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Bet You Didn’t Know FY 2010 Machine Compliance Stats
29
FEBRUARY
CONTENTSCONTENTSCONTENTS
ARIZONA GAMING GUIDE P.O. BOX 20636 MESA, AZ 85277
www.azgamingguide.com Copyright ©2011 Arizona Gaming Guide
12 Game Review WMS’ G+ 5X4 Slot Games
Video Keno Winning $7,000 Is Not That Difficult
20
Video Poker Corner Tournament Play Strategy
22
Sami’s Smackdown Casino Customers - Bundles Of Joy?
26
Editor’s Note Gaming Stats For FY 2010
4
Letters To The Editor Q&A On Everything Gaming!
6
Table Games Poker Lottery At Mazatzal Casino
15
Debunking Myths Myth #19: Dealer’s Hole Card Is 10
24
Dollars & Sense It’s Tax Time
16
A Little Thing Called Luck Valentine’s Day Gift For Good Luck
27
Feature Story Indian Gaming In Arizona
18
Directory List Of Casino Sponsors
30
MVP Spotlight ADG Manager Chuck Stratton
8
Cover Page Image And Slot Machine Images Courtesy Of WMS. © Copyright WMS. All Rights Reserved. www.wms.com.
Video Poker Tournament Play Beware - the playing strategy is slightly dif-ferent!
WMS’ G+ 5X4 Slots These Games Are Hot, Hot! 12
22
Play this game at Mazatzal Hotel & Casino in Payson, AZ. Every Winning Hand Out Of 7 Cards Pays!
15
4 Arizona Gaming Guide | February 2011
EDITOR’s
Note
The 22 tribal casinos located throughout the state of Arizona currently operate approximately 14,500 Class III gaming devices and 500 table games. During FY 2010, these Native American gaming operations generated more than $1.6 billion in revenue. As is required by the Tribal-State Gaming Compacts, Arizona tribes contributed anywhere from 1 to 8 percent of their gaming revenue to the state and local gov-ernments to provide funding for important programs collectively re-ferred to as “The Arizona Benefits Fund.” Last year alone, almost $90 million was received by the Arizona Department of Gaming (ADG) to not only support gaming regulation and problem gambling awareness but to also help fund education, state tourism, wildlife conservation, trauma and emergency services. In addition, “This past year, ADG inspected and certified more than 17,000 gaming devices. ADG also processed more than 8,900 appli-cations for individuals and companies working at or with tribal casinos,” said Mark Brnovich, Director of the ADG. “We anticipate ADG’s re-sponsibilities will continue to grow in the coming years. Two new desti-nation resort casinos recently opened and at least two tribes are plan-ning to construct new Class III gaming facilities in Arizona. We have established a telephone hotline where people can report suspected illegal off-reservation gambling activity and we will continue to work with local law enforcement agencies to combat it,” said Brnovich. I would like to personally thank the ADG for their continued efforts en-suring the integrity of gaming in Arizona. This month we’ve featured Mr. Chuck Stratton, Manager of the Games & Compliance Unit, in our MVP Spotlight and highlighted the ADG and some of their many ac-complishments throughout this issue. Don’t forget that you can also find the current and back issues of the Arizona Gaming Guide online as well! We added additional information to the website as part of our monthly update. Get the inside scoop at www.azgamingguide.com. Let me know what you think of our February issue and have fun!
Chris Hoft, Editor-in-Chief
Slot Guru at Large
CONTACT US
ARIZONA GAMING GUIDE P.O. BOX 20636 MESA, AZ 85277
www.azgamingguide.com
THE ARIZONA
GAMING GUIDE
may not be reproduced, transmitted, distributed, and/or sold in any shape or form without the express written
consent of the owners of The Arizona Gaming Guide (AGG).
AGG is not responsible, or liable, for the content and/or advertising con-
tained within this publication. AGG does not endorse and/or sup-port any opinions, products, and/or
services contained within this publication. All pictures, images, logos, trademarks, trade names, etc. are the sole property of their
respective owners. All responses in the Letters to the Editor section are
to be considered as advice only. AGG presents facts and/or opinions and expects the reader to make his/her own decisions. AGG accepts no responsibility and no liability for any actions of our readers based on the
opinions and/or advertisements presented within this publication.
You must be 21 or older to gamble. Please play responsibly.
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6 Arizona Gaming Guide | February 2011
Does cashing out and then reinserting the
ticket or more money in the same machine
do anything? I see people do this all the time,
because they believe it resets the machine.
Mike—Tucson
Many, many players will be disappointed to
hear that this habit has absolutely no effect on
the slot machine. There is no “reset” button
that occurs upon cashout. Just remember that
all outcomes on a slot machine are determined
by the Random Number Generator (RNG).
This is a computer program that is continuously
running in the background, picking numbers
and waiting for someone to press the spin but-
ton to display the outcome.
In actuality, a slot is “reset” after each spin is
complete, because every new spin is a random
event where the outcome is not determined by
what happened the spin before. However, if
cashing out and reinserting the ticket or money
makes people feel they are changing their luck
then I don‟t want to discourage anyone from
performing this ritual. And, an added advan-
tage of cashing out a ticket is for the easy ac-
cess to the current time. Every ticket lists the
current date and time in small letters!
Who invented the slot machine and what did
the first slot machine look like?
Nora—Surprise
Mr. Charles Fey is considered to be the “Father
of Slot Machines.” He was born in Bavaria,
Germany and lived some time in Paris, France
and later London, England. As a young man in
his early 20s, he immigrated to the United
States where he eventually made a home for
himself in San Francisco, California.
His “Liberty Bell” slot machine, which he be-
gan creating in the late 1880s, had 3 spinning
reels, a lever, and 5 symbols (liberty bell,
horseshoe, heart, diamond, and spade). A
“Jackpot” on Mr. Fey‟s slot machine consisted
of 100 nickels when a player lined up 3 liberty
bells on the payline.
Where does the word ―Jackpot‖ come from?
