Question of the Day - 21 December 2022

In Nevada, slot purchases by private individuals are only lightly regulated, the main purpose being to prevent people from going into business for themselves as unlicensed slot-route operators. You can buy as many slots as you like, but can “distribute” only two per 12-month period. “This is to prevent individuals/companies from distributing gaming devices without first procuring a distributor’s license,” affirms Michael Lawton, lead researcher for the Nevada Gaming Control Board.

The pertinent restriction runs as follows:

14.330 Sale of gaming devices displayed or used in a private residence.

1. A person who owns gaming devices for use or display in the person’s private residence may sell a total of two such devices during any 12-month period, without procuring a seller’s or distributor’s license therefor. Requests to sell gaming devices must be made, processed, and determined in such manner and using such forms as the Chair may prescribe and may be granted by the Chair upon good cause shown. If

the Board does not object to the proposed transfer within five business days after receipt of the request, the proposed transfer may be effectuated.

2. Each request must include, in addition to such other items or information as the Chair may require:

(a) The full name, state of residence, address, telephone number, social security number, and driver’s license number of both the purchaser and the seller. If the purchaser or the seller does not have a social security number or driver’s license number, the birth date of the purchaser or the seller may be substituted;

(b) The number of devices to be sold;

(c) The serial number of each device;

(d) The model number of each device and year each device was manufactured, if known;

(e) The denomination of each device;

(f) The expected date and time of sale;

(g) Unless the purchaser is currently licensed by the Commission, a statement by the purchaser under penalty of perjury that each device will be used only for lawful purposes.

3. A person may own or obtain gaming devices through a lease for the limited purpose of display or use in that person’s private residence without procuring a state gaming license therefor as long as consideration is not directly or indirectly received for playing or owning the devices.

(Adopted: 10/90. Amended: 11/20/97; 5/21/98; 12/18.)

There is, however, a national regulatory wrinkle in the form of the 1951 Transportation of Gambling Devices Act, better known as the Johnson Act, characterized as “a broad federal law that prohibits the shipment of gambling devices.”

According to Regulatory Management Counselors, “The law does, however, allow shipments of gambling devices to states or localities that have passed legislation that specifically exempts the state or locality from the provisions of the Johnson Act,” as Nevada has done. The process was further refined by the federal Gambling Act (1962), which specified the types of devices covered by the Johnson Act.

The latter prohibits the importation of gaming devices, whether whole or in pieces, into U.S. territories. In other words, you can’t ship a slot machine to Guam. In addition to slots, roulette tables and other “mechanical devices” are covered. The law also pertains to “any subassembly or essential part intended to be used in connection with any such machine or mechanical device, but which is not attached to any such machine or mechanical device as a constituent part.”

As defined in the U.S. v. Twelve Miami Digger Slot Machines case, it doesn’t matter how innocuous your purpose for shipping gaming devices is; the Johnson Act covers it. Regulatory Management Counselors further explain, “The prohibition applies to shipments made across state lines, as well as between local jurisdictions within a state. Therefore, as an example, although one county within a state may have exempted itself from the Johnson Act, a violation could occur if a shipment is made from that county to a different county within the same state that has not exempted itself from the federal law by state or local legislation. 

“The statute does, however, allow for transportation across non-exempted jurisdictions if the device stays within the shipping vessel throughout the voyage.” Hence, the ability of casinos to purchase slots and other gaming devices from out of state.

If you don’t comply with the rules, though, your slots are subject to seizure. There are various other, subtler elements of compliance but those are the principal elements.