Alpha-Omega Amusements

Short Primer on Unfair Business Practices: Amusement industry professionals are as vulnerable as anyone else to accusations of unfair business practices. Battling such accusations can be expensive. Of course, going to court is certainly not fun. This essay will provide a brief introduction to the basics of legal theory and practice for business owners...

Skill Crane Unfair Practice Suits: This year, California news media outlets have been following the story of one law firm that is suing nearly 2,000 small business owners. The defendants are principally mom-and-pop auto repair shops and restaurants that have a public record of any violation of licensing or health rules.

Redemption and the Law: Redemption is indispensable to location-based entertainment. People love to apply their skill to games like Skeeball and Hoop Shot, knowing that if they play these games successfully they will receive a merchandise prize. Redemption is not a simple business, and it contains a legal trap for the unwary.

State Law - A Trend for Reform: There is a new term beginning to appear in the state laws that define criminal gambling. One by one, states are enacting exceptions to their gambling laws, specifically to protect amusement redemption from unwarranted prosecution and harassment. The new term that is used in half of the reform is "bona fide amusement device".

A White Paper in Support of Statutory Reform: Commenting on our first article on Redemption And The Law, Deputy Riedthaler states, "I have never known a police department or sheriff’s office to refuse to examine or give an opinion on a machine submitted to the agency for examination of the legality of a device".

Consultation with Law Enforcement an Option?: Police consultation is no comfort to the operator. Neither is police consultation a substitute for statutory reform.

How one Courageous Operator Singlehandedly Reformed the Law of Pennsylvania: Pennsylvania’s law of criminal gambling is unique. It prohibits the possession and use of “gambling devices” but there is not a word in the statute to tell you what a “gambling device” is.

Cranes: Cranes are innocent devices. We all know that. It wasn’t too long ago that there were many policemen who disagreed with us. Envision a massive police sweep. Sixty vice detectives serving warrants. One hundred thirty devices seized.

How Bad Can it Be?: The laws against criminal gambling are tough - just how tough, I will explain presently. Then, how is it that the reality of what we see in use seems to indicate that the law is so permissive?

The Federal Conundrum: The conundrum for operators of redemption amusement is that the Federal Law of criminal gambling is at odds with the laws of amusement redemption of at least 12 (and counting) States.

The Free Game - Part 1: You should have seen my son's expression when I told him that the law treats the award of free games as a crime --- sometimes. He has this look of disdain that he uses to let you know that you aren't getting away with your attempt to fool him He doesn't appreciate it when you try to put one over on him. After all he's 15.

Florida Take a Step Back: The general standard for redemption games in Florida is that only those which offer a prize "by reason of any element of chance" are prohibited. If your machine doesn't violate this, there is no limit to the prize value which you can award.

The Barrior to Reform: Until now, most of what I have written in this column has been about how absurd the law is, concerning amusement redemption. Trust me, the law is even more absurd than I have presented to date, and I'll continue painting this Guernica in future issues.

Alabama's Almost Perfect Reform: This year, Alabama joined the growing number of states that have enacted amusement redemption exceptions to their criminal gambling laws. With Alabama joining the fold, there are now thirteen states with at lease some sort of redemption reform.

Reform in Michigan - Again: The Michigan law of criminal gambling has been the subject of almost constant tinkering, for about a decade. All in an effort to allow the People to have something which they clearly desire: prizes for playing amusement games.

Skill Stops - Is it in the Look?: From a recent opinion of the Supreme Court of South Carolina, here is a description of a type of device which is perfectly designed to demonstrate the frailty of our laws.

Big Trouble in Texas: There is trouble for the Industry, in Texas. Since 1995, Texas has been one of those states that defines the crime of possessing a gambling device, not in terms of whether there is more chance then skill in the operation of the device, but in terms of the value of the prize.

Debunking the Myth of Prohibited Features: When you make that kind of determination, what statute or what standard are you looking at to give an opinion that this is or this is not a gambling device?

The Internet - A New Threat?: Gambling By Computer is the intentional conducting or directly assisting in the conducting of any game, contest, lottery or contrivance whereby a person risks the loss of anything of value in order to realize a profit using any computer, computer system, computer software, or any server accessing the Internet, World Wide Web, or any part thereof.

Coping with Legal Fundamentalism Part I: There are some states that permit redemption amusement with just a little skill and a prize limit. Others prohibit redemption altogether, (if you want to be guided by the text of the law), but the prohibition is so unpopular that everybody ignores it, especially the police.

Coping with Legal Fundamentalism Part II: When making an equipment or equipment design decision, it is not unreasonable to ask oneself the question, “If I had to defend this game in court, how would I do it and would I do it successfully?"

