Favorite

Hint: The house wins. 

 

By law, electronic games of skill at Southland and Oaklawn are required to pay out at a rate of 83 percent or more over the life of a machine.

Gaming Laboratories International, which monitors the machines, makes a monthly report to the state on total payouts, but the machines are not required to meet the 83 percent target on a month-to-month basis.

In order to meet the 83 percent target and to stay competitive with other casinos in the region, Shelby McCook, manager of the state Racing Division, said the manufacturer actually sets the machines to pay out at a rate of 91 percent, though the payout may vary depending on time periods.

In simple terms, that means, on average, if you put $100 into the slot of a machine, you can expect to get $91 back (if, that is, you set aside your winnings and don’t plug them back into the machine).

The state tax on electronic machine wagering is 18 percent of the net. That means an effective tax rate on all machine wagering, at the 91 percent payout, of about 1.6 percent.

By comparison, the state puts a 1 percent tax on wagers on live horse and dog races, simulcast racing and the Instant Racing machines, which also pay out on the pari-mutuel system.

Favorite

From the ArkTimes store

Comments

Subscribe to this thread:

Add a comment

More by Max Brantley

More by David Koon

Most Shared

  • 'Cemetery angel' Ruth Coker Burks featured in new short film

    Ruth Coker Burks, the AIDS caregiver and activist memorably profiled by David Koon as the cemetery angel in Arkansas Times in 2015, is now the subject of a short film made by actress Rose McGowan.
  • Buyer remorse

    Out here in flyover country, you can't hardly go by the feed store without running into a reporter doing one of those Wisdom of the Heartland stories.
  • Not Whitewater

    Just think: If Democrats had turned out 78,000 more votes in three states in November, people could be reveling today in the prospect of impeaching and convicting President Hillary Clinton, not Donald Trump, as some Republican lawmakers had promised to try to do if she won.
  • Head-shaking

    Another edition of so-much-bad-news-so-little space.

Latest in Top Stories

  • Good for the soul

    The return of Say McIntosh, restaurateur
    • Jun 1, 2010
  • Robocalls are illegal

    Robocalls -- recorded messages sent to thousands of phone numbers -- are a fact of life in political campaigns. The public doesn't like them much, judging by the gripes about them, but campaign managers and politicians still believe in their utility.
    • May 31, 2010
  • Riverfest winds down

    With Cedric Burnside and Lightnin' Malcolm, Steve Miller Band, Robert Cray, Ludacris and more performing.
    • May 30, 2010
  • More »

Event Calendar

« »

July

S M T W T F S
  1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31  
 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation