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Question of the Day - 17 June 2005

Q:
On my last trip to Las Vegas, I went to the Gambler's General Store. I noticed they had a large selection of used slot machines and video poker machines. Is a private individual able to buy new slot machines from the manufacturer or a distributor or must you have a gaming license to purchase a new slot or video poker machine?
A:

Different states have different laws concerning private ownership of slot and video poker machines and these laws are subject to change. Our advice is to check with the local authorities where you live before you part with any money. In some states, including (to the best of our knowledge) Alabama, Connecticut, Hawaii, Indiana, Nebraska, South Carolina, and Tennessee, any private ownership of slots is prohibited. In other states, it’s legal as long as the machine is old (usually 25 years, but sometimes more) and in some jurisdictions all machines are legal. In all states where any kind of private ownership is permitted, the machine must be used solely for private entertainment purposes, never for gambling.

Even if you live in a state where it’s legal to own a new slot machine, you would still need a gaming license to purchase directly from the manufacturer. Most machines that you can purchase from other vendors are used and reconditioned, although some longstanding popular machines, like IGT’s Double Diamond and Red, White and Blue 7s, can be bought new.

One type of slot machine is legal even in many states that generally prohibit private ownership. Called Pachislo, it’s what’s known as a "skillstop" machine, because players actually influence the outcome of where the reels land when they push the stop buttons. It’s this element of supposed "skill" that circumvents the rules governing regular slot machines, together with the fact that Pachislo machines take and pay out tokens rather than coinage. (In Japan, where the game originated, the tokens are redeemed for prizes.)

The majority of the Pachislo games on the market here are used machines imported from Japanese Pachislo parlors, which are then reconditioned in the U.S., but the popularity of the game is beginning to spawn some homegrown versions. In addition to having a more relaxed legal status, they tend to retail for $150-$200, so they're significantly cheaper than traditional slots, which generally cost upwards of $1,200. That said, there’s still some confusion about which states do and don’t allow Pachislo: Some vendors won’t ship to California or Washington or both, or to Colorado, Idaho, Louisiana, Montana, North Dakota, or Oregon. Again, it’s best to check with your local and state legal authorities.

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