The 2012 Minnesota legislature became interested in using the concept of “electronic pull tabs” as a method of increasing the state revenue from charitable gaming in order to fund part of the state's commitment to a sports stadium. While the first patent for an electronic pull tab was issued in August 1991 to Gaming Studio's founder and current CEO, we were not consulted with regard for the legislation and, even if we were, it is unlikely that we would have had much influence on the final legislative product. Tribes were worried that their electronic slots might be compromised if the electronic pull tabs were too attractive. Similarly, there were paper pull tab manufacturers who certainly were not interested in success of the electronic product. Finally, there were legislators who oppose gaming and certainly were not going to be saddened if a few poison pills were dropped in the language authorizing electronic pull tabs. It was not a very appetizing sausage that made it through this design by committee process. Those who wanted rotted sausage (we're using the metaphor for the process of bills becoming laws) have been greatly relieved.
A 50% cost differential is significant. So, on the tribal lands you have slot machines paying out 90%, meaning that players lose $10 on every hundred bet while charity electronic pull tabs charge players a 50% premium of $15 for a hundred dollars bet. Electronic pull tabs charities operate have the same payout limit as paper pull tabs - 85%.
What makes a pull tab such a popular game?
Transparency. Pull tabs are the most transparent 'ticket style' game. Transferring those qualities into an electronic game would give you a game that tribes and paper-pull-tab manufacturers should worry about. Key to that transparency is the display of how many high-tiered winning chances remain among the displayed container of all remaining chances. That is huge. And, that was precluded in statute with the following:
349.12 DEFINITIONS.
Subd. 12b. Electronic pull-tab device. 'Electronic pull-tab device' means a handheld
and portable electronic device that:
(8) may have auditory or visual enhancements to promote or provide information about the
game being played, provided the component does not affect the outcome of a game or display
the results of a game;
The red six words above killed the transparency that has made pull tabs the most popular ticket games in Minnesota - 2.9x more sales in FY13 than lottery scratch tickets. The legislature effectively banned electronic pull tabs from indicating how many high winning chances remain among a displayed quantity of chances.
Value Errors and Omissions
It is not uncommon to hear legislators and even gaming people express confusion over the price of their product. The difference between a game that pays out 90% in prizes and one that pays out 85% if only a minor 5%, they will say. No one will notice it, they often report. Actually, the difference between a game that pays out 90% and a similar game paying out 85% (required of electronic pull tabs) is an increased cost to the player of 50%. A 50% cost differential is significant. So, on the tribal lands you have slot machines paying out 90%, meaning that players lose $10 on every hundred bet while charity electronic pull tabs charge players a 50% premium of $15 for a hundred dollars bet. Electronic pull tabs charities operate have the same payout limit as paper pull tabs - 85%. The transparency attributes were stripped while maintaining a very uncompetitive pricing.
The total payout for slot machines in Washoe County, Nevada (Reno) of all denominations for the 12 month period ending June 2014, was 94.95% or 95%. I use Washoe because Clark County (Las Vegas) is not similar to any player base in Minnesota. Thus, players are being charged $5 per $100 played in Washoe County, NV and $10 per $100 played in tribal casinos in Minnesota and $15 per $100 played for charitable gaming electronic games. The question is begging: what value does Minnesota electronic pull tab gaming bring that allows it to charge three times as much as Washoe County, NV or twice as much as tribal casino electronic games?
Players understand intuitively that their money goes a lot faster where they pay a lot more. I get that the cost of paper tickets that needed to be freighted in from out of state, counted, stored, trucked to sites, counted more and disposed of safely is expensive and may justify a higher price to players. Also justifying that price is that players are given a great deal of information on the status of the paper games. With electronic chances, there is a nominal - almost no product cost per chance vended. The payout can not be justified at 85% and players are rejecting the value offered.
Another Bad Value
Why are electronic pull tab chances required to be 25¢ or more?