Kathy—Prescott
The top prize on a slot machine, or in any ca-
sino game for that matter, is referred to as a
“Jackpot” and the use of this term dates back to
the early 1860s. At that time, there was a game
of poker that was played where the player who
had a pair of jacks or better was able to open
the betting around the table. If no one was able
to beat that hand, they won the pot. Hence the
word “Jackpot.”
You always say we should know the manu-
facturers of the slot machines we like to play,
so we can look for more games created by
the same people. However, how come some
slots don’t have names on them? What does
that mean if there is no company name on
them?
Debbie—Fountain Hills
Every single slot has the name of the manufac-
turer somewhere on the machine. If you were
not able to find the company name and logo on
a particular slot then it was probably just buried
somewhere in the midst of the game graphics
on the top screen. This location, or on the reel
window on mechanical slots, is where you will
usually find this information.
Each slot manufacturer has their own particular
“style” of cabinets, games and graphics. Once
you start paying attention you will begin to
recognize the manufacturer without having to
read the name on the machine, because each
has their own distinct brand. The game win-
dow and symbol design for Aristocrat slots, just
to name one example, is remarkably different
than any other manufacturer‟s style. Take a
look next time you‟re at the casino and you‟ll
know what I mean.
Thanks for all your letters! Please let us know how we are doing on a regular
basis. Until the next issue … have fun!
8 Arizona Gaming Guide | February 2011
The Games & Systems
Compliance Unit of the
Arizona Department of
Gaming interfaces with
Tribal Gaming Offices,
Gaming Facility Opera-
tors and Game Distribu-
tors to ensure game rules
are in compliance with
all existing regulations.
In FY 2010, the Games
& Systems Compliance
Unit received 1,190 sub-
missions from the Tribal
Gaming Offices and ap-
proved:
►859 promotions and
lotteries
►3 new and 15 revisions
to blackjack and black-
jack variation games
►9 new and 7 revisions
to jackpot poker games
►200 jackpot poker and
45 slot tournaments
►38 blackjack and 14
keno tournaments
MVP SPOTLIGHT
Games & Systems Compliance Unit
Manager Chuck Stratton
e visit casinos, play games like
blackjack, poker and keno and
participate in slot tournaments
and casino promotions such as raffles and
drawings. However, we don‟t consider for a
second all the people and the work involved
in regulating these types of activities. Mr.
Chuck Stratton, Manager of the Games &
Systems Compliance Unit of the Arizona
Department of Gaming (ADG), shared some
very fascinating information regarding his
area of responsibility during our recent dis-
cussion together. I‟m very excited to share
our dialogue with all of you!
Arizona Gaming Guide (AGG): What are
your responsibilities at the Games & Systems
Compliance Unit of the ADG?
Mr. Chuck Stratton (CS): I manage the
Games & Systems Compliance Unit. The
Unit‟s primary responsibility is to be involved
with all the gaming activities that are not
associated with a slot machine. This includes,
but is not limited to, table games like black-
jack and house-banked poker games, regular
poker games and keno to some extent. We
also handle promotions held by a casino in
the form of drawings or contests. These are
just a few examples of the activities we regu-
late.
Within my Unit, we also try to keep on top of
new technology which is coming into the
casino gaming industry. We investigate new
technologies and ask, “Are they approved
under the current regulations and standards?”
If not, we have to examine the possibility that
this is a technology where we have to work
together with the Tribes in Arizona in order to
develop a new technical standard or regula-
tion specifically to adapt the technology here
in Arizona.
As an offshoot to both of these areas I men-
tioned, we also provide in-house training to
our agents and other personnel at the ADG.
In particular, we provide training when new
games come into the state. It‟s important to
train individuals on how games are played so
if a field agent has to perform an audit or an
observation, that individual comprehends all
aspects of a game they have to investigate or
report on.
We approve all the
tournaments! A lot of casinos
have slot tournaments, poker
tournaments, blackjack tour-
naments, and so on. All of
those activities are submitted
to us for review and compli-
ance with existing regulations.
We accomplish all this by working in associa-
tion with all the Tribal Regulatory Agencies
and Offices. If the Gaming Facility Operator,
or Casino, wants to have a new game or a
new tournament they submit the rules to their
own Tribal Regulatory Office first. That
regulatory office reviews the submission and,
in turn, submits the new idea to our Unit at
the ADG. We work back and forth very
closely with the Tribal Regulatory Office to
work out the submission and ultimately ap-
prove it.
AGG: In terms of the new technologies you
mentioned, can you provide an example of a
new technology entering the casinos in Ari-
zona over the past year or two?
CS: Absolutely! This happens all the time.
A few years ago we worked very closely with
the Tribes as they were very interested in
what we refer to as “Incentive Systems.”
These are essentially Electronic Bonus Sys-
tems controlled by the machines dedicated to
(Continued on page 10)
W
maintaining player tracking devices. For example, “free play” can
be given to players and downloaded directly to a slot machine.
The system controlling that activity is outside the normal play of a
slot machine, itself, as they are a peripheral device and system.
So, a player can theoretically insert their card into a machine and,
because it‟s their birthday and they decide to play on their birth-
day, the casino awards them $10 in “free play.” The way this used
to work is that a ticket or voucher was issued to the player, the
player had to go to the cage, and then the cage exchanged the
voucher for a $10 bill. In other instances, a player was awarded a
ticket which could be inserted into the machine. Now, with the
new technology available to the Tribes, the entire process is cir-
cumvented and “free play” can be directly downloaded onto a slot
machine using a player card system.
While that explains the implementation of a new technology af-
fecting promotions, we also established regulations and standards
allowing mystery bonuses to be awarded based on the amount of
coin-in a bank of machines is registering. For example, if a patron
is playing a slot machine on a particular group of machines a ran-
dom amount is selected by the player tracking system. Then, once
the credit matching the selected value is played, that patron could
win $1,000 in “free play” for example.
AGG: How does the Games & Systems Compliance Unit impact
the general public when they participate in gaming activities
across the state?
