Gaming Guru

Tribal Gaming Regulations

Hi, John

I'm pretty familiar with the RNG and probabilities, but am having a problem figuring out in my mind how an EGD can truly generate random numbers on each spin when it's been programmed to payback a certain percentage over time. Wouldn't a true RNG have to payback 100% over time? Is it a random number generator in the sense that it will generate numbers randomly "as long" as its been preprogrammed to generate these numbers under certain payback percentages?

Thanks,
Mike

Dear Mike,

You're missing an important step in how a slot machine operates.

The random number is used to pick an outcome at random from a population of outcomes that has an average payback of a certain percentage.

For example, let's say that the population has 1,000 outcomes; 750 outcomes are losers, 200 are pushes, 30 pay two coins, and 20 pay five coins. The average payback for this population is: (750(0) + 200(1) + 30(2) + 20(5)) / 1000 = 460/1000 = .46 or 46%.

The random number is used to choose an outcome from this population in which the different outcomes are not equally likely. Over time, the payback we experience will get closer and closer to the payback of this population.

Best of luck in and out of the casinos,
John

John,

I would just like to respond to your statement as highlighted below.

What you described (altering the payouts on machines) is illegal in every jurisdiction with which I'm familiar. Native American casinos aren't always subject to the same regulations, so it's possible this casino may be allowed to play these sorts of games.

Being the "slot expert" that you are, I'm confident that you have extensive knowledge of the rules and regulations that are placed on any legitimate gaming operation, regardless if it's Tribal Gaming or Commercial Gaming.

I would like to simply add that Tribal Casinos, or "Native American" casinos have more stringent State and Federal regulations than any Commercial Gaming operation in this country. Your response implies that "Native American" casinos are free to manipulate their gaming machines as they wish, which is nowhere near the truth and is sadly a common misconception.

Thank you,
Robert Schuman

Dear Readers,

I broke my policy of not printing complete names because I believe this gentleman is connected with a casino operated by the Lac du Flambeau tribe in Wisconsin. He didn't say so, but let me tell you how I came to this conclusion.

I was somewhat skeptical of this message because the from line was "Fuzzy" and the from e-mail address was fuzzy at a particular domain. When I did a WHOIS on the domain, I discovered that it is registered to the tribe. So, I believe this gentleman does work in the industry.

Unfortunately, I don't have extensive knowledge about any jurisdiction's regulations. But I don't know if anyone does. I have some sections of New Jersey's regulations and some sections contradict statements in other sections.

I wrote the article in question in November 2003 and it referred to a casino in Mainstee, MI. In 2003, tribal gaming, both Class II and Class III, was just beginning to be seen as the powerhouse it has become. As more and more people asked questions about tribal casinos, I did some research on IGRA and tribal gaming.

I would like to direct Mr. Schuman's attention to this statement from my column on 12/04/03:

As I've learned more and more about Native American casinos and how they're regulated, I've discovered that it's not the "Wild West" free-for-all that I thought it to be.

And here is an excerpt from the letter to which I was responding: