the interests of large out-of-state companies over these family-owned small businesses.
“While Pennsylvania Skill games, powered by Pace-O-Matic, have been adjudicated legal and require skill, a VGT is a slot machine which directly competes with the games already offered in casinos. Illegal VGTs, masquerading as ‘skill games,’ are already on the street, many in unregulated mini-casinos, and were recently seized by the District Attorney of Berks County.
“The claims that the lottery or casinos have lost revenue due to skill games ring hollow when you examine the numbers. Before the COVID-19 pandemic, the revenues related to casinos and lottery were at record highs. That was at the same time the revenue for skill games [was] growing. We contracted with an independent economist who reviewed the data and found that our games have not had a negative impact on either the casinos or lottery revenues. The lottery’s study was conducted internally and the details have not been released.”
Lead image credit: AP Photo/Matt Rourke
VGT is the short version of Video Gaming Technologies, Inc.VGT is a major player in the North American Class II casinogames market. VGT is responsible for the development,manufacture, marketing, and distribution of casino games forNative American casinos restricted to Class II games.
Founded in 1991, VGT now operates more than 20,000 machinesin 140 different casinos and game rooms. Most of their contractsare with Oklahoma tribal gaming facilities, though they’reexpanding into other markets, particularly the Gulf Coast.American gamblers who visit a lot of Native American propertiesprobably recognize the company’s signature Red Screen free spinsfeature, a highly-visible effect common to all their latesttitles.
VGT started producing Class II games as soon as the NativeAmerican market opened up in the early 90s. They’re a trustedname in the industry, an American end-to-end game producer withspecialists working in fields from game design and R&D tocustomer support and corporate marketing.
Since the acquisition of VGT by Aristocrat Leisure Ltd. InOctober of 2014, the company’s profile has increasedconsiderably. Aristocrat is one of the biggest names in globalgambling, a premium supplier of gaming tech and services tocasinos and other gambling properties all over the world.Becoming part of Aristocrat means that VGT’s games may soonstart appearing in land-based and online casinos all over theworld in the next few years.
According to promotional material on their website, they’vedoubled in size eight times since 2001. They’re the number-onegaming machine provider in Oklahoma, a massive gambling marketthat relies heavily on Class II games. VGT is also the #1overall provider of Class II machines in the United States, andthe largest privately-owned gaming machine manufacturer in thecountry.What Are Class II Games?
The Indian Gaming Regulatory Act that created a market forVGT’s services also established a three-tiered class system toidentify and regulate different types of gambling games. ThisClass system doesn’t apply outside of Native American gaminglaws.
Of the three original classes created by legislation in the1990s, only Class II and Class III are relevant to today’sworld. That’s because Class I only applies to wagers oninter-tribal contests. These contests are pretty much ignored byfederal authorities today, and all emphasis is placed on ClassII and III titles.
Class III gaming is what most tribes want to offer – this istraditional gambling like you’d find in the commercial casinosof Las Vegas and Atlantic City. Class III includes table gameslike blackjack and craps, as well as allowances for slot andvideo poker machines. But US law stipulates that all tribalgroups have to negotiate private contracts with their stategovernment in order to offer III gaming.
Without this expensive and difficult contract, tribal groupsare limited to Class II gaming by default. So what’s thedifference? These days, the difference is mostly aboutsemantics. Class II games have to produce outcomes based on abingo-style drawing, rather than the random number generatorused by Class III games.
Modern game designers have created loophole software thatproduces a random number generator-style result while stillutilizing a bingo-style drawing system to satisfy their Class IIrestrictions. In fact, that’s most of the genius behind the guysat VGT. They know how to produce games similar to the slots andvideo poker machines their customers want while still stayingwithin the lines of the strict Tribal Class system.