CS: We are an integral part of the ADG‟s mission which is to
protect the public, to ensure compliance with the gaming compact,
and to regulate gaming. The compacts have certain requirements
of how games and promotions have to be played and approved.
So, we look at the submissions and investigate if they are reason-
able. We want to make sure the average casino patron will under-
stand a game or promotion. If a new game or promotion is going
to be held at a casino, we make sure the rules are available. We
carefully examine if casino patrons will understand the rules of a
game and how a promotion will be conducted. Our approach and
function is to protect the public.
AGG: Can you explain a little more about the process of getting a
new game and promotion approved?
CS: The processes for a new game or a promotion are somewhat
similar. For instance, the process for a new game begins with the
inventor. That individual contacts a casino with the intention of
getting their amazing new game on the casino floor. Sometimes
these game designers call us asking for information on what mate-
rials they will have to provide the casinos, their Tribal Gaming
Offices, and us here at the ADG.
If a casino is interested in a new game, they will contact their
Tribal Gaming Office. The Tribal Gaming Regulator requires the
submission of game rules, game procedures, and other information
which is then submitted to us. We identify if the game is permit-
ted under the provisions of the gaming compact which allows for
certain types of casino gaming being authorized. If the game
meets the criteria of the compact then we look at the rules, the
procedures, dealing procedures, the game math, the table layout,
(Continued from page 8)
the advertising provided to customers, payout tables; we look at
all of that to make sure it is reasonable and makes sense. One of
the advantages we may have with a new game is if it is already in
play in another gaming jurisdiction like Las Vegas or New Jersey.
As a result, a lot of issues have already been addressed and re-
solved before a new game ever makes it into Arizona‟s casinos.
That makes everyone‟s job a lot easier!
Working with a new game can get quite interesting as we look at
the graphics on the tables and the rule cards given to players at the
table. Sometimes they don‟t always match! We have had submis-
sions where the payouts on the table don‟t match the payouts on
the advertising! So, we investigate if everything matches up. As a
result, we work very closely with the Tribal Regulators to get
these submissions corrected and then approved; even if both or-
ganizations have to go back to the manufacturer of the game.
Once there is an approval from our Unit, the Tribes have to pro-
vide training to dealers and other personnel including surveillance
employees. My department has to provide in-house training to our
field agents and auditors so that they understand the game as well.
Prior to a game going live, our field agents will go out and inspect
the tables, check and verify surveillance, and several other key
points. This entire process can be as short as a few weeks and at
other times the process can take several months depending upon
how complete the submission is.
That same process is generally what happens with promotions as
well. Information moves from the casino to the Tribal Gaming
Regulator and then to us here at the ADG. Usually this is a much
quicker process than with a new game. Over the years the Tribes
and the ADG have grown and learned together with these submis-
sions, so for most submissions we tend not to have any issues or
concerns. Some of the promotions which last for long periods of
time, say one year, or promotions with multiple qualifications and
drawings leading up to a final drawing of some kind become quite
involved with the entire process of running and regulating the pro-
motion.
AGG: How much money can someone make if their new game
makes it on to the casino floor?
CS: That is difficult to answer. In most cases, the games are
leased not sold outright. This means the inventor of the game
would be getting a certain amount of money per table per day, or a
percentage of the drop. However, there are significant costs in
bringing a game to the casino floor due to all the regulation on the
industry. First, you have to establish a patent and trademark.
Then, you have to become licensed as a manufacturer to the gam-
ing industry. Finally, you have to submit your game to the regula-
tory process. All of these steps take time and money. In addition
to this, the casino has to make an investment as well. They have
to surrender floor space to a new game which may or may not
perform as well as the previous game.
AGG: Do you always grant approvals for games and promotions?
CS: When the concerns of this Unit are communicated back to
the Marketing Department of a casino, sometimes we receive
word that the submission has been withdrawn. But in most cases,
10 Arizona Gaming Guide | February 2011
we‟ll work together to resolve our issues. These might include the
mathematics, the language, the eligibility requirements, or the
procedures not being clear enough.
Many times a game manufacturer will call and ask if their new
game, based loosely on craps, has a chance of being approved here
in Arizona. This type of game is not permitted under the current
compacts, so we will inform them that their new game would not
be approved. Based on the current compacts, games that are not
slot machines must somehow be related to blackjack or poker. We
can look at those types of games, but before a submission gets to
us, a manufacturer or distributor of a game will know if their game
can even qualify for an approval here in Arizona.
AGG: How can you (and the general public) be sure a new game
and/or promotion is being administered correctly?
CS: We do have agents who are out in the casinos on a regular
basis. This is why we provide training to them so they know how
the games are supposed to function. Periodically they will do an
observation of a game, generally through surveillance. The pri-
mary regulator is the Tribal Gaming Office; they are the ones that
are on-site 24-7 which is where most of the responsibilities lie.
We do spot checks of the games and we do observe game play and
verify that the dealers are dealing correctly. Our field agents will
also pick up brochures and bring them back into our office to ask
if what is described in the brochure is what was actually approved.
My staff will also go out for large tournaments or promotions at a
casino. They will observe play, the operation of the tournament,
how patrons arrived at a final table, and so on. We let our agents
know what is going on at the casinos on a regular basis so they are
aware when they visit a casino.
AGG: What should a patron do if they think a game or promotion
is not being run correctly?
CS: First, the patron should ask for the rules to the game and
make sure they fully understand the game play mechanics. Then,
they should communicate any concerns they may have to the ca-
sino management. If they are not happy with the explanation
given to them by casino management, they should ask to talk to
the Tribal Regulatory Agent at the casino. This person will be
able to take action quickly because they are at the casino. The
Tribal Regulatory Agent can investigate, check surveillance, and
so on immediately without there being any delay. We get calls
here to the ADG, but unfortunately they are after the fact. As a
result, any steps we take to investigate may be days or weeks after
the event takes place.
AGG: Are there examples of games and promotions that are of
particular concern to you?
