Florida & Texas Lawmakers Weigh Bans on Unregulated Gambling Machines

From Florida’s Gulf Coast to Central Texas, lawmakers are debating how to stop the spread of unregulated gambling-style machines that blur the line between arcade amusement and unlicensed slot play.

Local lawmakers in both states are moving past police raids and court battles, considering ordinances and bans that could reshape how, or even if, these devices operate.

Florida: Raids, Rings, and the Push for Local Laws

Florida’s battle against illegal arcades has intensified in recent months. In Cape Coral, authorities seized 428 illegal machines and over $540,000 in cash during a major raid.

That operation is one of several in recent months; in Fort Myers, a raid shut down multiple arcades, confiscating over 100 machines and nearly $95,000 in cash.

Meanwhile, state prosecutors filed RICO charges against an alleged $24 million gambling ring in Sumpter County, operating under the guise of a senior entertainment center. That case is notable because it frames these illegal arcades as organized crime enterprises, rather than isolated local operators.

Like much of the state, Manatee County has witnessed a growing number of “arcades.” Authorities have raided multiple locations, including one bust that yielded 55 slot machines, 27 computers, and over $160,000 in cash.

These episodes have led county commissioners to take legislative action to address the problem. Commissioner Tal Siddique has led an effort to draft a local ordinance that would establish proactive rules:

• Ban machines offering payouts or reward structures akin to slot play.
• Empower law enforcement to shut down arcades more efficiently.
• Prevent operators from simply reopening under new identities.
• Define clearly which devices qualify as “gambling machines” in county limits.
• Serve as a model for other counties as these arcades proliferate statewide.

The Manatee County Commission voted 4–3 to advance the ordinance, setting up further hearings before a final decision is made. If passed, the Manatee ordinance may mark a turning point in empowering local governments to become active regulators rather than perpetual chasers of shifting arcade fronts.

Texas: Waco Considers Ban on Eight-Liners

In Texas, the flashpoint is Waco, where city leaders are debating whether to ban so-called “eight-liner” machines. The terminals visually resemble slot machines, but manufacturers argue they are not gambling devices as the outcomes involve player input. They’re often referred to as “skill game” machines across the US.

Waco police describe them as crime magnets. Assistant Police Chief Mark Norcross told city council members that crime has increased 20 times near businesses with “eight-liner” machines.

The city council will consider an ordinance, scheduled for a first reading this month. If enacted, it would take effect on January 1, 2026. Traditional amusements such as skee-ball, pool tables, and jukeboxes will remain legal. Meanwhile, machines requiring “consideration for a chance to win,” such as eight-liners, would be banned.

According to city documents, the ban would cost Waco about $6,000 annually in lost coin-operated machine taxes. The proposal would also move nightclub and amusement licenses from five-year renewals to annual ones, with reduced fees, to tighten oversight.

Terminals like eight-liners have long operated under Texas’s “fuzzy animal exception” rule. That provision allows arcade-style games that award low-value prizes, such as toys. Skill game operators argue that the provision shields their devices from being classified as gambling.

In Texas, like in many other states, skill games have been a subject of legal battles. In two separate rulings this year, including a case favoring Pace-O-Matic’s “Texas Skill” machines, courts found such devices did not qualify as gambling machines.

However, in Fort Worth v. Rylie, the Texas Supreme Court ruled that certain electronic gaming machines could constitute unconstitutional lotteries. That ruling could empower local governments to impose bans.

A Shared Problem

Florida’s illegal arcades and Texas’s “skill” machines may be different, but they represent the same challenge: the rapid proliferation of unregulated gambling devices.

Manatee County’s draft ordinance and Waco’s proposed ban signal that gray area gambling devices are not only an enforcement issue, but a policy problem.

For states, the stakes are high. These machines operate without oversight, not contributing taxes, while posing problem gambling and crime risks. Regulators and prosecutors, meanwhile, are left chasing shifting storefronts in Florida or fighting lengthy court battles in Texas.