You may have played a Class II game and not even realized it.By law, all Class II games have to be marked with a symbol thatlooks like a bingo card. But because these games now look andact like traditional gambling machines, unless you knew you werein a Class II facility ahead of time, you wouldn’t notice anyreal difference as a player. VGT succeeds when they produce aslot machine that perfectly mimics a Class III slot game.VGT ManagementJamie Odell
Jamie Odell is the head of VGT’s parent company. That makes him also theultimate executive in charge of the operations at Virtual GamingTechnology. Odell has been with Aristocrat since 2009, havingcut his teeth as a managing director (and eventually COO) atFoster’s. Odell is often credited with single-handedly rightingthe ship at Aristocrat – the company is enjoying a renaissancethat began pretty soon after he stepped in the door. VGT’sparent company’s share price is up 105% since he began histenure. The acquisition of interests like VGT (which someconglomerates may see as too much of a niche producer) is adirect result of Odell’s leadership.Jon P. Yarbrough
There’s a great story aboutJon Yarbrough. Supposedly, his first business venture wassplitting profits of a foosball table in a neighborhood bar.He’s come a long way since then – Yarbrough sold VGT toAristocrat for a reported $1.2 billion a few years ago. ThoughYarbrough no longer does the dirty work of designing andmanufacturing games, he has decades of experience in a difficultindustry. At VGT, he serves as part-advisor, part-executive,part-mascot.Jay Sevigny
Mr. Sevigny was hand-picked byAristocrat CEO Jamie Odell to take over the operation of VGT in2015. Sevigny’s gaming experience comes from decades working forbig names like Boyd Gaming and Harrah’s Entertainment. He’d beena member of VGT’s management team in various senior roles since2006.VGT Slot Machines
Video Gaming Technologies currently produces 97 slot-styleClass II games. The company also produces a set of eight bonusgames that be added to all of their other games by theiroperators, for a grand total of 105 slot-style titles. Theybreak these games up into five categories:
*3-reel Mechanical Slots
These games are designed to look andact like classic-style slot machines. Most of the company’s slotmachine-style Class II games fall under this category.
*5-reel Mechanical Slots
These games are slightly more complexthan the company’s 3-reel titles, with additional featuresdesigned to make the games even more slot-like.
*Video Slots
Games in this category are VGT’s attempt toreplicate the look and feel of the latest Vegas-style video slotmachines.
*Progressive Slots
VGT produces a limited number of local andwide-area progressive titles.
*Red Spin Gambler Slots
These games are VGT’s latest iterationof updated slot-style Class II games.VGT Slot Game Reviews
Below you’ll find short reviews of twenty-five of VGT’s mostpopular Class II slot games. We’ve chosen to cover only theirmost-popular and most-available titles, because these are thegames you’re most likely to find when you walk into a tribalfacility powered by VGT technology. For more information on allof VGT’s titles, point your browser totheir official website, wherethey have a short page and description of all their games, slotsor otherwise.3-Reel Mechanical SlotsMr. Money Bags
Mr. Money Bags is VGT’s best-known and most popular title.The “theme” of the game, if there is one, is that the characterMr. Money Bags is giving away his riches. You can stake yourpart of his treasure by lining up symbols on the reels. Mr.Money Bags accepts wagers of one, two, or three coins. Thecompany makes the game available in a wide range ofdenominations: you’ll find Mr. Money Bags as a $0.25, $0.50,$1.00, $2.00, $3.00, $5.00, $10.00, or even $25.00 game. With atop prize of 2,500 credits, it’s about average in terms of VGT’sreturns. The game includes the company’s Red Screen Free-Spinfeature, in which the player can earn up to five free spins.This feature is triggered randomly with winning spins. Accordingto VGT’s website, it’s triggered about once every five winningspins.Lucky Ducky
If Mr. Money Bags is VGT’s top brand, Lucky Duckyis a close second. The game doesn’t have much of a plot – thetheme is the Lucky Ducky himself, a rubber ducky character thatVGT makes good use of on several other Class II titles. The mainreason for Lucky Ducky’s appeal is its use of VGT’s mostvaluable 3-reel pay table setup, one with a top prize of 10,000credits. Since Lucky Ducky accepts wagers between $0.25 and $5per credit, the range of the machine’s top prize is from $2,500to $50,000. This is among the best top prizes of any three reelslot setup we’ve ever seen, including Class III games in aVegas-style casino.Crazy Billions
Every game on this short list of VGT’s 3-reelmechanical Class II games has a gimmick. We did that by design.You’ll
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. Main goods are marked with red color. Services of language translation the. An announcement must be commercial character Goods and services advancement through P.O.Box sys. VGT LIVE PLAY / 777 BOURBON SLOT MACHINE MACHINE / RED SCREEN / WINSTAR WORLD CASINO. I hope you all enjoy these videos, as I appreciate a THUMBS UP!
