BILL ANALYSIS Ó
AB 1103
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Date of Hearing: April 24, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 1103 (Hall) - As Amended: March 21, 2013
SUBJECT : Gaming: slot machines
SUMMARY : Clarifies that only amusement machines or devices
that do not offer money or any item that can be redeemed for
money, as a prize are excluded from the definition of a slot
machine or device.
EXISTING LAW
1)Provides that the manufacture, sale, possession, or control of
a slot machine, or device, as defined, and other specified
activities relating to slot machines or devices, as defined,
is a misdemeanor.
2)Defines a "slot machine or device" as a machine, apparatus, or
device that is adapted, or may readily be converted, for use
in a way that, as a result of the insertion of any piece of
money or coin or other object, or by any other means, the
machine or device is caused to operate or may be operated, and
by reason of any element of hazard or chance or of other
outcome of operation unpredictable by him or her, the user may
receive or become entitled to receive any piece of money,
credit, allowance, or thing of value, or additional chance or
right to use the slot machine or device, or any check, slug,
token, or memorandum, whether of value or otherwise, which may
be exchange for any money, credit, allowance, or thing of
value, or which may be given in trade, irrespective of whether
it may, apart from any element of hazard or chance or
unpredictable outcome of operation, also sell, deliver, or
present some merchandise, indication of weight, entertainment,
or other thing of value.
3)Exempts from the definition of a "slot machine or device,"
music machines, weighing machines, and machines which vend
cigarettes, candy, ice cream, food, confections or other
merchandise in which there is deposited an exact consideration
and from which in every case the customer obtains that which
he purchases.
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4)Exempts from the definition of a "slot machine or device,"
pinball, and other amusement machines or devices which are
predominantly games of skill, whether affording the
opportunity of additional chances of free plays or not.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of the bill : Illegal gambling machines that offer money
as prizes are a growing problem throughout our communities. The
last couple of years, law enforcement has seen an increase in
these types of machines that offer up to hundreds of dollars as
prizes. These machines are often found in stores, restaurants
and bars throughout the State of California, but especially
throughout Los Angeles County.
Unfortunately, according to the sponsor of this bill, the Los
Angeles County Sheriff's Department, district attorneys are
having a hard time prosecuting these individuals because of a
loophole in the law that allows individuals to claim these types
of machines are games of skill.
AB 1103 aims to clarify that only amusement machines that do not
offer money as a prize or an item than can be redeemed for
money, are excluded from the definition of a slot machine.
Background : On November 1, 2010, the California Bureau of
Gambling Control released a law enforcement advisory in response
to inquiries from local law enforcement agencies, inquiries from
state agencies including the California State Lottery and the
California Department of Alcoholic Beverage Control, and from
the Bureau's observations in the field. While the purpose of
the advisory was informational, and did not constitute legal
advice, discussion of the advisory is nonetheless noteworthy.
In the advisory, the Bureau stated that as a general matter,
most, if not all, gambling devices, other than those operating
in California Tribal Casinos, that a person pays to play, and
that offer anything of value for playing, are illegal devices.
Common types of illegal devices include coin pushers, electronic
trivia games that include any element of chance, claw machines,
traditional slot machines, and slot machines that purport to
have a skill element.
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California's gambling device statutes are broad in their
coverage and prohibit any person from owning, renting, or
possessing illegal gambling devices. An illegal gambling device
has three features.
(1) It is a machine, apparatus, or device (coin
operated is not required);
(2) Something of value is given to play the
device; and
(3) The player has the opportunity to receive
something of value by any element hazard or chance
("something of value" is not limited to coins, bills,
or tokens-it also includes free replays, additional
playing time, redemption tickets, gift cards, game
credits, or anything else with a value, monetary or
otherwise.
In addition, if a device can readily be converted to have the
features of an illegal gambling device, it is an illegal device.
Devices that fall within the definition of an illegal gambling
device above may nevertheless qualify for the "pinball" or
"amusement device" exception if they meet specified narrow
requirements. A gaming device qualifies for the amusement
device exception, and therefore is lawful, if it:
1) Provides an opportunity to win nothing
other than additional or free play; and
2) Is predominantly a game of skill.
A lawful device is one that is predominantly a game of skill (as
most arcade pinball machines), on which what can be won is
limited to additional chances or free plays. If, however, the
player has paid to play and can win something other than
additional plays, such as food, toys, or other prizes, the
machine does not qualify for the amusement device exception and
it is an illegal gambling device. As an additional example, a
coin pusher is an illegal gambling device, whether or not it
purports to have an element of skill, because the player can win
coins by playing.
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This advisory thus argues that even if gaming device falls under
the category of a game of skill, it is still an illegal gambling
device if the player can win something other than additional
plays, such as food, toys, or other prizes.
California Tribal Casinos are permitted to operate slot machines
pursuant to the terms of approved Tribal-State Compacts and
California law.
Arguments in support : According to the Los Angeles County
Sheriff's Department, illegal gambling machines are a growing
problem across the State of California and throughout the United
States. The illegal gambling machines are disguised to appear
as legal video games, charitable sweepstakes, amusement games,
or games of skill. The machines are found in stores,
restaurants, internet cafes, bars and some fraternal
organizations.
For an amusement machine to qualify for exemption in California
Public Code Section 330.5, it should not be allowed to offer
money as a prize. If a player pays money, risks, money, or
something of value to play a machine with the hope of winning
money, or something of value, whether based on skill, or chance
the machine involved is a gambling machine/device.
LA County Sheriff's Department personnel have identified a
loophole in the law allowing gambling activity that should be
considered illegal. This legislation will close that loophole
and better control illegal gambling activities.
Prior legislation : AB 1753 (Hall), Chapter 577, Statutes of
2010. The bill increased the fines for repeat slot machine
related offenses.
REGISTERED SUPPORT / OPPOSITION :
Support
Los Angeles County Sheriff's Department (Sponsor)
Opposition
None on file
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531
AB 1103
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