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A Texas Store Owner's Checklist for Hosting Skill Machines

By GamesOfSkillMag Editorial6 min read
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A Texas owner who searches "host skill machines in my store" is usually weighing a revenue split against legal exposure. This checklist records questions to ask and evidence to keep. It is not legal approval, and it does not say any machine is lawful. Statute and agency pages were last checked September 9, 2026. For supplier diligence, pair it with the vendor comparison checklist.

Can a store owner be charged for hosting skill machines in Texas?

Yes, the host has its own exposure. Under Penal Code §47.04, a person commits a Class A misdemeanor by knowingly using or permitting another to use real property as a gambling place. Renting property with the expectation that it will be used that way is also covered. The affirmative defense is limited to private settings with no economic benefit beyond personal winnings, which does not describe a commercial store or bar.

Section 47.06 separately covers possessing a gambling device with intent to further gambling. Whether a host who controls a machine could face it in addition to §47.04 is a question for counsel.

The definitions in §47.01 matter. A gambling device is an electronic, electromechanical or mechanical contrivance that offers something of value through chance for consideration. An exclusion covers bona fide amusement devices that reward only with noncash merchandise, toys or novelties worth no more than 10 times the play charge or $5, whichever is less. On its face, a cash-prize machine falls outside that exclusion.

What changed in Texas in 2026?

Attorney General Ken Paxton issued Opinion KP-0520 on June 11, 2026, at the request of Sen. Bob Hall. Texas Scorecard reported that a machine offering both a chance mode and a skill mode is a gambling device if chance plays any role in whether the player obtains something of value. The request concerned slot-style machines with an attached memory game. An attorney general opinion guides agencies and law enforcement but is not a court ruling. We describe it from secondary reporting, so read the opinion itself.

A court has gone the other way on one set of machines. In State v. 5 Gambling Machines (Fannin County, cause CV-23-46217), a trial court found five machines seized from a Savoy convenience store were not gambling devices. The Dallas Morning News reported that the Sixth Court of Appeals affirmed 2-1. That case concerned specific machines, not all skill machines. Pace-O-Matic says the games were its own, and its June 11 release says its games rest solely on skill. That is a vendor statement, not evidence of legal status.

What should I check about the machine itself?

  • Does it pay cash, or only noncash prizes?

  • Does any mode depend on chance, given the KP-0520 reasoning above?

  • Will the vendor describe in writing how outcomes are determined, and who documents that?

  • What will the vendor warrant, and what will it refuse to warrant?

No. Occupations Code Chapter 2153 governs licensing, and §2153.003, as summarized, says the chapter does not authorize a machine the Penal Code prohibits. Read the exact wording. A license or permit should not be treated as a defense to a gambling charge.

  • Ask the placing party for its Comptroller license or registration number in writing, then look it up in the Comptroller's Taxpayer Search.

  • The Comptroller says a $60 annual occupation tax permit must be visibly attached to every coin-operated machine available to customers. Renewals are due Nov. 30, and current fees are on that page.

  • The Comptroller page does not address cash-prize skill machines.

  • Section 2153.008 exempts some owners who exhibit machines only on their own premises, with conditions. Ask counsel whether a revenue split counts as a disqualifying financial interest.

What should a hosting contract say?

  • Exit and termination rights.

  • Indemnity and legal-defense obligations, and who pays if you are charged.

  • What happens on seizure, including who receives notices and who appears.

  • Full disclosure of the revenue split.

  • Exclusivity or sourcing limits. Have counsel read §2153.359, which makes certain terms restricting a party's right to obtain coin-operated machines from any source a third-degree felony.

  • Who holds the machine's paperwork.

What happens if machines are seized?

Under Code of Criminal Procedure art. 18.18, the magistrate notifies the person found in possession to show cause why the property should not be destroyed or forfeited. That person must appear on the 20th day after the notice is mailed or posted, or forfeits any interest. Unless the person proves by a preponderance of the evidence that the property is not gambling equipment, the magistrate orders destruction or forfeiture. Seized gambling proceeds are forfeited to the state.

Call counsel immediately and keep records of proceeds. Comptroller sealing under §2153.352 for unlicensed, unpermitted or tax-delinquent machines is a separate track.

Should I ask my local DA and city?

Yes, in writing where possible. The Dallas Morning News reported that Van Zandt County's district attorney permits the devices, that Fort Worth banned eight-liners citywide after litigation from 2015 to 2022, and that Dallas police reportedly run roughly 40 to 50 gambling-device investigations at a time. Also ask about local ordinances, and check how your lease and insurance treat gambling activity.

What should I keep in an evidence log?

  • Vendor statements about outcomes and legality, with dates.

  • License numbers and the date you checked each.

  • Photos of the permit on each machine.

  • Correspondence with the vendor, DA, city and landlord.

The worksheet at /tools/vendor-comparison-checklist records questions and evidence. It is not legal approval, vendor verification or a profitability estimate.

Sources

Reporting is for information, not legal advice. A vendor listing or the term skill game does not establish a machine's legality in any jurisdiction. AI assistance is disclosed where used. Consult primary sources and qualified counsel for legal decisions.

Frequently asked questions

Does a Comptroller permit protect a store that hosts skill machines?

Not by itself. Occupations Code §2153.003, as summarized, says Chapter 2153 does not authorize a machine the Penal Code prohibits, so a license or permit should not be treated as a defense to a gambling charge. Read the exact statute text with counsel.

Is a store owner liable if the machines belong to a vendor?

Possibly. Penal Code §47.04 covers knowingly permitting real property to be used as a gambling place, and it is a Class A misdemeanor. Ownership of the machine is not the only path to exposure.

What happens if police seize machines in my store?

Under Code of Criminal Procedure art. 18.18, the person found in possession is notified and must appear on the 20th day after notice is mailed or posted. Unless that person proves the property is not gambling equipment, the magistrate orders destruction or forfeiture.

Does Attorney General opinion KP-0520 make skill machines illegal?

It is not a court ruling. As reported by Texas Scorecard, it says a machine is a gambling device if chance plays any role in whether the player obtains something of value. It guides agencies and law enforcement.

Host Skill Machines in My Store? Texas Checklist | GamesOfSkillMag