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Texas Skill Machine Enforcement Timeline: From the Rylie Ruling to Local Bans, 2023 to 2026

By GamesOfSkillMag Editorial7 min read
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A bare graphite-metal game cabinet frame with a blank screen panel stands at an angle beside a stack of misaligned geometric panels with a thin lime-green seam, lit by hard raking light against an off-white surface.

This Texas skill machine enforcement timeline covers 2023 to 2026. In that period a court ruling changed how Texas cities and counties treat eight-liners and game rooms. No new statute was involved. Machines sold or described as "skill" games fall within this enforcement picture whatever they are called. Some local governments still allow sites to operate, but the appellate precedent applies across Texas.

On March 17, 2022, the Second Court of Appeals in Fort Worth (No. 02-17-00185-CV) held that the operators' eight-liners are lotteries and violate Article III, Section 47 of the Texas Constitution, according to The Examiner. Bloomberg Law quoted the court: "Given the expansive common-law definition, chance, prize, and consideration, it's hard to imagine any circumstance under which a slot machine is not a lottery." The Texas Civil Justice League reported that the court also held that the Legislature cannot "statutorily remove from the definition of 'lottery' a game which inarguably conforms to the constitutional meaning of 'lottery.'"

2023: Review denied while raids continued

The operators petitioned the Texas Supreme Court on November 4, 2022 (Cause No. 22-0694). The court ordered full merits briefing on June 2, 2023 and denied review on December 15, 2023, according to the case docket.

County enforcement was already under way. In October 2023, a raid on the Tejano Treasures game room in Edcouch, Hidalgo County, ended in seven arrests. KRGV reported that it was the fourth of eight establishments deputies had targeted in two months. Hidalgo County DA Terry Palacios told the station: "When you give anything of value less than $5, I don't see how any business can profit."

2024: Rehearing denied and Fort Worth's ban

The operators moved for rehearing on February 15, 2024. The Supreme Court denied the motion on June 14, 2024, according to its orders list. Fort Worth repealed its game-room licensing provisions in October 2024. On December 10, 2024 the City Council approved a final zoning text amendment, which took effect January 21, 2025. Irving Weekly reported that owners had 45 days after notification to remove devices and faced fines of up to $2,000 per day. Council member Jared Williams told Dallas Express: "This is a big win for our neighborhoods." In October 2024 the Texas Association of Broadcasters advised its members that eight-liners are an electronic or mechanical version of a lottery, so both operating and advertising them is illegal.

2025: More cities act, and a federal case in Houston

In April 2025, the Orange City Council approved the first reading of a ban on eight-liners and game rooms. Businesses had until August 4, 2025 to remove machines, and claw and crane games are still allowed (The Record Newspapers). In April 2025, federal prosecutors also announced Operation Double Down in Houston. Fox 26 reported that more than 720 agents from about 20 agencies hit 45 locations, including 30 alleged illegal game rooms. A 37-count indictment charged 16 people. Reported seizures included more than 2,000 slot machines and $4.5 million in cash. According to the report, alleged leader Nizar Ali faces 32 counts of federal program bribery in a scheme alleged to have generated $22 million. These are allegations, not findings.

On June 2, 2025, a Vidor Police-led operation with state and federal partners closed all 10 game rooms in Vidor (KFDM). Interim City Manager Rod Carroll said the sites were "violating the law and offering cash and cash prizes exceeding the $5 limit." In Beaumont, the council voted 4-3 on June 3, 2025 to table repealing its gaming ordinance (The Examiner). On July 29, 2025 it voted unanimously to ban eight-liners, with a phase-out the city attorney described as "90 to 120 days" (The Examiner).

2025 Legislature: The felony bill stalled

SB 517 passed the Senate on May 8, 2025. Its last recorded action is "Received from the Senate" (Texas Legislature Online). The Senate bill analysis says the bill would have raised gambling promotion, keeping a gambling place, communicating gambling information and possession of a gambling device (Penal Code §§47.03 to 47.06) from Class A misdemeanors to third-degree felonies. It would also have repealed the §47.02(e) defense. The House companion, HB 487, never left committee. None of these changes became law.

