Class 2 Gaming Casino

Washington Indian Gaming Class III Authorized Games Class III games are played against the house. Blackjack, Baccarat, Big 6, Chuck-a-Luck, Craps, Keno, Off Track Betting, Pai Gow Poker, Poker (Class III), Red Dog, Roulette, Sic-Bo, and Tribal Lotteries. Washington Indian Gaming Class II Authorized Games. Also known as bingo-based slots or bingo slot machines, Class 2 machines are created to replicate Class 3 slot machines in accordance with the regulatory guidelines. Indian Gaming Regulatory Act (IGRA) is issued by the Federal Government and clearly defines all machines, including class 1, class 2 and class 3 games. 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.

  1. Casino Class 2 Gaming
  2. What Is Class 2 Gaming Casino

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!

Or … Listen Instead!

Subscribe to my Professor Slots podcast at Apple Podcasts Google Podcasts Spotify Amazon Music Amazon Audible Gaana Stitcher Pandora iHeart Radio Tune-In SoundCloud RadioPublic Deezer RSS and everywhere else you find your podcasts!

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 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

Pennsylvania first launched legal casino gambling in 2006 when the first legal slot machines opened up at racetrack and casino properties across the state.

Since then, 12 legal gambling operations opened their doors, and a 13th is currently under construction in Philadelphia.

The original authorization for slot operations came from Pennsylvania’s Racehorse Development and Gaming Act, which was signed into law on July 5, 2004. In fact, the act created the Pennsylvania Gaming Control Board (PGCB) to oversee casino gambling in the state. Plus, it also created three categories of casino licenses governing gambling operations.

Category 1 licenses are for the state’s existing racetracks.

Category 2 licenses for stand-alone casino operations.

Category 3 licenses are for resort casinos.

In 2010, lawmakers amended the Act to allow for the operation of table games inside all three types of licensed facilities.

Plus, in 2017, the state passed a comprehensive gambling expansion package. It authorized the issue of online gambling licenses. Plus, this new set of laws created a fourth casino license category for satellite, or mini-casinos, across the state.

Here’s a look at the now four types of land-based PA casino licenses and exactly what each authorizes:

Category 1 – Racinos

Category 1 casino licenses were designed to help bolster the state’s struggling horse racing industry. The state’s existing racetracks were invited to apply for these Category 1 licenses and turn their horse racing facilities into a combination racetrack/casino known widely as a racino. The state planned to award no more than seven Category 1 licenses.

Each license permits the racetrack facility to host as many as 250 table games and 5,000 slot machines.

Six racetracks applied for Category 1 licenses and were approved. The list of currently operating Category 1 licensed Racinos in the state includes:

In order to apply for the license, existing racetracks were required to host live racing for at least two years prior. In order to keep it, live racing must occur at the property at least 100 days every year.

If a new racetrack property wants to apply for a Category 1 license, it must host live racing for a minimum of 150 days by its second year.

Category 2 – Stand-alone casinos

Category 2 licenses are for classic casino operations. There are currently five Category 2 licenses in the state. These are the four that are open:

The state granted a Category 2 license to Stadium Casino LLC. This entity is a partnership between Cordish Cos. and Parx Casino and racing owners Greenwood Gaming & Entertainment Inc. They are currently building a casino complex in South Philadelphia’s sports stadium district. The complex should open in 2020.

Category 2 license holders can operate the same 250 table games and 5,000 slot machines the state’s Category 1 license holders can. They can also offer major resort amenities, including restaurants, spas, and entertainment.

However, Category 2 licensees are not permitted to operate hotels directly connected to the casinos. Although, hotels may be built elsewhere on the property.

Category 2 licensees must build casinos in major cities or tourist areas. Additionally, they must be outside of a 30-mile radius of any Category 1 Racino.

Category 3 – Resort casinos

Casino Class 2 Gaming

Category 3 licenses are for resort casino properties. The law authorizes the state to issue three of these licenses. So far, there are only two Category 3 casinos. These are:

Gaming options are restricted to 600 slot machines and 50 tables. However, these are the only gaming facilities that can have attached hotels.

Initially, casino players had to either be hotel guests or pay a fee to use the property’s amenities. However, as a part of the state’s 2017 gambling expansion, Category 3 licensees could pay a $1 million fee to remove the amenity fee provision.

Category 3 licensees can now also pay another $1 million to add an additional 15 table games and $2.5 million to add up to 250 slot machines.

Category 4 – Satellite Casinos

The comprehensive gambling expansion laws passed by PA legislators in October 2017 authorized the issue of up to 10 Category 4 satellite casino licenses

Class

These mini-casinos can operate anywhere from 300 to 750 slot machines and up to 30 table games. Properties can add 10 more table games after the first year of year of operation.

Satellite casino sites cannot be within 25 miles of one of the state’s existing Category 1, 2, or 3 casino license holders. However, its these license holders that got the first chance to procure the licenses and build the casinos.

PGCB is now in round two of auctions for Category 4 licenses. The first round began in January 2018, resulting in four accepted bids:

What Is Class 2 Gaming Casino

  • Mountainview Thoroughbred Racing Association, LLC, operators of Hollywood Casino at Penn National Race Course, bid $50,100,000 to build in the Borough of Yoe in York County.
  • Stadium Casino, LLC, the group in the middle of construction on a second Philadelphia casino, bid $40,100,005 to build in Derry Township in Westmoreland County.
  • Mount Airy #1, LLC, operator of the Mount Airy Casino Resort, bid $21,188,888.88 to build in the City of New Castle in Lawrence County.
  • Greenwood Gaming and Entertainment Inc., which operates Parx Casino, bid $8,111,000 to build in South Newton Township in Cumberland County.