Consider the innocuously labeled SB 1256 the opening salvo of the Pennsylvania budget battle: Part Two.
When the Pennsylvania Senate left Harrisburg for their home districts on Sept. 22, lots of unfinished business remained. Chiefly, that’s passing a state budget for the rest of the fiscal year after having approved a stopgap spending measure at the end of May covering only part of the year.
So brace yourselves for a dark and bumpy ride.
The state’s second budget season commences on Oct. 5. The biggest and heaviest lift is passing a budget during November, likely not until sometime after Election Day on Nov. 3. And a reminder: PA has a long, strange tradition of sometimes bizarre last-minute deal-making on the eve of passing a budget.
As the Pennsylvania Capital Star put it in a recent opinion piece:
“A fall debate on the commonwealth’s budget is going to be painful for everyone in Pennsylvania. Relations between the Administration and the Republican majority in the General Assembly are frayed, making negotiations difficult.”Senate holds a hearing on VGTs and skill games bill Oct. 6
As part of the windup, the Senate goes back to work in the capital on Oct. 5. And while it’s not strictly a budget measure, there’s a much-anticipated hearing the next day on an important bill, Senate Bill 1256.
That’s pet legislation of Sen. Jake Corman, the Republican majority leader (pictured, lead image). The 29-page legislative proposal focuses on expanding video gaming terminals, or VGTs, and expressly legalizing games of skill.
But the bill assigns no taxation level to the machines it seeks to allow and does not state how many devices might be allowed.SB 1256 gets first hearing in public after a lull
Through July, Republicans secretly discussed the bill behind closed doors. But it failed to gain traction. Despite the shroud of backroom secrecy, Spotlight PA scrutinized some of the machinations.
Corman had characterized the bill to Spotlight as a way to control and license the proliferation of illegal gambling machines in PA. He claimed expanding VGTs’ presence was somehow a matter of fairness, given the bill’s aim to widely allow skill games.
He also said the move would raise revenues but never named an amount.Corman now has a casino coming to his district
Since Corman spoke to Spotlight in late June, there’s been one significant change and two additional developments.
First, a mini-casino license was auctioned off in his Centre County district for $7.5 million to Philadelphia real estate development and financial consultant Ira Lubert.
Next, Spotlight has written more recently about Corman and a so-called “dark money” fund overseen by a lobbyist he’s connected with. And then there was also his hiring of a lobbyist with deep ties to out-of-state VGT makers to lead his staff.
Meanwhile, the VGT and skills games bill has lain dormant since July.
That’s about to change.Senator from Philly suburbs plans a hearing
Republican state Senator Thomas Killion‘s Community, Economic and Recreational Development Committee is holding a hearing on Bill 1256 beginning at 10 a.m. on Oct. 6.
Killion, who represents part of the Philadelphia suburbs in Delaware and Chester counties, is running for re-election in November. He did not respond to a request for comment. Neither did the committee’s co-chair, state Sen. Lindsey M. Williams, a Democrat who represents the Pittsburgh area.Casinos and POM hate SB 1256
Proving that politics makes for strange bedfellows, all 13 PA casinos, which include the yet-to-open Live! properties, have opposed the Corman bill, but then so has Pace-O-Matic, the PA company that makes and distributes Pennsylvania Skills games.
The industry letter went out on Sept. 17 and was signed by the leaders of casino properties employing more than 20,000 Pennsylvanians. The casinos are:
*Mohegan Sun Pocono
*Harrah’s Philadelphia Casino and Racetrack
*Meadows Racetrack and Casino
*Hollywood Casino at Penn National Race Course
*Valley Forge Casino Resort
*Rivers Casinos in Pittsburgh and Philadelphia
*Parx Casino
*Presque Isle Downs & Casino
*Mount Airy Casino Resort
*Wind Creek Bethlehem, Lady Luck Casino Nemacolin
*Live!Casinos’ position on SB 1256
In part, the casinos’ letter opposing the bill reads:
“Expanding VGTs to liquor licensees would result in as many as 85,000 gambling machines being added to the state — which is more than three times the current number of slot machines in all of Pennsylvania’s casinos combined. Similarly, legalizing (and thereby rewarding) the currently illegal skill game slot machines that are prevalent in bars, convenience stores, gas stations and other businesses would cause tremendous damage to our industry and the nearly 20,000 Pennsylvanians we are proud to employ, as well as negatively impact the Pennsylvania Lottery and the public interest. SB 1256 does exactly that.”
