Arizona AG Given Permission To Settle Million-Dollar Fraud Suit Against Game Vendor
Some of those colorful machines tempting passersby to test their skills to win an iPad or another prize are illegal.
Arizona’s Attorney General Mark Brnovich has reached a million-dollar settlement with the game’s distributor, Betson Coin-Op Distributing Company Inc.
The Sega Key Master Prize Redemption Machines operate as mini-arcades inside shopping malls, gas stations and convenience stores.
The bright rainbow colors beckon players to use a joystick and button system to skillfully guide a mechanical “key” to the keyhole closest to a prize they want.
However, prosecutors argued there was no skill involved, because the machines were calibrated to ensure only a tiny percentage of players win a prize, which makes it a game of chance much like a slot machine.
“It violates our consumer fraud laws because of that misrepresentation,” Brnovich said. “People think that it’s a game of skill, or they think that based on what they’re doing, they are controlling the outcome when in reality they’re not.”
Under the Arizona Consumer Fraud Act, the Maricopa County Superior Court granted the state a million-dollar settlement against the New Jersey-based distributor.