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OLR Research Report


February 7, 2011

 

2011-R-0057

SLOT MACHINE PAYMENTS TO THE STATE

By: Duke Chen, Legislative Analyst II

You want to know (1) the minimum slot machine payout percentage at the Foxwoods and Mohegan Sun casinos; (2) the process for changing it; and (3) what role, if any the state plays in the process.

The slot machine payout is the amount returned to bettors. The minimum slot payment percentage at both the Mohegan Sun and Foxwoods casinos is 80%, according to the Division of Special Revenue (DSR). This means, over the course of its life, each slot machine must pay out a minimum of 80 cents for every dollar it takes in. The percentage payout is set by the tribes and stipulated in their standards of operation and management (SOM).

Under the procedures governing casino gaming at the Foxwoods Casino and the compact governing casino gaming at the Mohegan Sun Casino, the tribes must have a SOM approved by DSR. If the tribes want to change any provision, including the minimum slot payout percentage, they must get DSR approval. Once approved, the rate becomes a part of the SOM. The 80% payout rate has not changed since the tribes opened their casino and according to DSR, it is standard in the industry.

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