The letter also points out the recent economic losses the licensed casino industry — and the state — are still struggling with:
“Collectively, casinos suffered approximately $968.8 million in revenue losses from slot machines and table games (due to the virus shutdowns), $424.2 million of which would have been payable to the Commonwealth.”Casinos reference “good faith” by the state
Additionally, the letter claims:
*“Stores, golf courses, microbreweries and a variety of other businesses could all potentially become miniature casinos.”
*“This bill would come at the expense of the Commonwealth in the form of lost tax revenue, gaming industry job losses and lost local share revenue.”
The letter concludes by pointing out the Commonwealth is a better than 50% stakeholder in the casino industry via fees and tax revenue, and finally, that the casino license holders invested in PA with the state “a good-faith partner.”Legislative leaders mum on SB 1256
All members of the legislature got the letter.
But the letter addressed Corman in particular, as well as:
*Senate President Pro Tempore Joseph Scarnati III
*Senate Democratic Leader Jay Costa
*Assembly Speaker Bryan Cutler
*House Majority Leader Kerry A. Benninghoff
*House Democratic Leader Frank Dermody
PlayPennsylvania sought comments from all of the legislative leaders. None responded.
But a spokeswoman for Scarnati referred the request back to Corman. “Any questions regarding VGTs and skill games would be best directed at Senate Majority Leader Corman’s office,” she said.
Scarnati is retiring at the end of the session in December. Corman is seen as his likeliest successor should the Republicans maintain their majority in the PA Senate.Dianaevoni Slot VideosWolf also stays quiet
Governor Tom Wolf, a Democrat who is frequently at odds with the Republican-led Legislature, has expressed quiet opposition to expanding gambling further as contemplated in the bill.
His spokesperson did not respond to a request for comment.Pennsylvania Skills game distributor has its say
Pace-O-Matic of PA, or POM, hates the bill.
The Williamsport company, which distributes Pennsylvania Skills machines, has been taking its opposition to rival skill games and VGTs to the streets. POM is outing what it says are illegal casinos openly operating in small towns around the state. POM is holding press conferences in front of the businesses. Dossiers on those businesses were handed off to district attorneys in Lancaster, Schuylkill and Beaver counties recently.
POM’s pitch is that its games are legal and its rivals’ are not. That’s because the Beaver County Common Pleas Court six years ago found that an element of skill was necessary to win the three games found on one seized POM device.
For a time, POM used that court win and a subsequent injunction as it distributed more machines and even sued a competitor, saying the rival did not offer a skill game.
But then another court in November 2019 labeled skill games as slot machines. The enforcement injunction was lifted in January 2020. POM has appealed the lifting of the injunction, but that case is plodding through the courts.PGCB and PA State Police take stances against skill games
The Pennsylvania Gaming Control Board (PGCB) has definitively labeled skill games, including POM machines, as illegal slot machines under the state’s gaming laws.
The PA State Police unequivocally say all gambling devices outside casinos, other than licensed truck stop VGTs, are illegal and subject to seizure.
POM continues, though, to try to differentiate itself from rival wagering device companies, most recently at a Harrisburg press conference.POM: It’s not us, it’s those other guys
Mike Barley, a spokesman for POM, issued a written statement to PlayPennsylvania when asked about SB 1256:
“While we believe the regulation of skill games will greatly benefit small businesses, restaurants, bars, fraternal clubs and the Commonwealth, SB 1256 promotes the widespread proliferation of VGTs on every corner of Pennsylvania. This legislation would kill the legal skill game industry and countless Pennsylvania small businesses, many [of] which are multigenerational family businesses, in the coin-op industry. SB 1256 puts the interests of large out-of-state companies over these family-owned small businesses.
