Class Iii Gaming

Class III gaming, as defined by the Indian Gaming Regulatory Act (IGRA), includes most of what falls under “casino gaming”, such as slot machines, blackjack, and roulette. The move is a response to a lawsuit filed by the Chickasaw, Choctaw, and Cherokee tribes on December 31, 2019. Policy Letter Class III Tribal State Gaming Compacts, Director, Office of Indian Gaming- June 15, 2012 Below is a list of Tribal-State Gaming Compacts, Amendments and Off-Track Compacts. The compacts can apply those state laws to class III gambling that each party believes necessary for regulation. Class III gaming authorized by the Oklahoma State-Tribal gaming compacts, consists of electronic amusement games, electronic bonanza style bingo games, electronic instant bingo, and non-house banked card games.

Introduction to Legal Gaming Classifications

Accepted legal gaming classifications are available to state gaming boards to restrict which class of slot machines can be used in a casino or other gaming area, specifically Class I thru III.

All 3 classifications are in limited use by states for non-tribal casino operators but are fully in use at all Indian gambling establishments.

At this time, only Hawaii and Utah continue to prohibit all three classifications of gaming.

Keep Reading … or Watch Instead!

Class iii gaming license

Or … Listen Instead!

Find my podcast wherever you listen to audio!

Indian Gaming Regulatory Act (IGRA)

The first federal gaming structure for Indian gaming was established in 1988 with the Indian Gaming Regulatory Act, enacted as a U.S. federal law. The stated purposes of the Act include:

  • Providing a legislative basis for the operation/regulation of Indian gaming
  • Protecting gaming as a means of generating revenue for the tribes
  • Encouraging economic development of these tribes
  • Protecting the enterprises from negative influences, such as organized crime

The Act establishes three classes of games with a different regulatory scheme for each:

Class I Gaming

Class I gaming is defined as

  1. Traditional Indian gaming as part of tribal ceremonies and celebrations
  2. Social gaming for minimal prizes

Regulatory authority over this class of gaming falls to Tribal governments and is not otherwise subject to IGRA’s requirements.

Class iii gaming license

Class II Gaming

Class II gaming is defined as the game of chance known as bingo, aided or not aided by any electronics, and other games similar to bingo if played at the same location.

It also applies to games played exclusively against another player rather than against the house or a player acting as a bank.

Tribal governments are the primary legal entity responsible for regulating Class II games on its lands, as long as

  • The state in which the Tribe has located permits such gaming for any purpose
  • The Tribal government adopts a gaming ordinance approved by the National Indian Gaming Commission

Tribal governments are responsible for regulating class II gaming with Commission oversight. The Act specifically excludes slot machines or electronic facsimiles of any game of chance from the definition of class II games.

Class III Gaming

Class III gaming is generally referred to as casino-style gaming. It has a broad definition and includes all forms of gaming not specifically called out as Class I or II.

Games commonly played at casinos clearly fall into the Class III category, including

  • slot machines
  • blackjack
  • craps
  • roulette
  • wagering games
  • electronic facsimiles of any game of chance

As restricted by the IGRA, before a Tribe can lawfully conduct Class III gaming, these conditions must be met:

  • The particular form of Class III gaming the Tribe wants to conduct must be permitted in the state the Tribe is located.
  • The Tribe and state must have negotiated a compact approved by the Secretary of the Interior, or the Secretary must have approved regulatory procedures, a so-called Tribal-State Compact.
  • The Tribe must have adopted a Tribal gaming ordinance approved by the Chairman of the Commission.

The regulatory scheme for Class III gaming is complex, with key functions for approval authority resting with several organizations at the federal, state, Commission, and Tribal levels.

Summary of Legal Gaming Classifications

Accepted legal gaming classifications are available to state gaming boards to restrict which class of slot machines can be used in a casino or other gaming area, specifically Class I (tribal ceremonies), Class II (bingo), and Class III (everything else). Here’s a list of specifically-named games with their associated Class.

All three classifications are in limited use by states for non-tribal casino operators but are fully in use at all Indian gambling establishments. At this time, only Hawaii and Utah continue to prohibit all three classifications of gaming.

Related Articles from Professor Slots

Other Articles from Professor Slots

  • Previous: State Gaming Regulations and What You Need to Know
  • Next: 7 Advantages of Players Clubs for Playing Slots

Have fun, be safe, and make good choices!
By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC

Probably every single one of us has seen a slot machine at least once in our lives and besides the themes and colors they all look and sound the same, but are they? That is the question to ask!

Slot machines are usually divided into two groups, Class II and Class III machines. It is more than just easy to distinguish them when you known this simple trick; just check out the corners of the electronic display and if you find a little bingo card there then you can be sure that you are playing a Class II slot machine. Now that you know how to guess what kind of slot you are playing on, let us move on to understanding what the difference between them actually is.

Class 2 Gaming License

Who are you playing against?!

Now that is the biggest difference between Class II and Class III slot machines. Let us discuss Class II slots first; in this case you are playing against other players like you but the set of prizes are quite limited. This type of slots basically mimic the real game of Bingo. The game starts by hitting the spin button and you automatically join in the process. Certain number of slot machines are linked to the central processing computer that controls the game and calls out numbers and winner accordingly. One major difference between real-life Bingo and Class II slot machines is that you do not have to pay attention to the caller and search for the numbers on your card. At the end of the play, casino takes part of the income from the play and gives out the rest as cash prize to the winners.

You versus the Casino

This is the main principle of the Class III slot machines. You are simply playing against the casino. The slot machines are set up in a manner that it hold a certain part of the money played and redistributes the rest to the players. So, it is all about timing and luck. On the contrary to the Class II slot machines, Class III machines can make you a big winner.

To sum it up, Class II slot machines are played among some players simultaneously who battle for a single prize, while Class III machines can be played by lots of different people at different times and they all seek for the payout from a single machine.

Class Iii Gaming License Washington State

Antoine Foxx

33 year old male. Has visited Las Vegas several times as well as other great gambling places. Always having a good time. After having a little girl, he couldn’t travel as much so he started enjoying online gaming. Antoine is always looking for something different and interesting. Part time rock star but full time computer geek, he never seems to guarantee a balanced life. Enjoys Cajun food a lot!

Class Iii Gaming Definition

Latest posts by Antoine Foxx (see all)