CS: Promotions that are an issue for concern industry-wide are
those with Halloween themes. If you have people wearing cos-
tumes with masks or face paint walking into a casino, the surveil-
lance department is not going to be very happy and matching peo-
ple to their driver‟s license photo or other identification becomes
very difficult! However, this is easily averted by making sure
casino patrons are aware they are not allowed to have anything
covering their face.
SECRETS OF
SIDE BETS…
AGG: What is the motivation behind the games with
side bets? Is it purely entertainment or is it attempting to
keep an old game fresh?
CS: Usually the side bets have a large house edge, so a
casino sees an opportunity to increase their edge at a par-
ticular table game. Patrons see the advantage of a side
bet as a minimal wager with a large payoff. That wager
may have a house edge of 15 or 20 percent whereas the
typical blackjack game starts with a house edge of
around a half of a percent or more depending on the
rules. These side bets have to be enticing enough to get
patrons to play them which includes offering large pay-
outs and making the player believe they have a good
chance of hitting them. If the side bet is for something
nobody ever hits, then the game probably won‟t last long.
AGG: What is the average lifecycle on some of these
games with side bets?
CS: Some games have lifecycles of just a few months.
Many manufacturers and game designers have what they
believe to be the best game available, but when it gets to
the floor patrons don‟t understand the game and don‟t
think they have a payback equal to their entertainment
investment. As a result, players don‟t play it and the
game doesn‟t stay on the floor for very long. I‟ve seen
games I thought might take off that didn‟t. Sometimes
games are put in on a trial basis and they just don‟t work
out. Other games like Caribbean Stud® or Let it Ride®
have been on floors for a long time. Blackjack games
like Lucky Ladies or Royal Match are really simple and
tend to survive. Spanish 21 or Super Fun 21 is out there
on a limited basis, but are games where a player really
needs to understand the rules before they play!
February 2011 | Arizona Gaming Guide 11
Many thanks to Mr. Chuck Stratton for his time and to Rick
Medina and Talia Otto for their assistance facilitating this in-
terview. Photo courtesy of the Arizona Department of Gaming.
All rights reserved. For information on the Arizona Depart-
ment of Gaming, please visit their website at azgaming.gov.
Please visit our website at azgamingguide.com for more MVP
Spotlights. - Chris, Editor-in-Chief
G AME REVIEW
Images Courtesy Of WMS. © Copyright WMS. All Rights Reserved. www.wms.com.
12 Arizona Gaming Guide | February 2011
These Slots By WMS Are
SO AWESOME!
See the coin on the first reel in the
picture? Get ready for your heart to
start pumping when that symbol
shows up, because when that magi-
cal coin lands in any position on the first reel it makes all the
wilds appearing anywhere on the remaining 4 reels expand to
fill up the entire reel! And, the coin itself is wild too! When
you sit down to play this game, you have to make sure to turn
up the volume. There‟s this great clicking sound that happens
as the wilds are expanding. The more clicks you hear, the
more goose bumps you‟ll feel (guaranteed) as you start filling
up the entire screen with wilds! “Big Wins,” “Super Big
Wins,” and “Mega Big Wins” are not hard to come by because
of this expanding wild feature. This game is exciting and fun
and all of us at the AGG absolutely love it! Take a look at a
picture of our “Mega Super Big Win” we got recently that‟s
posted on our website at: www.azgamingguide.com
This slot game is a clone of Golden
Emperor. In other words, the game
play mechanics are exactly the same
just the graphics are different.
Rather than a coin, watch for the sabertooth tiger appearing in
any position on the first reel. He will make all the wilds ex-
pand on the remaining 4 reels. This awesome mini bonus in
the base game is so exciting that it almost makes you forget
that there is another bonus feature in both these games! When
3 or more scattered bonus symbols appear on adjacent reels
(beginning with the left-most reel) 8 free spins are awarded.
Don‟t worry, the sabertooth tiger expanding wilds feature is
available during the bonus as well. There is an entry win of 2X
bet for 3 bonus symbols, 20X bet for 4 bonus symbols, and
50X bet for all 5. And, here‟s a secret: The hit frequency for 4
or 5 bonus symbols appearing adjacent is relatively low, so
there is a good chance for a sweet bonus entry win! -AGG
Play both these games at Harrah’s Ak-Chin Casino Resort!
TABLE GAMES
EVERY WINNING HAND OUT OF 7 CARDS PAYS!
n a recent visit to Mazatzal
Hotel & Casino in Payson,
Arizona, I noticed a new hy-
brid game offered by the Keno De-
partment. The game is called Poker
Lottery and players can wager a
minimum of $1.00 to a maximum of
$50.00 per hand. According to my
calculations, this game’s payback
percentage is well over 100%!
O In the game Poker Lottery, players are wagering on winning poker hands dealt from a
standard 52-card deck. Every Wednesday at approximately 8:30 PM, a dealer in the
Mazatzal Hotel & Casino Card Room will shuffle a single deck and deal the top 7
cards. Every possible winning hand is identified, not just the highest, and winners can
collect immediately or up to 30 days after the drawing in the Keno Department where
they placed their bets.
I highly recommend our readers participate in this unique game offered exclusively at
Mazatzal Hotel & Casino. Poker Lottery is very simple to comprehend as it combines
Seven Card Stud with the removal of the rule that the highest hand wins. As a result,
Poker Lottery has very favorable odds for the player, more so than most other casino
games. Obviously, your best chances at winning are to wager on the lowest paying
hands: Two Pair, Three-of-a-Kind, Straight, Flush (in that order), and so on. However,
based upon the design of this particular game, I do not recommend such a strategy.
Rather, if you bet on the following four hands: Two Pair, Full House, Flush, and
Straight (in that order), you are getting the most action out of your wagers. Betting on
those four hands alone, you should enjoy a win once every second or third game and
increase your chances of winning a little money!
While you are at Mazatzal Hotel & Casino, you should try a little poker or blackjack
action in their card room and don‟t forget to sign up for the Mountains of Money Play-
ers Card program. Poker is scheduled Wednesday, Thursday, and Friday at 10 AM.
