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QUESTION: What is the Difference in Gambling at Indian Reservations and Regular Casinos?

ANSWER: In the world of brick-and-mortar gambling, there are traditional casinos and then there are Indian reservation casinos (or Indian Casinos). At first glance, the two might not seem much different, but scratch beneath the surface and you’ll find a whole host of distinctions.

Knowing the difference in gambling at Indian reservations casinos and regular casinos might not make much difference to your bankroll, but it should provide you with a greater understanding of how the industry works. And for those who take their gaming seriously, every scrap of information is valuable on some level.

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Distinctions between Traditional and Native American Gambling

The items listed below are some of the most notable differences between gambling in Las Vegas and at a Native American casino. The next time you decide to go on a gaming road trip, give both locations a try and see if you can spot additional variations.

Location – The most fundamental difference is related to location. As the name would indicate, Indian reservation casinos are always located on lands set aside by the government for the use of specific Native American tribes. Regular casinos, meanwhile, can exist on any other property.

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The total geographical area of reservation land equals 2.3% of the total area of the United States. Some tribes have multiple reservations allotted to them, while around 200 of the nation’s 550+ recognized Indian tribes have no land at all.

Revenue – While Las Vegas and Atlantic City would hate to admit it, the annual revenue from casinos on Indian reservations exceeds the combined totals for gaming in both cities. In 2009, for example, Native American locations pulled in $26.5 billion across 28 states.

Selection of Games – Most reservation casinos offer the same games as their competition. Some states have different laws though, so you might not find certain table games in a particular casino, for example. Or the way the slot machines work might vary. (See our post about Class II and Class III slot machines for more details about that.)

Payback Percentage – This is the biggest difference between gambling at regular casinos and Indian reservations. In many states (Connecticut is a notable exception), Native American -Indian- casinos are not required to report their payback percentages, which means the number could be decidedly unfriendly to the player. However, any Indian reservation casino manager will tell you that their rates are on a par with the competition, and there may be some truth to that. After all, a lower payback percentage on slots and other electronic games means fewer winners. Over time, a casino with a reputation for paying out less will begin to lose business. Whether they offer a 75% or 90% payback, the casino is still going to turn a profit.

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Size – When it comes to the overall size of a brick-and-mortar gaming establishment, the folks in Atlantic City, Reno, and Las Vegas have a hard time competing with casinos built on Indian lands. Much of this has to do with location, as regular casinos have to build in cities that are already filled with everything from residential housing to shopping malls. Indian land is more wide open, which makes it easier to allot massive tracts of land for construction.

Today, the second largest casino in the United States is the Foxwoods Resort Casino on the Mashantucket Pequot Indian Reservation in Ledyard, Connecticut. It has over 6,300 slot machines, 380 table games, and the biggest bingo hall on the planet. The largest U.S. casino (WinStar World Casino in Thackerville, Oklahoma) is owned by the Chickasaw Nation of Oklahoma, although it is not located on an Indian reservation.

Legality – While traditional land-based casinos are subject to all state and federal laws, a 1979 Supreme Court decision ruled that states could not regulate activities on Indian reservations or tax their occupants. This was bolstered by a 1987 decision that said casino activities could not be state regulated as long as the type of gambling offered was legal in the state.

The law was further defined by the Indian Gambling Regulatory Act, which requires Indian tribes to consult the state before offering casino gaming. In the case of an impasse, the Secretary of the Interior is called upon to mediate and make an eventual ruling.

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The revenue from casinos on Indian reservations is meant to be spent on charitable ventures and tribal government operations. In some cases, however, the profits eventually find their way into the hands of tribal members, although you can count on the state and federal government getting their cut.

Cultural Considerations – While traditional casinos offer a wide variety of themes, visitors to gambling locations on reservations should expect a certain Native American flair to the décor. This isn’t always true, of course, but tribal leaders tend to be proud of their heritage and make every effort to provide displays and exhibits to educate their customers. At the very least, some basic decorations in the Native American tradition can usually be spotted in certain locations throughout the establishment.

Other cultural issues sometimes relate to traditional Indian beliefs and superstitions. An interesting example occurred when the Fire Rock Navajo Casino was under construction in New Mexico. Numerous problems led some to believe that the endeavor was being cursed by skin-walkers, magical practitioners adept at turning into animals and generally behaving in a sinister fashion. The construction continued, however, and the CEO of the casino later assured visitors that various blessings had been performed to ward off evil. Despite possible efforts from the forces of evil, the casino is still in operation.

Management – While you might suppose that casinos on Indian reservations are managed by members of the tribe, you would be wrong in many cases. In this way, gambling at Indian reservations isn’t much different than regular casinos, as they want to bring in experts who can squeeze every ounce of profit out of the business. For example, Harrah’s manages one such location in North Carolina, and Donald Trump once tried his hand at managing a reservation casino in California.

Next time someone is wondering about the differences in playing at Indian Casinos and regular casinos you’ll be able to provide an appropriate and informed answer. Armed with this knowledge, serious players can then make a determination about the best place to play.

