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'Bar Month' at OnMilwaukee.com is back for another round! The whole month of February, we're serving up intoxicatingly fun bars and club articles -- including guides, unique features, drink recipes and more. Grab a designated driver and dive in!

After owners of a Middleton bar pleaded guilty to skimming cash from video gambling machines, News 3 Now started asking about whether it's legal for bars and other establishments to have these. We are an Illinois Video Gaming Terminal Operator that has partnered with the Illinois Gaming Board to provide video slot machines and Illinois video gaming services to bars, restaurants, truck stops, and fraternal organizations. Earn Illinois gaming revenue with video slot machines, gaming, and targeted marketing programs.

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.'

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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.'

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Biggest Slot Machine Payout Ever

Biggest Slot Machine Payout In History

She'd won big money before: hitting a $680,000 jackpot on a Wheel of Fortune slot machine, also at the Palace Station. It marked the first time Megabucks had surpassed $20 million. Well, it appears that the biggest slot machine wins also cannot go without Vegas casinos, so the fact that the largest slot machine payout in history happened in one doesn't surprise us at all. The biggest slot machine win of $39 million (and change) went to a 25-year-old software engineer from Los Angeles who, one day, decided to try his luck.

It only took 20 years, but the Lion’s Share slot machine at MGM Grand finally gave it up. In one of the most followed slots stories of 2014, a New Hampshire couple strolled into the MGM Grand on August 22 and won not only the $2.4 million jackpot, but also the machine itself. The payout finally allowed MGM Grand to decommission the Lion’s Share, which had been there since the casino opened in 1993.

Getting a seven-figure payday is always nice, but it doesn’t come close to being the biggest jackpot in slots history. The really big money comes courtesy of the massive progressive jackpots on the Megabucks machines. This is a network of 60-payline, five-reel slots with around 700 machines at 133 different locations. The odds of hitting the minimum $10-million jackpot in one play are nearly one in 50 million. With that in mind, here are the five biggest Vegas slots paydays on record.

$21.3 Million

Sometimes, all it takes is one spin. On June 1, 1999, a 49-year old self-employed business consultant from Illinois put $10 in the Megabucks machine at Caesars Palace. Moments later, he was over $21 million richer. He also won a $5,000 secondary jackpot. According to a spokesperson for IGT, the company that makes the Megabucks machine, the winner’s first wish was to pay off his credit card debts.

$22.6 Million

The Megabucks kept on flowing on March 27, 2002. Seventy-four-year-old Johanna Huendl of Covina, California put about $170 in the machine at Bally’s on her way to breakfast, and she ended up bringing home the bacon. Huendl, a Vienna native who came to America in 1956, thought at first that she had won a $2-million prize. She was off by one zero.

$27.5 Million

On November 15, 1998, an unnamed 67-year-old retired flight attendant from Vegas was playing the Megabucks machine at Palace Station, and she accidentally put in $300 when she intended to put in $100. She couldn’t have been upset for long because she won the first Megabucks jackpot to top $20-million in history. It wasn’t her first big slots win; she also took down a $680,000 prize playing the Wheel of Fortune machine at the same venue.

$34.9 Million

The previous record was held by Cynthia Jay-Brennan, a 37-year-old cocktail waitress from Las Vegas who played the Megabucks at the Desert Inn on January 26, 2000. Unfortunately, six weeks later, a drunk driver rear-ended Jay-Brennan’s Camaro, leaving her a quadriplegic and her sister dead. The 58-year-old driver was given 28 to 92 years in prison.

$39.7 Million

On March 21, 2003, a 25-year-old software engineer from Los Angeles (who chose to remain anonymous) put $100 in the Megabucks machine at the Excalibur. He ended up winning the biggest jackpot ever, paid out in 25 annual instalments of $1.5 million each.

You may have seen the news story a few years ago about a woman in Queens, New York who almost won the largest slot machine jackpot in history. Unfortunately, the nearly $43 million win was a machine malfunction that went well above the $6,500 max payout.

A new record may not have been set, but there have been a number of huge casino jackpots throughout history. If you’re gearing up for a trip to Vegas or a casino party, check out these stories of life-changing, mind blowing jackpot wins.

Biggest Slot Machine Jackpots

Think you can’t get lucky on a slot machine twice? In 1998 a retired flight attendant proved that lightning can strike twice at the casinos. The unnamed woman first won $680,000 on a Wheel of Fortune slot machine at Palace Station. She decided to keep trying her luck and months later she won $27 million on a Megabucks machine at the same casino!

