United States
Lotteries in the U.S. were considering VLTs as early as 1981, when a planned experiment with 20 machines by the New York State Lottery was scrapped, after the Attorney General determined they would be illegal. A similar plan by the New Jersey Lottery died in 1983 after ties between state officials and VLT manufacturers raised conflict of interest concerns.
The first VLTs in the country were installed in late 1983 by Bellevue, Nebraska as part of its municipal lottery. Eleven other local lotteries in Nebraska followed suit, until the state banned the devices, effective 1985.
South Dakota became, on October 16, 1989, the first state to adopt VLTs. In a unique arrangement with private industry, the machines are owned by private companies but monitored by the South Dakota Lottery via a centralized computer system that assures the integrity of the games. South Dakota imposes a substantial tax on the net income (gross income minus player winnings) of the games. Beginning in 1992, four attempts were made to repeal South Dakota's video lottery; all were widely rejected by public votes. Most recently, in May 2006, petitions were filed containing over 21,000 signatures in order to place the issue on the November ballot; voters again agreed to keep video lottery, by a 66%-34% margin.
Other US jurisdictions which have had legal video lottery include Oregon, South Carolina (formerly), Rhode Island, Delaware, New York, West Virginia, Louisiana, Maryland, and Montana. Of these, Delaware, Rhode Island, and West Virginia formerly participated in a shared VLT game, Cashola.
The U.S. Virgin Islands also has a legalized video lottery, managed by Southland Gaming of the Virgin Islands. The local governments in St. Thomas and St. John use the funds generated by the video lottery to fund various government programs on the islands; primarily focusing on educational efforts.
Read more about this topic: Video Lottery Terminal
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