JAN - 9 

MEMORANDUM 

To: Director. Division of Enforcement p 

From:: Staff Attorney, Office of theGenerat Counse 

Subject: Reels of Skill Gaming Device 

Several tribes in Oklahoma are using the Reels of Skill machine at their gaming 

facilities. As a result, you have requested our opinion on whether such games constitute Class 

11 or Class I11 gaming. We conclude that these machines are Class 111 devices and can only be 

played pursuant to a tribal-state compact. 

DESCRIPTION OF THE MACHINE: 

The Reels of Skill game is a modified "Cherry Masters" game, which was recently ' ,Wl found by the Florida Court of Appeals to be an illegal gambling device under Florida state 

law. &, State of Business Prof-ion v. Broward Vending, 

h, 696 So.2d 851 (Ct.App Fla. 1997). The machine is outwardly similar to a slot machine. 

The machine consists of a cabinet containing a video screen, dollar bill acceptor, ticket 

printer (for dispensing credits via a paper ticket) and buttons to play the game. The video 

.. ,, screen consists of nine symbols, arranged in a 3-x 3 pattern. During play the symbols appear 

$4 to spin, as if on reels. The symbols are cherries, bells, bars and other various fruit. On the 

left side of the screen is a menu indicating how a player may obtain "bonus" play on the 

machine (i .e., if three bells, bars, cherries, etc. line up a certain number of times, the player 

will get bonus spins). ~in'in~ up winning patterns of symbols results in a line being imposed 

over the line and the player receiving credits, which the player can use to continue to play (or 

cash out). If the player plays multiple lines, the player can win multiple lines each play. 

Credits do accumulate within the device. Another "screen" appears alternately on the video 

screen, which indicates which symbol combinations are winners and the amount of the 

corresponding prize. 

To play the game the player inserts money into the bill acceptor. Credits are given and 

appear on the screen numerically. One credit equals five cents. Once the player has credit, he 

can wager on one to eight lines at a time. Each line wagered costs one credit. The player can 

wager on 3 horizontal, 3 vertical and 2 diagonal lines. To select the number of lines to 

'lb wager, the player pushes a button. Each push of the button adds another line to the wager. 

1441 L STREET, N.W. 9TH ROOR WASHINGTON, D.C. 20005 TEL.: 202-632-7003 FAX: 202-632-7066 
Once the player has wagered, he pushes a button to start the video reels spinning. Once the 

*w" reels begin spinning they do not stop until a button is pushed by the player to stop the reels. 

The player can push one button to stop all 3 reels or he can push separate buttons to stop each 

reel one at a time. If the reels stop and a predetermined pattern appears on one of the lines 

wagered by the player, the player receives credits. As the player plays, and does not line up 

the winning symbols, credits decrease. 

According to the manufacturers' representative, the machines can be set at three (3) 

skill levels. The skill levels relate to how easy it is for the player to stop the spinning reels on 

the desired symbol. Mr. Cataldo stated that the game "loosens up or tightens up" depending on 

how poorly or well the player is doing. (i.e., if the player is winning, the machine becomes 

more difficult, requiring more skill; if the player is losing, the play becomes easier, thus less 

skill is required. The game software controls this feature. 

An option the player has in playing the game, is to "hold" two similar symbols in one 

line for replay during the next spin. Pushing a button allows the player to select which two 

symbols, if any, the player wishes to hold. Another option, is to participate in bonus play 

which can be earned by obtaining a certain number of specific patterns, the player must then 

wager on all eight lines of play. 

When the player chooses to cash out his credits, he pushes a button and a receipt is 

printed indicating his credit balance. The ticket can then be redeemed for cash or 

merchandise. 

'I* ' 

ANALYSIS: 

I. The Reels of Skill game is a "facsimilen under NIGC regulations which 

adopt the definition of "gambling device" under the Johnson Act. 

Pursuant to IGRA, 25 U.S.C. 4 2703: 

The term "Class I1 gaming" does not include . . . .(ii) electronic or 

electromechanical 'facsimiles of any game of chance or slot machines of any 

kind." 25 U.S.C. 8 2703(B)(ii). 

The current regulatory definition of electronic or electromechanical facsimile of any 

game of chance is "any gambling device as defined in 15 U.S.C. Sec. 1 171 (a)(2) or (3). " As . . discussed in Cabazon of Mlssion Induns v. Nat.Ind.Gamlng, 827 F.Supp. 26 (D.D.C. 

1993) aff'd 14 F.3d 633 (D.C.Cir. 1994) cert denmi U.S., 114 S.Ct. 2709 (19 ), the 

distinction between Class 11 and Class 111, according ~O~GRA, is that the use of "aids" is 

permitted for certain Class I1 games; the use of "facsimiles" is permitted only in Class I11 

games when there is a Tribal-State compact. Therefore, in order to remain within Class 11, the 
Reels of Skill machine must not be a "gambling device" under the Johnson Act. 

