Sec. 36.04.01.11. Average Payout Percentage

A. Definitions.

(1) In this regulation, the following terms have the meanings indicated.

(2) Terms Defined.

(a) “Game cycle” means the finite set of all possible combinations of symbols on a video lottery terminal, including spinning reels or card images or other forms of video display or both.

(b) “Theoretical payout percentage” means the total value of jackpots expected to be paid by a video lottery terminal divided by the total value of video lottery terminal wagers expected to be made on that video lottery terminal during the game cycle.

(c) “Wager level” means all credit combinations available on a video lottery terminal from the minimum bet to the maximum bet.

B. A video lottery terminal shall have an average payout percentage which:

(1) Is 87 percent or more; and

(2) Does not exceed 100 percent.

C. Notwithstanding the requirements of §B of this regulation, in no event may a video lottery terminal have a theoretical payout percentage of less than 87 percent.

D. A facility may not make available for play a video lottery terminal with an average payout percentage which exceeds 95 percent without the written approval of the Commission.

E. A facility’s gaming floor shall be configured to collectively achieve, at all times, an average payout percentage which:

(1) Exceeds 87 percent; and

(2) Does not exceed 95 percent.

F. The Commission and the facility operator shall, in selecting video lottery terminals and configuring a facility’s gaming floor, rely on the video lottery terminal’s theoretical payout percentage.

G. Once a facility is operational, the Commission shall:

(1) Conduct periodic reviews to ensure that average payout percentages, on an average annual basis, comply with the requirements of this regulation; and

(2) If necessary, require the modification or replacement of a video lottery terminal to ensure compliance with the average payout percentage requirements of this regulation.

H. A payout percentage that may be affected by reason of skill shall meet the payout percentage requirements of this regulation factoring in a method of play that provides the greatest return to a player.

I. A video lottery terminal:

(1) May not:

(a) Offer a winning combination where the odds exceed 50,000,000 to one; and

(b) Alter any function based on an internal computation of payout percentage; and

(2) Shall be designed to ensure that all possible combinations in the game cycle are independent of each other.