Slot machines in restaurants and gaming arcades are subject to strict laws in Canada. The payout ratio, the number of machines and the amount of winnings are all regulated by law in the New Gambling Regulation 2023. We have clearly summarized the most important slot machine laws here. As of: 2023.
Slot Machine Payout Ratio Law
Slot machine manufacturers have to ensure by law that about 90% of the bets are returned to the players for offline slots in casinos. In offline games, the RTP is around 65%.
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Maximum winnings and losses on slot machines
Maximum profit : A maximum of $ 400 per hour can be won at a machine.
Maximum loss : A maximum of $60 per hour may be lost at a vending machine.
Levy : On average, a vending machine is not allowed to withhold more than $ 20 per hour.
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What conditions do slot machines have to meet?
In addition to the maximum winnings and losses, slot machines in restaurants and gaming arcades must meet some other quite drastic regulations:
- Transparency : A comprehensive paytable must be attached to the machine.
- Test : Each machine must be checked at least every 24 months by a sworn, publicly appointed expert at the expense of the installer.
- Equal opportunities : The chances of winning must always remain the same at a machine.
- Documentation : All bets, winnings and losses must be documented.
- Play in dollars : Ads, bets and winnings on the machines may be made only one dollar and cents (not points).
- Maximum deposit : A player is allowed to charge a machine with a maximum of 10 dollars. Won amounts may not be automatically posted for use.
- No car game : A function of auto-play is not allowed.
- Pause after 3 hours : After three hours, a machine must be completely reset, the money stores must be emptied and the device must pause for 15 minutes.
Maximum bets and winnings per game
The maximum amount you can bet and win on the machines per game depends on how long a game lasts. The longer a single game lasts, the higher the stakes and winnings may be. However, no more than $ 2.30 may be wagered per game and no more than $ 23 in winnings may be distributed.
This table shows exactly how much can be bet and paid out per game:
| Playing time in seconds | Maximum bet per game | Maximum winnings per game |
|---|---|---|
| 15 | CA$ 0.50 | CA$ 5.00 |
| 30 | CA$ 0.95 | CA$ 9.50 |
| 45 | CA$ 1.40 | CA$ 14.00 |
| 60 | CA$ 1.85 | CA$ 18.50 |
| 75 | CA$2.30 | CA$ 23.00 |
Where can slot machines be installed in Canada – New Gaming Regulation
According to the new Gaming Ordinance, slot machines in Canada slot machines may only be installed in the following locations:
- In registered playrooms
- In catering establishments (restaurants) or accommodation establishments
- In betting shops of a licensed bookmaker
Furthermore, the Gaming Ordinance clarifies that slot machines in Canada may not be set up here:
- At fairs, folk festivals or similar events
- In pubs, bars and cafés
- In localities that are mainly visited by young people
How many vending machines can an operator set up?
The number of slot machines that can be placed in a casino or restaurant is also strictly regulated.
- In a Restaurant a maximum of 2 slot machines are allowed.
- In a Toy library a maximum of 12 slot machines may be installed and a maximum of one machine may be installed per 12 square meters of retail space.
- Be in the game library alcoholic beverages the number of vending machines is limited to 3.
To full text of the Spielothekenverordnung here we go.
Law on the payout ratio on slot machines
The exact Payout percentages on the slot machines is no longer regulated by law. According to the most recent Regulation amending the Gaming Regulation from 2014, only the maximum winnings and losses, as well as the average amount withheld per hour per machine are prescribed.
Until 2005, it was considered that an automatic machine had to pay out at least 50 percent of the bets to the player on average net. Nowadays, the providers – especially Merkur and Novomatic with Novoline - advertise with payout percentages of 80 percent. However, the actual values are likely to be well below these ratios and are in the range of around 60 percent.
Statistical surveys show that in 2017, an average of $ 11 per hour was withheld in an active slot machine. There is a legal limit of $ 20.
Example of the payout percentage on slot machines
To show how the payout percentage on slot machines works in gaming arcades, let's take a simple example. It is important to know that the maximum profit per game on such a machine is severely limited. If a single game lasts about 30 seconds, a maximum of $ 10 may be paid out.
Let's take a fictional slot machine as an example, where a game lasts 30 seconds, costs $ 1 bet and pays out up to $ 10 in winnings per game.