2026: Enforcement in Galveston County

On January 7, 2026, Galveston police served warrants at nine locations and made multiple arrests (Click2Houston). In February 2026, the Galveston County Sheriff's Office raided sites in Hitchcock. Fox 26 reported 33 arrests and the seizure of 749 machines and $417,752 in cash. Mayor Christopher Armacost was charged with engaging in organized criminal activity in connection with his business. He said he was charged "as a private citizen and business owner." In June 2026, the sheriff's task force served 21 search warrants in an operation centered on La Marque, with help from the Harris and Fort Bend County Sheriff's Offices. No charges had been released when Texas Scorecard reported the operation.

The county also banned game rooms in its unincorporated areas and repealed regulations it had adopted in 2018. The ordinance states there is "no constitutional statutory grounds for the county to lawfully permit the operation of game rooms."

2026: Harris and Bexar counties and San Antonio

Click2Houston reported that a North Harris County site first raided in September 2025 was raided again in February 2026. It also reported that some agencies auction seized machines, which puts them back into circulation. State Sen. Bob Hall told the station: "There is no reason for a gambling machine to exist in Texas." On April 2, 2026, Bexar County deputies raided a San Antonio game room and deactivated 50 eight-liners (KSAT). The sheriff's office said that paying out "in cash, check, or a physical item (like beads or tickets) that is later redeemed for cash" is classified as gambling promotion. On September 4, 2026, Councilwoman Teri Castillo filed a request for a citywide ban in San Antonio. It is waiting for the Governance Committee, and no date has been set (Yogonet).

Where local action stands

  • Bans adopted: Fort Worth, Orange and Beaumont. In Galveston County: Kemah (April 1, with fines of at least $500), Dickinson, League City (July), La Marque (August), Santa Fe and the county's unincorporated areas (Galveston County Daily News, September 18, 2026).

  • Pending or undecided: the City of Galveston (reported as "considering its legal obligations"), Hitchcock (waiting for direction from the Legislature) and San Antonio (in committee).

  • Recent raids: Hidalgo, Harris, Orange (Vidor), Galveston and Bexar counties.

What operators should take from this

The Texas Comptroller requires a $60 annual occupation tax permit for each coin-operated machine. The Comptroller's page does not address eight-liners, so holding a license does not show that a machine is legal. The sources above show enforcement focusing on how prizes are paid, including tickets or beads that are later exchanged for cash. Lawmakers are still calling for tougher statewide penalties. If you are comparing suppliers or contracts, our vendor comparison checklist is a place to record questions and evidence. It does not provide legal approval. For decisions about specific sites, consult qualified Texas counsel.

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

What did the court decide in City of Fort Worth v. Rylie?

On March 17, 2022, the Second Court of Appeals in Fort Worth held that the operators' eight-liners are lotteries barred by Article III, Section 47 of the Texas Constitution. The Texas Supreme Court denied review on December 15, 2023 and denied rehearing on June 14, 2024.

Which Texas cities have banned eight-liners since the ruling?

The cities covered in the reporting cited here are Fort Worth (effective January 21, 2025), Orange, Beaumont, Kemah, Dickinson, League City, La Marque and Santa Fe. Galveston County also banned game rooms in its unincorporated areas. San Antonio is considering a ban that is still in committee.

Did Texas make gambling device offenses felonies in 2025?

No. SB 517 would have raised the main Chapter 47 gambling offenses to third-degree felonies. It passed the Senate on May 8, 2025 but did not advance further, and its House companion, HB 487, stayed in committee.

Does a Texas Comptroller coin-op license make a machine legal?

No. The Comptroller's page sets out a $60 annual occupation tax permit for each machine and lists license types, but it does not address eight-liners or whether they are legal.