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, except that it is connected to a centralized computer system that determines the outcome of each wager using a random number generator. Although the outcome of each wager is random, VLT operators are able to program in advance the total amount and number of payouts that its central computer system will allow at its connected VLTs. In this manner, VLTs can be thought of as computerized scratch-off lottery tickets.
So far Delaware, Iowa, Louisiana, Montana, New Mexico, Oregon, Rhode Island, South Dakota, West Virginia, Nevada, New Jersey, Illinois and Connecticut permit some form of VLT gambling in conjunction with casinos, race-tracks or some form of “off-track” betting. All are highly regulated. Several additional states allow VLT’s and/or “slots” alone.
Most VLTs have come into existence since 1997 and there are currently just over 75,000 VLTs in the United States that yield about $142,000,000,000 (that’s billion!) per year!
This all begs the questions: How has the authorization for THIS type of gambling come into being in the CNMI? Are current slot-machine authorizations sufficient to allow this type of expansion? What about public hearings? What kind of “regulations” are being written (supposedly by the AG)? Does this expansion need legislative authority (in most states, it DOES)? What will be the distribution of proceeds? How will they be used? Who will they benefit? Will the public in the CNMI simply allow themselves to be told what will happen, or will they demand a voice in it? What is the expected “take-out” for the CNMI? For the operators? Has ANY research been done specifically for the implementation of VLT gambling in the CNMI? What about “cross-border” activity and “substitution” effects? What is the expected “social cost”?
Well, we will explore these questions and others in the next few articles. Meanwhile, for those of you interested enough, a very good analysis of this and much more can be found in the “Legislators’ Guide to Video Lottery Terminal Gambling” published by the Department of Legislative Services, Office of Policy Analysis in Annapolis Maryland (2004). I will be using much of that information in these articles and credit is given to that agency as well as Government Accounting Office reports and National Academy of Sciences reports as well as individual state reports on their gambling activities. None of the information I intend to present is of my own personal opinion.
DR. THOMAS D. ARKLE JR.
San Jose, Tinian
