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Many gambling enthusiasts in the United States are at least vaguely familiar with the Indian Gaming Regulatory Act, US law Pub.L. 100–497, 25 U.S.C. § 2701.

Passed in 1988, this federal law established how Indian (Native American) gaming would be managed and regulated. The act included definitions for 3 types or classes of gambling games. They are usually referred to as:

1. Class I games
2. Class II games
3. Class III games

Congress passed the law to help Native American tribes and nations improve their economic status after more than a century of oppression and exclusion in mainstream US society. Many Native American groups wanted to build land-based casinos, which would not only attract tourists but create jobs.

There was considerable resistance to this movement in many states, most of which did not allow gambling of any kind. To help resolve the conflicts and provide some clarity between treaties, state law, and federal law, the US government established a framework that eliminated some barriers to Native American investment in gambling industries. The law also provided some regulatory limits to respect state laws.

The Indian Gaming Regulatory Act introduced some confusion into the worldwide lexicon of gambling games because the distinctions are only observed within US jurisdictions. Other nations regulate gambling with different definitions.

But as the internet became a worldwide communications network in the 1990s and 2000s, most of the content published about gambling dealt with US law and casinos. Although non-US casinos have to observe their own laws and regulations, players who research gambling law on the internet must be careful to distinguish between USA gambling definitions and other gambling definitions.

What Are the 3 Classes of Gambling Games?

Class I gambling includes all traditional Native American gambling games, most of which are only used for ceremonial purposes or in the contexts of cultural-specific celebrations and ceremonies. These games, which are only available at small stakes, are completely regulated by the Native American tribes and nations.

Class II gambling includes all variations of bingo games, player-vs-player card games like poker (where the house does not play a hand in the game), tip jars, pull-tab games, punch card games, and anything similar. Some people mistakenly include lottery games in this category, but the law clearly excludes state-run lotteries and similar games from Class II.

Class III gambling consists of everything that is not included under Class I gambling or Class II gambling. That means the lottery games you play are Class III gambling games. Slot games, roulette, dice games, and card games like blackjack where the house is also a player all fall under the Class III gambling games category.

So How Can There Be Class II Slot Machine Games?

If you’ve ever visited a Native American casino–like the Winstar Casino in Oklahoma, you’ve almost certainly played some Class II slot machine games. They look much like traditional slot machine games. They have 3 to 5reels with symbols on them, they pay jackpots, and they do everything else you expect of a slot game.

And yet, they are not slot machine games.

A clever company in Franklin, TN, known as Video Gaming Technologies, or VGT, developed electronic bingo games for Native American casinos that use the results of those bingo games to emulate slot game action.

In other words, the slot machine cabinets contain two screens, one that displays the results of the bingo game and one that displays the results of the simulated slot game. This dual visualization of the gambling game takes advantage of the fact that at the core of all gambling games is a simple principle:

You’re making a wager on an unknown outcome. What the Class II slot games do is take the result of the bingo game to determine what happens in the slot game.

What’s cool about this approach is that VGT was able to add bonus games to the bingo games that work like slot machine bonus games. They’ve developed a huge selection of bingo games that play like slot games. VGT is so successful they were acquired by Aristocrat Leisure Limited in 2014, although the former VGT still operates as an independent subsidiary company of Aristocrat.

How Do Class III Slot Machine Games Work?

The key to the hybridization of bingo and slot machine games is the Random Number Generator. Mathematicians have been developing algorithms to calculate unpredictable numbers for hundreds of years. For a detailed look at the concept, read “How Do Random Number Generators Work?” on Jackpots Online. Although the RNG does not produce a truly random number, in typical circumstances the number is random enough. Even so, slot game designers use random numbers in multiple ways.

Before I continue, I should mention that US law requires slot game designers to work by different rules from other countries’ slot games. In the United Kingdom, for example, the outcome of a slot game is determined by a single random number. In the United States, the outcome of the Class III slot game is determined by several random numbers.

To begin with, an electronic slot machine or online slot game uses a software concept called an array to represent each reel. Computer arrays work like rows of boxes, where each box holds one piece of information. The arrays for slot reels may have anywhere from 22 to 256 slots. Each slot in the array holds a symbol marker that tells the slot machine game what to display on the screen.

Slot game designers use special algorithms to decide how often each type of symbol should appear in each slot array. The frequency of the symbol’s use in the array and the size of the array determine how likely or unlikely it is for any single spin of the slot game reels to create one or more winning combinations. The game’s software may award prizes for one or more winning combinations at a time, depending on how many pay lines the game offers.

The random number generator produces a new number every few milliseconds. The number is placed in a temporary memory location called a register. The slot game software grabs the latest random number from the register and uses that to determine what happens next. For example, a 5 reel slot game needs 5 random numbers to pick how many slot positions will be spun on each reel before the reels stop in new locations. If the slot game awards random prizes like progressive jackpots, these are determined by additional random numbers.

How Class II Slot Machine Games Differ from Class III Slot Machine Games

What VGT did was create bingo game software that determines the actual prizes awarded to players.

But to make the bingo games look like slot games, they used the bingo game’s random results as if they are the random numbers that Class III slot games use.

To ensure that the slot game winning combinations match the bingo game prize values the VGT games work more like slot games in the United Kingdom. The game determines what prize was won and then creates a short video simulation of the slots landing on that winning combination.

Conclusion

How do class II slot machines work?

Either way, the slot games award prizes on a random basis. You could say that US gaming laws are paranoid in that Class III slot game software is required to closely emulate the physical spinning of slot reels. In fact, physical slot reel games have been displaying results of these virtual, in-memory array games for more than 20 years. So even when you see physical reels spinning, their stop positions have already been determined within microseconds of your pressing SPIN.

The Class II slot gaming experience is a fun gaming experience.

But the bingo game is displayed on a small screen, because VGT’s designers have found that players don’t enjoy looking at bingo patterns as much as they enjoy looking at 3 to 5 reels spinning and stopping on various symbols.

For the player, what matters is that they’re gambling for real money on an unpredictable outcome–and they can enjoy an entertaining evening with friends or loved ones.

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.”

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.

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