AL
Registration & Licensing
Per-machine state license fee (AL Code §40-12-176(p)): Operators of coin-operated amusement or entertainment devices (services/amusement vended, not merchandise) must pay an annual license fee of $8 per machine (for machines accepting more than one cent). This is collected as a state business privilege license tax.
County-level licenses: In addition to the state per-machine fee, each county in Alabama may require a separate business license. Some counties (e.g., Mobile County) require operators to register each machine and obtain a local vending machine privilege decal confirming the annual fee has been paid.
Note: A 2020 bill (HB595) proposed a tiered statewide amusement machine licensing structure — but it did not pass. Current state-level obligation remains the §40-12-176 per-machine license fee only.
Claw Machines
AL Code §13A-12-76 — Statutory crane game requirements. Alabama has explicit criteria a crane game must meet to qualify as legal amusement: (1) prizes must be noncash merchandise, toys, gift certificates, or novelties with a wholesale value not exceeding $5 per play; (2) the player must be able to control the timing of claw use; (3) the player must be informed of the total time allowed per game; (4) the claw must not be of a size, design, or shape that prohibits grasping prizes.
Auto-percentaging risk: AL Code §13A-12-70 broadly prohibits gambling devices. Any machine where the operator can set a win frequency (overriding player skill) falls outside the §13A-12-76 safe harbor and becomes an illegal gambling device subject to seizure and criminal prosecution.
Bulk Vending
Permissive. No specialized bulk vending license. AL Dept. of Agriculture food permit for candy/gum machines. Toy/capsule machines generally exempt.
AK
Registration & Licensing
No state amusement machine license. Standard AK business license ($50/yr, AK Dept. of Commerce) covers operations. No separate per-machine state fee.
Anchorage / Fairbanks: Local business licenses required. No separate amusement machine permit at the municipal level for standard machines.
No state sales tax. Some municipalities (Juneau, Sitka) have local sales taxes of 3–5% that apply to amusement receipts.
Claw Machines
Clearly legal. Alaska does not restrict skill-based amusement machines. No prize cap. Very low regulatory burden — one of the most permissive states.
Bulk Vending
Minimal requirements. Standard AK business license sufficient. AK Dept. of Environmental Conservation food permit for food-dispensing machines. Toy/capsule machines exempt.
AZ
Registration & Licensing
AZ Transaction Privilege Tax (TPT) license from AZ Dept. of Revenue required for all amusement and vending machine operators. No separate per-machine state amusement license, but the TPT requirement is universal and compliance is enforced.
Phoenix / Tucson / Mesa: General city business license required. No separate municipal amusement device permit in most AZ cities — but machines are subject to state AG Consumer Fraud Act enforcement regardless of local permits.
Claw Machines
Arizona is a nationally significant enforcement state. Under ARS §13-3301, all gambling is illegal in Arizona unless a specific statute excludes it. For a crane/claw machine to qualify as legal amusement (not gambling), it must meet strict criteria under ARS §13-3301(4): skill — not chance — must be the clearly predominant factor, and the odds of winning cannot be alterable.
Betson / IQ Vending enforcement action (2019): Arizona AG Mark Brnovich obtained a $1 million consent judgment against Betson Coin-Op Distributing Company (H. Betti Industries) for distributing Sega Key Master Prize Redemption Machines equipped with an "auto-percentaging" system. The system could be set so that a machine required a preset number of player losses — up to 2,200 consecutive losses — before reverting to a mode where skill could determine the outcome. The AG found this converted an apparent skill game into an illegal game of chance. Criminal convictions were separately obtained against IQ Vending, the Arizona operator. Betson was permanently barred from selling, leasing, or financing Key Master or any auto-percentaging merchandiser machines in Arizona.
ARS §13-3312 — Crane game prohibited acts: Arizona statute separately prohibits: (1) altering the claw so it cannot grasp prizes; (2) displaying prizes where the claw is physically incapable of grasping them; (3) misrepresenting prize values; (4) using cash as prizes or awarding prizes redeemable for cash. Violations are a Class 1 misdemeanor.
Prize cap under ARS §13-3301: For crane games to qualify as legal amusement, each single win prize must have a wholesale fair market value under $10, and aggregate coupon redemptions may not exceed a merchandise prize with a wholesale fair market value of $550.
🚨 Arizona actively enforces against any amusement machine with programmatic payout controls, auto-percentaging, or settings that override player skill to determine when the machine pays. Any machine where an operator can dial in a win frequency — regardless of how it is marketed — risks criminal prosecution and civil enforcement under the Consumer Fraud Act. Do not deploy merchandiser-style prize machines in Arizona without confirming zero programmable win-rate controls and full ARS §13-3301/13-3312 compliance.
Bulk Vending
Permissive. AZ TPT license covers vending operations. AZ Dept. of Health food establishment permit for candy/gum machines (~$40/location). Toy/capsule machines are exempt. Bulk vending does not carry the amusement machine legal risks described above.
AR
Registration & Licensing
Two-tier requirement + surety bond (AR Code §26-57-401 et seq.):
Operator License: Any person operating coin-operated amusement machines in Arkansas must obtain an annual Amusement Machine Operator's License from the AR Dept. of Finance & Administration. Annual license fee varies by operator class. Renewed on or before July 1 each year.
Per-machine privilege tax decal: A $5 per device per fiscal year privilege tax (decal fee) is due before each device is placed into operation. Decal fees are prorated if due/payable during the last six months of the fiscal year. Each device must display the current decal.
Surety bond — unique to Arkansas: In addition to the operator license and decals, every operator must post a $6,000 surety bond with the state, conditioned on faithful performance of all duties and payment of all taxes. Bond must be from a surety company licensed in Arkansas. This is an uncommon requirement not found in most other states.
Retail permit also required: Every operator holding an Amusement Machine Operator's License must also obtain an AR retail permit and report/remit gross receipts tax on all machine revenues.
Claw Machines
AR gambling law scrutiny: AR Constitution (Amendment 84) prohibits most gambling. Skill-based claw machines are generally legal, but operators should document mechanics to distinguish from prohibited devices.
Merchandise-dispensing machines are clearly outside AR gambling statutes when properly skill-operated.
Bulk Vending
Permissive. No specialized bulk vending license at state level. AR Dept. of Health food permit for candy/gum machines. Toy/capsule machines exempt.
CA
Registration & Licensing
No statewide operator license, but county and city permits are pervasive. Los Angeles, San Francisco, San Diego, and most CA cities require amusement machine permits ($50–$500+/machine/yr). Check local city clerk for requirements.
CA sales tax: Amusement machine receipts subject to CA state sales tax. CA Board of Equalization provides specific guidance for vending machine operators (Publication 31).
Claw Machines
CA Penal Code §330b: CA broadly defines gambling devices. Claw machines where outcome is not player-controlled may be deemed illegal gambling machines. DA offices in some counties actively investigate.
Safe harbor: Machines documented as skill-based (player controls direction, timing, claw release) with consistent mechanical response are generally protected. Maintain machine calibration records.
🚨 California is one of the highest-risk states for claw machine operators. Consult a CA gaming attorney before expanding into new CA counties.
Bulk Vending
County health permits: Food-dispensing bulk vending (candy, gum) requires county environmental health permit in most CA counties. Annual inspection and permit fee (~$100–$250/location).
Toy capsule machines: Generally exempt from food permits. Check Prop 65 compliance on toy/capsule products sold in CA (chemical disclosure labeling).
CO
Registration & Licensing
No state amusement machine license. Colorado does not maintain a statewide amusement operator registry. Licensing is handled at city/county level.
Denver: City & County of Denver requires an Amusement Machine License for commercial machines ($40/machine/yr). Apply through Denver Excise & Licenses.
CO sales tax: 2.9% state + Denver/local rate on vending receipts. Amusement machine receipts subject to same combined rate.
