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OLG piloted a classification system for slot machines at the Grand River Raceway developed by University of Waterloo professor Kevin Harrigan, as part of its PlaySmart initiative for responsible gambling. These fall under the jurisdiction of the province or territory without reference to the federal government; in practice, all Canadian provinces operate gaming boards that oversee lotteries, casinos and video lottery terminals under their jurisdiction. Under the IGRA, Class II games are regulated by individual tribes and the National Indian Gaming Commission, and do not require any additional approval if the state already permits tribal gaming. In order to offer Class III gaming, tribes must enter into a compact (agreement) with the state that is approved by the Department of the Interior, which may contain restrictions on the types and quantity of such games. These machines usually allow a player to either take a payout, or gamble it on a double-or-nothing « side game ». Many states have established gaming control boards to regulate the possession and use of slot machines and other forms of gaming.

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