349.12 DEFINITIONS.
Subd. 12c. Electronic pull-tab game. 'Electronic pull-tab game' means a pull-tab game
containing:
(4) a price paid by the player of not less than 25 cents per ticket;
The trend on slot machine floors is for 1¢, 5¢ or 10¢ machines that now cover a third of the slot space. Add multi-denomination machines and you have maybe half the machines with less than 25¢ plays. Now that supply costs have been divorced from single chances vended, why not go where the public market is going?
Miscellaneous Confusion
Subd. 12c. Electronic pull-tab game. 'Electronic pull-tab game' means a pull-tab game
containing:
(1) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;
This takes one to the dictionary - but you need a Minnesota dictionary to learn what 'facsilimiles' means.
Webster Dictionary:
1. an exact copy
2. a system of transmitting and reproducing graphic matter (as printing or still
pictures) by means of signals sent over telephone lines
Oxford Dictionary:
Definition of facsimile
noun
How A Slot Machine Works
• an exact copy, especially of written or printed material:a facsimile of the manuscript
Can't have a facsimile of nothing. In other words, the pull-tab ticket must exist for the electronic pull-tab to have a facsimile. This facsimile business confuses today and I am sure the paper pull tab printers thought that electronic game manufacturers would need to license the paper game for which electronic chances were facsimiles. Perhaps we will yet see litigation on this matter. We would not want to be the manufacturer who is stuck with an injunction to pull games because the chances are not facsimiles. I wonder how many others are discouraged by this potential problem?
Subd. 12b. Electronic pull-tab device. 'Electronic pull-tab device' means a handheld
and portable electronic device that:
(9) no spinning reels or other representations that mimic a video slot machine.
There is no doubt what is being attempted here; however, from a design perspective it becomes a tad silly. If you look at the electronic pull tabs in play today, they appear quite similar to slot machines. Slot machines deploy every graphic sequencing method one is likely to use in any game that has symbol sequencing of any kind. This is entirely impractical and it is dangerous to game designers because it exposes companies to terrific costs should someone wish to contest what it means.
Subd. 12b. Electronic pull-tab device. 'Electronic pull-tab device' means a handheld
and portable electronic device that:
(3) requires that a player must activate or open each electronic pull-tab ticket and each
individual line, row, or column of each electronic pull-tab ticket;
We see in (9) above that we can not mimic a slot machine. Slot machines have symbols in rows and lines. Here the tickets are required to be in rows and lines -- just like a slot machine. Gaming Studio has a fishing game here at the bottom of the page that displays chances as you reel a line in. That game does not use the line, row or column scenario required above and therefore could not be approved. There are all manner of creative displays of winning and losing chances that do not involve the repetition of symbols organized in lines, rows or columns like that of a slot machine - and, even a pull tab (which is a copy of a slot machine in the first place). I would ask that this be deleted so that we can provide a greater level entertainment while still keeping within the finite structure required generally.
Gambling Laws in Texas: When and Where Texans Can Gamble
- June 14, 2017
- The Law Office of Greg Tsioros
- Comments Off on Gambling Laws in Texas: When and Where Texans Can Gamble
Pull Tab Slot Machine
U.S. Gambling Overview
Americans have embraced gambling by for centuries. Before our country fought the Revolutionary War, settlers enjoyed European card games and participated in simple lotteries. As the country grew, gambling halls and saloons were gathering places. In the 20th century, local, state, and the federal government got involved. Some states sought to restrict gambling activities while others legalized gambling. Today, many states have brick and mortar casinos, sports betting outlets, lotteries, and race tracks.
Nevada (Las Vegas) was the first to legalize many types of gambling in 1931. New Jersey (Atlantic City) followed decades later in 1977. With the passage of the Indian Gaming Regulatory Act in 1988, reservations throughout the U.S. were permitted to offer gambling and gaming to generate revenues. To complicate things a bit, the Federal Wire Act of 1961 limited sports wagering between the states.