Claw Machines
Legal statewide. Colorado does not restrict skill-based claw machines. No prize value cap. Low regulatory burden outside Denver proper.
Bulk Vending
Permissive. Standard CO business registration (SOS) sufficient. CDPHE retail food license for candy/gum machines (~$50/location). Toy capsule machines exempt.
CT
Registration & Licensing
CT Dept. of Consumer Protection (DCP): Amusement game operations require DCP registration at qualifying locations. Coin-operated amusement devices fall under DCP oversight.
Hartford / New Haven / Bridgeport: Local business license and municipal amusement device permit required. Per-machine fees of $25–$60/yr typical.
CT sales tax: 6.35% state sales tax on amusement machine receipts.
Claw Machines
CT Gaming Division scrutiny: Connecticut's broad gaming laws require operators to confirm skill-based classification. Machines with programmatic win-rate controls risk "illegal gambling device" classification under CGS §53-278.
Redemption games may require additional DCP review. Merchandise-dispensing claw machines are in a lower-risk category.
Bulk Vending
Permissive. CT Dept. of Public Health food vending permit for candy/gum machines. Toy/capsule machines exempt.
DE
Registration & Licensing
DE Division of Revenue: Operators must obtain a DE business license ($75/yr) covering amusement machine operations. No separate per-machine state license for standard amusement devices.
No sales tax. Delaware has no state sales tax — significant advantage for amusement and vending operators. Gross receipts tax applies to business revenues instead.
Claw Machines
Legal and permissive. Delaware does not restrict skill-based claw machines. No prize cap. DE's no-sales-tax status makes it a favorable operating market.
Bulk Vending
Low burden. Standard DE business license covers bulk vending. DE Dept. of Agriculture food facility license for candy/gum machines (~$40/location). No sales tax on vending receipts.
FL
Registration & Licensing
Florida has two separate amusement machine licensing requirements:
DBPR Certificate of Registration (operator entity): Operators must register with the FL Dept. of Business & Professional Regulation (DBPR) and obtain a Certificate of Registration. Annual renewal required.
Per-machine Amusement Machine Certificate (DR-18C): A separate $30 per machine per year certificate must be obtained from the FL Dept. of Revenue for each machine at each location. Certificates expire June 30 annually. The annual fee is non-refundable and cannot be prorated. The location operator is required to purchase the certificates even when the operator is not the machine owner (unless otherwise specified in a written agreement). Certificates must be displayed at the location.
Sales tax: FL charges sales tax on amusement machine receipts in addition to the per-machine certificate fee. Machines dispensing tickets/prizes of monetary value (Type B/C): higher fees apply. Type C (claw/crane) operators subject to both the DR-18 certificate and FL §546.10 compliance requirements.
Claw Machines
FL §546.10 — "Type C" amusement game statute (Family Amusement Games Act). Florida classifies claw machines as "Type C" amusement games and sets strict criteria for legality. A Type C machine is illegal if: (1) the possibility of the player succeeding is determined by the number or ratio of prior wins or losses (i.e., auto-percentaging); (2) the prize awarded can be controlled by a source other than the player; (3) the outcome is determined by a factor not discernible or known to the player; or (4) a random number generator determines the outcome. Machines with any of these features are classified as illegal slot machines under §849.16.
Prize cap: FL §546.10(7) sets a maximum prize value determined by DBPR rule — historically interpreted as $75 fair market value per play for Type C machines at qualified locations. Prizes must be merchandise dispensed directly from the machine; no cash, tickets redeemable for cash, or alcohol.
Active enforcement: Florida's Gaming Control Commission (FGCC) and local law enforcement conduct regular raids on illegal gambling operations. Machines classified as slot machines are subject to seizure, and operators face criminal charges including Possession of Slot Machines and Keeping a Gambling House.
🚨 Florida is an active enforcement state. Any claw or merchandiser machine with programmable win-rate or auto-percentaging controls is an illegal slot machine under §849.16. The FGCC regularly conducts multi-county sweeps.
Bulk Vending
No specialized license. Bulk vending machines are not classified as amusement machines under FL statute. FL Dept. of Agriculture (FDACS) annual permit required for candy/gum dispensers ($50–$150/location).
GA
Registration & Licensing
Georgia has a three-tier COAM licensing structure (GA Code Title 50, Ch. 27, Art. 3), administered by the Georgia Lottery Corporation (GLC):
Master License (machine owner): Every person who owns bona fide coin-operated amusement machines must obtain a Master License from the GLC. Annual fees are tiered by machine count: 5 or fewer machines = $500; 6–60 machines = $2,000; more than 60 machines = higher fees. The Master License must be displayed at every operating location.
Location License (location owner/operator): Every location owner or operator where COAMs are offered for public play must also obtain a separate annual Location License from the GLC. This is in addition to the operator's Master License. Fees are set by machine class and count per location.
Class A vs. Class B: Claw machines are Class A COAMs (no carry-over points). Class A prize limit was increased to $50 per play in 2024 (up from $5), and gift cards are now permitted as redemption. Multi-year licenses (1, 2, or 3 years) are available as of 2024 law changes. Class B machines (video skill games with carry-over points) have separate, more complex licensing and are limited to three machines per location.
Local taxes prohibited: Georgia law specifically forbids local jurisdictions from charging additional taxes or fees on COAMs — a significant operator protection not found in most states.
Claw Machines
Legal as Class A COAMs. Claw machines are Class A under Georgia's COAM statute. As of 2024, Class A machines may dispense prizes up to $50 fair market value per play (increased from $5), and gift cards are now an accepted prize form. Machines must be skill-based and cannot offer cash payouts.
Skill requirement: COAMs must be "bona fide" — the outcome must depend on the skill of the player. Gambling devices and machines with chance-based outcomes remain prohibited under GA law.
Bulk Vending
Exempt from COAM licensing. Standard bulk vending (gumball, capsule toy, candy) is not a "bona fide coin-operated amusement machine" under Georgia law and does not require a Master or Location License. Standard business registration applies.
Food safety: GA Dept. of Agriculture retail food dealer permit required for candy/gum dispensing machines. Toy/capsule machines exempt.
HI
Registration & Licensing
HI Dept. of Taxation — GET License: All businesses in Hawaii must obtain a General Excise Tax (GET) license. Amusement machine operators pay GET at 4% on gross receipts (4.5% in Honolulu County).
Honolulu / Maui County: County business registration and local permits required. Honolulu requires a Basic Business Application covering amusement operations (~$20–$50/yr).
Claw Machines
Legal statewide. Hawaii does not restrict skill-based claw machines. Machines dispensing merchandise are not classified as gambling devices under HRS §712A.
Bulk Vending
Permissive. GET license covers bulk vending operations. HI Dept. of Health food establishment permit for candy/gum machines (~$50/location). Toy/capsule machines exempt.
ID
Registration & Licensing
Annual per-machine decal required (Idaho State Tax Commission — Form ADT/Form 3550): Any person operating a coin-operated amusement device for public use in Idaho must obtain an annual decal from the Idaho State Tax Commission at $42 per device per year. The decal replaces the obligation to charge and remit sales tax on machine receipts. Decals are valid until June 30 annually. Operators must apply using Form ADT (Application for Amusement Device Permit); renewal is via Form 3550. Decals must be affixed to each device in a visible location and include the business name and address.
Critical distinction: Idaho defines amusement devices as machines where the user cannot be guaranteed a physical prize. If the machine's purpose is to dispense a physical prize (tangible personal property), it is classified as a vending machine — not an amusement device — and the $42 decal does NOT apply. Instead, standard sales tax compliance applies. This distinction is important for claw/crane machines that dispense prizes.
Lost decal: A lost decal from a machine in service must be replaced immediately, even if stolen or destroyed. No proration — the full $42 is due regardless of when during the year the decal is obtained.