“While Pennsylvania Skill games, powered by Pace-O-Matic, have been adjudicated legal and require skill, a VGT is a slot machine which directly competes with the games already offered in casinos. Illegal VGTs, masquerading as ‘skill games,’ are already on the street, many in unregulated mini-casinos, and were recently seized by the District Attorney of Berks County.
“The claims that the lottery or casinos have lost revenue due to skill games ring hollow when you examine the numbers. Before the COVID-19 pandemic, the revenues related to casinos and lottery were at record highs. That was at the same time the revenue for skill games [was] growing. We contracted with an independent economist who reviewed the data and found that our games have not had a negative impact on either the casinos or lottery revenues. The lottery’s study was conducted internally and the details have not been released.”
Lead image credit: AP Photo/Matt Rourke
VGT is the short version of Video Gaming Technologies, Inc.VGT is a major player in the North American Class II casinogames market. VGT is responsible for the development,manufacture, marketing, and distribution of casino games forNative American casinos restricted to Class II games.
Founded in 1991, VGT now operates more than 20,000 machinesin 140 different casinos and game rooms. Most of their contractsare with Oklahoma tribal gaming facilities, though they’reexpanding into other markets, particularly the Gulf Coast.American gamblers who visit a lot of Native American propertiesprobably recognize the company’s signature Red Screen free spinsfeature, a highly-visible effect common to all their latesttitles.
VGT started producing Class II games as soon as the NativeAmerican market opened up in the early 90s. They’re a trustedname in the industry, an American end-to-end game producer withspecialists working in fields from game design and R&D tocustomer support and corporate marketing.
Since the acquisition of VGT by Aristocrat Leisure Ltd. InOctober of 2014, the company’s profile has increasedconsiderably. Aristocrat is one of the biggest names in globalgambling, a premium supplier of gaming tech and services tocasinos and other gambling properties all over the world.Becoming part of Aristocrat means that VGT’s games may soonstart appearing in land-based and online casinos all over theworld in the next few years.
According to promotional material on their website, they’vedoubled in size eight times since 2001. They’re the number-onegaming machine provider in Oklahoma, a massive gambling marketthat relies heavily on Class II games. VGT is also the #1overall provider of Class II machines in the United States, andthe largest privately-owned gaming machine manufacturer in thecountry.What Are Class II Games?
The Indian Gaming Regulatory Act that created a market forVGT’s services also established a three-tiered class system toidentify and regulate different types of gambling games. ThisClass system doesn’t apply outside of Native American gaminglaws.
Of the three original classes created by legislation in the1990s, only Class II and Class III are relevant to today’sworld. That’s because Class I only applies to wagers oninter-tribal contests. These contests are pretty much ignored byfederal authorities today, and all emphasis is placed on ClassII and III titles.
Class III gaming is what most tribes want to offer – this istraditional gambling like you’d find in the commercial casinosof Las Vegas and Atlantic City. Class III includes table gameslike blackjack and craps, as well as allowances for slot andvideo poker machines. But US law stipulates that all tribalgroups have to negotiate private contracts with their stategovernment in order to offer III gaming.
Without this expensive and difficult contract, tribal groupsare limited to Class II gaming by default. So what’s thedifference? These days, the difference is mostly aboutsemantics. Class II games have to produce outcomes based on abingo-style drawing, rather than the random number generatorused by Class III games.
Modern game designers have created loophole software thatproduces a random number generator-style result while stillutilizing a bingo-style drawing system to satisfy their Class IIrestrictions. In fact, that’s most of the genius behind the guysat VGT. They know how to produce games similar to the slots andvideo poker machines their customers want while still stayingwithin the lines of the strict Tribal Class system.
