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At bars all over the Milwaukee area, patrons sit down, order a drink and take their chances at a video gambling machine.
In just about every bar, you can find one of these machines. And for every machine, there is at least one patron willing to dump in money for hours on end, despite labels proclaiming 'for entertainment use only.'
Many times, though, the label is as decorative as beer advertisements on the wall. The fact is a large percentage of bars offer payouts for gamblers, in direct violation of Wisconsin state statutes.
Under a 1999 agreement that reduced penalties for operating illegal machines, enforcement is now handled solely by the state Department of Revenue, which makes sure bar, restaurant and hotel owners are paying appropriate taxes on revenue generated by machines.
Before then-Gov. Tommy Thompson revised the state law, violators faced felony charges, fines of up to $10,000, loss of liquor license and prison time. The current state law allows bars to have up to five video poker machines and paying out winnings is a civil offense, carrying a $500 fine and no loss of license.
Bars with more than five machines, however, could face criminal charges, according to Department of Revenue Communications Officer Jessica Iverson.
Regulating the machines is big business for the DOR, which has brought in nearly $23 million in taxes since the law went into effect in 2003. Proceeds generated through video gaming machines are taxable income, and the gross receipts are subject to the state's sales tax.
To keep things in check, the department relies heavily on tax audits and also enlists the help of Alcohol and Tobacco Enforcement agents.
'Our ATF agents come across the illegal machines through the course of normal inspection as well as in the course of investigating other tobacco or alcohol law violations,' Iverson says. 'We also, of course, conduct tax audits of businesses. If auditors identify gambling operations during the course of those audits, they will enlist the help of ATF agents to enforce that part of the statute, as well.'
In addition to the tax implications, the Wisconsin statute 945.01 (c) makes it illegal to operate any machine that affords a player to win something of value determined by a game of chance.
The threat of audits, fines and licensing issues aside, bar owners are willing to make the illegal payments because the machines bring in a big chunk of money.
'People sit down when they're bored,' said one bar owner who spoke with OnMilwaukee.com under the condition of anonymity. 'They're more inclined to spend more time and buy more drinks when they're at the machines and have a chance to win some money.
'A lot of people, if there's nobody at the bar, will sit at a machine and make a couple bucks to pass the time.'
At this particular establishment, players receive a ticket when done that they can redeem at the bar for their winnings. The bar owner knows he's taking a chance, but there's big money to be made, especially important in the current economy.
'It's a little bit scary, yeah,' he said. 'But it's a risk you take.'
Earlier in the decade, the Tavern League supported a measure introduced by Rep. Terry Musser (R-River Falls) that would have legalized the machines, generating as much as $380 million in revenue. Other supporters of the bill wanted to prevent Wisconsin Native American tribes, legally operating casinos under a compact with the state, from having a monopoly on gaming.
Some states are reconsidering their stances on video gambling in an effort to patch up growing budget deficits.
In Pennsylvania, Gov. Ed Rendell proposed legalizing some forms of video gambling as a means to fund free college tuitions at the 28 campuses in his state. Officials there estimate that roughly 17,000 video poker machines are operating illegally. Those machines, if legalized, could generate as much as $550 million, according to Gov. Rendell's plan.
'This is not an expansion of gaming,' Pennsylvania Revenue Secretary Stephen Stelter told The Philadelphia Inquirer earlier this month. 'It is the recognition that video poker is already a thriving industry.'
Introduction to Wisconsin Slot Machine Casino Gambling in 2020
Wisconsin slot machine casino gambling consists of 24 tribal casinos. Illegal video gambling machines exist in bars and taverns throughout Wisconsin.
Tribal-state gaming compacts have minimum and maximum theoretical payout limits. Annual return statistics are publicly available for all tribal casinos.
This post continues my weekly State-By-State Slot Machine Casino Gambling Series, an online resource dedicated to guiding slot machine casino gambler to success. Now in its third year, each weekly post reviews slots gambling in a single U.S. state, territory, or federal district.
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Relevant Legal Statutes on Gambling in Wisconsin*
The minimum legal gambling age in Wisconsin depends upon the gambling activity:
- Land-Based Casinos: 21
- Poker Rooms: 18
- Bingo: 18
- Lottery: 18
- Pari-Mutuel Wagering: 18
Tribal casinos in Wisconsin have negotiated tribal-state gaming compacts. However, each city or county must agree to both the development of a local tribal casino as well as the games offered at its site.
Further, many bars and taverns in Wisconsin have illegal video gaming machines. Having up to five machines results in civil forfeiture without legal repercussion while more than five machines are, instead, a criminal offense.
Anyone playing pay-to-play, bar-based slot machines must be at least 21. Otherwise, owners break a different law, this one having severe legal consequences for their business.
Electronic gaming machines in bars and taverns which are free to play with no prizes of any value are not illegal under Wisconsin’s gaming regulations.
*The purpose of this section is to inform the public of state gambling laws and how the laws might apply to various forms of gaming. It is not legal advice.
Slot Machine Private Ownership in Wisconsin
It is legal to own a slot machine privately in Wisconsin if it is 25 years old or older.
