The entire Illinois Video Lottery is structured to never issue a W2G. It's Class III gaming. It's sanctioned by the state which takes a 30% tax off the win of every machine. The slot route operators own the machines and lease them to the bars, restaurants, gas stations, stand alones, for 35% of the win. That means the businesses get 35% of the win but have to pay all the overhead. Each business is allowed 5 machines. There are over 7000 locations in the state. So over 35,000 machines. There are cash out kiosks at every location so employee's have no interaction with the gamblers.
The max bet is $4 and max line pay is $1199. Here is an example of what is different in the Illinois Video Lottery from every other jurisdiction in the country. Take the game in the pic below, Wold Run Eclipse. Say you are betting $4 per spin. And let's say you hit the 101 Mega Free Games. Those games have an average value of 12 units per spin. So if you are lucky enough to hit them you are going to rack up somewhere around 1200 units. Since you are betting $4 you will rack up somewhere around $5,000. When you are finished with the spins the machine will lock up for a handpay. That's because the total of money won on the free spins is attributed to the spin that won the free games. But not in the Illinois Video Lottery.
Because in the Illinois Video Lottery the "Free Games" are not really free. You are charged either 1 penny or 1 nickel per "free spin" depending on the game but paid per the $4 payscale. That makes all the "free spins" independent of each other. And since the max line pay is $1199 there are no W2G's involved.
I actually seen a person hit the 100 free games on Wolf Run Eclipse, rack up $5000 then cash the ticket as accumulated credits in the kiosk.
The Illinois Video Lottery was one of my honey holes for years because there were a lot of exploitable video games. But eventually other AP's caught on and the competition means the money ain't so great anymore.
So this structuring in Illinois has been going on for about 10 years or so and the IRS has permitted it. If they allow it in Illinois there shouldn't be anything stopping casinos in other states from doing it. Why they don't is beyond me.
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