Product
Video Lottery Terminal (VLT)
Video lottery terminal (VLT)
Definition
A video lottery terminal (VLT) is an electronic gaming machine, typically offering slot-style, poker or keno games, that operates as a lottery product: it is linked to a central computer system run by a state or provincial lottery authority, which monitors play and accounts for revenue, and in some systems also determines outcomes. VLTs exist where the legal right to run gaming machines was given to the lottery rather than to casino licensees, so the machines are legally lottery games even when they look identical to slots.
They are found at racetracks and gaming facilities in several US states and in bars and lounges in Canada. New York's lottery runs more than 17,000 video lottery machines at nine facilities, linked to a central system maintained by the state Gaming Commission, and Ohio's lottery oversees VLTs at seven racetracks. In Manitoba, VLTs are located in hotels, lounges and legions. Revenue is divided between the lottery, the venue operator and, at tracks, the racing industry.
Key takeaways
- A VLT is a gaming machine run as a lottery product, connected to a central system controlled by a state or provincial lottery authority.
- VLTs exist where gaming machine rights belong to the lottery, which is why they appear at racetracks and in bars rather than only in casinos.
- New York operates more than 17,000 video lottery machines at nine facilities, with proceeds going to aid for education.
- Illinois uses a different label, video gaming terminals, for about 49,000 machines in some 9,000 licensed establishments, all on a central communications system.
Why it matters
VLTs are a large and often overlooked part of gaming machine revenue, and they shape procurement. Because the lottery controls the network, suppliers sell or lease machines and content into lottery-run tenders and must integrate with the lottery's central system, which differs from selling to individual casinos. The central system also lets the state collect its share in real time, which is why lotteries have favoured VLTs where governments wanted machine revenue without casino licensing.
In the US they often underpin racetrack gaming. New York's video lottery facilities include tracks such as Yonkers Raceway and Saratoga, and Ohio's VLT programme runs at seven racetracks, so VLT economics feed directly into racing purses and track viability. In parts of Canada they sit in bars, lounges and legions, which puts machine gambling into everyday venues and makes placement and limits a policy question.
The label matters for comparison. A VLT, a video gaming terminal (VGT) and a casino slot can run near-identical games, but they sit under different laws, tax rates and revenue splits, so state revenue tables are not directly comparable without checking which category is counted. The EGM entry covers the wider machine category, and the bingo, lottery and instant games course covers lottery products. Machine suppliers are listed in the directory.
Video Lottery Terminal (VLT) vs EGM (Electronic Gaming Machine) vs Video gaming terminal (VGT)
| Video Lottery Terminal (VLT) | EGM (Electronic Gaming Machine) |
|---|---|
| A VLT is a lottery-controlled machine on a central lottery network; its revenue is lottery revenue, split by statute between the state, the venue and sometimes racing. | A casino slot or EGM is owned or leased and operated by a licensed casino, which banks the games and pays gaming tax on its win. |
The player may not see a difference, but the legal owner of the game, the tax rate and the revenue split all change, as does who buys the machines.
| Video Lottery Terminal (VLT) | Video gaming terminal (VGT) |
|---|---|
| VLT is the term used where the lottery runs the machine network, as in New York, Ohio and Canadian provinces. | VGT is the term used in states such as Illinois, where the Video Gaming Act of 2009 authorised terminals in licensed retail establishments, truck stops and veterans and fraternal organisations, licensed by the Gaming Board. |
Both rely on a central system for monitoring and tax collection, but VGTs are licensed to private terminal operators while VLTs sit inside the lottery, which changes who the supplier's customer is.
The bottom line
A VLT is a slot-style machine that is legally a lottery game, connected to a central lottery system. It is how many states and provinces put gaming machines into racetracks and bars without licensing casinos.
Sources
- Video Lottery - New York State Gaming Commission
- Economic Impacts - Ohio Lottery
- About IGB - Illinois Gaming Board
- Our Products - Manitoba Liquor & Lotteries
Frequently asked questions
What is a VLT machine?
A VLT, or video lottery terminal, is an electronic gaming machine operated under a state or provincial lottery. It offers games such as video slots, poker or keno and is connected to a central computer system controlled by the lottery authority, which tracks play and revenue. VLTs are found at racetracks, gaming facilities and, in parts of Canada, bars and lounges.
What is the difference between a VLT and a slot machine?
The difference is legal rather than visual. A VLT is a lottery product on a central lottery network, with revenue split by law between the lottery, the venue and sometimes the racing industry. A casino slot is operated by a licensed casino that banks the game and pays gaming tax. The games themselves can look and play almost identically.
What is the difference between a VLT and a VGT?
Both are networked gaming machines outside traditional casinos. VLT usually describes machines run within a lottery, as in New York and Ohio. VGT, video gaming terminal, is the term Illinois uses for machines in licensed bars, truck stops and fraternal organisations, licensed by the Illinois Gaming Board and connected to a central communications system.
Where are video lottery terminals legal?
VLTs operate in several US states, including New York, with more than 17,000 machines at nine facilities, and Ohio, at seven racetracks, and in Canadian provinces such as Manitoba, where they are in hotels, lounges and legions. Each jurisdiction sets its own rules on locations, numbers, limits and revenue splits, so availability has to be checked locally.