The most important previous Ohio skill-based gaming laws were passed in 2003 and 2007.
Ohio state regulators plan to go after businesses which allow skill-game machines to operate. The state plans to shut down operations for what they consider illegal slot machines.
The Ohio Casino Control Commission announced its new regulations on Wednesday, which are expected to affect up to 7,000 skill game machines throughout the state.
The new regulations are aimed at weeding out EGMs which play like slot machines. To be a banned machine, winners must be paid in cash prizes.
Effects on Dave & Busters and Chuck E. Cheese
The list of operators does not fit the usual profile of targeted gaming machine operators. The usual businesses targeted are Mom-n-Pop restaurants, bars, and convenience stores.
Though those operators are part of the new enforcement, restaurant chains are also on the list of regulated sites. That includes combination arcade-resturaunt chains like Dave & Busters, Chuck E. Cheese, and Magic Mountain.
Those chains are going to be required to seek licensing for their gaming activities. If they apply for a license and pay the fees, those restaurant chains will be free and clear. Licensing is required to allow the state of Ohio to go after other offenders, though.
Matt Schuler on Family Entertainment Centers
Matt Schuler, the Ohio Casino Control Commission’s executive director, said to the Columbus Dispatch, “We’re not worried about family entertainment centers. In order for us to be able to go after illegal casinos, we have to license everybody.”
Schuler added, “Chuck E. Cheese, Magic Mountain, Dave & Busters all have games where the outcome is totally dependent on the skill of the player. They only reward winners with merchandise and not cash. This won’t affect the way they operate.”
600-800 Illegal Skill-Game Operators
The real target are the estimated 600 to 800 illegal operators around the state which allow gamblers to play slots machines and hand out cash prizes. If the new regulations work, Ohio’s law enforcement will be able to raid businesses, confiscate money and equipment, and charge owners with a felony.
The state has fought illegal operators for years. Electronic gaming machines were targeted by law enforcement for years, until the cyber-cafes rose to prominence. State officials banned the slots-style games played in the cyber-cafes, but many of their operators opened-up new gaming venues using skill-based gaming machines to get around the law.
The new regulations close the loophole. Under the new law, operating skill-based slot machines for cash prizes is going to be a fifth-degree felony. Breaking the law is punishable by a maximum 12 months in jail and a $2,500 fine, with increased sentences and fines for repeat offenders. The maximum amount of cash which can be paid out is $10, with gas cards also allowed.
Skill-Based Gaming Lawyer
Kurt O. Gearhiser, a Columbus-based attorney, represents the skill-based gaming industry in Ohio. Gearhiser said he supports the new regulations, but is concerned that the laws might be too fine or unclear.
Speaking for his clients, Gearhiser said, “I don’t think they want to put people out of business. The difficult thing they have to to do is draw the fine line between Dave & Busters and Magic Mountain, and skill games that are not legal.
“We want to put the bad guys out of business just like they do. The vast majority of people I represent just want some certainly that their machines are okay.”
Ohio Skill-Based Gaming Law
According to the Ohio State Bar Association, skill-based gaming machines have been legal in Ohio for decades. The Ohio legislature defined “skill-based amusement game” in 2003, then amended the definition again in 2007. These changes were meant to deal with concerns about a new generation of electronic gaming machines, such as the computer-based gaming which became prevalent in the cyber-cafes.
By 2014, skill-based amusement games began to pop-up again in Ohio. Since the media first began to report on these potential gaming law violations, the slow-beat to amend the laws has picked up pace. After two years of deliberations, lawmakers are ready to move against the gaming operators one more time.
No doubt, this is not the end of the skill-based amusement game industry. Some new technology is likely to appear to open some new loophole in the existing laws. In that way, legislatures and gaming operators across the United States play a kind of cat-and-mouse game every so often. In the interim, local businesses are able to make profits on the popularity of gaming machines, so long as they operate in a gray market environment. This is not the last one will hear of skill-based gaming laws in Ohio.
