Legal Question in Native American Law in Washington
Pari-mutuel (non-banked) slot machines
California has a non-banking (pari-mutuel) constitutional requirement that all gambling not be backed (guaranteed) by the house(casino). I have heard that Washington State is a pari-mutuel state, except for gambling games conducted at card tables. Are pari-mutuel slot machines legal on Washington state Indian Reservations? Our company has a very successful operating pari-mutuel slot machine that operates exactly like a banked (Las Vegas) machine, and it looks like any other slot machine.
1 Answer from Attorneys
Re: Pari-mutuel (non-banked) slot machines
Washington's most recently amended compact provisions allow for an on-line and electronic scratch ticket system. The electronic scratch ticket requires a finite number of tickets with a predetermined number of winners and losers. The most salient feature is that the play is not against the (particular)machine. Rather the play is against other players and, unlike a slot machine, is not a stand alone device. The structure of the game is a system, with a host server in the back of the house, wired to various player terminals. There are a host of limits, including numbers of machines, limits on wagers, speed of play, networking and a variety of fees and costs. The electronic gaming system is parimutuel only in the sense that one does plays against other players; however, the win is not determined by the betting pool but may be independently established (although the Tribes have agreed to a minimum prize payout of 75%). The compact has, as of this morning, not been published in the federal register and is therefore not yet federally approved. The feds have until approximately January 10 to approve or disapprove.
To familiarize yourself further with the Washingotn experience, and to compete, please take a look at the model compact at the State's website: http://www.wa.gov/gambling/wsgc.htm
I hope that I've answered some of your question.
Feel free to call if you have any questions. Kevin Lyon 360-786-5005
Kevin Lyon
Law Office of Kevin R. Lyon, P.S.
Suite 200 112 E Fourth