I'd 

The term "gambling device" is defined in the Johnson Act, 15 U.S.C. 1 171(a) as: 

(1) any so-called "slot machine" or any other machine or mechanical device an essential 

part of which is a drum or reel with insignia thereon, and (A) which when operated 

may deliver, as the result of the application of an element of chance, any money or 

property or (B) by the operation of which a person may become entitled to receive, as 

the result of the application of an element of chance, any money or property; or 

(2) any olther or mechanical devk (including but not limited to, roulette 

wheels and similar devices) =-manufactured in coconnection 

with gambling. (A) which when operated may deliver, as the result of the 

application of chance, any money or property, or (B) by the operahn of which a . . person mav become entltled to receive. as the result of the app!miJion of an element of 

chance. any money or property; or 

(3) any subassembly or essential part intended to be used in connection with any such 

machine or mechanical device, but which is not attached to any such machine or 

mechanical device as a constituent part. 

(emphasis added). 

' w' Federal courts have construed the term "gambling device" to include all sorts of 

electronic video gambling machines. Yniteds v. 13 7 Draw Poke r-Tv~e Machines & SIX 

Slot -, 606 F.Supp. 747, 754 (N.D. Ohio 1984), aff'd with-, 765 F.2d 147 (6th 

Cir. 1985); Ynlteds v. Sixteen Elemonic GmM,ng Devices, 603 F.Supp. 32, 34 

(D.Haw. 1984)(electronic video games duplicating casino games such as draw poker, 

blackjack and keno held to be gambling devices; Cabazon, 827 F.Supp. At 26,(video pull 

tab devices). 

Machines which operate as pure dispensers have been determined to be gambling 

devices. In United States v. Wilson, 355 F.Supp. 1394 (D.Mont. 1971) a 475 F.2d 108 

(9th Cir. 1972), the court'held that two dispensers were gaming devices. Similarly, in United 

htes v. Brown, 156 F.Supp. 121 (N.D. Iowa 1957), the court interpreted "gambling devices" 

under the Johnson Act, to include a coin operated machine that delivers a pellet containing a 

slip of paper on which certain poker hands were imprinted. The buyer would then compare 

the slip of paper to the posted board to determine whether they had a winning card 

combination. The court observed that a person operating the machine has no control over 

which particular pellet or poker hand he will receive. Everyone who puts money in the 

machine receives a pellet, but "whether he wins or loses on a particular play is determined 

entirely by chance. " L 
Other cases have reached similar results. UnltedStates., 135 

*I, ' F.Supp. 24 (M. D.Pa. 1955)(court found that a trade booster designed to be used for remote 

control of an altered slot machine was a gambling device despite the fact that trade booster 

could be used in connection with non-gambling devices); Ynited v. 11 Star-Pack 

, 248 F.Supp. 933 (E.D.Pa. 1966)(court found that device 

attached to a regular cigarette vending machine, and whose function was to activate, by 

element of chance, the cigarette vending machine to deliver a free package of cigarettes in 

addition to one which customer had purchased, was a "gambling device", and fact that 

gambling element furnished by device was intended as lure with which to attract more business 

did not alter its character). 

More recently, in ms v. 294 Various GamUnj? Dew, 718 F.Supp. 1236 

(W.D. Pa. 1989), the Court found that video draw poker devices were "gambling devices" 

within the meaning of the Act. In reaching this conclusion, the Court examined the evolution 

of the Johnson Act. 

The original Act of 195 1, represented by 5 1 171 (a)(l), was aimed quite specifically at 

slot machines, or "one armed bandits." This caused some difficulty in enforcement, as 

numerous courts held the statute to be inapplicable to those acknowledged gambling 

devices which simply lacked the distinguishing element of a drum or reel with insignia 

. . . The 1962 amendment of the Act added 5 1171(a)(2) and reflects Congress' 

intention to expand the scope of the prohibition to anticipate the continuing ingenuity of 

gambling device designers who had developed machines which did not fit the narrow 

definition of 8 1 171(a)(l) but which nevertheless fleeced the public with equal 

efficiency. 

There can be little question that the Reels of Skill machines fall within the definition of 

gambling devices. They are machines specifically designed and manufactured for gambling 

which requires prize, chance and consideration. When money(consideration) is inserted into 

the machine, the player has the opportunity (chance) to win money or property (prize). 

11. The "skill" factor in the Reels of Skill game does not change the fact that 

the games are "gambling devices." 

Although some degree of skill may improve a person's chances of winning the Reels of 

Skill game, chance is still the predominant factor. As stated in We of Florida v. Broward 

Vending. Inc,, 696 So.2d 85 1, 852 (Ct.App. 1997), "[wlhile skill will significantly improve 

the player's winning percentage, it does not eliminate the element of chance in the machine 

itself." 
*td Other courts have found certain physical characteristics of a game to be relevant in 

deciding whether it is designed for amusement or for gambling. For example, the length of 

time it takes to play a particular game has been found to be a relevant factor in determining 

whether the game is a game of chance or skill. "On pinball machines or Pacman, a player's 

manual dexterity, eye-hand coordination and experience may produce a longer game and 

greater enjoyment for the player. In video poker, each game has a finite time of play and no 

amount of skill or experience can extend play beyond that very short limit." 

