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Convenience Stores With Slot Machines Near Me

3/30/2022
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Slot machines hit jackpot in stores around Va.

Jeremy M. Lazarus 7/12/2019, 6 a.m. Updated on 7/12/2019, 7:37 p.m.
Dr. Joann Henry plays at a bank of slot machines at the Quick N Easy convenience store in the 4100 block of West Broad Street. Jerermy Lazarus/Richmond Free Press

A video slot machine, at right, sits next to an ATM machine and a Lotto pull tab machine at the Kum & Go store at Ninth and Washington streets in Waterloo. The convenience store, near Thomas Jefferson High School, is just one of the locations in which these machines have popped up in the past two years. Across the Richmond area and around the state, more than 4,000 similar machines can be found in gas stations, bars and mostly locally owned convenience stores eager for a new stream of revenue.

Cheap gas, tons of pumps and a giant quickie mart. On the I-10 near Palm Springs. And since it is part of the Indian Casino, there are slot machines in the quickie mart! The gas prices are cheap because the reservation doesn't pay the 19cent California state gas tax. We use cookies for best experience on website. By using our site you agree to Cookies Policy Agree & ProceedCookies Policy Agree & Proceed.

Andrea R. Hill is a self-confessed “slot machine grinder,” but she still hasn’t visited the new Rosie’s Richmond Gaming Emporium in South Side to try her luck on the array of slot-style machines.

Instead, the Richmond resident prefers to get her daily “gambling fix” at a convenience store near her job, the Quick N Easy in the 4100 block of West Broad Street.

Inside, past the chips and snacks and close to the coolers of beer and sodas, Ms. Hill has her choice of seven cash-operated, computer-controlled machines that mimic the push-button slots of Atlantic City and Las Vegas. The symbols revolve on the screen like slot machines.

Every now and then when the symbols line up right, a player can hit for a jackpot of $2,000.

The store has an arrangement that allows players to get their winnings almost immediately from a clerk.

“It’s fun and I win occasionally. Just the other day, I got a $120 jackpot, but it looks like I’ll be giving that back to the store,” said the 39-year-old pharmacy technician.

Convenience Stores With Slot Machines Near Me

“Virginia has come a long way. When I was younger, I used to have to drive out of state to play. Now, these machines are everywhere.”

The convenience store, near Thomas Jefferson High School, is just one of the locations in which these machines have popped up in the past two years. Across the Richmond area and around the state, more than 4,000 similar machines can be found in gas stations, bars and mostly locally owned convenience stores eager for a new stream of revenue.

In a state that has long frowned on gambling, the Virginia Is for Gamblers movement is clearly moving beyond the state-run lottery and parimutuel betting on horse races.

The movement got a big boost two years ago when the General Assembly, seeking to revive horseracing, cleared the way for a $1 billion-plus operation involving machines like the ones at Rosie’s. Instead of random numbers, equipment at Rosie’s with slot-machine faces rely on the results of old races to fuel their results instead of random numbers that typical slots use, according to the regulatory Virginia Racing Commission.

But even before that action, ambitious private companies began exploiting a loophole in the anti-gambling laws in various states, most notably Duluth, Ga.-based Pace-O-Matic and its Richmond-based subsidiary, Queen of Virginia Skill and Entertainment, and Coleman Music and Entertainment of Jacksonville, Fla.

Those companies have been closely reading state laws on gambling to find a way to bypass them. In Virginia, they noticed the law only bans slot machines with three factors — a wager, the offer of a prize or cash and a win based solely on chance. Knock out one, and a machine can be legal.

And that’s what these companies say they are doing — creating machines that require “skill.”

For example, many of these machines do not generate wins for the player simply by the press of the play button. Instead, when two symbols of the same kind are visible, the player must touch the screen over a third symbol, usually a “wild card,” to get the third symbol in line to create a win.

It’s pretty simple, said Ms. Hill, but that small action is enough to allow the manufacturers to claim that skill is involved. Players must recognize the situation and act within a short time, 10 seconds or so, to win.

Others require players to use memory. For example, in one game, circles light up in a pattern that the player has to mimic to have a chance to win.

Courts in Ohio and Pennsylvania have ruled in favor of the manufacturers, and in Virginia, the state Alcoholic Beverage Control Board has cleared the Pace-O-Matic machines as meeting the “skill” test.

