Video Lottery Terminal

A video lottery terminal or VLT is a gaming machine that allows gamblers to bet on the outcome of a video game.

A VLT is similar to a slot machine, in that each terminal is a stand-alone device containing a random-number generator. Each terminal is connected to a centralized computer system that allows the lottery jurisdiction to monitor game play and collect its share of revenue.

The outcome of each wager on a VLT is random. VLT operators are not able to program the total amount wagered, or payouts, through the central computer system. A minimum percentage payout usually is written into that jurisdiction's law. That percentage is realized not by manipulation of the game, but by adjusting the expected overall payout.

Some lottery devices that appear to be VLTs actually are computerized scratch-off lottery tickets, as the terminal does not contain a random number generator (RNG); the results that are displayed are controlled by the central computer. These devices display results from a fixed pool.

New Brunswick was the first province to introduce VLTs. They were introduced in the early 1990s, and as of 2005 all provinces, except British Columbia and Ontario, permit VLTs due to the massive revenues they generate. Ontario has recently passed legislation that could allow VLTs in the near future. VLTs are located in licensed establishments that are not accessible to minors.

The prevalence of VLTs in Canada has prompted criticism both domestically and abroad. Some critics contend that the massive social costs brought on by VLTs actually cause the provinces to lose a greater sum than is generated by the machines.

Lotteries in the U.S. were considering VLTs as early as 1981, when a planned experiment with 20 machines by the New York State Lottery was scrapped, after the Attorney General determined they would be illegal. A similar plan by the New Jersey Lottery died in 1983 after ties between state officials and VLT manufacturers raised conflict of interest concerns.

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