Get Publication 3908 (Rev. May 2002). Gaming Tax Law For Indian Tribal Governments

The truth is, yes – s can control a slot machine or rig it only to give players small wins. Some s work with developers to create exclusive games. This gives them even more access to a game's code and RNG.

Federal Law. The IGRA permits operations on Indian lands, which it defines as (1) reservation lands, (2) lands held in trust by the U.S. for benefit of an Indian tribe or individual, or (3) certain specified lands over which an Indian tribe exercises governmental power.

What they do not include are slot machines or electronic facsimiles of any game of chance. Tribes themselves regulate Class II games with oversight by the National Indian Gaming Commission. -style gambling is Class III gaming. This includes games typically played at s: slots, video poker, table games, etc.

Income may be tax-exempt at the state and local levels when a Native American individual earns the money on tribal lands. Individual Native Americans who receive per capita gaming distributions from their tribe must pay federal tax on that income.

In some cases multiple machines are linked across multiple s. In these cases, the machines may be owned by the manufacturer, who is responsible for paying the jackpot. The s lease the machines rather than owning them outright.

When the tribal members receive their Forms 1099-MISC, they report the income on the "Other Income" line of their Form 1040, U.S. Individual Income Tax Return, and include a description as "Indian gaming profits." These distributions are also subject to withholding.

Any claims to machines being tighter at a given time of day, day of the week, or time of the month are false. By the way, this is true of s in Las Vegas. Indian s may fall under different rules and regulations. The technology does exist and is being marketed by the machine makers...

Pretty much anything goes. However, most operate on par with the commercial s in their state. There is no minimum payback on slot machines but obviously, people aren't going hang around a where no one is winning so they keep they payback at a decent level.