“A lot of times when people look at these machines, they say, ‘It looks like a duck, it quacks like a duck, so it must be a duck.’ But that’s not always the case. And certainly not when it comes to this equipment,” said Brent Jackson, a Richmond attorney who represents Gracies Technologies, a New York-based company that also distributes machines in Virginia.

The Virginia ABC decision is the main reason virtually all the machines are located in restaurants and stores that have licenses to sell beer and/or wine on and off premises.

In Virginia’s January General Assembly session, the state Senate rejected a proposal that would have created a new regulatory division to monitor the machines in the Virginia Department of Agriculture and Consumer Services.

Still, despite the ABC’s decision, the legality of the machines is questioned. To date, Virginia Attorney General Mark R. Herring has not issued a legal opinion, and so far no charges have been brought against businesses that have allowed companies to place machines in their stores.

In Richmond, former Commonwealth’s Attorney Michael N. Herring regularly received information from police and residents about these machines since they began appearing, but declined to take any action.

Assistant Richmond Commonwealth’s Attorney Joshua Boyles, whom Mr. Herring assigned to investigate, stated in response to a Free Press query that “our office hasn’t given a green light to any slot-style machines in the city,” except those now at Rosie’s.

However, he declined to suggest that any machines now operating in stores are illegal.

“Whether use of a given machine amounts to illegal gambling or a permissible game of chance is a very fact-specific inquiry,” he stated.

Mr. Boyles previously told the Virginia Mercury that the legal status of the machines “is uncharted territory.”

The first real test of that legality could come in Charlottesville, where Commonwealth’s Attorney Joe Platania on June 7 deemed them illegal and ordered businesses in that city to remove them within 30 days or face criminal charges.

He has yet to follow through on charges for noncompliant businesses. Pace-O-Matic indicated to a Charlottesville newspaper that it believes its machines meet requirements of the law and that it stands ready to defend its interests.

Gas Stations With Slot Machines

Still, despite the spread of the machines, they have not generated the kind of buzz that Rosie’s sparked when it opened last week on Richmond’s Midlothian Turnpike. By contrast, empty chairs at the machines are a common sight in convenience stores and lines rarely, if ever, develop with players waiting to play.

The amount of money being wagered in stores also is a far cry from the Rosie’s gusher. With the opening of outlets in Richmond and Hampton, Rosie’s is on track to rake in from players $100 million or more per month before jackpot and tax outlays.

Convenience Stores With Slot Machines Near Me Now

Pace-O-Matic and other companies are not required to report their earnings or the amount of wagering being done on their machines in Virginia.

Based on information Pace-O-Matic released on its website, the company’s machines in Virginia generated about $9 million between October 2018 and June 2019, before the payout of jackpots and taxes.

The split from machine’s revenues is advantageous to stores. Queen of Virginia reports its games return about 92 percent to players in terms of jackpots, which is typical for a slots operation. The remaining 8 percent of the revenue is split three ways: 40 percent to the location and the remainder evenly split between Queen and its parent, Pace-O-Matic.

If you want to make your local corner store owner really nervous, try asking them this question – “How do those gaming machines work?” When I asked the owner of a store that I frequent, I got a very nervous “Why do you ask?” in response. It seems almost every independently run convenience store I go in has a small bank of video gaming (gambling) machines, also known as eight-liners, tucked away somewhere in the store. I got curious about all these machines and thought I’d write a post to share what I found out. This is an abnormal post for this site but falls under the “Dad is Learning” philosophy of living.

A BIG Loophole

Laws on video gaming machines vary from state to state. Texas is surrounded by states that allow gambling, leading to a high number of attempts to circumvent laws against gambling in Texas. Section §47 of the Texas Penal Code defines gambling but in §47.01(4) you will find the provision that has been litigated for over a decade that excludes “gambling devices” that are defined as “any electronic, electromechanical, or mechanical contrivance designed, made, and adapted solely for bona-fide amusement purposes if the contrivance rewards the player exclusively with non-cash merchandise prizes, toys, or novelties, or a representation of value redeemable for those items, that have a wholesale value available from a single play of the game or device of not more than 10 times the amount charged to play the game or device once or $5, whichever is less.” This is often referred to as the “fuzzy animal” defense, derived from the claw games you see in restaurants and elsewhere.

