Texas coin-operated machine license types, administered by the Texas Comptroller under Occupations Code Chapter 2153, are the general business license ($200 to $500 depending on machine count), the import license ($500) and the repair license ($50). Owners who qualify can use a $150 registration certificate instead of a license. Every machine offered for play also needs a $60 annual occupation tax permit.
None of these credentials decides whether a particular machine is legal in Texas. That question is governed by the Texas Penal Code, covered below. Sources were checked Oct. 28, 2026.
The legal framework
Unless the chapter provides otherwise, Occupations Code Sec. 2153.151 bars a person from engaging in the covered business activities without a license or registration certificate. Under Sec. 2153.356(a), a knowing violation is a Class A misdemeanor. Sec. 2153.152 sets out three license types: general business, import and repair. The registration certificate is a separate credential (Secs. 2153.156 to 2153.158) for owners described in Sec. 2153.008.
General business license
The Comptroller says this license is "needed to manufacture, own, buy, sell, rent, lease, trade, maintain, transport, exhibit or store coin-operated machines." Holders may place machines in another person's business. Under Sec. 2153.154(a), the fee is $200 for up to 50 machines, $400 for 51 to 200 machines and $500 for more than 200.
Import license
The Comptroller describes the import license as "needed to import, transport, own, buy, repair, sell or deliver coin-operated machines." The annual fee is $500 (Sec. 2153.154(b)). Publication 96-256 states that "Import license holders need a general business license to make coin-operated machines available for play," with an exception for free demonstrations. Sec. 2153.402 exempts an owner from the occupation tax if the owner holds an import license and keeps the machine only for resale.
Registration certificate
Under Publication 96-256, an owner can hold a registration certificate instead of a general business license if the owner exhibits machines "only in that person's own place of business," has "no machines in another person's business," and has "no financial interest in the coin-operated machine industry" other than the machines in that business. The fee is $150 per business entity (Sec. 2153.157). Under Sec. 2153.158, the certificate states where the machine is located and certifies that a tax permit is attached. If your machines sit in anyone else's location, you need the general business license.
Repair license
The Comptroller says the repair license "allows the holder to repair coin-operated machines for others." Owners do not need one to repair their own machines. The fee is $50 (Sec. 2153.154(c)).
Occupation tax permit (decal)
Sec. 2153.401 imposes a $60 annual tax on each machine an owner exhibits or displays in Texas. According to the Comptroller FAQ, a decal "affixed to each machine shows that the tax has been paid." For a machine first exhibited after March 31, Sec. 2153.403 sets the tax at one-fourth of the annual rate for each quarter or partial quarter left in the calendar year. Sec. 2153.406 has three rules for the decal:
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It must be attached so that removing it requires continued application of steam and water.
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A replacement for a lost, stolen or destroyed permit costs $5.
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A permit may not be attached to a machine that is not registered.
Removing a tax permit is a Class B misdemeanor (Sec. 2153.360). When a machine is sold during the calendar year, Publication 96-256 says its permit can be transferred by filing Form AP-212.
Who needs what
The scenarios below are our reading of the statutory and Comptroller descriptions. They are not agency determinations.
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Route operator placing machines in third-party stores: general business license, plus a decal on each machine.
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Store owner with only its own machines on its own premises and no other industry interest: registration certificate, plus decals.
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Importer bringing machines into Texas for resale: import license. A general business license is also needed before offering machines for play.
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Independent technician repairing machines for others: repair license.
Renewal calendar and late fees
The Comptroller FAQ says "All renewals are due Nov. 30 of each year." The fees below come from the Comptroller's coin-op page and depend on the postmark date:
| Credential | By Nov. 30 | Dec. 1-31 | Jan. 1-Mar. 31 | April 1 or later |
|---|---|---|---|---|
| General business (up to 50 / 51-200 / over 200) | $200 / $400 / $500 | $250 / $450 / $550 | $300 / $600 / $750 | $400 / $800 / $1,000 |
| Import | $500 | $550 | $750 | $1,000 |
| Registration certificate | $150 | $200 | $225 | $300 |
| Repair | $50 | $100 from Dec. 1 |
Publication 96-256 describes the late-renewal structure this way:
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$50 for a renewal with a December postmark.
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1.5 times the annual fee for a renewal postmarked within 90 days after Dec. 31.
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Two times the annual fee for a renewal postmarked more than 90 days but less than two years after Dec. 31.
Eligibility and paperwork
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Age: applicants must be 18 or older (Comptroller FAQ).
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Felony bar: under Publication 96-256, a general business license cannot be issued to anyone convicted of a felony within the past five years, or placed on probation or released on parole for a felony conviction within the past two years.
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Tax debts: anyone who owes outstanding fees, penalties or taxes to Texas cannot receive a license or registration certificate.
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Ownership and records contact: under Sec. 2153.153, applications require an ownership statement and must name an in-state individual and in-state office responsible for records and reporting. The individual must be an owner, partner, officer, trustee, receiver or principal member. Corporations need not list shareholders holding less than 10 percent.
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Record retention: owners must keep "a complete and itemized record for each machine for at least four years." Records must be kept longer if a Comptroller matter, hearing or court proceeding is pending.
Exemptions
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Private residence: an individual who owns a machine for personal use at home needs no license and pays no tax (Sec. 2153.006).
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Children's machines: machines "designed exclusively for children" are excluded from the definition, but amusement services from them are subject to sales tax (Publication 96-256).
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Nonprofit organizations: machines owned by, leased to or rented to organizations operated exclusively for charitable, educational, religious or benevolent purposes are exempt. Social and fraternal organizations do not qualify.
A license is not a legality determination
Sec. 2153.003 provides that Chapter 2153 does not authorize keeping, exhibiting, operating, displaying or maintaining a machine that the Texas Constitution or Penal Code prohibits. Publication 96-256 repeats the point in its "Illegal Gambling Devices" section.
The governing test is in Penal Code Sec. 47.01(4). It defines a gambling device as a contrivance that "for a consideration affords the player an opportunity to obtain anything of value," where the award is determined "solely or partially by chance, even though accompanied by some skill." The exclusion in (4)(B) is narrow. It covers contrivances made solely for bona fide amusement that reward the player exclusively with noncash merchandise prizes, toys, novelties or representations redeemable for them. The wholesale value from a single play can be no more than 10 times the amount charged to play once or $5, whichever is less. Sec. 47.06 makes it a Class A misdemeanor to knowingly own, manufacture, transfer or possess a gambling device with intent to further gambling. A decal shows that the tax was paid. It does not show that the machine is lawful.
Next steps
To check whether a business holds a Texas license, use the Comptroller's Texas Coin-Operated Machine Taxpayer Search. For supplier diligence, our vendor comparison checklist helps you record questions and evidence. It does not provide legal approval or verify vendors.
Related reading
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Texas Skill Machine Enforcement Timeline: From the Rylie Ruling to Local Bans, 2023 to 2026
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Texas Skill Machine Permits 2026: What the State's Registration Data Can and Cannot Show
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Pennsylvania Skill Games Ban Enforcement Begins After Supreme Court Ruling
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Skill Game Bills 2026: Where Pennsylvania, Michigan and Other States Stand as Sessions Wind Down
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What Is an Eight-Liner? Texas Courts Explain Where the Term Comes From
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Where Skill Games Stand in Six States After a Turbulent 2026
Sources
All sources checked Oct. 28, 2026. AI assistance was used in preparing this article. Consult primary sources and qualified counsel for legal decisions.
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.