Poker tournaments are held on Mondays at 6 PM and on Sundays at 1 PM and 6 PM. I
also, personally, enjoy the friendly service I always receive in the restaurant and bar
area. If you‟d like more information about Poker Lottery, contact me or a member of
the Keno Department at Mazatzal Hotel & Casino. Mazatzal Hotel & Casino is located
on the south end of Payson, Arizona on Highway 87 and can be contacted at 1-800-777
-PLAY (1-800-777-7529) or at www.777play.com. -Alex
E-mail me at: [email protected] with your Poker Lottery questions.
HAND
Two Pair
Three-of-a-Kind
Straight
Flush
Full House
Four-of-a-Kind
Straight Flush
Royal Flush
PAYOUT
1.5 to 1
2 to 1
5 to 1
8 to 1
11 to 1
20 to 1
50 to 1
100 to 1
February 2011 | Arizona Gaming Guide 15
16 Arizona Gaming Guide | February 2011
DOLLARDOLLAR$$ && SENSESENSE
id you receive a W-2G form for gambling winnings at
the casino last year? Do you vaguely recall a slot atten-
dant handing you a piece of paper that you had to sign?
Maybe you showed all your friends and family, had it hanging on
the refrigerator for a while, and then tucked it away in a drawer
and forgot about it. Well income tax time is here again and you
may have forgotten about those winnings, but Uncle Sam hasn‟t!
Lady Luck always makes sure to inform Uncle Sam so he can get
his cut too.
Reportable Gambling Winnings
Winnings (not reduced by the wager) of $1,200 or more on a sin-
gle spin on a slot machine or bingo game must be reported to the
IRS. Video poker and video keno machines are considered slot
machines and fall into this category. Before the win is paid out,
the gaming establishment will require a current picture id and
social security number to complete the W-2G form. This infor-
mation will then be passed along to the IRS.
Only winnings of $1,200 that occur during a single spin, or event,
require a W-2G form. In other words, if the Credit Meter on a
slot machine has risen to $1,200 or more because of accumulated
winnings during regular play, the gaming establishment is not
required to complete a W-2G form. However, the machine will
most likely lock up upon cashout rather than print a ticket of such
large cash value and a slot attendant will come by to do a hand-
pay.
Winnings (reduced by the wager) of $1,500 or more at a live
keno game and winnings (reduced by the wager or buy-in) of
$5,000 or more at a poker tournament will be reported to the IRS
by the gaming establishment. In addition, other winnings (not
from slot machines, bingo, keno, or poker tournaments) that
might occur at the horse track, for example, of $600 or more and
at least 300 times the amount of the wager will be reported to the
IRS. Winnings that are noncash payments, such as a car or a
cruise, must be taken into account at their fair market value
(FMV) for purposes of reporting. The FMV must be reported as
additional income to the IRS.
All casino visitors who enjoy gambling as a recreational activity
must be prepared if Lady Luck ever comes smiling. It‟s not all
about fun and games when it‟s time to report gambling winnings
to the IRS. For an in-depth explanation on income tax laws and
how they relate to gambling, take a look at Publication 529 called
“Miscellaneous Deductions” from the IRS. Here are a few more
hints and tips to help get you started …
D
Lady Luck Uncle Sam
&
These two must be cousins!
IT‟S TAX TIME!
Gambling Winnings & Tax Tips
Gambling winnings are always taxable income and must be
reported on your tax return. Any winnings from a lottery,
raffle, casino, horse or dog track, just to list a few examples, is
considered extra income.
Caution: The fair market value of any noncash prizes such as
trips or cars must be reported as gambling income as well.
The full amount of your gambling winnings for the year
must be reported on line 21 of the IRS Form 1040. Be care-
ful to note that you cannot use Form 1040A or Form 1040EZ.
This rule applies regardless of the win amount and regardless of
whether or not you received a Form W-2G.
Caution: You can’t reduce your gambling winnings by your
gambling losses and report the difference. Your records should
always show your winnings separately from your losses. In
other words, you must report the full amount of your winnings
as income and claim your losses as an itemized deduction (but
only up to the amount of your winnings).
If you itemize deductions, you can deduct your gambling
losses for the year on line 28 of Schedule A, Form 1040.
And, remember that you cannot deduct gambling losses that are
more than your winnings!
Caution: Generally, nonresident aliens cannot deduct gam-
bling losses on Schedule A, Form 1040NR.
In order to be able to deduct gambling losses, accurate re-
cords of all gambling winnings and losses must be main-
tained. This log must include the following information at the
very least:
1. The name and address or specific location of the gambling
establishment
2. The date, time and type of wager or wagering activity that
was made
3. The names of all people present with you at the gambling
establishment
4. The amount of money that was won or lost
Caution: The IRS may want to see additional items as evidence
of gambling wins and losses. These items can include, but
don’t have to be limited to: Canceled checks, bank withdraw-
als, credit records, check cashing statements, and the win-loss
statements from the gambling establishment. When playing slot
machines, make sure to always record the machine number,
date and time played, along with all wins and losses. When
playing keno, bingo, or the lottery, keep all copies of the tickets
purchased with dates along with wins and losses. When playing
table games keep a record of the table number and whether the
credit was issued at the pit or cashier’s cage. -AGG
1
2
3
4
Source: Internal Revenue Service. For more information on gambling winnings see IRS Publication 529 called
“Miscellaneous Deductions” or IRS Publication 525 called “Taxable and Non-
Taxable Income.” Both publications can be obtained at www.irs.gov or by call-ing 1-800-TAX-FORM (1-800-829-3676).
18 Arizona Gaming Guide | February 2011
Indian Gaming In
ARIZONA roposition 202, approved by Arizona
voters on November 5, 2002, allows
gaming on Indian lands and ensures
gaming revenues are used to fund basic ser-
vices such as education, housing, and health
care.
The proposition also maintains there must be continual regulatory
oversight by the Arizona Department of Gaming and a portion of
the gaming revenues be shared with the State of Arizona and local
governments.
