Ohio AG Issues Emergency Rule On Electronic Gaming In Response To Governor Strickland’s Executive Order

New definition of skill-based amusement machines closes loophole that led to influx of slot machines

August 22, 2007 -- COLUMBUS - Responding to an Executive Order issued by Ohio Governor Ted Strickland, Ohio Attorney General Marc Dann today promulgated emergency administrative rule 109:4-3-31“Skill-based amusement games,”which states that calling an illegal slot machine a “skill-based amusement machine” is an unfair and deceptive act or practice under Ohio’s Consumer Sales Practices Act. In addition, the rule also provides a definition of skill-based amusement machines that should erase the ambiguity in Ohio law that has simultaneously emboldened game manufacturers and distributors and handcuffed local law enforcement.

According to the Attorney General, his office will today mail 700 Cease and Desist letters to manufacturers, distributors, owners, lessors, and lessees of the devices informing them that they have three days to remove the machines from public access. Any individual or entity failing to comply will be in violation of the CSPA and will be sued civilly by the Attorney General. In addition to injunctive relief that will shut down machine operations, penalties in such suits may reach $25,000 plus reimbursement investigative and enforcement costs.

“I would like to applaud Governor Strickland for acting decisively to protect Ohioans,” the Attorney General said this morning during a joint press conference conducted in the Governor’s Statehouse office. “I would also like to commend our staffs for working together to develop a rule that empowers both my office and local police and prosecutors to uphold the law and the will of the people who have repeatedly rejected proposals to expand gambling.”

“Our purpose is to make it clear that electronic slot machines cannot be portrayed as skill-based amusement machines—a practice that has become distressingly common in our state,” Mr. Dann said noting that there are as many as 40,000 machines in the state. “From this moment forward, if it looks like a slot machine, sounds like a slot machine, and pays out cash, it’s a slot machine. Calling it something else is a violation of the CSPA that will not be tolerated by my office.”

“At the same time, we wanted to make sure that kids and adults can continue to enjoy true skill-based amusement machines, like those found on Cedar Point’s midway, at Dave & Buster’s or in Chuck E. Cheese, and other family-oriented locations,” he said. “By clearly stating that if the outcome of a game is determined by skill and players can only win merchandise or a merchandise voucher worth ten dollars or less, we’ve accomplished that goal.”

Along with filing the Emergency Rule, which expires in 90 days, the attorney general’s office has initiated the process required to make the rule permanent, including holding four public hearings at the following locations:

Wednesday, September 26, Time TBA
Tiffin Municipal Courtroom
51 East Market Street, Tiffin

Thursday, September 27, 2:00-4:00
Stark County Office Building
Corner of W. Tuscarawas & Market, Canton

Thursday, September 27, 6:00-8:00
Parma City Hall Council Chambers
6611 Ridge Rd, Parma

Monday, October 1, 5:00-8:00.
Center for Economic Opportunity Building Meeting Room
101 E. East St. Washington C.H.

Source: Ohio Attorney General