Gaming Control Board in Wisconsin
Wisconsin’s Gaming Division has gaming regulatory responsibilities including:
- Licensing procedures
- Background investigations
- Regulatory enforcement activities
The Division’s area of focus for tribal gaming is the Office of Indian Gaming and Regulatory Compliance created by tribal-state gaming compacts. The Office’s purpose is to ensure regulation of Class III games at casinos operated by Wisconsin’s eleven tribes.
Casinos in Wisconsin
There are 24 American Indian tribal casinos in Wisconsin.
The largest casino in Wisconsin is Potawatomi Hotel & Casino with over 2,500 slot machines.
The second-largest casino is Ho-Chunk Gaming Wisconsin Dells with 2,200 slot machines.
Commercial Casinos in Wisconsin
There are no commercial casinos in Wisconsin.
Tribal Casinos in Wisconsin
There are 24 tribal casinos in Wisconsin:
- Bad River Lodge Casino in Odanah, 45 miles east of Duluth.
- Grindstone Creek Casino in Hayward, 140 miles northeast of Minneapolis.
- Ho-Chunk Gaming Black River Falls, 110 miles northwest of Madison.
- Ho-Chunk Gaming Nekoosa, 50 miles north of Wausau.
- Ho-Chunk Gaming Tomah, 81 miles north of Madison.
- Ho-Chunk Gaming Wisconsin Dells in Baraboo, 40 miles northwest of Madison.
- Ho-Chunk Gaming Wittenberg, 30 miles east of Wausau.
- Lake of the Torches Resort Casino in Lac du Flambeau, 225 miles north of Green Bay.
- Legendary Waters Resort & Casino in Red Cliff, 80 miles east of Duluth, Minnesota.
- Menominee Casino Resort in Keshena, 40 miles northwest of Green Bay.
- Mole Lake Casino & Lodge in Mole Lake, 100 miles northwest of Green Bay.
- North Star Mohican Casino Resort in Bowler, 55 miles northwest of Green Bay.
- Oneida Casino – Irene Moore Activity Center (IMAC) in Green Bay.
- Oneida Casino – Main-Airport in Green Bay.
- Oneida Casino – One-Stop Packerland in Green Bay.
- Oneida Casino – Travel Center in Pulaski, 12 northwest of Green Bay.
- Oneida Casino – W. Mason in Green Bay.
- Potawatomi Hotel & Casino in Milwaukee
- Potawatomi Carter Casino Hotel in Wabeno, 85 miles north of Green Bay.
- Sevenwinds Casino, Lodge & Convention Center in Hayward, 75 miles southeast of Duluth, Minnesota.
- St. Croix Casino – Danbury, 62 miles south of Duluth near the border to Minnesota
- St. Croix Casino – Hertel in Webster, 83 miles south of Duluth near the border to Minnesota.
- St. Croix Casino – Turtle Lake, 76 miles northeast of Minneapolis near the border to Minnesota.
Other Gambling Establishments
As an alternative to enjoying Wisconsin slot machine casino gambling, consider exploring casino options in a nearby state. Bordering Wisconsin is:
- North: Michigan Slots
- East: Lake Michigan
- South: Illinois Slots
- West: Iowa Slots and Minnesota Slots
Each of the links above will take you to my blog for that neighboring U.S. state to Wisconsin.
Our Wisconsin Slots Facebook Group
Are you interested in sharing and learning with other slots enthusiasts in Wisconsin? If so, join our Wisconsin slots community on Facebook. All you’ll need is a Facebook profile to join this closed Facebook Group freely.
Slot Machines For Sale Milwaukee
There, you’ll be able to privately share your slots experiences as well as chat with players about slots gambling in Wisconsin. Join us!
Payout Returns in Wisconsin
Written into Wisconsin’s tribal-state gaming compacts are minimum and maximum theoretical payout limits. These limits apply over the expected lifetime of the game.
Each tribal-state compact has set minimum and maximum payout limits. However, there are two sets of limits, both of which apply over the expected lifetime of the game:
- Games-of-chance (slot machines): 80% and 100%
- Games-of-skill video games (poker, blackjack, etc.): 83% and 103%
For each machine, tribal casinos report to the state both its theoretical payout and actual return statistics. However, this valuable information is not available to the public.
An annual return statistic is publicly available for all tribal casinos combined in Wisconsin, although casino hold% comes from dividing Tribal Net Win by Handle Data. Player win% is from subtracting hold% from 100%.
In 2019, the most recent year available, the annual return statistic was 92.76%. This player win% is up from 2017’s 92.48% and 2018’s 92.61%.
Summary of Wisconsin Slot Machine Casino Gambling in 2020
Wisconsin slot machine casino gambling consists of 24 tribal casinos. Illegal gaming machines exist at many bars and taverns, but only five or more machines results in a criminal offense.
Milwaukee Machine Works
Tribal-state gaming compacts have established two sets of theoretical payout limits, including minimum and maximums. For games-of-chance such as slot machines, these limits are 80% and 100%. The 2019 return statistic was 92.76%.
Annual Progress in Wisconsin Slot Machine Casino Gambling
In the last year, there has been no significant changes to the slots gaming industry in Wisconsin.
Related Articles from Professor Slots
Other State-By-State Articles from Professor Slots
- Previous: West Virginia Slot Machine Casino Gambling
- Next: Wyoming Slot Machine Casino Gambling
Have fun, be safe, and make good choices!
By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC