99B.10 - ELECTRICAL AND MECHANICAL AMUSEMENT DEVICES -- PENALTIES.
99B.10 ELECTRICAL AND MECHANICAL AMUSEMENT DEVICES --
PENALTIES.
1. It is lawful to own, possess, and offer for use by any person
at any location an electrical or mechanical amusement device and the
use of the electrical or mechanical amusement device shall not be
deemed gambling, but only if all of the following are complied with:
a. A prize of merchandise exceeding fifty dollars in value
shall not be awarded for use of the device. However, a mechanical or
amusement device may be designed or adapted to award a prize or one
or more free games or portions of games without payment of additional
consideration by the participant.
b. A prize of cash shall not be awarded for use of the
device.
c. An amusement device shall not be designed or adapted to
cause or to enable a person to cause the release of free games or
portions of games when designated as a potential award for use of the
device, and shall not contain any meter or other measurement device
for recording the number of free games or portions of games which are
awarded.
d. An amusement device shall not be designed or adapted to
enable a person using the device to increase the chances of winning
free games or portions of games by paying more than is ordinarily
required to play the game.
e. An amusement device required to be registered as provided
in paragraph "f", shall not be placed into operation without
first obtaining a new amusement device registration tag if electronic
or mechanical components have been adapted, altered, or replaced and
such adaptation, alteration, or replacement changes the operational
characteristics of the amusement device including but not limited to
the game being changed.
f. (1) Each electrical and mechanical amusement device in
operation or distributed in this state that awards a prize, as
provided in this section, where the outcome is not primarily
determined by the skill or knowledge of the operator, is registered
by the department as provided by this lettered paragraph and is only
located on premises for which a class "A", class "B", class "C",
special class "C", or class "D" liquor control license or class "B"
or class "C" beer permit has been issued pursuant to chapter 123.
For an organization that meets the requirements of section 99B.7,
subsection 1, paragraph "m", no more than four, and for all other
persons, no more than two electrical and mechanical amusement devices
registered as provided by this lettered paragraph shall be permitted
or offered for use in any single location or premises for which a
class "A", class "B", class "C", or class "D" liquor control license
or class "B" or class "C" beer permit has been issued pursuant to
chapter 123.
(2) Each person owning an electrical and mechanical amusement
device in this state shall obtain a registration tag for each
electrical and mechanical amusement device owned that is required to
be registered as provided in this lettered paragraph. Upon receipt
and approval of an application and a fee of twenty-five dollars for
each device required to be registered, the department shall issue an
annual registration tag. A registration may be renewed annually upon
submission of a registration application and payment of the annual
registration fee and compliance with this chapter and the rules
adopted pursuant to this chapter.
(3) The number of electrical and mechanical amusement devices
registered by the department under this lettered paragraph shall not
exceed the total number of devices registered by the department as of
April 28, 2004. In addition, the department shall not initially
register an electrical and mechanical amusement device that is
required to be registered as provided in this lettered paragraph to
an owner for a location for which only a class "B" or class "C" beer
permit has been issued pursuant to chapter 123 on or after April 28,
2004.
(4) A person owning or leasing an electrical and mechanical
amusement device required to be registered under this lettered
paragraph shall only own or lease an electrical and mechanical
amusement device that is required to be registered that has been
purchased from a manufacturer, manufacturer's representative, or
distributor registered with the department under section 99B.10A.
(5) An owner at a location for which only a class "B" or class
"C" beer permit has been issued pursuant to chapter 123 shall not
relocate an amusement device registered as provided in this lettered
paragraph to a location other than the location of the device on
April 28, 2004, and shall not transfer, assign, sell, or lease an
amusement device registered as provided in this lettered paragraph to
another person for which only a class "B" or class "C" beer permit
has been issued pursuant to chapter 123 after April 28, 2004.
g. A person owning or leasing an electrical and mechanical
amusement device required to be registered under paragraph "f",
shall display the registration tag as required by rules adopted by
the department.
h. A person owning or leasing an electrical and mechanical
amusement device required to be registered under paragraph "f"
shall not allow the electrical and mechanical amusement device to be
operated or made available for operation with an expired
registration.
i. A person owning or leasing an electrical and mechanical
amusement device required to be registered under paragraph "f",
or an employee of a person owning or leasing an electrical and
mechanical amusement device required to be registered under paragraph
"f", shall not advertise or promote the availability of the
device to the public as anything other than an electrical and
mechanical amusement device pursuant to rules adopted by the
department.
j. A person owning or leasing an electrical and mechanical
amusement device required to be registered under paragraph "f"
shall not relocate and place into operation an amusement device in
any location other than a location which has been issued an
appropriate liquor control license in good standing and to which the
device has been appropriately registered with the department.
k. Any awards given for use of an amusement device shall only
be redeemed on the premises where the device is located and only for
merchandise sold in the normal course of business for the premises.
l. Each electrical or mechanical amusement device required to
be registered as provided by this section shall include on the device
a counting mechanism which establishes the volume of business of the
device. The department and the department of public safety shall
have access to the information provided by the counting mechanism.
m. Each electrical or mechanical amusement device required to
be registered as provided by this section at a location for which
only a class "B" or class "C" beer permit has been issued pursuant to
chapter 123 shall include on the device a security mechanism which
prevents the device from being operated by a person until action is
taken by the owner or owner's designee to allow the person to operate
the device.
n. An electrical or mechanical amusement device required to
be registered as provided in this section shall not be a gambling
device, as defined in section 725.9, or a device that plays poker,
blackjack, or keno.
o. Any other requirements as determined by the department by
rule. Rules adopted pursuant to this lettered paragraph shall be
formulated in consultation with affected state agencies and industry
and consumer groups.
2. A person who violates any provision of subsection 1, except as
specified in subsection 3, commits a serious misdemeanor.
3. A person who violates any provision of subsection 1, paragraph
"a", "e", "g", "h", "i", "j", "k", or
"m", shall be subject to the following:
a. For a first offense under an applicable paragraph, the
person commits a simple misdemeanor, punishable as a scheduled
violation pursuant to section 805.8C, subsection 4, paragraph
"b".
b. For a second or subsequent offense under the same
applicable paragraph, the person commits a serious misdemeanor.
4. Notwithstanding any provision of this section to the contrary,
it is lawful for an individual other than an owner or promoter of an
amusement device to operate an amusement device, whether or not the
amusement device is owned, possessed, or offered for use in
compliance with this section. Section History: Early Form
[C75, 77, 79, 81, § 99B.10] Section History: Recent Form
87 Acts, ch 234, § 425; 88 Acts, ch 1274, § 34; 89 Acts, ch 231,
§24; 2003 Acts, ch 147, §1, 7; 2004 Acts, ch 1118, §2, 3, 11; 2004
Acts, ch 1175, §343; 2005 Acts, ch 106, §7; 2007 Acts, ch 173, §2;
2009 Acts, ch 179, §113
Referred to in § 99.1A, 99B.1, 99B.10A, 99B.10B, 99B.10C, 99B.10D,
805.8C(4a, 4b)