Gambling in America - Electronic Gambling Devices

Electronic gambling devices (EGDs) include standalone slot machines, video poker, video keno, and other types of gambling games. Because EGDs are portable, they make gambling possible at locations that, unlike racetracks or casinos, are not dedicated to the business of gambling. Bars, truck stops, convenience stores, and other locations that did not formerly offer gambling have begun to feature EGDs. Some states, such as Louisiana, Montana, and South Carolina, have permitted private businesses to operate EGDs. In other states, such as Oregon and California, EGDs have been operated by the state lottery.

In addition to legal EGDs, in other states there are many illegal EGDs, or "gray machines," so called because they exist in a gray area of the law. Basically, if such a machine is used for amusement and no proceeds are paid out, then gambling laws have not been broken. Nevertheless, according to the 1999 National Gambling Impact Study Commission Report, many establishments with these machines have surreptitiously paid winners. Gray machines are reportedly common in bars and fraternal organizations in many states. The report estimated that there were fifteen thousand to thirty thousand gray machines in West Virginia, ten thousand each in New Jersey and Alabama, and as many as sixty-five thousand in Illinois.

EGDs are highly regulated and are constructed to higher standards than electronic voting machines, according to a 2004 New York Times report. In Nevada, for example, the state must be provided with copies of all gambling software, and inspectors frequently spot-check machines to be sure they contain the version of the software on file. Machines must be able to withstand a twenty-thousand-volt shock, among other hazards, and manufacturers have to be certified by the state Gaming Control Board and all of their employees subjected to background checks. Gamblers who have a problem with a machine are entitled to an immediate investigation, and the state board keeps investigators on duty around the clock to respond to reports of problems.

Opponents of EGDs have expressed concerns that the easily accessible devices may encourage the unhealthy gambling practices that can result in addiction. They have also cautioned that EGDs provide immediate, intense, and potentially prolonged gambling experiences and that consumers unfamiliar with gambling may be encouraged to wager recklessly.