Lessons from Indian Country: Tribal government gaming has been under furious attack since it began. With Congress’ passage of the Indian Gaming Regulatory Act of 1988 (the "IGRA") each recognized tribe was authorized to conduct bingo, pull tabs and non-banking card games on tribal land.

All it Takes is a Little Skill: Nothing is in the base definition, about skill. There are some strings attached but basically, an Arkansas “amusement device” may be licensed by the State and operated lawfully, even though it is a game of pure chance.

A Chart of State Constitutional Restrictions on Redemption Reform: I have checked the constitutions of all of the states and prepared the chart of state constitutional prohibitions related to lotteries and gambling, that accompanies these remarks...

Due Process of Law, Texas Style: Well, here is some law that everyone can and should understand. And in Texas its all about the persecution of our industry...

Miracle in Jeff City: The trouble with overbroad gambling prohibitions is that nobody cares to enforce them - most of the time. This abandons the competitive field to those willing to break the law.

A Revised Chart of State Constitutional Lottery Prohibitions: Who would ever think that a video game is a lottery? Seventeen states prohibit lotteries in their constitutions.

They Can't do That to Me: ...Maybe. The situation in Illinois has brought back the video game backlash of the early 80's in a new setting.

Accumulation: Accumulation of redemption tickets over a period of time enables the customer to walk away from the venue with valuable merchandise, even though for any single game played, the customer is playing for trifles.

The Wire Act: Congress is in the process of amending and supplementing an important Federal law: the Wire Act. This law was enacted in the early 1960s to enhance Federal enforcement against sports betting rackets prohibited under state law.

The Showdown: Soon after the first of the year, the Texas legislature will be back in session. It is likely to act to resolve a controversy raging in that state over how the law defines amusement redemption. Its disposition of the controversy will be of significance far beyond the state’s borders.

A Victory!: On November 19, 1998, the Supreme Court of South Carolina handed down an opinion of significance to the Industry. It told us that every opinion of the Attorney General of South Carolina about "lotteries" was without merit.

A Chart of State Gambling Loss Recovery Statutes: Litigation pending in two jurisdictions has invited focus on this question. If the law makes an exception to criminal gambling or gambling device possession, for a mix game of chance and skill with a limited prize, can people who play this game, sue to get their money back?

The Kyl Bill: Since 1995, Arizona Senator Jon Kyl has been trying to pass a bill to curb internet gaming. As we all know, you can play games of chance for cash today, right on your home computer.

A Post Mortem: As of May 31, the legislatures of thirty-one states have completed their job of law making, and gone home. By July 1, the legislatures of all but eleven states will be adjourned for the rest of the year.

The National Gambling Impact Study Commission Report: The Commission’s work product was supposed to be some sort of reference guide for policy makers, needed according to the Congressional finding because,"the most recent Federal study of gambling in the United States was completed in 1976."

The Showdown in South Carolina: November 2 will be a watershed for the Industry in South Carolina. On that day, the voters will decide if they want to continue video poker for limited cash payoffs but under what South Carolina Governor Jim Hodges has styled, "the toughest gambling regulations in the world."

Last Minute Decision of the South Carolina Supreme Court Voids Video Poker Referendum: On Thursday, October 14, the Supreme Court of South Carolina handed down an opinion which was a body blow to the state’s operators and its economy. Last July, a South Carolina law went into effect which provided for a public referendum on the question of video poker.

Federal Regulation of Skill Games?: A federal agency has proposed regulations to establish a formal process for the determination of which games are games of skill and which are games of chance.

Kyl Bill Update: "A person commits gambling when he ... knowingly ... operates an Internet site that permits a person to play a game of chance or skill for money or other thing of value by means of the Internet ..."

Texas Update: According to Associated Press, during the seven months between October of last year and this April, the Texas Attorney General's Office has seized 1,000 eight-liner machines and $756,000 in operators' cash.

Epitaph: By the time this issue of Play Meter is in the mail, the "end game" for the South Carolina video poker saga will have played itself out fully. I write this piece four days after a once-mighty state gaming industry was forced out of business by what cannot be said was the popular will.

Distributed Skill Tournaments : Distributed skill tournaments present contractual and regulatory issues that you won't normally encounter in the operation of amusement redemption in a single venue.

Survival, Texas Style: At last, the appellate courts of Texas have begun to lay down precedent that answers some of the riddles presented by the State's "fuzzy animal law."

Texas - Where are the Feds?: In a recent issue of Redemption and the Law, I discussed an operator-favorable ruling of a Texas Appeals Court: Games of chance are okay, prizes are okay, replay as prizes is okay and gift certificates are okay.