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The first video gaming terminals (VGTs) in Pennsylvania are forthcoming, courtesy of a new partnership between Penn National Gaming and Rutter’s convenience stores.
Earlier this week, Penn National announced it entered into a deal with Rutter’s, noting that the regional casino giant would supply up to five VGTs in 20 Rutter’s locations throughout the Keystone State.
Now, more than a year after they became a sticking point when legislation was introduced in 2017, VGTs are on their way to the Pennsylvania public, pending approval from state gaming regulators.
VGTs are similar to slot machines, and the law sets maximum bets at $5 with a maximum payout of $1,000, according to a release by Rutter’s and Penn National Gaming.
In a statement from John Finamore, Penn National senior vice president of regional operations, discussed the new deal:
“We look forward to working with Rutter’s to introduce VGT gaming in the Commonwealth. Like Rutter’s, we started with a single facility in central Pennsylvania. Today, we are the largest regional gaming operator in the United States with a demonstrated track record of providing quality entertainment and customer service. We are excited to combine our expertise with Rutter’s established success in the convenience store industry to offer VGT gaming at their qualified locations.”
Penn National adds to its portfolio
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With 41 properties in 18 states, Penn National sits as the nation’s largest regional casino operator. Rutter’s calls itself “an industry leader with the latest advancements in technology, sustainability, consumer marketing and philanthropy.”
Rutter’s boasts 70 locations in Pennsylvania, West Virginia and Maryland. Twenty Pennsylvania sites are expected to initially qualify to host VGTs.
In a statement from Scott Hartman, president and CEO of Rutter’s:
“Rutter’s is a proud, Pennsylvania-based company with a storied history in the Commonwealth and a proven commitment to the communities in which we serve. Penn National shares these same attributes, and we look forward to partnering with them to provide our customers the opportunity to enjoy playing VGTs at a number of our locations throughout Pennsylvania.”
For Penn National, this deal expands the company’s footprint. While VGTs became a point of contention during online gambling legislationin 2017, including the opposition of some casinos, Penn National still moves forward in offering these machines. Conveniently, most VGT and casino suppliers are one and the same.
Additionally, Penn National has an opportunity to grow its VGT market even further.
Penn National adding to Illinois operation
Based in Wyomissing, Penn National acquired an Illinois slot machine operation in 2015. Such a move allowed the casino giant to step foot into the Midwest market.
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Since then, Illinois has swelled into a high-profile slot route state. According to CDC Gaming Reports, by the end of November, nearly 6,800 taverns, convenience stores, bars and other locations combined to operate 30,735 VGTs in Illinois. That month, VGT revenue stood at $125.1 million.
Diving deeper, per Illinois Gaming Board figures, customers wagered more than $1.5 billion and won more than $1.4 billion.
Penn National boasts that VGTs in Illinois pay out 26 percent more in revenue, on average than its competitors.
So while projections for Pennsylvania VGT revenue remain unclear, the success of Illinois at least puts Penn National in a position to take advantage of the Pennsylvania gaming market, which continues to expand in all aspects.
What operating VGTs entails
Like casino slot machines, VGTs have outcomes determined by random number generators. In order to offer VGTs, locations must meet several criteria.
Among them:
- Sell an average of 50,000 gallons per month in diesel fuels
- Have 20 dedicated parking spots for commercial motor vehicles
- Sit on a parcel of at least 3 acres
State law sets the maximum bet at $5 with a max payout of $1,000.
Since first accepting applications in May, Pennsylvania has received requests from 60 locations to house VGTs, each of which can operate up to five machines. More than 20 locations have since received conditional approval.
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Penn National already earned its conditional license from the Pennsylvania Gaming Control Board, while Rutter’s has sent in its application to regulators.
Photo by George Sheldon / Shutterstock.com
It may look like a regular slot machine and play like one, but a video lottery terminal differs quite a bit in terms of how winners are determined.
VLT gaming machines are usually equated more with games like bingo, pull-tabs, scratch-offs, or lotto than they are with slot machines. This is because there are a pre-determined number of winners, and players are competing with each other for a prize rather than against the house. There is also not necessarily a winner in each game.
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Video Lottery Terminals (Class II machines)
VLTs are most often found in Indian gaming casinos or “racinos” (location with both a horse racetrack, as well as a casino). Each machine or terminal in a casino is linked together, forcing players to compete against one another for the prize, and with a set number of wins and losses, the group of machines is preprogrammed to payout at specific times.
The only catch for VLT machines is that players must announce their win in order to get the payout because the games are interactive. Although not every game has a winner, the game will be ongoing until a winner is determined.
As indicated by the name, video lottery winners are determined much like a lottery scratch card. Basically, when a game starts on a VLT, the system the machines are connected to randomly chooses a “scratch-off ticket” from those that remain. Once it receives the information regarding the winner, it sends the results to the VLT to reveal the winner, typically in some entertaining way.
Winning at VLT Machines
Obviously, the machine doesn’t have the ability to actually scratch off a ticket, but it does choose the winner from a pool, similar to a lottery ticket. Once all the outcomes in a pool are chosen, the central system receives a new pool.
The payouts can be slightly different on VLTs, as well. According to readybetgo.com, “The final results wouldn’t be noticeably different if the RNG simply picked one number from a group of numbers. Thus the mathematic methods of supplying the decisions in VLTs may be radically different than traditional RNG methods. But in the end, 1 in 10 is still 1 in 10, and 1 in 5,000 is still 1 in 5,000.” The artible goes on to explain that the reason VLTs can be slightly tighter is that they’re offered in areas where there is little competition. In fact, the typical payout is anywhere from 85% to 92%. So, if you’re playing in a casino that offers both VLTs and traditional slots machines, you’re probably better off with the latter.
Slot Machines (Class III)
Slot machines often referred to as “Vegas-style” or traditional slots are the machines you’re probably used to playing. Each traditional slot machine in a casino plays independently from other machines. The only way in which they are linked is usually in terms of the jackpot, but this is only for progressive networks.
Contrary to popular thought, there is no way to know if a certain machine is “hot.” The typical belief is that if a machine has just paid out, you shouldn’t play on it. This is simply not true. Because of the Random Number Generator, each machine has exactly the same likelihood of paying out. Unlike VLTs, slot machines are also not preprogrammed to pay out at any time, so you always have a chance at the jackpot!
When Do You Win?
To put players at ease who may have abandoned a machine in the past only to watch it pay out for the next player, you must understand that RNGs are programmed down to the millisecond, so the odds of winning if you had stayed are low. Because of this, the lever must be pulled at almost the exact time the winning number is generated.
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Unlike VLTs, slot machine wins are immediate, and winners don’t have to announce their win to receive a prize. Although, I wouldn’t discourage any hooting and hollering if you’ve just landed a $10,000 jackpot. You earned it.