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The Casino Floor was my home for the best part of 10 years. I lived in Las Vegas and worked for a Slot Machine manufacture as a Casino Systems Engineer. This work required me to work in a variety of casinos in Las Vegas and around the United States. Eventually I moved to Europe where I also worked in Casinos around Europe and the World. But the questions from every player (punter) remained the same.

  • Which machine is lucky?
  • What's the secret to winning?
  • Did you program a secret code into a machine?
  • How do I win?

My answer was and still is Luck has nothing to do with it!. Slot machines are programmed computers that are designed to seperate you from your money as quickly as possible without it appearing like you lost. Slot machines are programmed with a PAR or Hold percentage checkout Wikipedia's defintion on exactly how it works. This means a mathmatical algorithm determines the outcome of the slot machine. Over the lifetime of the machine the casino know's approximately how much money this machine should make for the casino. So the casino already knows what the machine is supposed to do. That's not luck!

History of the Slot Machine

This is not a history lesson on the evolution of the slot machine itself from mechanical to today's network connected computer. This is the history of how Slot Machines evolved to separate you from your money faster and more effeciently.

  • Tokens/Coins - The first step in gambling is inserting money into the slot machine. The first method that was used on Slot Machines were the coin/token acceptors. The introduction of these acceptors revolutionized the Slot Machine and helped create what they are today. However as time went on it was quickly realized that players cannot insert money very quickly which slows down game play as well as profits for the casinos.

  • Bill Acceptors - Bill acceptors also doubled, tripled, and even blew the tops off casinos with profit gains. Now players can insert a currency note into a slot machine and play off the credits. This not only increased the amount of games played per minute but also the Casino's bottom line. This led to yet another shortfall. If a customer wished to change machines or cashout they had to wait for the slot machine to spit out your winnings in coins which depending on the amount, lasted sometime or worse yet the machine was empty or didn't have enough coins and was locked waiting for someone to come pay the winnings. This reduced games played per minute and effected casino profits while the players were waiting instead of playing.

  • Tickets - Tickets were introduced circa 2002. Ticket-in/Ticket-out allowed players to easily cashout their winnings move to another machine and continue playing quickly & easily. This not only reduced casino staff but increased casino revenues once again and increase the amount of games played per minute that players could play. Ticketing is still used around the world today and is considered a necessity for today's slot machines.

  • Smart Cards - Although Smart Cards were introduced before Tickets it was not as widely accepted as tickets. The early Smart Card systems were slow, unreliable, and customers didn't trust their money on cards. Smart Cards are still being used but not nearly widely accepted as ticketing.

  • Loyalty Cards/Bonusing - Now the boom of loyalty cards have somewhat replaced Smart Cards. Players accumulate points with a players card which can then be converted to credits on a machine. Better yet the loyalty card also allow you to win seperate winnings that are stored on your account and can easily transfer to other machines.

The Psychology of a slot machine

Slot machines have been designed to make the player as comfortable as possible. The seating positon, graphics, and even the sound of the machine is tuned to appeal to the player. I've even experienced some machines that emitted an aroma to attract players(this didn't work).

As I've traveled the world it came to my attention that certain cultures gravatate to certain slot machine themed games. Like Cleopatra/Egyptian themed games are a huge hit in southern Europe, Gold Mining & TV Shows themes in the United States, and dragon and Asian themed games obviously are big in Asia. Not only the design of the machine is taken into consideration but also the location of the casino. All of these stastics are recorded and used to develop new games and features to better attrack more players.

Present Day Casinos

Today casinos can change every aspect of a casino floor in a moments notice. Server Based Gaming was introduced a few years ago and has been spreading like wild fire across the world. This enables a casino to change par/hold percentages, game themes, and even machine configurations on the fly.

A casino can change their games and configuration of the casino floor for an upcoming weekend tighter (less winning) then loosen them back up during the week (more winning) to adapt to the clientele and attrack customers during off peak hours all from the click of a mouse button. As more data is collected by casino's they create better marketing campaigns, analyze slot machine performance, and player tendacies all to tune the casino floor better for the best revenue optimization. This is all done every time you spin the wheels of a machine.

How to win playing slot machines

So back to one of the original question of how do I win? Well that's easy. Keep your money in your pocket and head home. But if you ignore this advice here are some tips on winning at the slots. Remember one thing, Las Vegas was built by a bunch of losers not by a bunch of winners.

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  • Play Video Poker - Video Poker has the best odds on the casino floor. However Poker also requires the players input. So you may throw away a Royal Flush (Seen it happen) because you never knew you had one.

  • Always play Max Bet / Cover all Lines - I cannot say this one loud enough. If you don't play Max Bet and cover all the lines you will never hit the big payouts. It is also very common that Bets other than Max Bet have worse odds.

  • The End Game - Many times casinos will configure a bank of machines with the ends as the highest paying and the middle less so. It is also possible that machines in the back of the casino have better payouts than those at the front. However this tip is set on a per casino basis.

  • Become friends with slot attendants - Although they cannot tell you which machine to play. They can tell you which machines they visit more often than others. If they don't tell you then pull a seat up at the bar and watch which machines they visit. If you see a pattern develop you may want to head over to those machines.