The machine pays out according to the following table:
| no profit | 100 of 200 games |
| 1 dollar profit | 80 of 200 games |
| $2 profit | 12 of 200 games |
| $3 profit | 5 out of 200 games |
| $5 profit | 2 of 200 games |
| $10 profit | 1 of 200 games |
If a player plays a good half hour at this machine, he manages 60 games. Over this period, its results could be as follows:
| Game # | Use | Profit | Net |
|---|---|---|---|
| 1 | CA$ 1 | CA$ 1 | CA$ 0 |
| 2 | CA$ 1 | CA$ 0 | - ABOUT$1 |
| 3 | CA$ 1 | CA$ 0 | - ABOUT$2 |
| 4 | CA$ 1 | CA$ 2 | - ABOUT$1 |
| 5 | CA$ 1 | CA$ 0 | - ABOUT$2 |
| 6 | CA$ 1 | CA$ 0 | - ABOUT$ 3 |
| 7 | CA$ 1 | CA$ 0 | - ABOUT$4 |
| 8 | CA$ 1 | CA$ 10 | CA$ 5 |
| 9 | CA$ 1 | CA$ 0 | CA$ 4 |
| 10 | CA$ 1 | CA$ 1 | CA$ 4 |
| 11 | CA$ 1 | CA$ 3 | CA$ 6 |
| 12 | CA$ 1 | CA$ 1 | CA$ 6 |
| 13 | CA$ 1 | CA$ 1 | CA$ 6 |
| 14 | CA$ 1 | CA$ 0 | CA$ 5 |
| 15 | CA$ 1 | CA$ 2 | CA$ 6 |
| 16 | CA$ 1 | CA$ 1 | CA$ 6 |
| 17 | CA$ 1 | CA$ 0 | CA$ 5 |
| 18 | CA$ 1 | CA$ 0 | CA$ 4 |
| 19 | CA$ 1 | CA$ 1 | CA$ 4 |
| 20 | CA$ 1 | CA$ 1 | CA$ 4 |
| 21 | CA$ 1 | CA$ 0 | CA$ 3 |
| 22 | CA$ 1 | CA$ 1 | CA$ 3 |
| 23 | CA$ 1 | CA$ 1 | CA$ 3 |
| 24 | CA$ 1 | CA$ 0 | CA$ 2 |
| 25 | CA$ 1 | CA$ 0 | CA$ 1 |
| 26 | CA$ 1 | CA$ 1 | CA$ 1 |
| 27 | CA$ 1 | CA$ 0 | CA$ 0 |
| 28 | CA$ 1 | CA$ 0 | - ABOUT$1 |
| 29 | CA$ 1 | CA$ 0 | - ABOUT$2 |
| 30 | CA$ 1 | CA$ 1 | - ABOUT$2 |
| 31 | CA$ 1 | CA$ 1 | - ABOUT$2 |
| 32 | CA$ 1 | CA$ 1 | - ABOUT$2 |
| 33 | CA$ 1 | CA$ 1 | - ABOUT$2 |
| 34 | CA$ 1 | CA$ 0 | - ABOUT$ 3 |
| 35 | CA$ 1 | CA$ 1 | - ABOUT$ 3 |
| 36 | CA$ 1 | CA$ 1 | - ABOUT$ 3 |
| 37 | CA$ 1 | CA$ 1 | - ABOUT$ 3 |
| 38 | CA$ 1 | CA$ 1 | - ABOUT$ 3 |
| 39 | CA$ 1 | CA$ 1 | - ABOUT$ 3 |
| 40 | CA$ 1 | CA$ 0 | - ABOUT$4 |
| 41 | CA$ 1 | CA$ 1 | - ABOUT$4 |
| 42 | CA$ 1 | CA$ 1 | - ABOUT$4 |
| 43 | CA$ 1 | CA$ 1 | - ABOUT$4 |
| 44 | CA$ 1 | CA$ 1 | - ABOUT$4 |
| 45 | CA$ 1 | CA$ 0 | - ABOUT$5 |
| 46 | CA$ 1 | CA$ 3 | - ABOUT$ 3 |
| 47 | CA$ 1 | CA$ 0 | - ABOUT$4 |
| 48 | CA$ 1 | CA$ 0 | - ABOUT$5 |
| 49 | CA$ 1 | CA$ 0 | - ABOUT$6 |
| 50 | CA$ 1 | CA$ 0 | - ABOUT$7 |
| 51 | CA$ 1 | CA$ 1 | - ABOUT$7 |
| 52 | CA$ 1 | CA$ 0 | - ABOUT$8 |
| 53 | CA$ 1 | CA$ 1 | - ABOUT$8 |
| 54 | CA$ 1 | CA$ 1 | - ABOUT$8 |
| 55 | CA$ 1 | CA$ 0 | - ABOUT$ 9 |
| 56 | CA$ 1 | CA$ 0 | - ABOUT$ 10 |
| 57 | CA$ 1 | CA$ 0 | - ABOUT$ 11 |
| 58 | CA$ 1 | CA$ 0 | - ABOUT$ 12 |
| 59 | CA$ 1 | CA$ 1 | - ABOUT$ 12 |
| 60 | CA$ 1 | CA$ 0 | - ABOUT$ 13 |
| Sum | CA$ 60 |
This example shows that over a period of 60 games – just over half an hour of playing time – the player lost $ 13. With a total bet of 60 dollars, this corresponds to a payout ratio of at least 78%. If you would like to try the example yourself, we recommend free slot machines which can be played without real credit.
However, since the maximum winnings are so limited in these machines thanks to the laws, it is very unlikely to even make a profit over the 60 games. In fact, the probability of making a profit after 60 games on a machine like in this example is a little less than 2 percent.
Other word : The machines in gaming arcades, gambling halls and restaurants have a long-term loss guarantee!
Where are the better slot machines?
If you like to play at vending machines, you should definitely look for better alternatives. In state casinos, the machines pay out over 90% and far higher winnings are allowed. Even better are Slots on the Internet - here up to 98% is paid out at the machines. We recommend that you take a look at the new online casinos, because that's where the emphasis is placed on new and good slots: New Online Casinos 2023
FAQs about Slot Machine Law
What is the Slots Law?
The State Treaty on Gambling regulates gambling on machines in a new way. And it is therefore also colloquially referred to as a slot machine law.
What does the Slot Machines Act 2023 include?
You can Online Slot Machines only use one dollar bet, each spin lasts 5 seconds and the car game has been disabled. In addition, machines with jackpot option may no longer be offered.
Why was the Slot Machine Law introduced?
The reason given was player protection. In reality, the Canadian state wanted to create a way to collect gambling taxes from Online Casinos to collect. And this was not possible with the providers based in the EU and EU license.
Is there also a slot machine law for offline machines?
Granted. The installation and use of offline machines is also regulated by the Slot Machine Act.
What changes does the slot Machine Law bring with it in online casinos?
Since it is not only a regulation of slot machines, but of the general online segment, providers with a German license may no longer cover live casino games, table games and progressive jackpot machines in the future.
