Buying used skill game machines in Texas means taking on each machine's records, tax-permit status and legal exposure, not just a cabinet. Before you close, confirm which license you need and check the seller's Comptroller standing. Match serial numbers to the ownership records, plan for the 10-day permit notice, and ask where and how each machine was operated.
Jurisdiction: Texas. Two separate legal frameworks apply. Occupations Code Chapter 2153 and Comptroller rule 34 TAC §3.602 cover licensing, the per-machine tax, ownership reporting and records. Penal Code Chapter 47 decides whether a device is a "gambling device." A Comptroller license, registration or tax permit shows tax and licensing status only. It does not decide whether a machine is legal. You can record your questions and evidence in our vendor comparison checklist. The worksheet is a record of what you found. It is not an approval, a vendor verification or a profitability estimate.
1. Know which license you need before you buy
The Texas Comptroller requires a general business license to own, buy, sell, rent, lease or trade coin-operated machines, or to place them in another person's business. Buying machines from out of state to resell in Texas requires an import license. A registration certificate is for owners who exhibit machines only in their own business and have no other financial interest in the industry. A repair license is needed to repair machines for other people. For applications postmarked November 30 or earlier, the Comptroller lists these fees:
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General business license: $200 (up to 50 machines), $400 (51 to 200 machines), $500 (more than 200 machines)
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Import license: $500
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Registration certificate: $150
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Repair license: $50
Fees are higher for later postmarks. A license "may not be transferred or assigned" (§2153.155), so the seller's license does not pass to you.
2. Check the seller's identity and standing
Ask the seller for their Comptroller taxpayer number and which license type they hold. The Coin-Operated Machine Taxpayer Search shows a taxpayer's name, number, address, county and phone number, and the Comptroller says the data is updated nightly. The search does not show whether a machine is legal or what status individual machines have. If the seller holds only a registration certificate, note that 34 TAC §3.602 allows two sales in any 12-month period. Several machines sold in one transaction count as one sale.
3. Match serial numbers to ownership records
Under the Comptroller rule, machines are registered by make, model and serial number. The owner's name and phone number must be "clearly visible on the outside surface of the machine." License holders must record and report each machine's make, type and serial number and any change in ownership (§2153.202). Owners must keep itemized records of acquisition and operation dates, locations and operators for at least four years (§2153.201). Our editorial recommendation is to ask for those records for each machine. Flag any machine with no serial number, because the rule requires one to be assigned. Also flag any cabinet where the owner name or phone doesn't match the seller.
4. Plan tax permits at closing
The occupation tax is $60 a year for each machine exhibited in Texas (§2153.401), and the permit must be attached to the machine. Under 34 TAC §3.602, a permit "may be assigned to a purchaser" by written notice to the Comptroller within 10 days of the transfer. The same rule also says permits "are not transferrable from one person to another or from one machine to another." Raise both provisions with your counsel. Removing a permit from a machine is prohibited (§2153.360). Duplicate permits cost $5. For machines first exhibited partway through the year, the tax is prorated: $60, $45, $30 or $15 depending on the quarter. The Comptroller may seal unregistered or untaxed machines and may assess civil penalties of $50 to $2,000, which can apply for each day of a violation (§§2153.352, 2153.354).
5. Software history and "certification" paperwork
Our editorial recommendation is to ask the seller for the software and firmware versions installed, a history of changes, who made them, and any test documents, along with what those documents actually cover. Treat all of this as evidence the seller supplies. None of the Texas sources reviewed for this guide set up state certification of skill machines. No document replaces the test in Penal Code §47.01(4)(B). To fall under that exclusion, a device must be made "solely for bona fide amusement purposes" and award only noncash merchandise. The prize from a single play is capped at 10 times the cost of one play or $5, whichever is less.
6. Ask where each machine operated
A machine's location history matters. In 2003, the Texas Supreme Court held that eight-liners paying tickets redeemable for cash or retailer gift certificates do not qualify for the exclusion. It also held that in forfeiture cases, once the State shows probable cause, the possessor must prove the machine qualifies (State v. One Super Cherry Master, via FindLaw). Texas Public Radio and the San Antonio Report reported on September 9, 2026, that the Second Court of Appeals found the eight-liners in the Fort Worth litigation to be unconstitutional lotteries. The outlets also reported that Fort Worth moved to ban game rooms in 2024 and that a San Antonio councilmember has asked for a citywide ban. For each machine, ask where it operated, how prizes were redeemed and whether it was ever sealed, seized or subject to forfeiture. Counties and cities may also charge an occupation tax of up to one-fourth of the state rate (§2153.451).
7. Seller warranties and contract terms
Questions to take to your own counsel: Does the seller represent clear title and no liens? Are the serial numbers accurate? What is the status of each permit? Is any seizure or forfeiture pending? What software configuration will be delivered? What remedies do you have if any of these representations turn out to be false?
8. Watch the Legislature
According to its bill analysis, SB 517 (89th Legislature, 2025) would have redefined "gambling device" and raised possession of a gambling device and related offenses to third-degree felonies. It passed the Senate on May 8, 2025. Texas Legislature Online shows no action after the House received it. Changes in the law could affect a used machine's resale value and risk.
Closing checklist
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The correct license is in place before purchase, including an import license for out-of-state machines bought for resale.
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The seller's taxpayer number and license type have been checked.
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Serial numbers, cabinet labels and the seller's records match.
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The 10-day permit notice is planned with counsel.
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Location and redemption history has been documented.
Record your findings in the vendor comparison checklist. Neither this guide nor the worksheet is a legal determination. Sources were checked October 29, 2026.
Related reading
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Texas Skill Machine Permits 2026: What the State's Registration Data Can and Cannot Show
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Skill Games vs. Sweepstakes Machines: Key Legal Differences in Texas
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Why a Registration Is Not a Safe Harbor: Texas Licenses, Tax Permits and the Penal Code
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.