Brownwood News – After receiving numerous complaints from citizens regarding several businesses currently operating 8-liner style gaming machines, the Brownwood Police Department and Brown County Sheriff’s Office are working together on potential criminal investigations.
“We are seeking voluntary compliance with the law to avoid potential criminal and civil penalties for operating an illegal gambling business,” Brownwood Police Chief Nichols said. Should businesses be found not in compliance, charges could be forthcoming.
In order to allow businesses the opportunity to make sure they’re compliant with the law, the following letter is being hand delivered to numerous locations in Brownwood known to be operating 8-liner style gaming machines.
Establishment Owners, Managers and Employees:
It has come to our attention that you are possibly operating an illegal gambling establishment. The purpose of this letter is to inform you that the Brownwood Police Department and the Brown County Sheriffs Office will be investigating your business, and other like yours, in the very near future. Unfortunately, you will not know about the investigation until it is concluded because it will be conducted covertly.
If we determine that your business is being operated illegally, we will collectively take all legally available action against your business, including the arrest and prosecution of operators and employees, the seizure of all illegally obtained proceeds and the seizure of all equipment involved in the operation of your business.
There is a common misconception that if the Texas State Comptroller placed a tax stamp on these devices they are legal. This is only partially true. The Texas State Comptroller stamp is confirmation that the device is legally registered with the state. Being registered, however, does not address the legalities of how the machine is being operated.
Under current law, if the eight liner is used only for bona fide amusement purposes, awards the player with noncash merchandise or vouchers redeemable for novelty items, and the value of the prize or certificate is not more than 10 times the cost of a single play or five dollars (whichever is less), the machine is legal. On the other hand, if the machine pays out in cash or exceeds the statutory minimum prize amount, it is illegal.
However, it’s not quite that simple. Eight liner operators use various tactics to “skirt” the law. For example, two consolidated Texas Supreme Court cases from 2003 held that gift certificates redeemable at retail stores arc the equivalent of cash and eight liners that dispense the certificates are illegal gambling devices. In addition, if an eight liner rewards a player with cash, even if that cash is only used to play another machine, the eight liner is an illegal gambling device.
The letter went on to cite several noted cases regarding criminal prosecution of 8 liner establishments. The letter also encouraged businesses to review Chapter 47 of the Texas Penal Code.