You may have played a Class II game and not even realized it.By law, all Class II games have to be marked with a symbol thatlooks like a bingo card. But because these games now look andact like traditional gambling machines, unless you knew you werein a Class II facility ahead of time, you wouldn’t notice anyreal difference as a player. VGT succeeds when they produce aslot machine that perfectly mimics a Class III slot game.VGT ManagementJamie Odell
Jamie Odell is the head of VGT’s parent company. That makes him also theultimate executive in charge of the operations at Virtual GamingTechnology. Odell has been with Aristocrat since 2009, havingcut his teeth as a managing director (and eventually COO) atFoster’s. Odell is often credited with single-handedly rightingthe ship at Aristocrat – the company is enjoying a renaissancethat began pretty soon after he stepped in the door. VGT’sparent company’s share price is up 105% since he began histenure. The acquisition of interests like VGT (which someconglomerates may see as too much of a niche producer) is adirect result of Odell’s leadership.Jon P. Yarbrough
There’s a great story aboutJon Yarbrough. Supposedly, his first business venture wassplitting profits of a foosball table in a neighborhood bar.He’s come a long way since then – Yarbrough sold VGT toAristocrat for a reported $1.2 billion a few years ago. ThoughYarbrough no longer does the dirty work of designing andmanufacturing games, he has decades of experience in a difficultindustry. At VGT, he serves as part-advisor, part-executive,part-mascot.Jay Sevigny
Mr. Sevigny was hand-picked byAristocrat CEO Jamie Odell to take over the operation of VGT in2015. Sevigny’s gaming experience comes from decades working forbig names like Boyd Gaming and Harrah’s Entertainment. He’d beena member of VGT’s management team in various senior roles since2006.VGT Slot Machines
Video Gaming Technologies currently produces 97 slot-styleClass II games. The company also produces a set of eight bonusgames that be added to all of their other games by theiroperators, for a grand total of 105 slot-style titles. Theybreak these games up into five categories:
*3-reel Mechanical Slots
These games are designed to look andact like classic-style slot machines. Most of the company’s slotmachine-style Class II games fall under this category.
*5-reel Mechanical Slots
These games are slightly more complexthan the company’s 3-reel titles, with additional featuresdesigned to make the games even more slot-like.
*Video Slots
Games in this category are VGT’s attempt toreplicate the look and feel of the latest Vegas-style video slotmachines.
*Progressive Slots
VGT produces a limited number of local andwide-area progressive titles.
*Red Spin Gambler Slots
These games are VGT’s latest iterationof updated slot-style Class II games.VGT Slot Game Reviews
Below you’ll find short reviews of twenty-five of VGT’s mostpopular Class II slot games. We’ve chosen to cover only theirmost-popular and most-available titles, because these are thegames you’re most likely to find when you walk into a tribalfacility powered by VGT technology. For more information on allof VGT’s titles, point your browser totheir official website, wherethey have a short page and description of all their games, slotsor otherwise.3-Reel Mechanical SlotsMr. Money Bags
Mr. Money Bags is VGT’s best-known and most popular title.The “theme” of the game, if there is one, is that the characterMr. Money Bags is giving away his riches. You can stake yourpart of his treasure by lining up symbols on the reels. Mr.Money Bags accepts wagers of one, two, or three coins. Thecompany makes the game available in a wide range ofdenominations: you’ll find Mr. Money Bags as a $0.25, $0.50,$1.00, $2.00, $3.00, $5.00, $10.00, or even $25.00 game. With atop prize of 2,500 credits, it’s about average in terms of VGT’sreturns. The game includes the company’s Red Screen Free-Spinfeature, in which the player can earn up to five free spins.This feature is triggered randomly with winning spins. Accordingto VGT’s website, it’s triggered about once every five winningspins.Lucky Ducky
If Mr. Money Bags is VGT’s top brand, Lucky Duckyis a close second. The game doesn’t have much of a plot – thetheme is the Lucky Ducky himself, a rubber ducky character thatVGT makes good use of on several other Class II titles. The mainreason for Lucky Ducky’s appeal is its use of VGT’s mostvaluable 3-reel pay table setup, one with a top prize of 10,000credits. Since Lucky Ducky accepts wagers between $0.25 and $5per credit, the range of the machine’s top prize is from $2,500to $50,000. This is among the best top prizes of any three reelslot setup we’ve ever seen, including Class III games in aVegas-style casino.Crazy Billions
Every game on this short list of VGT’s 3-reelmechanical Class II games has a gimmick. We did that by design.You’ll
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