Claw Machines
Clearly legal. Idaho does not restrict skill-based claw machines. No prize cap. Very operator-friendly jurisdiction with minimal bureaucracy.
Bulk Vending
Minimal requirements. ID Dept. of Agriculture food establishment license for candy/gum machines. Toy/capsule machines exempt.
IL
Registration & Licensing
Illinois has both a state-level per-machine decal AND Chicago's separate per-machine licensing — operators in Chicago face a double layer:
State decal (IL Coin-Operated Amusement Device and Redemption Machine Tax Act): A $30 per machine per year privilege tax decal is required on every coin-operated amusement device in Illinois. Decals expire July 31 annually. Form RCOA-1 is due on or before July 31. The decal must be affixed to the device. Claw machines and redemption machines are both included. No separate statewide operator entity license — the decal is the state-level compliance mechanism.
City of Chicago — BACP Operator License + per-machine tag: Operators in Chicago must additionally obtain a BACP Amusement Machine Operator License (~$150 base fee) and purchase per-machine tags (~$25/machine/yr). All machines in Chicago must display current BACP tags. Renewal is annually by March 1.
Cook County: Additional 3% amusement tax on gross receipts in unincorporated Cook County areas. Suburban municipalities (Naperville, Schaumburg, Evanston, etc.) may each have their own local permit requirements ($50–$300/location/yr).
Claw Machines
High scrutiny state. Illinois defines "amusement device" broadly. Claw machines returning merchandise valued over the cost to play may attract Illinois Gaming Board scrutiny if skill-based outcome cannot be demonstrated.
Chicago specifically: All amusement machines on Chicago premises require individual machine tags (affixed by operator). Tags issued by BACP upon payment of per-machine fee.
🚨 Chicago amusement machine inspections are active. All machines must display current BACP tags. Unlicensed machines subject to $500/day fine per machine.
Bulk Vending
Chicago Vending Machine License: Required for ANY vending machine within Chicago city limits — including gumball/bulk vending. Approx. $25–$50/machine. Apply through BACP.
Chicago Dept. of Public Health: Food-dispensing vending machines (candy, gum) must comply with CDPH vending regulations. Annual inspection possible for high-volume sites.
IN
Registration & Licensing
Indiana Gaming Commission (IGC): Regulates casino gambling but does NOT regulate standard skill-based amusement machines. No statewide amusement operator license required.
IN sales tax: 7% state sales tax on amusement machine gross receipts. No local sales tax — single statewide rate. Register with IN Dept. of Revenue.
Claw Machines
Legal and permissive. Indiana clearly permits skill-based amusement machines. No prize cap under IN law.
Bulk Vending
Low burden. Standard IN retail merchant's certificate covers vending operations. IN State Dept. of Health food establishment permit for candy/gum machines ($35–$60/location). Toy/capsule machines exempt.
IA
Registration & Licensing
Iowa Racing & Gaming Commission: Does not regulate standard amusement machines. No statewide amusement operator registration required.
Des Moines / Cedar Rapids: City business license required. Some IA municipalities impose a per-machine annual license fee (~$10–$30/machine).
IA sales tax: 6% state + up to 1% local option on amusement receipts. Register with Iowa Dept. of Revenue.
Claw Machines
Legal statewide. Iowa does not restrict skill-based claw machines. No prize cap. Operators face minimal state-level friction.
Bulk Vending
Permissive. IA Dept. of Inspections & Appeals food establishment license for candy/gum vending machines. Toy/capsule machines exempt.
KS
Registration & Licensing
No state amusement machine license. Standard KS sales tax registration with KS Dept. of Revenue required for all vending receipts (6.5% state rate).
Claw Machines
Legal and permissive. Kansas does not restrict skill-based claw machines. KS gaming laws clearly exclude merchandise-dispensing skill machines from gambling definitions.
Bulk Vending
Low burden. KS Dept. of Agriculture food establishment license for candy/gum dispensers. Sales tax applies to vending receipts. Toy/capsule machines exempt from food licensing.
KY
Registration & Licensing
State per-machine license tax (KRS 137.360): Kentucky imposes a state license tax of $10 per machine per year on coin-operated amusement machines. This is collected as a property/coin machine tax by the Kentucky Department of Revenue.
Local license tax (KRS 92.360): Kentucky municipalities are authorized to impose a local license tax on coin machines, capped at the same amount as the state tax ($10/machine). Cities of the first class (Louisville) may impose up to twice the state rate ($20/machine). Jefferson County and Lexington-Fayette Urban County require local business licenses in addition.
Note: The current card previously stated "$20/machine annually" — the correct state rate is $10/machine/yr under KRS 137.360. The $20 figure applies only to Louisville (city of the first class, which may double the state rate) at the local level.
Claw Machines
KRS 528 scrutiny: Kentucky's gambling statutes (KRS Chapter 528) are broad. Skill-based claw machines are generally legal but operators should maintain documentation. Machines with programmatic win-rate controls create risk.
Bulk Vending
Permissive. KY Cabinet for Health & Family Services food service permit for candy/gum machines. Standard business registration covers toy/capsule vending.
LA
Registration & Licensing
Louisiana Gaming Control Board (LGCB): Regulates gaming devices broadly. Non-gaming amusement machines must be clearly classified as skill-based to avoid LGCB licensing requirements.
Parish-level: Business registration and permits vary across Louisiana's 64 parishes. New Orleans and Baton Rouge have specific local requirements.
LA sales tax: Combined state (4.45%) + local rate (avg ~5%) — total can reach 9–11% in some areas. A notable operating cost factor.
Claw Machines
LGCB scrutiny zone. Operators should maintain skill-based documentation and confirm with local parish authorities before placement.
Merchandise-dispensing machines are generally outside LGCB jurisdiction when clearly skill-operated. No statutory prize cap for skill machines.
Bulk Vending
Permissive. No specialized bulk vending state license. LA Dept. of Health food permit for candy/gum machines. Toy/capsule machines exempt.
ME
Registration & Licensing
No uniform statewide amusement machine registry. Some municipalities require local amusement device registration ($25–$75/machine). Standard business license required.
ME sales tax: 5% state sales tax on amusement machine receipts. No local sales taxes — single rate statewide.
Claw Machines
Legal statewide. Maine does not restrict skill-based claw machines. No prize cap. Operators face minimal state-level friction.
Bulk Vending
Permissive. ME Dept. of Agriculture food establishment license for food-dispensing machines (~$50/location). Toy/capsule machines exempt.
MD
Registration & Licensing
Maryland Lottery & Gaming Control Agency (MLGCA): Regulates video lottery terminals and gaming. Standard amusement machines fall outside MLGCA, but operators must ensure correct classification.
Baltimore City / Montgomery County: Baltimore imposes a per-machine amusement tax. Montgomery County requires operator registration for commercial amusement devices.
MD sales tax: 6% state sales tax on amusement machine receipts.
Claw Machines
Document skill mechanics. Maryland gambling law (MD Code Criminal Law §12) is broadly written. Baltimore has historically investigated amusement device complaints.
Bulk Vending
MD Dept. of Health food facility permit required for candy/gum-dispensing vending machines ($50–$100/location). Some counties require vending operator registration.
MA
Registration & Licensing
Boston / local licensing: City of Boston requires an Automatic Amusement Device License from the Boston Police Commissioner's office (~$50/machine/yr). Many MA cities have similar local requirements.
ABCC: Amusement machines at licensed liquor establishments require ABCC notification/approval.
Claw Machines
Skill documentation required. MA gambling law (MGL c.271) is broadly written. Claw machines are legal if clearly skill-based. Boston Police Licensing has occasionally required operators to demonstrate machine mechanics.
