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In January 1998, former Attorney General Morales stirred upcontroversy in the gaming industry by publishing his opinion DM-466 regarding the legality of gaming machines, namely “eight-liners.” Morales’sstated that there are three major components that make eight-liners illegal:

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1. They operate on the basis of chance.

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2. They require the payment of consideration toplay.

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3. They offer a prize, either coupons redeemablefor gift certificates or, in some cases, cash.

In his opinion, Morales mentions that stripped of the“amusement” amendment the gaming devices would be considered illegal in a courtof law. Since the release of the opinion opponents of gaming have used it as atool to define their stance.

What AreEight-Liners?

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Eight-Liners” have become the epicenter of the controversy.They require the player to deposit money into the machine to receive gamingcredits. The players then activate the machine by pressing a button or pullingan arm. The gaming screen contains eight lines- three across, three down, andtwo diagonals- on which players can win. Players usually push a button or otherdevice to convert credits into tickets or other tokens which are then tradedfor something of value such as a certificate, lottery tickets, etc.

The Facts

In a Focus Report published by the Texas House ofRepresentatives’ House of Research Organization, the organization states thefollowing:

“Chapter47 of the Penal Code explicitly prohibits gambling-device versions of bingo,keno, blackjack, lottery, roulette, and video poker.. it also defines illegalgambling devices as electronic, electromechanical, or mechanical contrivancesthat, for a price, allow players an opportunity to obtain anything of value,with the prize awarded solely or partially by chance, even though some skillmay be necessary. Owning a gambling device is a Class A misdemeanor, punishableby a $4,000 fine, one year in prison, or both. “

However, in 1993 and 1995, amendments were made to the PenalCode that legalized “amusement” machines. These are described as electronicgames that offer low-value prizes not to exceed $5 or 10 times the cost ofplaying the game once, whichever is less.

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You may be asking yourself, “what about the lottery?” Theanswer is, only the state lottery, charity-sponsored bingo, and charitableraffles have been specifically authorized by constitutional amendments.

Article 3,Section 47 of the Constitution states…

Sec.47. LOTTERIES AND GIFT ENTERPRISES;BINGO GAMES. (a) The Legislature shall pass laws prohibitinglotteries and gift enterprises in this State other than those authorized bySubsections (b), (d), (d-1), and (e) of this section.

Toaccess the full Article, click here.

Who Has the Authorityto Take Action?

State agencies that regulate lottery sales, bingo, andalcoholic-beverage licenses, such as The Texas Alcoholic Beverage Commission(TABC) have the authority to regulate and take action for any illegal gamblingactivity.

The Great Debate

Prior to the attorney general’s opinion being published, lawenforcement found it challenging to crack down on anti-gaming laws because thestatutes were far too complex and the law contained many, many gray areas. Thelimited resources for departments also pushed the topic onto a back burner inorder to address other criminal issues. Since most gambling offenses aremisdemeanors offenders are most likely to risk criminal prosecution in returnfor high profits.

Proponents of the gaming industry argue that the attorneygeneral misinterpreted the constitution. They state that eight-liners are beingjudged on how they look rather than how they function. One of the majorproponents include The Amusement and Music Operators of Texas (AMOT)- a tradeassociation consisting of 250 members who own and operate coin machines. AMOTsays the attorney general’s opinion could cause a demise to all gaming- notjust eight-liners. Others argue that eight-liners require skill and shouldtherefore be safe-guarded to stay within the legal realm of gaming. In fact,the focus report mentions Mike Macke’s testimony before the Governor’s TaskForce on Illegal Gambling. Mike is the president of Cadillac Jack, Inc., amachine manufacturer. In his testimony, he says that the machines have a buttonthat must be pushed to complete a play of the game and that using this buttonis a matter of skill.

Critics, on the other hand, argue that the attorneygeneral’s opinion should be taken as concrete legal advice and should becarefully considered by the courts involving civil and criminal cases in thegambling industry. Since the release of the AG’s opinion many opponents haveflourished by using DM-466as a basis for their argument and thus picked up pace to fight their position. Infact, the Governor’s Task Force has since recommended amending the Penal Codeto prohibit all slot machines.

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Civil lawsuits involving illegal gaming have been difficultto interpret. Many are pending, some have resulted in temporary restraining andseizures, and some have been dismissed. The limited history of illegal gamblingincrimination statutes isn’t much help either. Criminal prosecutions have alsobeen few and far between.

For more information on the Focus Report click here.

Citations

Morales, Dan, JorgeVega, Sarah Shirley, and Rick Gilpin. 'Morales Opinion No. DM-466.' Morales Opinion No. DM-466.Texas Attorney General, 23 Jan. 1998. Web. 26 Aug. 2016.

'THE TEXASCONSTITUTION ARTICLE 3. LEGISLATIVE DEPARTMENT.'THE TEXAS CONSTITUTIONARTICLE 3. LEGISLATIVE DEPARTMENT. The Texas Constitution, n.d. Web. 26Aug. 2016.

Research Organization.'A Fuzzy Issue: Are Eight-Liners Amusement or Gambling?' Texas History. UNT, 2 Feb.1999. Web. 26 Aug. 2016.

Laws restricting noncommercial ownership/use of mechanical & digital games of chance

This is a list of potential restrictions and regulations on private ownership of slot machines in the United States on a state by state basis.

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