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.

Thanks for Watching! Leave a comment! Can't get enough of it? Then subscribe!!! Tell your enemy! What are class 2 slot machines anyway? The phrase “class 2 slot machines” is misleading because the classification system is applied to all types of gambling games, not merely slot machines. In 1988 the United States Congress passed the Indian Gaming Regulatory Act. The law resolved some long-standing disputes between Native American reservations, which claimed sovereign rights, and various states, which sought to regulate Native American gaming businesses including bingo parlors.

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.

Your Take

Do you love or hate class II slots? Tell us about your experiences in the comments below!

Slot machines burst onto the American gambling scene in the 1930’s and have captivated risk-takers with their bright lights, shiny reels and a chance of striking it rich with their jackpots. Fast-forward to the 1980’s, and slot machines were deemed to be more profitable than table games like black jack or craps. For the most part the same remains true today. From Las Vegas, Reno and Atlantic City casinos to racetracks, barges and riverboats along the Mississippi River, slot machines are still big business.

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How Does a Slot Machine Work?

Named after the slot where cash, tokens or even modern paper tickets are inserted, slots is a game for all skill levels. The object of the game is to win money from the machine. This happens by matching a set of symbols that roll and stop at random once its lever is pulled or button is pressed. The amount bet on each spin varies between machines. Most offer a variety of winning combinations which are linked to different rewards (extra spins, cash, etc.) and usually displayed on the machine itself.

There are several kinds of slots available nowadays, from the classic lever-and-spinning-reel variety to vivid display video slots. Regardless of their technological advancement since the 1930’s, slot machines are still categorized into two groups: class II or class III.

Class II Slot Machines

• All machines or terminals are linked together so that players end up competing against each other for a common prize.

• Winners are determined via a Video Lottery Terminal (VLT), much like a lottery scratch card.

• With a set quantity of wins and losses, they are preprogramed to pay out at particular times.

• Not every game is guaranteed to have a winner, but play will continue until a winner is determined.

• Machines are interactive and, just like with the game of Bingo, players must announce their win in order to claim their reward. Prizes are not given automatically.

• These types of slot machines can be found primarily on Indian gaming reservations and ‘Racinos’, which are establishments that not only allow class II slots on premises but also have a live horse racetrack.

Class III Slot Machines

• Typically known as ‘Vegas-style’ or traditional slots, these are what most people think of when they envision a slot machine.

Class 2 Slot Machines Vs Class 3

• Each terminal is independent from the rest, with players competing against the house or casino for a pay-out prize.

• Winners are determined via a Random Number Generator (RNG), giving every terminal the same chance of winning during every game.

• Despite misconceptions about a slot machine being ‘due to hit’, they aren’t preprogramed to pay out at any particular time.

• If a player uses a terminal that someone else just abandoned and wins the jackpot, the likelihood that the previous player would have won if they stayed longer is very low. The RNG is timed down the millisecond of when a button is hit or lever is pulled, which must be done at a precise time in order to win each particular game.

Slot Strategies That Work

• Wins are instantaneous and prizes are doled out immediately.