Bulk Vending
Permissive. Bulk vending machines are not amusement devices under MA law. Standard business registration + MA food establishment permit for candy/gum machines ($35–$75/location).
MI
Registration & Licensing
Michigan Gaming Control Board (MGCB): Regulates casinos — does NOT regulate standard amusement machines. Licensing handled at local level.
MI sales tax: 6% state sales tax on vending machine receipts. Register with MI Dept. of Treasury.
Claw Machines
MCL 750.303(5) — Explicit crane game statute. Michigan defines a legal crane game as one where prizes have a wholesale value of not more than $3.75 and every prize must be retrievable by the claw. A slot machine is explicitly not a crane game.
MCL 750.303(6) — Felony for altering machines: A person who knowingly alters a crane game so that it is no longer in compliance with the legal definition is guilty of a felony, punishable by up to 2 years imprisonment or a fine up to $20,000, or both. This is one of the toughest criminal penalties for claw machine tampering in the country. Any auto-percentaging system, reduced-claw-strength programming, or win-rate control that takes the machine out of compliance triggers this felony.
$3.75 prize cap is very low relative to most states — operators must ensure all prizes stocked in machines have a wholesale cost at or below this threshold. Higher-value prizes make the machine non-compliant regardless of how it is operated.
🚨 Michigan's $3.75 per-play wholesale prize cap is one of the lowest in the country, and knowingly altering a machine out of compliance is a felony. Audit prize inventory carefully and do not operate machines with any programmable win-rate features.
Bulk Vending
Low burden. MI Dept. of Agriculture & Rural Development food license required for candy/gum dispensers ($35/location). Toy machines exempt.
MN
Registration & Licensing
MN Dept. of Revenue: Operators of amusement machines must register for MN sales tax and remit tax on coin-operated amusement receipts (6.875% state rate).
Minneapolis: Specific "Mechanical Amusement Device" license (~$75/yr base + $15/machine). St. Paul has similar local requirements.
Claw Machines
Moderate scrutiny. MN Gambling Control Board has jurisdiction over any machine with game-of-chance elements. Document skill-based mechanics thoroughly.
Bulk Vending
MN Dept. of Agriculture license required for food-dispensing vending machines. Annual permit; inspection possible. MN uniquely taxes candy and some gum — operators must distinguish taxable vs. exempt items.
MS
Registration & Licensing
Mississippi Gaming Commission (MGC): Regulates casino gaming. Non-gambling skill amusement machines fall outside MGC jurisdiction, but operators must maintain clear skill-based documentation given MS's gaming culture.
MS sales tax: 7% state sales tax on amusement and vending receipts — one of the higher state rates.
Claw Machines
Casino-adjacent caution. In counties with casino gambling, local authorities are sensitive to amusement machines perceived as gambling devices. Document skill mechanics thoroughly for Gulf Coast operations.
Properly documented skill-based claw machines are legal throughout Mississippi.
Bulk Vending
Permissive. MS Dept. of Health food permit for candy/gum machines. Toy/capsule machines exempt from food licensing.
MO
Registration & Licensing
No statewide amusement machine registry. Standard MO sales tax license from MO Dept. of Revenue required. Kansas City and St. Louis have separate city occupational license requirements.
Claw Machines
Legal and permissive. Missouri clearly distinguishes skill-based amusement from gambling under MO Rev. Stat. §572. Claw machines dispensing merchandise are fully legal statewide.
Bulk Vending
Low burden. MO Dept. of Health & Senior Services food service permit for candy/gum machines. Standard business registration covers toy/capsule vending.
MT
Registration & Licensing
MT Dept. of Justice — DGSD: Regulates gambling devices including video gambling machines (legal in MT bars). Amusement-only machines require classification review to confirm they fall outside DGSD licensing.
No state sales tax. Montana has no state sales tax. Some local option taxes may apply.
Claw Machines
Legal gambling context. Montana allows video gambling machines in bars, creating heightened scrutiny for any machine resembling a gaming device. Claw machines should be clearly merchandise-dispensing and skill-operated.
Bulk Vending
Permissive. MT Dept. of Public Health food establishment permit for candy/gum machines. Toy/capsule machines exempt.
NE
Registration & Licensing
Two-tier requirement — Mechanical Amusement Device Tax Act (Neb. Rev. Stat. §§77-3001–77-3011):
Annual Operator License: Operators and distributors must obtain an annual license from the NE Dept. of Revenue. The license fee has been $0 since January 1, 2000 (fee was eliminated by statute), but the license application must still be filed annually. The license is a condition of compliance.
Per-machine occupation tax decal: A $25 per machine per year occupation tax is due on each device. A decal issued by the Dept. of Revenue must be conspicuously displayed on each machine. Decals are non-transferable between devices or operators. Devices operated without a valid decal are in violation; a $75 administrative penalty per device applies, and the device may be sealed by the Tax Commissioner. If a sealed device is operated before the tax is paid, it is subject to forfeiture and sale.
In lieu of sales tax: The occupation tax and license fee together are payment in lieu of sales/use tax on gross receipts from machine operation — a significant benefit for operators in Nebraska.
Claw Machines
Legal and permissive. Nebraska does not restrict skill-based claw machines. NE Revised Statute §28-1101 clearly excludes skill-based amusement devices from gambling definitions.
Bulk Vending
Permissive. NE Dept. of Agriculture food service license for candy/gum machines. Toy/capsule machines exempt.
NV
Registration & Licensing
Nevada Gaming Control Board (GCB): All gaming devices, broadly defined, require GCB licensure. Non-gaming amusement devices require careful classification review. Machines with no cash payout dispensing only merchandise may qualify as exempt "amusement devices" — but this must be documented.
Las Vegas / Clark County: Separate "Special Business License" for amusement device operators (~$200–$500/yr) required in addition to general business license.
Claw Machines
High scrutiny. Any machine perceived as having a probabilistic win mechanism may be subject to GCB review. Pure skill machines with verifiable, consistent mechanical operation and no programmatic win-rate controller have operated legally.
Avoid ticket-out systems. Machines that dispense tickets redeemable for prizes/cash closely resemble regulated gaming devices. Avoid ticket-redemption systems in Nevada without GCB legal clearance.
Bulk Vending
Bulk vending is distinct. Gumball/candy/toy vending is clearly separate from gaming in NV law. Clark County Health District permits required for food-dispensing vending machines (~$100/yr).
NH
Registration & Licensing
NH Lottery Commission: Oversees charitable gaming but does not regulate standard skill-based amusement machines. No statewide amusement machine license required.
No state sales tax. New Hampshire has no sales tax — very favorable for vending and amusement operators. Business profits tax may apply to larger operators.
Claw Machines
Clearly legal. NH does not restrict skill-based claw machines. No prize cap. Combined with no sales tax, NH is one of the most favorable operating environments in New England.
Bulk Vending
Very permissive. NH Dept. of Health & Human Services food establishment permit for candy/gum machines. No sales tax on vending receipts.
✓ NH is one of the most operator-friendly states in the Northeast. No sales tax significantly improves vending economics.
NJ
Registration & Licensing
NJ Division of Consumer Affairs (DCA): Amusement machine operators must be licensed by DCA. Annual license fee varies by machine type. Registration with NJ Dept. of Taxation also required.
Municipal licenses: Newark, Jersey City, and most NJ municipalities have local amusement device ordinances. Per-machine annual fees of $25–$75 are common.
NJ Sales Tax: 6.625% on amusement machine receipts. Candy/gum vending is taxable.
Claw Machines
NJ Amusement Games Control Act (N.J.S.A. 5:8): Machines at qualified amusement parks/locations may require a state amusement game license separate from standard DCA license.
Redemption machines may require additional NJ DCA amusement game license. Merchandise-dispensing claw machines are generally classified differently.
⚠ New Jersey's dual DCA + municipal licensing system creates significant compliance overhead. Budget for both state and local permit costs per location.