Online gambling has caused the states to review their positions on online casino games, including video poker, baccarat, roulette, keno, blackjack, faro, slots, craps, etc. If you’re accused of a gaming or gambling crime, or another party has offered illegal gambling in Texas, contact an experienced criminal attorney now.
When and Where is Gambling Legal in Texas and Throughout the U.S.
Gambling is legal for those who are 21 years of age or older at Eagle Pass in Texas (Kickapoo Lucky Eagle Casino). People in Texas can also legally participate in the Texas Lottery or make pari-mutuel wagers on greyhound and horse racing. Raffles, charitable bingo, and pull-tab bets are also considered legal in Texas.
In comparison, some states allow 18-year-olds to gamble. Today, Alaska, Arkansas**, California (some locations), Connecticut***, Delaware (horse racing only), Florida**/***, Idaho, Indiana**, Louisiana**, Maine**, Maryland**, Minnesota**, New Mexico, New York (by casino), Ohio**, Oklahoma (by casino), Oregon***, Pennsylvania**, South Dakota ***, Washington** (some casinos), Wisconsin***, and Wyoming allow some gambling to 18-year-olds.
**Pari-mutuel wagers only (short duration events, such as horse racing, jai alai, or greyhound racing, or any event with ranked order participation)
***Bingo only
All other states require gamblers to be at least 21 years of age. It’s impossible to get around the age requirement at brick and mortar casinos. If you attempt to gamble before you’re 21 years old, you may be arrested, incur fines, or have your money confiscated by law enforcement.
The point of confusion for many would-be gamblers concerns online gambling. For instance, there may be a difference in the age required by the site and the age required by Texas to gamble. If the site says you can gamble at age 18 but Texas state law requires you to be at least 21 years old, you must comply with Texas state law. Don’t risk jail time and fines for gambling or gaming arrests.
Texas Gambling Laws
Texas gambling laws are some of the strictest in the nation. For instance, Texas Hold ‘Em card game bets are illegal in Texas. Gamblers must be 21 years old. They may be on greyhound or horse racing, social gambling (like office pools), charitable raffles, and bingo. The law says that gambling on other games of chances is against the law in Texas.
Under Code Section PEN 47.01 et seq. and Civ. St. 179e, gambling, or agreeing to win or lose money or something of value based on chance, or keeping a casino (other than one casino on Indian lands) is prohibited. Promoting any form of gambling (other than pari-mutuel wagers), maintaining a place of gambling, communicating information about gambling, or owning gambling devices are illegal in Texas. For that reason:
• Card games, sports bets, and scratch tickets (other than those legally offered by the Texas Lottery) are illegal.
• Casinos, other than Kickapoo Lucky Eagle Casino, are illegal in Texas. As a casino on native lands, the Lucky Eagle location is permitted.
• Social gambling, like bingo games, private card games, or charity auctions are allowed unless the organizer takes a portion of the proceeds. The law in Texas says that gambling may occur in a private place as long as the chance of losing and winning are evenly distributed.
• Slot machines with cash payouts are illegal in Texas. If the prizes are inexpensive and not cash items, such as a coffee pot, the law says it’s okay to play.
Slot Machines with Cash Payouts Are Illegal in Texas
According to a New York Times article, illegal slot machines are cropping up around Texas, especially in some Rio Grande Valley border towns. The problem has captured the attention of enforcement professionals of the U.S. Department of Homeland Security. It’s estimated that illegal slots machines generate approximately $1.9 billion per year (up to 150,000 illegal units).
Recognize that gambling at slot machines with cash payouts can mean arrest and legal consequences in Texas. If you or someone you know has been arrested for illegal gambling or gaming in Texas, you need an experienced criminal defense attorney at your side. If you or a loved one has been exploited because of gambling addiction in Houston, Harris County, or throughout Texas, you need a professional attorney to assist in the recovery of your money now. Don’t go it alone. Call Greg Tsioros to discuss your matter now at 832-752-5972 now. We’re standing by 24/7 to take your call.