P Since 2003, when Propostion 202 went into effect, the Arizona
Department of Gaming has collected over $592 million from tribal
gaming for the Arizona Benefits Fund. In addition, the Native
American Tribes have donated more than $69 million to Arizona
cities, towns, and organizations to fund vital services.
During the 2010 fiscal year, the Arizona Department of Gaming
oversaw the transfer of more than $1.5 million to aid Problem
Gambling, $8 million for the operation of the Department itself,
more than $38 million for the Instructional Improvement Fund,
over $19 million for the Trauma & Emergency Services Fund,
nearly $5.5 million into the AZ Wildlife Conservation Fund, and
almost $5.5 million for the State Tourism Fund.
Casino Image Courtesy Of Cliff Castle Casino Hotel. © Copyright Cliff Castle Casino Hotel. All Rights Reserved. Source: Arizona Department Of Gaming Annual Report FY 2010. © Copyright Arizona Department Of Gaming. All Rights Reserved.
Another $11.1 million was given by Arizona‟s Tribes to a variety
of cities, towns, and counties of their choosing. This brought the
total funds passed from Tribal Gaming through the Department of
Gaming to just over $89 million.
While the total dollar amount is lower than during the previous
three years (2007‟s Fiscal Year contributions were nearly $103.6
million, 2008‟s Fiscal Year contributions were just over $111 mil-
lion, and 2009‟s Fiscal Year contributions were about $97.5 mil-
lion), the 2010 Fiscal Year brought in about the same amount of
revenue as the 2006 Fiscal Year.
Much of the current decline can be contributed to the weak econ-
omy, however, casino gaming continues to expand and grow
within the state. Tribes recently added new casinos, expanded or
renovated existing properties, and are planning additions or expan-
sions in the near future.
Patrons visiting casinos in Arizona are contributing directly to the
economic health of the state rather than the bank accounts of cor-
porations who own the Las Vegas strip. Revenue generated by
Tribal Gaming assists the tribes and the State in which they oper-
ate a casino or casinos.
There are currently 15 tribes operating 22 Class III casinos.
Another 6 tribes do not have casinos but have slot machine
rights they lease to other tribes.
Tribes without casinos in Arizona include:
Havasupai Indian Tribe
Hualapai Indian Tribe
Kaibab Band of Paiute Indians
Navajo Nation
San Juan Southern Paiute Indians
Zuni Tribe
Some Recent
Gaming Compact
Amendments
2009
Compact Revisions:
An increase in the maximum wager on a hand of blackjack from
$500 to $1,000 at up to ten card game tables, and from $250 to
$500 for all other card game tables in a Gaming Facility.
An increase for a hand of poker from $75/$150 to $500 at up to
ten card game tables, and from $20/$40 to $250 for all other
card game tables in a Gaming Facility.
Periodic increases in wager limitations, which are adjusted on
each five-year anniversary of the effective date of the Compact
based on the Consumer Price Index adjustment rate, shall be
rounded up to the nearest $5.00 increment rather than a $1.00
increment.
Appendix F(1)
Blackjack – Revised:
Modifications to Appendix F(1) clarify that the wager limitation
in any blackjack game would be applied to each single wager
that a player can make, based on the approved rules of the game,
rather than the total combined amount wagered by a player dur-
ing a hand.
Appendix F(2)
Jackpot Poker – Revised:
Modifications to Appendix F(2) clarify that the wager limitation
in any house-banked poker game would be applied to each sin-
gle wager that a player can make, based on the approved rules of
the game, rather than the total combined amount wagered by a
player during a hand.
2007 Appendix F(2)
Jackpot Poker – Revised
Changes to existing Appendix F(2) allow play of promotional
award poker and house-banked poker games at Tribal casinos,
while keeping poker as the central component of any variation
game and maintaining the wagering limitations established by
the Compact. The revisions also establish regulations for house-
banked poker games comparable to regulations for blackjack.
2005 Appendix C
Security & Surveillance – Revised
Changes to the existing Appendix C require the Tribes to de-
velop and have in place comprehensive Surveillance and Secu-
rity Plans which meet the obligations of the Tribe under the pro-
visions of the Compact and its appendices.
February 2011 | Arizona Gaming Guide 19
Locations on the map are approximate and are not to scale
VIDEO CORNER KEN
20 Arizona Gaming Guide | February 2011
any people don‟t even realize that the odds of winning a
jackpot on video keno are actually pretty good! Hitting
a 7-spot top award of 7,000 credits with a one credit bet
happens approximately once in every 41,000 games. In other
words, with a wager of $1 (less than the $1.25 max bet on a quar-
ter video poker machine) a $7,000 jackpot could be yours! And, if
betting $1 is too steep then the $1,750 win associated with a one
quarter wager is not so shabby!
These are excellent odds on a slot machine, especially when the
odds of hitting the highest win on most video slots range from
once in every 500,000 to once in every 50,000,000 spins! And, the
three reel mechanical slot machine odds may beat out the video
slots but they still aren‟t the victors over video keno. The odds of
hitting the highest win on most three reel steppers is at least once
in every 100,000 spins.
Another thing to keep in mind when playing video keno is that the
amount of your wager has no effect on your odds - short term or
long term. Most video keno games, unlike other slots, do not offer
incentives to play max bet. So, when you wager more, your wins
are just proportionately higher.
All of us at the AGG love playing video keno, because it‟s a relax-
ing change of pace from the action-packed video slots. And, we
all know that our best bet is to mark 7 spots. Take a look at a pic-
ture of our 7-spot catch we got recently that‟s posted on our web-
site at: www.azgamingguide.com -AGG
Winning $7,000 at Video Keno is not that difficult - really!