Bulk Vending
NJ food vending permit: NJ Dept. of Health requires retail food establishment license for candy/gum dispensers ($50–$100/location). Toy/capsule machines are exempt.
NM
Registration & Licensing
NM Taxation & Revenue — CRS Registration: All amusement and vending operators must register for NM's Combined Reporting System (CRS) and remit Gross Receipts Tax (GRT) — typically 5–8.5% depending on location.
Claw Machines
Legal and permissive. New Mexico does not restrict skill-based claw machines. GRT applies to amusement receipts. No prize cap under NM law.
Bulk Vending
GRT covers vending. Standard CRS registration covers bulk vending. NM Environment Dept. food service permit for candy/gum machines. GRT applies at applicable rate.
NY
Registration & Licensing
NYC: Dept. of Consumer and Worker Protection (DCWP) requires an Amusement Device License for commercial amusement machines. Annual fee: $60–$200 depending on machine type.
Municipalities: Erie County (Buffalo), Monroe County (Rochester), and other NY jurisdictions maintain their own amusement machine permit requirements.
Claw Machines
NY Penal Law §225.00: New York's gambling definitions are broad. Claw machines must clearly operate on skill. NY courts have found machines with programmatic win-rate controls to be illegal gambling devices.
Documentation critical: Maintain skill-based documentation, calibration records, and claw tension specifications for each machine.
🚨 New York is a high-risk jurisdiction. Consult a NY gaming attorney before deploying claw machines in NYC or any New York municipality.
Bulk Vending
NYC: All vending machines (including bulk) in NYC require a DCWP Vending Machine License (~$50/machine/yr). Food vending machines subject to NYC Health Dept. inspection. Non-food machines exempt from health permit.
Outside NYC: Rest-of-state requirements vary significantly by county. Most non-NYC counties have minimal requirements beyond standard business registration.
NC
Registration & Licensing
Two-tier NC privilege license structure (NC General Statutes): NC COAM operators must obtain a business license from the NC Dept. of Revenue (NCDOR) and pay an annual privilege license tax on both each location and each machine. The per-machine fee and per-location fee amounts depend on machine type and use. The number of machines per location is limited to three under current NC law.
Note on 2024 changes: Effective July 1, 2024, most NC professional privilege licenses were eliminated. However, coin-operated amusement machine licensing under the separate COAM statutes remains active — confirm current fee schedule with NCDOR before operating.
County permits: Most NC counties require a local business license. Wake County (Raleigh) and Mecklenburg County (Charlotte) have specific amusement device provisions on top of the state structure.
Claw Machines
Operator-friendly. NC clearly permits skill-based amusement machines. No prize cap at state level. Low regulatory burden.
Sweepstakes caution: NC has significant case law around sweepstakes machines. Standard claw machines (not sweepstakes) are clearly legal.
Bulk Vending
Permissive. State privilege license covers vending operations. NC Dept. of Agriculture food establishment permit for candy/gum machines (~$50/yr).
ND
Registration & Licensing
ND Office of the Attorney General: Amusement game operators at qualifying locations may need to notify the ND AG. No broad statewide per-machine license for non-gaming machines.
ND sales tax: 5% state sales tax on amusement and vending receipts. Low combined rate compared to many states.
Claw Machines
Legal statewide. North Dakota does not restrict skill-based claw machines. Merchandise-dispensing skill machines are clearly outside ND gambling statutes.
Bulk Vending
Permissive. ND Dept. of Agriculture food establishment license for candy/gum machines. Low overall compliance burden.
OH
Registration & Licensing
Ohio Dept. of Agriculture: Licenses amusement machine operators. Must obtain an Amusement Device Operator License annually (~$25/machine, capped at $250/location). Major metros add city permits ($50–$150/yr).
Claw Machines
Ohio Casino Control Commission (OCCC) — Type-B SBAM. Ohio classifies claw and crane machines as "Type-B Skill-Based Amusement Machines" (SBAMs) under a formal licensing regime. Key requirements: (1) prizes cannot exceed $10 wholesale value per single play; (2) prizes must be merchandise only — no cash, gift cards, alcohol, firearms, bingo or lottery tickets; (3) the outcome of the game cannot be determined by chance.
Ohio Admin Code §3772-50-18: Type-B operators must maintain records of all mechanical or electronic component changes (dated, with names of persons making the change and purpose). Records must be kept on-site for at least two years and made available to the OCCC upon request. Operators must also ensure the claw is capable of picking up, holding, and dispensing all prizes such that a player is reasonably capable of winning as advertised.
Felony for non-compliance: Under ORC §2915, a person who purposely or knowingly operates a skill-based amusement machine contrary to law commits a fifth-degree felony. Representing an illegal slot machine as a "skill-based amusement machine" is also an unfair and deceptive act under Ohio Admin Code §109:4-3-31.
OCCC licensing required: Type-B SBAM operators must be licensed by the OCCC ($250 application fee). Machines must be purchased only from OCCC-licensed vendors. Operators must display a sign on each machine with contact info for consumer complaints.
⚠ Ohio has one of the most detailed and formally administered claw machine regulatory frameworks in the country. Operators must be OCCC-licensed, machines must be sourced from licensed vendors, and component-change records must be maintained on-site.
Bulk Vending
Low friction. Ohio Dept. of Agriculture food service license required for food-dispensing machines ($30–$75/location).
OK
Registration & Licensing
Per-machine annual decal required (68 O.S. §1503; OK Admin Code 710:25): Every person who makes a coin-operated amusement device available to the public must pay an annual fee and affix a current decal to each machine. For coin-operated music and amusement devices: $75 per machine per year. The decal fee is in lieu of sales tax on machine receipts. Decals must be permanently affixed directly to the device — placing on a separate strip or surface is not compliant.
Bulk vending decal fees are separate and lower: Bulk vending devices (gumball, candy, capsule) with a coin requirement of $0.25 or more = $5/machine/yr (single-mechanism) or $15/machine/yr (multi-mechanism). Under $0.25 = $2/machine/yr. These replace sales tax on vending receipts.
Oklahoma City / Tulsa: City business license required. Some municipalities require a local amusement machine permit for locations with multiple devices.
Claw Machines
Legal and permissive. Oklahoma does not restrict skill-based claw machines. Note: Avoid machine placements on tribal lands without a separate tribal agreement — tribal gaming compacts have separate jurisdiction.
Bulk Vending
Decal required — but low cost. Bulk vending devices in Oklahoma also require annual decals under §1503. Single-mechanism bulk vending ($0.25+) = $5/yr; multi-mechanism = $15/yr. These decals replace sales tax obligation. This is different from most states where bulk vending has no state decal requirement.
No separate operator entity license for amusement or bulk vending. The per-machine decal is the primary state compliance mechanism. Avoid machine placements on tribal lands without a separate tribal agreement.
OR
Registration & Licensing
OR Lottery Commission: Regulates video lottery terminals (VLTs) in licensed establishments. Standard skill amusement machines fall outside Lottery Commission jurisdiction but must be clearly distinguished from VLTs.
No state sales tax. Oregon has no state sales tax. Portland imposes a local Arts Tax; some areas have local business income taxes.
Claw Machines
VLT context. Oregon's broad VLT presence in bars means amusement machines are scrutinized for gambling characteristics. Document skill-based mechanics and ensure machines don't resemble VLT operation.
Merchandise claw machines are legal statewide and outside Lottery Commission jurisdiction.
Bulk Vending
Permissive. OR Dept. of Agriculture food establishment license for candy/gum machines. No state sales tax on vending receipts. Toy/capsule machines exempt from food licensing.
PA
Registration & Licensing
PA Gaming Control Board (PGCB): Regulates gambling devices. Standard amusement machines fall outside PGCB jurisdiction but operators must ensure machines clearly meet "amusement only" criteria.
