If it has not already been asked or answered, I want to know whether Class II bingo-based slot machines are any better, worse, or the same as Class 3 machines? And are there any tips for playing on these bingo-type machines, such as is it better to play when there are fewer or more people as long as there is at least one other player playing?
This is a complicated subject, which originates with the Indian Gaming Regulatory Act way back in 1988.
As you mention in the question, Class II gambling revolves entirely around bingo: Rather than results based on a random number generator as in "regular" Class III slots and video poker, Class II machines are determined by an electronic bingo game running in the background.
It’s not important, for the purposes of this answer, to know the technology invented by gaming-machine manufacturers to comply with the bingo requirement. What is important is that Class II slots are no different than slot machines. But instead of an RNG, the outcome is determined by the results of the bingo game, which translates to the slot outcome.
This is also true, and perhaps more readily observable, with video poker machines. The result is determined before the draw. Therefore, no strategy is involved. In fact, the cards you see are just visual representations of a bingo game that’s already been decided based on predefined prize structures. There's no fixed paytable, no true RNG per hand, and no skill involved in or edge derived from strategy choices.
As such, our understanding is that Class II systems do not loosen payouts when more players are active.
What can matter slightly is that Class II bingo games operate in pools. Each wager enters a shared bingo draw. Having at least one other active player is sometimes required for the bingo engine to function normally (this varies by jurisdiction and system), but beyond that, more players don't equal better odds or higher payouts. You’re not competing against other players, but you’re also not helped by them.
Any edge that you might gain in Class II comes from promotions: free play, matchplay, point multipliers, and loss rebates.
