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California Slot Payouts Still a Secret

"The mystery concerns the payout rates for slot machines: How much of the money pumped into the thousands of chirping contraptions -- the life's blood of the state's 50 Indian casinos -- is returned to players as winnings?

"…California is by far the biggest gambling state that does not require casinos to disclose payouts for one-armed bandits, video poker and other computerized games. The devices bring in more than 80% of the Indian casinos' $5 billion in estimated annual revenues -- a tally that's second nationwide to Nevada's $9.5 billion.

"No government agency has suggested that the Golden State's gambling parlors are fleecing players, and the tribes say that their machines pay on par with the rates in Nevada. But most casino operators decline to provide specific figures. To do so, they say, would tip their hand to competitors.

"…From Nevada to New Jersey and Illinois to Mississippi, non-Indian gambling halls must report their percentages to state authorities. Connecticut is the only top gambling state that requires tribes to reveal their rates.

"States with reporting regulations make the numbers public, either by region -- the Las Vegas Strip, for example -- or by individual casinos. The rates, determined by computer chips embedded in the machines, generally range from about 92% in Atlantic City and Connecticut to a tad shy of 95% in Nevada. Most states also set payout minimums -- typically 75% or 80%. California's is 75%.

"…Gambling opponents are still angry that the agreements failed to address payouts. They say [Governor] Davis stacked the deck for the tribes because they lavished money on his election campaigns.

"…Davis spokeswoman Hilary McLean denied that campaign cash influenced the governor. She said the tribes held a strong position in the compact talks because California voters had approved an Indian gambling initiative, although the state Supreme Court ruled it unconstitutional.

"… Over the years, the tribes have repeatedly invoked their sovereignty in fending off state scrutiny of their gambling enterprises. Connecticut, the notable exception, insisted on payout disclosure when it granted tribes the exclusive right to operate gambling machines in the state. California's casinos enjoy a similar monopoly.

"In every state, the federal government is the ultimate authority over tribal gambling. The National Indian Gaming Commission can fully examine the casinos' financial records, and its auditors check gambling machines to ensure they haven't been tampered with. But the commission does not require the tribes to disclose their payouts…"

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