Gambling Machines In Wisconsin Bars

Are You Legally Allowed to Own or Operate Slot Machines Outside of Casinos?

• Gambling Machines In Wisconsin Bars
• Gambling Machines In Wisconsin Bars 2020

945.01(3) (3) Gambling machine. 945.01(3)(a) (a) A gambling machine is a contrivance which for a consideration affords the player an opportunity to obtain something of value, the award of which is determined by chance, even though accompanied by some skill and whether or not the prize is automatically paid by the machine. Wisconsin slot machine casino gambling consists of 24 tribal casinos. Illegal video gambling machines exist in bars and taverns throughout Wisconsin. Tribal-state gaming compacts have minimum and maximum theoretical payout limits. Annual return statistics are publicly available for all tribal casinos.

Wisconsin has gambling laws which limit the ownership and possession of gambling devices. Yet there are places in Wisconsin where these devices, ranging from traditional slot machines to modern video gambling machines, are perfectly legal. Under Wisconsin Law, gambling device charges range from non-criminal forfeiture violations, to misdemeanors and felonies. If you are being charged with possession of gambling devices, contact Milwaukee’s top defense lawyers for a consultation.

What counts as a gambling machine in Wisconsin?

Wisconsin state statute 945.01(3) defines a gambling machine as any “contrivance which for a consideration affords the player an opportunity to obtain something of value”. The most common type of device is a standard slot machine. Devices which are not considered gambling machines include pinball arcades and crane games. Video poker machines may be considered gambling devices if there is a payout for players.

Commercial Gambling Devices in Milwaukee Bars and Taverns: For Entertainment Use Only?

Commercial gambling is illegal in Wisconsin with a few very specific exceptions. The Wisconsin Department of Revenue is responsible for enforcing the laws yet countless video poker machines and slot games can be found in bars and restaurants across the state. The penalties for gambling machine ownership increases per device:

• 1 machine: $500 forfeit maximum
• 2 machines: $1,000 forfeit maximum
• 3 machines: $1,500 forfeit maximum
• 4 machines: $2,000 forfeit maximum
• 5 machines: $2,500 forfeit maximum

Gambling Machines In Wisconsin Bars

Tribal casinos are exempt to these rules due to a state compact. Any other commercial establishment with these devices is at risk of being charged with possession. It often depends on local law enforcement’s interpretation of what constitutes a gambling device.

Examples of Legal Gambling in Wisconsin

• Lottery contests
• Bingo hall games
• Raffles
• Charity games
• On-track racing bets (horse and dog)

Private Gambling Machining Ownership

Individuals owning more than 5 gambling devices are subject to criminal charges. Possession of 5 or fewer may result in civil forfeiture but no charges. However, the exact penalties will depend on the specifics of your case. Certain exceptions exist for private individuals who own slot machines which are more than 25 years old. However, even owning gambling device paraphernalia can put you on the wrong side of the law.

Selling a gambling device like a slot machine is another gray area of gambling law in Wisconsin. Transporting a gambling device into the state is unlawful.

Criminal Defense Law Firm with Offices in Milwaukee, Brookfield, and Madison

Possession of gambling devices in Milwaukee or Madison may be legal depending on your circumstances. Gambling charges can range from ordinance violations to Class B misdemeanors and Class I felonies. You need experienced legal representation when you are charged with possession of a gambling device. Grieve Law’s team of award-wining attorneys can help you find what defenses you have. You may be able to fight or reduce your charges.

If you have been charged with possession of a gambling device, contact Milwaukee’s defense law firm for a consultation.

'Bar Month' at OnMilwaukee.com is back for another round! The whole month of February, we're serving up intoxicatingly fun bars and club articles -- including guides, unique features, drink recipes and more. Grab a designated driver and dive in!

At bars all over the Milwaukee area, patrons sit down, order a drink and take their chances at a video gambling machine.

In just about every bar, you can find one of these machines. And for every machine, there is at least one patron willing to dump in money for hours on end, despite labels proclaiming 'for entertainment use only.'

Many times, though, the label is as decorative as beer advertisements on the wall. The fact is a large percentage of bars offer payouts for gamblers, in direct violation of Wisconsin state statutes.

Under a 1999 agreement that reduced penalties for operating illegal machines, enforcement is now handled solely by the state Department of Revenue, which makes sure bar, restaurant and hotel owners are paying appropriate taxes on revenue generated by machines.

Before then-Gov. Tommy Thompson revised the state law, violators faced felony charges, fines of up to $10,000, loss of liquor license and prison time. The current state law allows bars to have up to five video poker machines and paying out winnings is a civil offense, carrying a $500 fine and no loss of license.

Bars with more than five machines, however, could face criminal charges, according to Department of Revenue Communications Officer Jessica Iverson.

Regulating the machines is big business for the DOR, which has brought in nearly $23 million in taxes since the law went into effect in 2003. Proceeds generated through video gaming machines are taxable income, and the gross receipts are subject to the state's sales tax.

To keep things in check, the department relies heavily on tax audits and also enlists the help of Alcohol and Tobacco Enforcement agents.

'Our ATF agents come across the illegal machines through the course of normal inspection as well as in the course of investigating other tobacco or alcohol law violations,' Iverson says. 'We also, of course, conduct tax audits of businesses. If auditors identify gambling operations during the course of those audits, they will enlist the help of ATF agents to enforce that part of the statute, as well.'

In addition to the tax implications, the Wisconsin statute 945.01 (c) makes it illegal to operate any machine that affords a player to win something of value determined by a game of chance.

The threat of audits, fines and licensing issues aside, bar owners are willing to make the illegal payments because the machines bring in a big chunk of money.

'People sit down when they're bored,' said one bar owner who spoke with OnMilwaukee.com under the condition of anonymity. 'They're more inclined to spend more time and buy more drinks when they're at the machines and have a chance to win some money.

Gambling Machines In Wisconsin Bars 2020

'A lot of people, if there's nobody at the bar, will sit at a machine and make a couple bucks to pass the time.'

At this particular establishment, players receive a ticket when done that they can redeem at the bar for their winnings. The bar owner knows he's taking a chance, but there's big money to be made, especially important in the current economy.

'It's a little bit scary, yeah,' he said. 'But it's a risk you take.'

Earlier in the decade, the Tavern League supported a measure introduced by Rep. Terry Musser (R-River Falls) that would have legalized the machines, generating as much as $380 million in revenue. Other supporters of the bill wanted to prevent Wisconsin Native American tribes, legally operating casinos under a compact with the state, from having a monopoly on gaming.

Some states are reconsidering their stances on video gambling in an effort to patch up growing budget deficits.

In Pennsylvania, Gov. Ed Rendell proposed legalizing some forms of video gambling as a means to fund free college tuitions at the 28 campuses in his state. Officials there estimate that roughly 17,000 video poker machines are operating illegally. Those machines, if legalized, could generate as much as $550 million, according to Gov. Rendell's plan.

'This is not an expansion of gaming,' Pennsylvania Revenue Secretary Stephen Stelter told The Philadelphia Inquirer earlier this month. 'It is the recognition that video poker is already a thriving industry.'