294 Various Gambllng Devices, 7 18 F.Supp. 1236 (W .D.Pa. 1989). The Reels of Skill game 

is more like video poker than pinball or Pacman in that the game is of very short duration and 

no amount of skill can extend the length of the game. While a player may accumulate credits 

to play additional games, skill does not impact the length of an individual game. 

In addition, the limited skill element in Reels of Skill is countered by a retention ratio. 

As described by the manufacturer, the game is programed to be more difficult when the player 

starts winning. The court in 294 V- Devh found this factor to be significant 

in determining whether a machine was a gambling device. "Over time the video poker 

machine is programmed to retain a set percentage of all credits played, so that over the long 

haul even the astute player cannot defeat the retention ratio." Ld at 1243. 

Various courts have found that the short time of play, the inability to extend play, the 

absence of skill elements, the existence of a retention ratio, and the potential for inordinate 

'lwd' numbers of free games are strong indica of a gambling device. E.g. United v. 137 

Draw Poker-Type Ma-, 606 F.Supp. 747 (N. D.Ohio 1984) affId 765 F.2d 147 (6th Cir. 

1985)(free games); ms v. SixkmEWnmic Gambllng Devices, 603 F.Supp. 32 

(D.C. Hawaii 1984)(time of play, free games, retention ratio); Wd States v. Two Coinated Pinball Mach&, 241 F.Supp. 57 (W.D.Ky. 1965) aff'dsub nom -Staes v, 

H. M. Branson D1stribut Co, .. . , 398 F.2d 929 (6th Cir. 1968)(free games); -s v, 

e Ballv County Fair Pinball Machine, 238 F.Supp. 362 (W.D.La. 1965)(free games). The 

Reels of Skill game has a short time of play, the inability to extend play, the existence of some 

form of retention ratio and the potential for inordinate number of free games. All of these 

factors illustrate that the machine is a gambling device. 

Finally, the Reels of Skill game contains the equivalent of a multiple coin feature. The 

device permits a player to insert $20.00 bills in the bill acceptor, even though each game costs 

only a nickel or a quarter. This feature allows a player to wager more than one credit on each 

play. Numerous federal courts have found that "multi-coin insertion and wagering allow a 

machine to make considerably more money in the same period of time. . . such a feature is 

unusual in amusement devices and many courts have considered the presence of a multi-coin 

feature to be strong evidence that a machine was designed and intended for gambling. Ynited 

v. 294 Gaw-s, 71 8 F.Supp. at 1244 (citing United v. 137 Draw 

1, 

Poker-Tv~e Machines, 606 F.Supp. 747 (N.D.Ohio 1984) 765 F.2d 147 (6th Cir. 1985); 

1, 

603 F.Supp. 32 (D.C. Hawaii 1984); 

368 F.Supp. 661 (N.D.Miss. 1973). 
*l,ruu' 

111. The Reels of Skill games are class 111 under the plain meaning of IGRA. 

The IGRA's definition of class I11 gaming is one of omission. "Class 111 gaming means 

all forms of gaming that are not class I gaming or class I1 gaming. 25 U.S.C. $ 2703(8). 

Class I gaming is traditional forms of Indian gaming engaged in as part of or in connection 

with, tribal ceremnoies or celebration. 25 U.S.C. 5 2703(6). Class I1 gaming means: 

(I) The game of chance commonly known as bingo whether or not electronic, computer, or 

other technological aides are used in connection therewith - 

(I) which is played for prizes, including monetary prizes, with cards bearing 

numbers or other designations, 

(11) in which the holder of the card covers such numbers or designations when 

objects, similarly numbered or designated are drawn or electronically 

determined, and 

(111) in which the game is won by the first person covering a previously 

designated arrangement of numbers or designations on such cards, 

including (if plaved in the same location) pull-tabs, lotto, punch boards, tip jars, 

instant bingo, and other games similar to bingo, and 

(ii) card games that - 

(I) are explicitly authorized by the laws of the State, or 

(11) are not explicitly prohibited by the laws of the State and are played at any 

location in the State, 

but only is (sic) such card games are played in conformity with those laws and 

regulations (if any) of the State regarding hours or periods of operation of such card 

games or limitations on wagers or pot sizes in such card games. 

25 U.S.C. tj 2703(7)(A)(emphasis added). The statute goes on to exclude "any banking card 

games, including baccarat, chemin de fer, or blackjack (2 1) or electronic or electromechanical 

facsimiles of any game of chance or slot machines of any kind." 25 U.S.C. §2703(B). 

The Reels of Skill machines do not fit the definition of class I or class 11 gaming. The 

machines are not bingo or any subgame of bingo, and therefore by omission from class I1 are 

class 111. The result is that the games can only be played pursuant to a triballstate compact. 
41 11 4 CONCLUSION: 

Based on the foregoing analysis it is our conclusion that the Reels of Skill game is 

a "gambling device" under the Johnson Act, and as a result, is a class I11 game under 

current NIGC regulations. The existence of an element of skill in the game does not 

change the result that the game is predominantly a game of chance. It is clear that the 

machine was designed primarily for use in gambling, and by operation combined with an 

element of chance results in the delivery of money or property. Consequently, the game 

can only be played pursuant to a tribal state compact.