Ohio Governor Strickland and Attorney General Dann Implement Rules to Stop the Flood of Electronic Gambling Machines

8.22.07 - Columbus, Ohio – Ohio Governor Ted Strickland today signed an Executive Order aimed at stopping the flood of new electronic gambling machines in Ohio.

The Executive Order authorizes Attorney General Marc Dann to immediately implement a new administrative rule that will provide a usable definition for “skill-based amusement game,” giving law enforcement authorities clear guidance about which machines are illegal gambling machines and which are amusement machines protected by Ohio law.

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Expressing concern about the rapid proliferation of gambling machines throughout the state, Strickland noted that this action was necessitated by gambling interests which have exploited a provision in Ohio law designed to protect amusement games like those at Chuck E. Cheese or Cedar Point which allow one to win small non-cash prizes.

“Illegal gambling machines have become more accessible in Ohio’s communities because the laws do not adequately define what is and what is not a ‘skill-based amusement machine’ and some people have taken advantage of the ambiguity,” Strickland said. “By making these clarifications, law enforcement authorities will have the tools they need to take immediate action against those bringing illegal gambling machines into our state.”

“I continue to believe that the best long-term solution would be a legislative one,” Strickland said, “And I appreciate the leadership of Speaker Husted in helping us find such a solution.”

With the signing of the Executive Order, a new administrative rule clarifying the Attorney General's consumer protection authority in this area will be able to take immediate effect. In addition, local police, sheriffs and prosecutors will be able to immediately begin using the new “skill-based amusement machine” definition to support their enforcement of Ohio's laws against gambling, including existing laws against illegal gambling machines.

“There is a big difference between playing a video game at an arcade and winning a toy for the effort and playing a machine that bears a striking resemblance to a slot machine and receiving cash,” Strickland said. “We are going to make the difference crystal clear through administrative rule until the legislature can take more permanent action.”

The new rule defines skill-based amusement machines as any mechanical or electronic game that awards merchandise prizes, not cash or vouchers for cash, based on the successful accomplishment of the object of the game or on a player’s score. Winning the game cannot be dependent on a pre-programmed number or percentage of wins, and the machines cannot be controlled by any other source, including chance, beyond the actions of the person playing the game.

Merchandise prizes for the skill-based amusement games will be limited to items with a wholesale value of $10 or less. Vouchers redeemable for merchandise can be awarded for any single play of a machine, but cannot be redeemable for merchandise prizes worth more than a wholesale price of $10. Additionally, redeemable vouchers can be accumulated, but can only be redeemed for merchandise that has a value of $10 times the fewest number of single plays necessary to obtain that prize. For example, if the merchandise one selects as a prize has a wholesale value of $100, the player of the game must have played that game at least 10 times, and won the maximum number of redeemable vouchers all 10 times, to receive that prize.

Merchandise prizes may not include cash, gift cards or equivalent; plays on games of chance such as state lottery tickets, bingo or instant bingo; firearms, tobacco or alcoholic beverages; or a voucher that is redeemable for any of these items.

Source: Ohio Governor