Gaming Machines In Texas

The loopholes in the law are numerous. The Dickinson County Police have posted an advisement from the Galveston County District Attorney’s office about this matter. Here are a few noted exceptions quoted from that site:

  • Regarding the “charitable sweepstakes” issue: Typically this is done by some type of an association being made with the charity group by the owner of the 8-liners. The players put their money into the machine as a “donation” and you are allowed to play the game for free. At the end of the day the Charity may pay the owner of the machines $.90 out of every $1.00 collected. This is not an exception to the law.
  • The use of “door prizes” to attract customers is presumed to be legal, provided the players are not given additional entries into the door prize drawing based on the number of credits they win on a game or device.
  • The following could result in prosecution – Any award of non-cash merchandise prizes, toys, or novelties that have a wholesale value available from a single play of the game or device of more than 10 times the amount charged to play the game or device once, or $5.00, whichever is less. The accumulation or stacking of credits/tickets toward the purchase of more valuable prizes will be considered to be a violation of the law if the accumulated credits exceed the maximum value for a prize which can be awarded from the machine as noted above. The wholesale value of the prize, not the ticket, available from a single play, must be no more than 10 times the amount charged to play or $5.00, whichever is less.

The Difficulty of Enforcement

Gathering enough evidence to prosecute illegal gaming operations costs thousands of dollars and numerous man hours in already stretched thin police departments and district attorney offices. The machines are fairly portable and can be removed by simply unplugging them and wheeling them away on a dolly. Operations have been known to shut down and move overnight when there is suspicion of investigation. Due to the high volume of money involved, a few police officers have also been bribed to tip off the owners of illegal operations as occurred in Tarrant County in 2008.

Convenience Stores With Slot Machines Near Me

Gas stations with slot machines

The Meadowbrook Shopper, a neighborhood publication in Fort Worth, featured an interview with Tarrant County Sheriff Dee Anderson in the January 24, 2013 edition where he spoke about eight-liners in Fort Worth. Anderson said, “The machines have almost been eradicated in the county. At one time, we would have thousands of them in storage. Now, thanks to civil forfeiture through the Justice of the Peace Courts, we can seize them and have them destroyed within two weeks. Unfortunately, we’ve been so successful the machines are moving into smaller cities.”

Many may not have issue with the morality of the machines but call authorities when a loved one loses large amounts of money to unregulated gaming machines. Anderson said, “More-and-more we will get calls from concerned relatives when their parents, or older relatives on fixed incomes, get scammed out of all their money involving eight-liners. Believe me, it’s a big problem. There are usually drugs associated with these operations. It’s not uncommon for us to seize 20-40 thousand dollars after raiding just one small operation.”

Va Slots Machines

Illegal gaming operations are also an easy target for criminals. There is typically a large amount of cash involved and operators won’t contact the police due to the illegal nature of their activities. This Star-Telegram article from 2013 details a Fort Worth man who was ambushed, robbed, and murdered in September 2013 outside of an illegal gaming operation.

Why Was I Curious?

As I mentioned at the beginning of this post, I frequent two convenience stores that have a few of these machines. Let me be clear…I don’t play. These aren’t the illegal gambling dens that involve so much of the trouble documented in this post, but they are quite possibly operating in a grey area of the law. One store is close to my office and every time I have been in that location there is at least one person settled in and poking away at a machine. As several articles report, it is quite often people on a fixed-income, the unemployed, or the elderly who play on these machines.

A screenshot of the completed auction listings for the gaming machines.

My curiosity was also peaked by an auction on LonestartAuctioneers.com this week. I follow the site regularly as part of my side hustle but was surprised to see gaming machines being auctioned off by the Texas Facilities Commission. I wasn’t familiar with this agency, but part of their responsibility is the oversight of surplus property programs. The machines in the auction went for an average selling price of $300 to $400, plus 10% buyers premium. The 31 machines in the auction fetched a total of $8,540 plus buyers premium.

I follow the opinion of most financial advisers, who believe gambling in it’s various forms is a tax on the poor and people who can’t do math. Dave Ramsey offers up great insight on the matter of gambling in “Gambling Offers False Hope.” There is a reason the big casino across the border builds a new hotel building every year. And there is a reason individuals are willing to risk a $4,000 fine and maximum sentence of a year in jail for running illegal gaming machines. Gambling is a sure-fire money maker for the owner.