Philadelphia: L&I (Licenses & Inspections) requires business licenses for amusement machine operators. Philadelphia also has a local amusement tax (5% of gross receipts).
Claw Machines
Verify skill-based status. PA law defines gambling broadly. Document claw machine mechanics thoroughly. Machines with programmatic "win rate" controls create legal exposure in PA.
Bulk Vending
Standard licensing. PA Dept. of Agriculture license required for food-dispensing machines ($35–$80/location). Toy/capsule machines exempt.
RI
Registration & Licensing
RI Lottery: Oversees video lottery terminals. Standard amusement machines require local licensing only. Most RI municipalities require a local amusement device license ($30–$100/machine/yr).
RI sales tax: 7% state sales tax on amusement machine receipts. No local sales tax.
Claw Machines
RI General Laws §11-19 (gambling): Broadly written. Skill-based claw machines are generally legal but require documentation. RI has pursued enforcement actions against machines perceived as gambling devices in bar settings.
Bulk Vending
Permissive. RI Dept. of Health food establishment permit for candy/gum machines. Most RI municipalities do not require separate bulk vending permits.
SC
Registration & Licensing
Two separate requirements — both mandatory under SC Code Chapter 12-21:
Owner/Operator License (§12-21-2728): Any person or entity that owns or operates coin-operated amusement machines in SC must first obtain a biennial Owner/Operator License from the SCDOR. Only one license is required per person/entity regardless of the number of machines operated. Fee is based on the highest machine class you operate — crane machines are Class II at $200 biennial. This is a condition precedent: you cannot legally operate machines without it.
Per-machine decal / tax stamp (§12-21-2720): A separate license decal must be purchased for each individual machine and affixed visibly to it. Crane machines are classified as Type II — $250 per machine per biennial period. Decals are non-refundable, non-transferable, and currently valid through May 31, 2027. Pro-rated rates apply for machines placed mid-cycle.
Critical caveat (§12-21-2736): Purchasing a decal does not make an otherwise illegal machine lawful. §12-21-2718 requires operators to maintain records of each machine's serial number, model, and type. §12-21-2748 requires an owner/operator information sticker affixed to each machine. §12-21-2750 requires lease agreement documentation on premises for leased machines.
Gross receipts tax: 20% of gross receipts applies to video game machines under a separate admissions tax scheme. Per-machine decal fees cover the licensing obligation for crane/claw machines.
Claw Machines
§12-21-2710 strictly prohibits gambling machines. Claw machines must be demonstrably skill-based — the operator must be able to show the claw operates on consistent, player-influenced mechanics. Random-outcome or auto-percentaging configurations risk classification as illegal gambling devices.
Prize dispensing: Claw machines must dispense only noncash merchandise. Giving a player cash or money for prizes won is a misdemeanor (fine up to $1,000 per offense). Higher-value prize machines may be scrutinized as "bona fide SC operated redemption machines" requiring additional licensing.
⚠ SC SLED periodically inspects amusement locations. Every machine must display a current SCDOR Type II decal ($250/machine/biennial) and owner/operator information sticker. Operating without current decals is a violation subject to machine confiscation under §12-21-2721.
Bulk Vending
Exempt from COD licensing. SC Code explicitly excludes coin-operated gumball machines, vending machines that dispense products or services for money, and similar bulk vending from the coin-operated device license requirements. These are classified as vending machines, not amusement devices.
Food safety: Candy/gum dispensing machines must comply with SC DHEC food safety requirements. Capsule/toy dispensers are exempt. Some municipalities may require a local business license for unattended retail devices.
SD
Registration & Licensing
SD Commission on Gaming: Regulates gaming in Deadwood. Standard skill amusement machines outside Deadwood do not require gaming commission licensing. City business license and SD sales tax permit required.
SD sales tax: 4.2% state sales tax + applicable municipal rate on amusement and vending receipts.
Claw Machines
Gaming context caution. South Dakota has extensive video lottery machine infrastructure. Any amusement machine resembling a gaming device draws scrutiny. Document skill-based mechanics clearly.
Outside Deadwood: Properly documented skill-based claw machines are legal and outside SD Commission on Gaming jurisdiction.
Bulk Vending
Permissive. SD Dept. of Health food establishment permit for candy/gum machines. Toy/capsule machines exempt.
TN
Registration & Licensing
Tennessee has a two-tier coin-operated amusement tax (TCA §67-4-507), administered by TN Dept. of Revenue:
Annual License Tax (entity-level): Every owner of coin-operated amusement machines must pay an annual license tax, tiered by machine count: Level One (50 or fewer machines) = $500/yr; Level Two (51–200 machines) = $1,000/yr; Level Three (200+ machines) = $2,000/yr. Due July 1 each year.
Per-machine tax: In addition, a $10 per machine per year tax is due on the date each machine is put into service, then annually on July 1 thereafter. Every machine must be registered with the TN Dept. of Revenue (TCA Rule 1320-04-10).
Definition note: TN's "coin-operated amusement device" definition specifies machines that provide entertainment and do not vend merchandise. Standard claw machines dispensing prizes fall into a separate redemption machine category — confirm classification with TN DOR before operation.
Nashville / Memphis: Metro Nashville and Shelby County may require additional local business permits on top of the state structure.
Claw Machines
Legal and low-friction. Tennessee does not restrict skill-based claw machines. No prize cap. Operators subject to standard amusement privilege tax on receipts.
Bulk Vending
Permissive. TN Dept. of Agriculture food permit for candy/gum dispensers. Toy/capsule machines exempt from food licensing.
TX
Registration & Licensing
Texas has a two-tier coin-operated machine licensing system (TX Occupations Code Ch. 2153), administered by the Texas Comptroller:
General Business License (entity-level): Anyone who manufactures, owns, buys, sells, rents, leases, trades, maintains, transports, exhibits, or stores coin-operated machines in Texas must hold a Comptroller-issued General Business License. Annual fee is $200, $400, or $500 depending on machine count. Renewal due November 30 annually. Operators housing machines in another person's business require a General Business License (not just a Registration Certificate).
Per-machine occupation tax permit (decal): A $60 per machine per year occupation tax is imposed on each coin-operated machine exhibited or displayed in Texas (TX Occ. Code §2153.401). A decal evidencing payment must be securely affixed to each machine. Due November 30 annually; prorated quarterly for new machines placed mid-year ($60 Jan–Mar / $45 Apr–Jun / $30 Jul–Sep / $15 Oct–Dec).
Separate from local requirements: Houston and San Antonio each have their own city-level coin-operated machine permit programs on top of the state structure. San Antonio requires a separate occupational tax decal; Houston requires a city Game Room permit for amusement redemption machines.
Claw Machines
TX Penal Code §47.01(4)(B) — the "fuzzy animal" exception. Standard claw machines dispensing merchandise prizes directly from the machine are exempt from the gambling device definition. However, prizes must be: (1) noncash merchandise, toys, or novelties; and (2) have a wholesale value of no more than 10 times the cost of one play OR $5, whichever is less. A machine charging $1 to play may dispense prizes worth up to $5 wholesale; a machine charging $0.50 may only dispense prizes up to $5 wholesale.
Gift certificates and cash equivalents are not exempt. Texas courts have held that machines awarding gift certificates, store credit, or tokens redeemable for cash do not qualify for the §47.01(4)(B) exception and are illegal gambling devices subject to seizure. Prizes must be tangible merchandise dispensed directly from the machine.
Eight-liner operations remain high-risk. Law enforcement raids on eight-liner parlors are common in Texas. Standard claw machines (plush toy dispensers, etc.) at low play cost are generally low-risk when prizes stay within the cap. Operators pushing prize values or using electronic credits create serious legal exposure.
