What he's saying is that the machines in these parts of Washington look like slot or video poker machines, but play like "scratch-off" lottery tickets. That's why they call them "video lottery terminals."

When you buy a game on them the outcome has been decided in advance, just like if you were to buy a scratch-off lottery ticket. This is also known as "class II" or "player banked" gaming, because it's not random, they've decided how many winning tickets there will be and how big the winners will be in advance, allowing them to set any "win" for the house that they want.