Arizona AG announces $1M settlement with game machine company

May 29, 2019, 10:58 AM | Updated: 6:02 pm

(Arizona Attorney General's Office)...

(Arizona Attorney General's Office)

(Arizona Attorney General's Office)

PHOENIX — The Arizona Attorney General’s Office on Wednesday announced that it had come to a $1 million settlement with a New Jersey-based merchandiser game machine company it says was altering its machines to make contestants lose.

The consent judgement against Betson Coin-Op Distributing Company alleged that the company’s Sega Key Master Prize Redemption Machines were equipped with an “auto-percentaging” system, which could be set to ensure a certain number of players lost before the machine paid a prize.

That made the machine a game of chance, similar to slot machines. Games of chance are only permissible in licensed casino facilities.

“Under Arizona law, outside of casinos, it is illegal for gaming machines to have settings that permit an operator to alter the odds of participants winning the game,” Arizona Attorney General Mark Brnovich said in a press release.

As part of the settlement, Betson agreed not to sell, lease or finance any Key Master or merchandiser game machines with auto-percentaging systems in Arizona.

Key Masters are electronic gaming devices that have three rows of “keyholes” located adjacent to prizes.

Players use a joystick and buttons to guide a mechanical “key” into one of the keyholes and win the corresponding prize.

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Arizona AG announces $1M settlement with game machine company