Bulk Vending
Very permissive. No state bulk vending license required beyond standard business registration and sales tax permit. Candy and gum are taxable in TX (6.25% state + local).
UT
Registration & Licensing
No state amusement machine license. Utah does not maintain a statewide amusement machine operator registry. Licensing falls to cities and counties. Salt Lake City requires a general Business License for any operator placing machines ($100–$300/yr).
Utah sales tax: 4.85% state sales tax. Amusement machine receipts taxed differently from retail vending — consult Utah State Tax Commission (Form TC-62).
Claw Machines
Generally permitted. Utah does not classify skill-based claw machines as gambling devices. Prizes dispensed are treated as merchandise sales.
Skill requirement applies. Machines with programmed "winner every N plays" mechanics may attract Utah Division of Consumer Protection review.
Bulk Vending
No state registration. Bulk vending machines require no specialized state permit beyond standard business licensing. Utah Dept. of Agriculture & Food food establishment permit for candy/gum dispensers. Capsule/toy dispensers exempt.
VT
Registration & Licensing
No statewide amusement machine license. Standard VT business registration (Secretary of State) and sales tax registration required. No separate per-machine state fee.
VT sales tax: 6% state sales tax on amusement machine receipts. Candy and gum are taxable in Vermont.
Claw Machines
Legal and permissive. Vermont does not restrict skill-based claw machines. Small market size limits commercial viability but regulatory burden is minimal.
Bulk Vending
Low burden. VT Agency of Agriculture food establishment permit for candy/gum machines. Toy/capsule machines exempt.
VA
Registration & Licensing
VA Dept. of Agriculture & Consumer Services (VDACS): Licenses amusement device operators statewide. Annual fee based on machine count ($50 base + $5/machine). Local business license also required in most localities.
Local license tax (VA Code §58.1-3720): Any Virginia county, city, or town may impose a local license tax on amusement machine operators. The cap is $200 for operators of 10 or more machines in the locality; for fewer than 10 machines, localities have discretion to set a lower amount per machine. Note: this is a local BPOL (Business, Professional, and Occupational License) tax, not a state per-machine stamp. There is no state-level per-machine decal in Virginia — the VDACS operator license is entity-level, and local taxes are the per-machine mechanism.
Claw Machines
Clearly legal. Virginia Code defines amusement devices broadly but excludes skill-based machines from gambling classifications. No prize cap. Operator-friendly state.
Bulk Vending
Permissive. VDACS food establishment permit for candy/gum machines ($35–$60/location). Standard business license covers toy/capsule vending.
WA
Registration & Licensing
Washington State Gambling Commission (WSGC): Does NOT regulate standard skill-based amusement machines, but actively monitors any machines that could constitute gambling devices.
Seattle / King County: City of Seattle requires business license ($110/yr base) covering amusement machine operations.
WA B&O Tax: Washington's Business & Occupation tax applies to amusement machine gross receipts (Service & Other Activities rate: 1.5%). No state sales tax.
Claw Machines
WAC 230-13-045 — Group 7 Crane Amusement Game Standards. Washington has codified specific operational requirements for all crane/claw machines: (1) must allow at least 20 seconds of playing time per operation; (2) the crane or claw must be capable of reaching, picking up, and dispensing all prizes in the machine; (3) machine controls must be clearly labeled; (4) prizes must be loose and not packed, arranged, lodged, or intertwined in any way that would prevent the claw from picking them up. These standards are administered by the WA Gambling Commission.
Programmed win intervals are a WSGC concern. The Commission has indicated machines with "programmed win intervals" — where the machine (not the player) controls when the claw succeeds — may require a gambling license. The WAC standards functionally prohibit any configuration that prevents a capable player from winning.
Compliant skill-based machines are legal statewide when meeting WAC 230-13-045 standards. Operators of qualifying amusement games must register with the WSGC.
Bulk Vending
Permissive. Standard WA business license required. WA Dept. of Agriculture food permits for candy/gum machines. No state sales tax on vending receipts.
DC
Registration & Licensing
DC Dept. of Consumer & Regulatory Affairs (DCRA): All amusement machine operators in DC require a Basic Business License (BBL) from DCRA with an "Amusement" endorsement (~$200–$500/yr depending on business class).
Ward-level zoning: Amusement device locations may require zoning clearance in certain DC wards. Check with DC Office of Zoning before placing machines.
DC amusement tax: 10% on gross receipts from amusement machines — among the highest in the country. 6% general sales tax on vending receipts. Register with DC OTR.
Claw Machines
Document carefully. DC's gambling laws are strictly enforced. Skill-based claw machines are legal but operators should maintain thorough documentation. DC AG's office has jurisdiction over amusement device complaints.
Bulk Vending
DCRA + DOH permits: Food-dispensing vending machines require DC Dept. of Health food facility license (~$75–$150/location). Toy/capsule machines require DCRA BBL but no health permit.
⚠ DC's 10% amusement tax is one of the highest in the US. Evaluate machine economics carefully before placement.
WV
Registration & Licensing
WV Lottery Commission: Regulates video lottery terminals. Standard skill amusement machines are outside Lottery Commission jurisdiction but must be clearly skill-based. WV Secretary of State business registration required for all operators.
WV sales tax: 6% state sales tax on amusement and vending receipts. No local sales tax — single statewide rate.
Claw Machines
VLT presence. WV has video lottery terminals at licensed bars/restaurants. Claw machines should be clearly differentiated from any gambling device. Document skill mechanics for compliance.
Merchandise-dispensing skill machines are legal statewide. No prize cap under WV law for skill machines.
Bulk Vending
Permissive. WV Dept. of Health food establishment permit for candy/gum machines. Toy/capsule machines exempt.
WI
Registration & Licensing
WI Dept. of Revenue: Coin-operated amusement machine operators must obtain a WI amusement device operator license and remit applicable taxes. Annual license fee is modest (~$15–$25/machine).
WI sales tax: 5% state + 0.5% county + 0.5% stadium tax on amusement/vending receipts in applicable counties.
Claw Machines
Legal and permissive. Wisconsin clearly permits skill-based claw machines. No prize cap. Operators subject to standard amusement device licensing fee.
Bulk Vending
Low burden. WI Dept. of Agriculture, Trade & Consumer Protection food establishment license for candy/gum machines. Toy/capsule machines exempt.
WY
Registration & Licensing
No state amusement machine license. Wyoming has no statewide amusement operator registration or per-machine fee. Standard WY business license from Secretary of State ($100/yr) covers all operations.
WY sales tax: 4% state + up to 2% local option on vending and amusement receipts. One of the lowest tax burdens in the country.
Claw Machines
Clearly legal. Wyoming does not restrict skill-based claw machines. No prize cap. Minimal bureaucracy — excellent expansion market.
Bulk Vending
Very permissive. WY Dept. of Agriculture food establishment permit for candy/gum machines. Toy/capsule machines exempt.
✓ Wyoming is one of the most permissive and lowest-tax states in the country for vending and amusement operators.