M
22 Arizona Gaming Guide | February 2011
VIDEO
CORNER
ot so long ago, if you wanted to participate in a slot tourna-
ment or blackjack tournament, you had to travel to Laugh-
lin or Las Vegas. Luckily, nowadays, that‟s not the case. Several
casinos in Arizona offer all kinds of tournaments, including video
poker tournaments! I, personally, prefer participating in tourna-
ments that are free and are offered as part of a package deal with
dining and lodging options. However, sometimes if the prize
money is attractive enough, a small buy-in of around $25-$50 is
worth the cost and risk involved.
Video poker tournaments are typically played on standard games
such as Jacks-or-Better or Double Bonus Poker. The machines
have 2 meters: a credit meter with preloaded credits and a win
meter that displays the credits earned. Tournament sessions usu-
ally last for 10, 15, or 20 minutes. The key is to play as fast as
possible during the allocated time. Although using up all the pre-
loaded credits before time runs out doesn‟t earn you extra credit
points, in some cases there is more than enough preloaded credits
that you can‟t possibly use them all up during a play session. You
want to take advantage of these tournaments and get in more
hands than the other players! Here are a few more tips on video
poker tournament playing strategy …
1. Always go for the big payoffs like four-of-a-kinds, straight
flushes, and royal flushes. Trying to maximize the expected value
is not optimal in tournament situations.
2. Never draw to a straight or flush. Hold just a high card, three
cards to a straight flush, or drop everything.
3. Consider breaking a straight or a flush for a potential straight
flush or royal.
4. When dealt two pairs, hold only one pair.
5. It‟s okay to hold two cards to a straight flush or royal flush or
just a single ten or higher card.
Send me your video poker questions at [email protected]
Have fun and good luck at your next tournament! - Liz
N
Tournament Play Beware - playing strategy is slightly different!
S N E A K P E E K — M A R C H ’ S M Y T H # 2 0
S o m e c a s i n o s o n l y a l l o w f r e e p l a y o n t h e “ t i g h t ” m a c h i n e s ! N o t T r u e …
V i s i t w w w . a z g a m i n g g u i d e . c o m f o r a l l p r e v i o u s m y t h s !
Deb
un
kin
g M
yth
s M Y T H # 1 9
his is one of the craziest and most finan-
cially harmful myths out there! The house
really makes money on this one! You
should actually never assume that the dealer’s hole
card is a 10 unless you‟re a card counter and feel
strongly that the odds are in your favor at a particu-
lar moment in time.
There are 52 cards in a standard deck and 16 of
those cards have a value of 10. This means that the
picture cards (and tens) make up 31% of the deck.
Mathematically speaking, the odds are 3 to 7 that
the dealer actually has a 10 in the hole. So, there is
basically a 70% chance that the dealer‟s hole card is
not a 10!
Many blackjack players also mistakenly believe that
the most favorable upcard from the player‟s per-
spective is a deuce. This, of course, goes along with
the false assumption that the hole card is a 10 and
that the dealer will most likely draw a 10 and bust.
Again, false and false. A 6up is actually the weak-
est upcard for the dealer (in other words, the most
favorable upcard for the player). And, the next
weakest upcard for the dealer is a 5up.
Basic blackjack strategy dictates your moves solely
based on the dealer‟s upcard and what you have
been dealt. Most blackjack strategy cards actually
start with the 6up because it‟s the weakest dealer
upcard and end with the A, the strongest dealer up-
card. The sequence of dealer upcards, in order from
weakest to strongest are: 6-5-4-3-2-7-8-9-T-A.
Relying on blackjack myths is a sure-fire way to
continue to have losing sessions. It may not matter
so much if you‟re playing the game for fun at a
friend‟s house, but when at the casino you really
shouldn‟t risk your bankroll on strategies that are
not based on facts. -AGG
In Blackjack, Always Assume
The Dealer’s Hole Card Is 10.
WRONG!
STOP!
READ THIS ONLY IF
YOU WANT TO KNOW
THE TRUTH ABOUT
CASINO GAMING
More Blackjack Myths
That Can Cost You
Myth: The object of blackjack is to reach 21. The object of blackjack is to beat the dealer, end
of story! Whether you accomplish this with a
soft 13 or a pair of tens is irrelevant.
Myth: Picture cards always follow picture
cards.
Picture cards (and tens) make up 31% of the
deck. The more picture cards that are used, the
lower the percentage is going to be. Therefore,
hitting a stiff hand of 12 through 16 actually
becomes much greater when there are fewer
picture cards remaining!
Myth: You can shave the house advantage
down to zero.
Players who have the patience and the willing-
ness to adhere to basic strategy can shave the
house‟s advantage down to almost zero. Even
playing perfect strategy, the house will always
have a 0.5%—1.0% advantage primarily be-
cause the players must make their moves first
before the dealer. The probability that a player
will bust when hitting on all hands that are less
than 17 is 28%.
Myth: Always take insurance when dealt a
blackjack.
Don‟t fall into the trap of buying insurance when
you have a blackjack or 20 and the dealer is
showing an Ace - no matter how much your
buddy is trying to convince you. If you make
this bet, in the long run you will be cutting your
profits by more than 13%.
T
SAMI’S SMACKDOWN
he subject of the e-mail
read, “Slot Attendant
Rant.” I thought to my-
self „oh boy, here we go
again’ - another casino patron writ-
ing to me about how slot attendants
are rude people who don‟t know
anything about customer service.
I was wrong. On the contrary, one casino
visitor kindly took the time to write me a
very thoughtful e-mail regarding her feel-
ings about slot attendants. I‟m happy to
share it with you, our readers, and all the
slot attendants who are part of that bunch!
Dear Sami,
I play at Fort McDowell and Casino Ari-
zona. From time to time I also enjoy driv-
ing up to Payson and playing there. The
slot attendants at all three of these casinos
are so nice and friendly. It breaks my
heart when I see people being rude to them
or talking behind their backs. Some cus-
tomers at the casinos can be such asses.
Personally, I wouldn’t be able to do the job
these people do.
The other day some man was sitting next to
me waiting to get paid and all he could do
was complain to me about how long it was
taking and how the slot attendants just
stand around and don’t do anything. Rub-
bish! When those slot attendants hear
there’s a payout on their radios, they al-
ways hustle off. All the slot attendants that
have provided me with service at the casi-
nos have been prompt and polite. And,
when I have had to wait a little longer,
they’ve always apologized for the delay.