Elmer Sherwin is undoubtedly a lucky guy. He also hit not one but two of the largest slot machine jackpots in history! The first win of $4.6 million was on a Megabucks slot machine at the Mirage in 1989. Sherwin decided to visit Cannery Casino in North Las Vegas in 2005 to test his luck again. There he won again on a Megabucks slot machine, but this time he walked away with $21.1 million. Mr. Sherwin was in his 90s when he hit his second jackpot.

A few years early a 25-year-old software engineer won the highest slot machine payout in history. In 2003 the young man won $39.7 million playing a Megabucks machine at Excalibur. He decided to take an annual $1.5 million payout for 25 years instead of one lump sum payment. That means he’ll be raking in the dough for another decade.

In 2000 Cynthia Jay scored the largest jackpot at the time. She won nearly $35 million at a Megabucks slot machine in the Monte Carlo Casino in Vegas. But less than two months later Jay was in a horrible car wreck that killed her sister and left Jay paralyzed from the chest down.

In August 2016 a resident of Hawaii came to the mainland for a Vegas vacation and traveled back home with a lot more money. What was really impressive is that the woman was playing penny slot machines at the Wynn casino when she won $10,777,270.51.

While it isn’t the biggest slot machine jackpot win in history, a Florida man identified as only Fred S. did get very lucky in July 2018. He hit not one but two big jackpots at the Hard Rock Biloxi within a matter of minutes. First, Fred got a massive $1,291,918 win with a $20 bet. While he waited on the casino to verify the win he got a $14,000 win on another slot machine to bring the total winnings over $1.3 million.

Biggest Hands at the Poker Table

Hands down, the World Series of Poker (WSOP) is where you’ll find the biggest Texas Hold’em jackpots. Once the field gets narrowed down to just two players, a single hand can bring in millions. After 10 hours of heads up poker playing, John Cynn was named the 2018 WSOP winner and received $8,800,000. His opponent Tony Miles didn’t do so bad himself. Even though he lost, Miles received $5 million for second place.

But that wasn’t the biggest payout in the history of the tournament or even that year. Four other WSOP winners have won more:

Jamie Gold - $12 million in 2006

Martin Jacobson - $10 million in 2014

Peter Eastgate - $9,152,416 in 2008

Jonathan Duhamel - $8,944,138 in 2010

In 2018 Justin Bonomo won $10 million in the World Series of Poker's $1 million buy-in Big One for One Drop. But by far the later poker jackpot ever was $18,346,673 when Antonio Esfandiari won the 2012 Big One for One Drop.

Highest Payouts at the Craps Table

Patricia Demauro is easily one of the most successful craps players in history. In 2009 she famously won 154 consecutive throws while playing at the Borgata in Atlantic City. The actual amount was never disclosed, but based on the minimum buy-in of $10 the payout would likely range from well over six figures up to $1 million or more.

Not long ago a player won over $5.3 million at the Tropicana Casino and Resort, mainly at the craps tables. The unidentified man had a 6-hour hot streak, but he had to bet big to win the millions. At one point he was placing $100,000 bets.

Huge Win at the Roulette Wheel

Biggest Slot Machine Payout Ever

In 2004 Ashley Revell made a huge gamble. He sold everything he owned, headed to Vegas and put his entire life savings on a spin of the roulette wheel. Crazy – yes. But it paid off. Revell put just over $135,000 on a red bet and won over $270,000. The whole thing was filmed and eventually became a short reality show called Double or Nothing.

Biggest Blackjack Winners

The most infamously successful blackjack players were a group of MIT students who used card counting to win around $100 million. However, this situation was unique because the mathematical geniuses worked as a team so their winning streaks wouldn’t get noticed by dealers.

But one man bested the MIT players. Gambler Don Johnson made millions at blackjack tables over a six-month period in 2011. Instead of card counting, Johnson sought out casinos that had the most favorable rules, like being able to split a hand up to four times.

Another thing Johnson looked for were casinos that offered a guaranteed payout, which refunds part of what’s lost on a hand. All that research paid off to the tune of $15 million in half a year of playing.

A billionaire by the name of Kerry Packer also won big at the blackjack tables. During a trip to Vegas in 1997 he reported won somewhere in the range of $20-40 million. The winnings came from a combination of black jack and baccarat.

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Biggest Slot Machine Payout In History

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