Gambling Devices Spreading

Beer Permits Limit Machines In Convenience Stores

SPRINGDALE — Coin-operated devices, many used for gambling, are moving from convenience stores to other businesses.

“We are seeing them pop up all over the place,” said Danny Wright with the Springdale Police Department. “We’re seeing them in grocery stores, restaurants and other businesses.”

Wright works with the Springdale Nuisance Abatement Partnership program.

State law defines the devices as coin-operated machines that provide entertainment and give some type of credit for high scores.

At A Glance

The Chuck E. Cheese Law

Arkansas Code 26-57-402

(2) (A) “Any money or property”, “other articles”, “other valuable things”, or “any representative of anything that is esteemed of value”, as used in the antigambling statutes, § 5-66-101 et seq., shall not be expanded to include:

(i) A free amusement feature such as the privilege of playing additional free games if a certain score is made on a pinball table or on any other amusement device described in this section; or

(ii) Toys, novelties, or representations of value redeemable for those items which are won by the player of a bona fide amusement device which rewards players exclusively with merchandise limited to toys, novelties, or representations of value redeemable for those items, which have a wholesale value of not more than ten (10) times the cost charged to play the amusement device one (1) time or five dollars ($5.00), whichever is less.

(B) (i) In the event of the accumulation of redeemable representations of value by any player, no toy or novelty having a wholesale value of more than twelve dollars and fifty cents ($12.50) may be given or awarded by any amusement device operator or redeemed by any player.

Source: Arkansas Code Annotated

Businesses can cross a legal line by paying out cash or too much merchandise for the credit won on the machines, according to Ernest Cate, Springdale city attorney. Cate recently updated a notice to city businesses that states the limit for these machines.

The pay-off limit is set by a state law, usually called the "Chuck E. Cheese Law." Any cash payout is illegal, according to the law. In some stores, winners are paid with merchandise. The limit for a payout on a single game is $5 in merchandise or 10 times the cost of playing the game, whichever is less. When winnings are accumulated over several games, the limit is $12.50 in merchandise.

The machines aren't as prevalent in other area cities, according to prosecuting attorneys.

The machines haven't been a problem in Bentonville, according to a spokeswoman from the city attorney’s office. Ben Lipscomb, Rogers city attorney, said he hadn't received any complaints about the machines lately.

Several Springdale convenience stores that applied for a license to sell beer had to remove machines, said Wright.

The machines that were removed violated the Chuck E. Cheese Law, said Michael Langley, director of the Arkansas Alcoholic Beverage Control administration division. Many of the machines allowed a player to feed it a quarter for an opportunity to sweep money off a shelf into a chute as a prize, he said.

“It was simple,” Langley said. “If the machine broke the Chuck E. Cheese Law, it had to come out.”

Speedway Grocery, 601 E. Emma Ave., was one of the stores that had to remove machines, Wright said. The manager of Speedway wasn't available for comment, according to workers at the store. The Alcoholic Beverage Control Board approved Speedway for an off-premise beer and small farm wine permit in August 2012, according to board minutes.

Eight Springdale businesses were cited in the fall of 2011 for violating the Chuck E. Cheese Law, Wright said. The violations included cash payouts, redeeming too much merchandise and giving lottery tickets as payouts, according to arrest records.

The businesses include The Travel Lodge, 1394 W. Sunset Ave.; The Rose Stop, 1003 S. Pleasant St.; Speedway Grocery, 601 E. Emma Ave.; Shell One Stop, 1501 S. Thompson St.; Fast Tracks, 4451 N. Thompson St.; Valero Convenience Store, 3818 Elm Springs Road; Handi Mart, 707 N. Old Missouri Road; and Kings Corner, 2808 W. Huntsville Ave.

The eight citations written in November 2011 are the only ones written in the last five years, according to police records.

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