Slot attendants always smile and say con-
gratulations to me when they do a payout.
In fact, they always wish me continued luck
and say, “We’ll be back to give you an-
other payout soon.” That always makes me
feel good.
People get so grouchy at the casinos when
they’re losing so they just take it out on the
slot attendants. Well, I play at the casinos
on a regular basis so I see what’s going on
with the slot attendants. I see them helping
out the cleaning service by picking up
empty glasses, bottles, and trash and emp-
tying out ashtrays. I see them offering as-
sistance to customers all the time like
showing people how to download their
freeplay or adjust the volume on a slot
machine. A couple weeks ago I saw, with
my own two eyes, a friendly slot attendant
help an elderly lady adjust her slot chair.
Sami, if any of these people I hear com-
plaining at the casinos write you an e-mail
to rant about the slot attendants, please let
them know how hard they’re working and
how little appreciation they get. I hope
you agree with me. I really enjoy reading
your column. When I pick up the magazine
I always start reading it from the back be-
cause some of my favorite sections are in
the back of the magazine and you are one
of the things I like to read first. Thank you
and keep up the good work!
Mary—Fountain Hills
Mary, I absolutely agree with you and I
couldn‟t have said it better myself. Slot
attendants have a difficult job. However,
other casino employees such as the secu-
rity officers, janitors, bartenders, cocktail
waitresses, dealers, cage employees, tech-
nicians and all the other employees who
deal directly with the casino public on a
regular basis face their own challenges.
Anyone who works, or has ever worked in
a customer service oriented position will
tell you that it‟s not easy.
To be completely honest, I have a difficult
time tolerating rude and inconsiderate peo-
ple at the casinos. In fact, just recently
there was a gentleman making snide re-
marks to me about the floor personnel as
well. I turned to him and said, “Maybe
their shift is almost over, they‟re tired, and
they‟ve had to deal with people like you all
day long!”
This is not to say that there aren‟t rude
casino employees out there. But, if there is
legitimate concern about a casino em-
ployee‟s behavior then the appropriate
action would be to communicate it to the
casino staff - that individual‟s supervisor
or a different employee. Conversely, when
a casino employee is doing an exemplary
job it‟s nice to pay them a compliment and
pass along the sentiments to their shift su-
pervisors.
Until next time …- Sami
Do YOU have something to rant about? Write me at:
Let’s just be honest … Not all casino customers
are a bundle of joy to deal with
T
26 Arizona Gaming Guide | February 2011
hey say you‟re either lucky in
love or lucky in money and I say
why not be lucky in both? If
you‟re considering giving your sweetheart
a token of your love this Valentine‟s Day,
then give a lucky bamboo.
Roses may be red and violets blue,
but Bamboo is what’ll bring luck to you!
In Chinese culture the lucky bamboo plant
is considered to bring good fortune and
better Feng Shui. It is known as “Fu Gui
Zhu” in Chinese where fu means rich, gui
means noble, and zhu means bamboo.
Valentine’s Day Fun Facts
♥ Pope Gelasius declared February 14 St.
Valentine‟s Day around 498 A.D.
♥ Valentine‟s Day is celebrated in the
United States, Canada, Mexico, England,
Scotland, France, Denmark, Italy, Japan
and Australia.
♥ The first commercial Valentine‟s Day
card produced in the U.S. was created in
the 1840s by Esther A. Howland. Her
beautiful cards were adorned with ribbons,
lace and colorful pictures.
♥ Nearly 1 billion Valentine‟s Day cards
are exchanged annually! This makes Val-
entine‟s Day the second most popular card
-giving holiday after Christmas.
♥ On average Americans purchase, and
give as gifts, 180 million red roses and 36
million boxes of chocolates every year.
♥ 73% of people who buy roses for Val-
entine‟s Day are men and 27% are women.
♥ 3% of Americans will buy their pets a
Valentines Day present this year.
♥ Americans spent over $14 billion on
Valentine‟s Day gifts last year.
T
A Little A Little
Thing CalledThing Called
LuckLuck Chocolates, Roses, &
Bamboo??
Sources: Greeting Card Association, Hallmark, and History.com
Write me your good luck stories at:
BET YOU DIDN’T KNOW ...
he Gaming Device Compliance Unit
of the Arizona Department of Gam-
ing has maintained its dedication to
completing each certification and inspection
necessary to ensure the integrity of tribal gam-
ing. Durying FY 2010, the Unit confirmed
that all gaming devices and accounting sys-
tems were in compliance with the opening of 2
new casinos. The Unit also performed ac-
counting system upgrades within every gam-
ing facility.
► Unit technicians oversee over 14,000 gam-
ing devices.
● Certifications, conversions, and upgrades
take place whenever a new device is intro-
duced or an existing one requires alteration.
► Unit technicians performed over 100 ran-
dom machine inspection visits in FY 2010,
verifying up to 50 gaming devices each time.
● Inspections verify that no unauthorized
modifications have occurred.
► As a top priority of the unit, extra steps
were taken to track and quickly respond to
notices of revoked software.
► All of the games, kiosks and the slot ac-
counting systems in the new Wild Horse Pass
Casino and Talking Stick Resort and Casino
were certified prior to their opening.
THE GAMING DEVICE COMPLIANCE
UNIT EXECUTED MORE THAN 100
RANDOM CASINO VISITS, INSPECT-
ING OVER 6,000 MACHINES!
February 2011 | Arizona Gaming Guide 29
T
FY 2010 MACHINE COMPLIANCE STATISTICS
■ INSPECTIONS
■ CERTIFICATIONS/CONVERSIONS/UPGRADES
■ TOTAL MACHINES VERIFIED
■ COMPACT DEFICIENCIES
Source: Arizona Department Of Gaming Annual Report FY 2010. © Copyright Arizona Department Of Gaming. All Rights Reserved.
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