Electronic Gaming Devices – Slot Machines & VLTs

Electronic gaming devices are very popular with players in Manitoba and elsewhere.  Because of the nature of technological advances, player demands and the complexity of new game design, electronic gaming can pose some of the most difficult challenges for regulatory agencies today.  In Manitoba, where only the provincial government as prescribed by the Criminal Code (Canada) can own electronic gaming equipment – primarily slot machines and VLTs - technical standards are met and maintained within a relatively constant environment.  All electronic gaming devices in Manitoba are owned by the Manitoba Lotteries Corporation (MLC).  It is the MGCC’s responsibility to ensure that all electronic gaming devices meet laboratory and functionality standards which includes: testing game software; testing coin and bill acceptors to ensure that they only accept legitimate currency and resist illegal currency; validating payout percentages and random number generation; and examining fail safe features such as rejecting a player’s currency when a malfunction is detected. 

Independent Testing

Testing all of the components of an electronic gaming device for integrity and reliability is beyond the resources of most regulatory agencies, including the MGCC.  The complexities of computer based testing and emerging game technologies have prompted many jurisdictions, including Manitoba, to use the services of independent gaming laboratories.   These laboratories test the main physical components and operating software of all gaming equipment before a game is introduced to the public for play.  Using these services ensures that our technical testing standards, and the practical application of these standards, are always based on the newest technology and testing capabilities. 

Return to Players – Prize Payouts

One of the most commonly asked questions related to game integrity involves prize payouts.  Players want to make sure that they have a fair chance to win, and if they do win, that they receive the correct prize.  One of the most fundamental tests that an independent lab conducts is the payout percentage return to player (RTP).  Most people assume that they can estimate the RTP by simply comparing the number of games played to winnings paid.  However, because slot machines and VLTs operate over many years, and many plays, the mathematics of RTP is not that simple. 

To accurately measure the RTP, a slot machine’s or VLT’s payout percentage components are sent to an independent laboratory to test and confirm that the RTP stated by the manufacturer is correct.  For example, if MLC orders a slot machine with an RTP set to 94%, the MGCC must verify that the RTP is set at 94%.  Because each successive game must be independent of the last and while a particular game may average a specific return based on an extended period of time, the return over a short time-frame will vary significantly – either up or down.

This change in the percentage a game pays out over time is commonly referred to as game volatility.  In more common terms – some people win and some people lose – and, looking at gambling in the long run, the more a person plays, the more that person will pay.  (Please check out the Addictions Foundation of Manitoba’s cost of play calculator to calculate costs for different games, time and bet amounts).  To satisfy MGCC standards, the independent laboratory must prove that over time the machine will return to players 94% of money wagered.  In order to address game volatility and permit the law of averages to come into play, the laboratory projects the outcomes of games over millions of plays by testing the software and measuring the frequency and combination of symbols used in the game.   

Of course, matters of game integrity extend well beyond verifying the RTP.  The MGCC must also be satisfied that a new game operates the way the manufacturer claims it is supposed to operate.  To accomplish this, the Technical Integrity Department examines different aspects and components of the proposed game, including:

• functionality of games to confirm they play correctly
• recovery procedures to confirm the game will restart properly if communications are interrupted
• that game recall is possible in the event of a dispute or disruption
• to confirm that all deposits, wagers and winnings are properly recorded and accounted
• that there are adequate processes, procedures and records to investigate patron disputes

Technical Integrity Approval

Once testing and verification is complete, the MGCC issues technical integrity approval for the game; this approval is required before a game is offered to the public for play.  This permits the MGCC to monitor the status of gaming equipment, maintain records on game function and assists in the conduct of any investigations resulting from public complaints or operational concerns. 

 

 

Standards for
Honesty and Integrity

Gaming/
Non-Gaming Equipment

Table Games

New Technologies

Electronic Gaming

Charitable Gaming