Now everyone knows what an illegal vending machine looks like I want to provide you with the actual legal verbiage to back it up. First I want you to know that I have had a friend tell me that when you ad dollar to the prize that it is a bonus prize. For example he would have a pile of stickers from his sticker machines that would not sell. He created a display that had various stickers and tattoos on them along with the photo of a $1 dollar bill and a $5 dollar bill.
Next he would place a $1 dollar bill in with the sticker that would vend first. He says when they win a dollar on the first try they know that there is real money in there. He would place another dollar a little ways up and then he would place the $5 dollar bill in the middle of the stack and then another $1 dollar bill at the top of the stack.
I do not know how many of you have seen the inside of a sticker machine but they hold nearly a box of stickers at a time if you fill it up that much. He would empty the stack every single time he set machines up like this. His crappy stickers and tattoos are still today his best selling item when they are setup in this fashion.
The problem is that he is too stubborn to change his ways. This works for him and he makes money and that seems to be the underlining factor. I beg all of you not to be so stubborn and it will protect you and your assets as you accumulate them from your vending machine business.
Whether you have spiral gumball machines with a few capsules that have a small piece of gum with $5, $10, $20 dollar bills wrapped around them they are still bad news and could ruin your source of revenue.
Now to the law as it pertains to those of you with me in California.
Bureau Of Gambling Control – Number 10 Law Enforcement Advisory
Illegal Gambling Devices
California’s gambling device statutes are broad in their coverage and prohibit any person from owning, renting, or possessing illegal gambling devices. (Penal Code, 330a, 330b, 330.1.) An illegal gambling device has three features:
- It is a machine, apparatus, or device (Coin operation is not required);
- Something of value is given to play the device
- The player has the opportunity to receive something of value be any element of hazard or chance (“something of value “ is not limited to coins, bills, or tokens, gift cards, game credits, or anything else with a value, monetary or otherwise.) (Penal Code, 330a, 330b (d). )
In addition, if a device can readily be converted to have the features of an illegal gambling device, (as listed in 1, 2, and 3 above), it is an illegal device. (Penal Code, 330b (d). )
As an additional example, a coin pusher is an illegal gambling device, whether or not it purports to have an element of skill, because the player can win coins by playing.
There is a very big Southern California crane machine operator that has dozens and dozens of crane machines like the machine we took a picture of. He convinces his locations with a piece of paper that he has on the side of the machine that it is a game of skill and not chance and is therefore exempt from the California Bureau of Gambling Control. One day he and his location owners may regret treading down that path.
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