Texas city zoning skill machines come down to three narrow local powers in Texas Occupations Code Chapter 2153, Subchapter J: a capped occupation tax, a zoning parity rule with a 300-foot exception for cities, and sealing of machines for unpaid local tax. Most of the current city action, including outright bans, runs on a separate track that rests on the Penal Code and the Texas Constitution. This is reporting on Texas law and local proposals, not a legal status determination for any machine or location.
Who decides what in Texas?
Four layers are easy to blur, so keep them apart. The state licenses and taxes coin-operated machines through the Comptroller under Occupations Code Chapter 2153, which states its purpose as "comprehensive and uniform statewide regulation" of music and skill or pleasure coin-operated machines (Sec. 2153.001). Subchapter J is the express local carve-out from that scheme. Courts and the Penal Code, Chapter 47 decide whether a particular game is lawful. Pending city proposals are a fourth category and are not law until adopted.
Can a Texas city tax skill machines?
Yes, within a cap. Sec. 2153.451 says a county or municipality may impose an occupation tax on a coin-operated machine, and the rate "may not exceed one-fourth of the rate of the tax imposed under Section 2153.401." The state tax under that section is $60 per year per machine, according to Texas Public Law's copy of Sec. 2153.401, and the Comptroller's coin-op page also lists a $60.00 annual permit. One-fourth of $60 is $15, so the local ceiling works out to $15 per machine per year. Confirm the arithmetic against the official section text.
Under Sec. 2153.453, a county or municipality that imposes the tax may seal a machine if the tax is unpaid and may charge a fee of not more than $5 to release it.
Can a city zone skill machines differently?
Only in a limited way. Sec. 2153.452(a) directs a political subdivision, for zoning purposes, to treat the exhibition of a music or skill or pleasure coin-operated machine "in the same manner as the political subdivision treats the principal use of the property where the machine is exhibited." In practice, a city generally cannot zone a store differently only because it hosts machines. That reading is ours, and the ordinance and the city attorney control how it applies locally.
What about churches, schools and hospitals?
Sec. 2153.452(b) says the parity rule "does not prohibit a municipality from restricting the exhibition of a coin-operated amusement machine within 300 feet of a church, school, or hospital." Three details matter:
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Subsection (b) names a municipality, while subsection (a) covers any political subdivision.
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Only those three uses are listed.
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The phrase "coin-operated amusement machine" is not defined in Sec. 2153.002, which defines "coin-operated machine," "music coin-operated machine" and "skill or pleasure coin-operated machine."
The statute does not say how the 300 feet is measured. Measurement rules and local definitions come from the ordinance. Subchapter J has not been amended since 1999, per the amendment history on the statute page.
Can a city ban skill machines outright?
That question sits outside Subchapter J. Under Penal Code 47.01(4)(B), a device is excluded from "gambling device" if it is "designed, made, and adapted solely for bona fide amusement purposes" and rewards the player exclusively with noncash merchandise prizes, toys or novelties within a stated value limit. A Comptroller license and a local occupation tax do not confer that exception, and being classed as a skill or pleasure machine for licensing says nothing about legality under Chapter 47.
In City of Fort Worth v. Rylie (No. 02-17-00185-CV), the Second Court of Appeals held in March 2022 that eight-liners are unconstitutional lotteries under Article III, Section 47 of the Texas Constitution, according to the Texas Civil Justice League, an advocacy group. The Texas Supreme Court denied review on December 15, 2023. Some local coverage loosely says the Supreme Court ruled the machines illegal. The reported posture is a court of appeals holding with review denied, and readers should check the opinion itself.
Cities have moved since:
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Fort Worth: KERA News reported in October 2024 that the city planned a code amendment (scheduled October 15, 2024) and a zoning amendment (scheduled December 10, 2024). What was finally adopted should be confirmed on the city's site.
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Waco: KWTX reported on October 7, 2025 that the council was considering a ban on amusement redemption machines effective January 1, 2026, and that repealing the local occupation tax would forgo about $6,000 a year. The Waco Bridge reported on October 24, 2025 that the ban won final approval and that operators objected, citing lease impact and short notice.
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Grapevine: A Fort Worth Report headline dated February 20, 2026 reports a unanimous council vote on February 3 to prohibit eight-liners and other gambling devices, with Class C fines up to $500 per violation. We have not read the article or the ordinance, so treat this as a lead to confirm.
What is pending in Texas now?
In San Antonio, District 5 Councilwoman Teri Castillo filed a Council Consideration Request seeking a citywide eight-liner ban plus more inspections, education and reporting channels. Texas Public Radio reported on September 9, 2026 that it goes next to the Governance Committee agenda before the full council. She is quoted as saying, "Our goal and expectation is to ban eight-liner machines. But I also understand that there is opportunity for more regulation." It is a request, not an adopted ordinance, and no vote had occurred in the sources reviewed. TPR also says San Antonio's development code already prohibits gambling establishments.
Counties are a separate question. The Texas State Law Library's eight-liner guide lists Local Government Code Chapter 234, Subchapter E under local regulation, and that subchapter concerns county regulation of game rooms. We did not confirm its text here, so check it directly.
Does a state license settle local rules?
No. The Comptroller says businesses offering coin-operated machines must be licensed or registered. Listed license types are General Business, Import, Registration Certificate and Repair. The $60 occupation tax permit must be visible and attached to each machine, and renewals are due annually by November 30. The Comptroller page does not address local taxes or distinguish skill from pleasure machines. Nothing in state registration answers a zoning or criminal-law question.
What documents should an operator request?
These are editorial suggestions, not statutory requirements:
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The current zoning ordinance and use table.
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Any coin-operated machine or game room ordinance.
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The city's occupation tax ordinance and rate.
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Distance measurement rules for protected uses.
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Permit or licensing forms.
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Pending council agendas and minutes.
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Written zoning verification from the planning department.
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City attorney guidance.
For supplier questions, the vendor comparison checklist records questions and evidence. It is not legal approval, vendor verification or a view on profitability.
Related reading
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.