Texas coin operated machine records are set by Occupations Code Chapter 2153. An owner must keep an itemized record of each machine, including its kind, dates, location and operator. License holders must also record and report make, type and serial number. Records must stay open to inspection for at least four years.
This is a checklist of what the statute text requires, drawn from the Texas Legislature's statute site. It does not address whether any machine or placement is lawful. Keeping these records does not make a machine lawful, and Penal Code Chapter 47 is a separate matter outside this article. Jurisdiction: Texas.
Who the rules apply to
Definitions in Section 2153.002 matter for reading the rest of the chapter:
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An owner is a person who owns a coin-operated machine in Texas.
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An operator is a person who exhibits or displays, or permits display of, a coin-operated machine in a place of business that person does not own. In the statute, "operator" means the location business, not the owner's route or staff.
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A "skill or pleasure coin-operated machine" is one that dispenses or is capable of dispensing or affording amusement, skill, or pleasure.
The Comptroller's coin-op page lists four license types: General Business License, Import License, Registration Certificate (for owners exhibiting only in their own place of business) and Repair License. Annual renewal is due November 30.
Checklist 1: the owner's itemized record (Section 2153.201)
An owner must maintain "a complete and itemized record of each coin-operated machine the owner purchases, receives, possesses, handles, exhibits, or displays in this state in accordance with accepted auditing and accounting practices." The record must include:
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The kind of each machine.
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The date each machine is acquired or received in Texas and the date it is placed in operation.
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The location of each machine: county, municipality if any, and street or rural route number.
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The name and complete address of each operator (the location business) of each machine.
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If the owner is an individual, the owner's full name and address.
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If the owner is not an individual, the name and address of each principal officer or member.
Serial number is not in this list. It is required by Section 2153.202 and by the Comptroller's rule, covered below.
Checklist 2: license holder records and reporting (Section 2153.202)
A license holder must keep a record of, and report to the Comptroller, information on each music or skill or pleasure coin-operated machine it owns, possesses or controls:
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Make, type and serial number.
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Date placed in operation.
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Dates of first and most recent registration.
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Specific location.
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Any change in machine ownership.
Reports are due at intervals the Comptroller specifies and at any other time it asks. A license holder must also notify the Comptroller in writing immediately of a change in ownership of a licensed business.
Marking machines and permits
Under 34 Tex. Admin. Code Section 3.602, each machine displayed for music, skill or pleasure must be registered by make, model and serial number. If the manufacturer put no serial number on it, the license or registration certificate holder must assign one and stamp or engrave it on the cabinet. The owner's name and telephone number must be clearly visible on the outside of the machine, and written notice of a transfer of title or possession is due to the Comptroller within 10 days. We read the rule on a Cornell LII mirror, which showed it last amended May 29, 2020. Confirm the current text in the Texas Secretary of State's administrative code.
Section 2153.406 requires the machine tax permit to be securely attached, and bars attaching it to a displayed machine that is not registered with the Comptroller. A duplicate permit costs $5. The Comptroller's FAQ states the $60 occupation tax is due annually on each machine.
Written contracts (Section 2153.204)
A written contract between a licensed owner and an operator in Texas "must state the name, mailing address, and telephone number of the comptroller." Separately, the Comptroller FAQ states that no more than 50 percent of a machine's gross receipts can be contracted to a bailee or lessee by the license holder. That figure comes from the FAQ. We did not check its statutory basis, so verify it before relying on it. For contract diligence questions, the vendor comparison checklist records questions and evidence, not legal approval.
Credit transaction records (Section 2153.203)
A license holder who extends or lends credit must keep in Texas a record of the transaction sufficient to let a competent person determine compliance with the subchapter. Preserve it until the later of the fourth anniversary of the transaction date or the second anniversary of the final related entry.
Where records are kept, for how long, and who can inspect
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Location: the owner record must be kept at a permanent Texas address designated on the license application.
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Access: it must be available at all times to the attorney general, the comptroller or an authorized representative of either.
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Retention: at least four years, "and as required by Section 111.0041, Tax Code." That section, in Tax Code Chapter 111, extends the period while any tax, penalty or interest may still be assessed, collected or refunded, or while an administrative hearing or court proceeding is pending.
What the statute says about missing or false records
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Civil penalty (Section 2153.354): $50 to $2,000 against a person who, among other things, does not maintain required records, refuses or fails to make them available on request, or uses an artful device or deceptive practice to conceal a violation. Penalties may be assessed for each day a violation occurs.
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Class C misdemeanor (Section 2153.355): falsifying, failing to maintain, or refusing or failing to make available required records.
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Class B misdemeanor (Section 2153.358): intentionally failing or refusing to report information required by Section 2153.202, or withholding or concealing it.
Comptroller forms that touch records
The Comptroller's forms page lists AP-138 (Ownership Statement, submitted with all applications and change of owner requests), AP-142 (Machine Location Amendment), AP-144 (inventory supplement for registration certificate holders) and AP-145 (inventory supplement for general business license holders).
Sources and method
Statute text was read on the Texas Legislature's site on September 19, 2026. We did not separately confirm whether the 2025 legislative session amended Chapter 2153, so check Texas Legislature Online for currency. Comptroller pages are summaries and do not themselves address recordkeeping. This article was drafted with AI assistance from the sources below.
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.