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SEOUL, South Korea — The U.S. Army uses a complex formula for dividing its slot machine profits.

On Army installations, the host facility — the bowling center where the slots are located, for example — gets an immediate 10 percent of the take, Don Rojas, general manager of the Army Recreation Machine Program, said during a phone interview earlier this month.

Operating expenses — such as labor and business supplies — are then deducted from the remaining 90 percent. Rojas said operating expenses total about 21 percent of the total gross slot machine revenue.

Once those expenses are deducted, the sum is once again divided, with 60 percent going to the Army garrisons where the money was made and 40 percent going into what’s called the Central Fund Account.

The garrisons use their 60 percent to fund capital purchases and minor construction — projects under $1 million, Rojas said. This could include a snack bar renovation, replacement bowling pins or new carpeting, Rojas said.

The money in the Central Fund Account is used to fund worldwide Army capital construction for facilities that Congress does not appropriate taxpayer dollars to build, Rojas said. These include certain types of facilities that should be self-sufficient, such as golf courses.

And when the Army runs machines on other services’ installations — like it does for the Navy in South Korea or the Marines on Okinawa — the other service takes either 70 percent or 80 percent of the profits. The decision is based on whether the Army must make an initial investment for such things as a new office or staff members, Rojas said.

If so, the other service gets 70 percent of the revenue. But if the infrastructure already is in place, the host gets 80 percent of the revenue.

The Army then deducts its operating expenses from the remaining 20 percent or 30 percent of the revenue and the result is deposited into the Central Fund.


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