Video lottery terminals, or VLTs, are electronic games played on a video screen. Often they simulate popular casino games like blackjack, poker, or conventional slot games. Action on these machines is incredibly fast; it's possible to play 400 or more games an hour on a VLT.

VLTs derive their name from the fact that, in most cases, they are linked to a state lottery system. Some states, such as Oregon and South Dakota, allow VLTs in bars, restaurants, and convenience stores. Other states, such as Iowa and Louisiana, permit VLTs only at horse and dog racetracks, which has given rise to the term “racino” in gambling circles.

VLTs are highly popular, in part because of the quick action they offer. This has made them huge moneymakers for the states that have them, too. According to the North American Association of State and Provincial Lotteries, the top three states in per-capita lottery sales are Rhode Island, South Dakota, and Delaware — all with populations of roughly 1 million or fewer. In fact, Rhode Island takes in about $823 a year in lottery sales for every one of its residents. By contrast, Minnesota, which has a state lottery but no VLTs, takes in only about $81 for each of its 5 million or so residents.

Depending on the location, VLTs may use coins, a ticket system, or an individual account system.