Quick-Reference Summary
All 51 jurisdictions — operator registration status, claw machine status, bulk vending requirements, and overall burden at a glance. Alphabetical order.
| State / Jurisdiction | State Registration | Key Local Permit | Claw Status | Bulk Vending | Overall Burden | Key Agency |
|---|---|---|---|---|---|---|
| Alabama | $8/machine/yr state privilege license (§40-12-176) + county decals | County business license + local decal | $5 wholesale prize cap; claw must grasp all prizes; §13A-12-76 | Dept. of Agriculture permit | Moderate | AL Code §40-12-176; §13A-12-76 |
| Alaska | AK business license only | City business license | Legal; permissive | ADEC food permit | Low | AK Dept. of Commerce |
| Arizona | TPT license required | City business license | Strict — no auto-percentaging; prize cap <$10 wholesale; AG enforcement active | Dept. of Health permit | Moderate–High | AZ AG Consumer Fraud Act; ARS §13-3301/13-3312 |
| Arkansas | Yes — Operator license + $5/machine decal + $6,000 surety bond | Local business license | Legal; document skill | AR Dept. of Health permit | High | AR DFA §26-57-401; surety bond required |
| California | City/county only | City amusement permit | High scrutiny — verify | County health permit | High | Local city clerk |
| Colorado | No state registry | Denver: $40/machine/yr | Legal; permissive | CDPHE food license | Low | Denver Excise & Licenses |
| Connecticut | DCP oversight at qualifying locations | Municipal amusement permit | Moderate — verify skill | Dept. of Public Health permit | Moderate | CT Dept. of Consumer Protection |
| Delaware | $75/yr DE business license | Local business license | Legal; permissive; no sales tax | DE Dept. of Ag permit | Low | DE Division of Revenue |
| Florida | DBPR Certificate of Registration + DR-18 $30/machine/yr certificate | Location permit if 3+ machines | Type C statute; no auto-percentaging; ~$75 prize cap; FGCC active enforcement | FDACS food permit | High | FL DBPR + FL DOR (DR-18); FL §546.10 |
| Georgia | Yes — GLC Master License (owner) + Location License (location) | No local taxes permitted by state law | Legal; Class A; $50 prize cap; skill-based required | Exempt from COAM licensing | Moderate | GA Lottery Corp (GLC); GA Code Title 50 Ch. 27 |
| Hawaii | GET license required | County business application | Legal; GET on receipts | Dept. of Health permit | Moderate | HI Dept. of Taxation (GET) |
| Idaho | Yes — $42/machine/yr amusement device decal (Form ADT; replaces sales tax) | City business license | Legal; permissive | Dept. of Agriculture permit | Moderate | ID State Tax Commission (Form ADT/3550) |
| Illinois | State: $30/machine/yr decal (RCOA-1); Chicago adds BACP license + $25/machine tag | BACP tag + city business license (Chicago) | Legal; BACP tags required in Chicago; $5 wholesale prize cap in Chicago | BACP vending license required (Chicago) | High | IL Dept. of Revenue (state decal); Chicago BACP |
| Indiana | No amusement registry | City business license | Legal; permissive | State Dept. of Health permit | Low | IN Dept. of Revenue |
| Iowa | No state registry | City business license; some per-machine | Legal; permissive | IA Dept. of Inspections permit | Low | Local city/county |
| Kansas | No state registry | City business license | Legal; permissive | Dept. of Agriculture permit | Low | KS Dept. of Revenue (sales tax) |
| Kentucky | Yes — $10/machine/yr state license (KRS 137.360); localities may add up to $10 more | Local business license | Moderate — document skill | Cabinet for Health permit | Moderate | KY Dept. of Revenue; KRS 137.360 |
| Louisiana | Parish business license | Parish permit; New Orleans permit | Moderate — LGCB adjacent | Dept. of Health permit | Moderate | LA Gaming Control Board |
| Maine | No state registry | City business license; some per-machine | Legal; permissive | Dept. of Agriculture permit | Low | Local city/county |
| Maryland | Baltimore amusement tax; county permits | Baltimore: amusement permit + tax | Moderate — document skill | Dept. of Health food permit | Moderate | MD Lottery & Gaming Control Agency |
| Massachusetts | Boston Police license/city | Boston: $50/machine/yr | Moderate — document skill | Food establishment permit | Moderate | City Police Licensing |
| Michigan | No state amusement registry | City permits in major metros | $3.75 wholesale prize cap; altering machine = felony (MCL 750.303) | MI MDARD food license | Moderate | MCL 750.303 (crane game statute) |
| Minnesota | Minneapolis machine license | Local business license | Moderate — document skill | MN Dept. of Ag license; candy taxable | Moderate | MN Gambling Control Board |
| Mississippi | No state registry | City/county business license | Moderate — casino-adjacent | Dept. of Health permit | Moderate | MS Gaming Commission (context) |
| Missouri | No state registry | City business/occupational license | Legal; permissive | Dept. of Health permit | Low | MO Dept. of Revenue (sales tax) |
| Montana | DGSD review for classification | City business license | Moderate — VLT context; no sales tax | Dept. of Public Health permit | Moderate | MT Dept. of Justice — DGSD |
| Nebraska | Yes — Annual operator license (free) + $25/machine/yr decal (§77-3001) | City business license | Legal; permissive | Dept. of Agriculture permit | Moderate | NE Dept. of Revenue; §§77-3001–77-3011; decal replaces sales tax |
| Nevada | Clark County special license | County special business license | High scrutiny — GCB adjacent | CCHD food permit | High | NV Gaming Control Board |
| New Hampshire | No state registry; no sales tax | City business license | Legal; permissive | Dept. of H&HS food permit | Low | NH Lottery Commission (context) |
| New Jersey | Yes — NJ DCA license | Municipal permit per location | Restricted — NJ Amusement Act | NJ Dept. of Health permit | High | NJ Division of Consumer Affairs |
| New Mexico | CRS (GRT) registration required | City business license | Legal; permissive | Environment Dept. food permit | Moderate | NM Taxation & Revenue |
| New York | NYC: DCWP license required | DCWP amusement device license | Restricted — document skills | NYC vending license required | High | NYC DCWP |
| North Carolina | Yes — NCDOR business license + per-machine & per-location privilege tax; max 3 machines/location | County business license | Legal; permissive | NC Dept. of Ag permit | Moderate | NCDOR; NC COAM statute |
| North Dakota | No per-machine state license | City business license | Legal; permissive | Dept. of Agriculture permit | Low | ND Office of Attorney General |
| Ohio | Yes — OCCC Type-B SBAM license | City permit in major metros | $10 wholesale prize cap; OCCC license req'd; component change records; felony for non-compliance | ODA food service license | High | Ohio Casino Control Commission (OCCC) |
| Oklahoma | $75/machine/yr amusement decal (in lieu of sales tax); §68-1503 | City business license | Legal; avoid tribal lands | Bulk decal: $5–$15/machine/yr (also in lieu of sales tax) | Moderate | OK Tax Commission; 68 O.S. §1503 |
| Oregon | No state registry; no sales tax | City business license | Moderate — VLT context | Dept. of Agriculture permit | Moderate | OR Lottery Commission (context) |
| Pennsylvania | Phila: L&I license + amusement tax | Philadelphia: L&I + amusement tax | Moderate — document skills | PA Dept. of Ag permit | Moderate | Philadelphia L&I / Local |
| Rhode Island | Municipal amusement device license | City/town amusement license | Moderate — document skill | Dept. of Health permit | Moderate | RI Lottery (context); local |
| South Carolina | Yes — Owner/Operator License ($200 biennial) + per-machine decal | County/city business license | Skill-based required; no auto-percentaging; prize must be noncash merch | Exempt from COD licensing | High | SCDOR §12-21-2720 & §12-21-2728; $250/machine/biennial |
| South Dakota | No per-machine state license | City business license | Moderate — VLT context | Dept. of Health permit | Moderate | SD Commission on Gaming (context) |
| Tennessee | Yes — Annual entity license ($500–$2,000) + $10/machine/yr (TCA §67-4-507) | City business license | Legal; verify classification (amusement vs. redemption) | TN Dept. of Ag permit | Moderate | TN Dept. of Revenue; TCA §67-4-507 |
| Texas | Yes — General Business License ($200–$500/yr) + $60/machine/yr occupation tax decal | Houston/San Antonio add city-level permits | Prize cap: $5 wholesale or 10× play cost; no cash equivalents; §47.01 | No special license (bulk exempt) | Moderate | TX Comptroller; Occ. Code Ch. 2153; §47.01 |
| Utah | Local only (SLC business license) | SLC business license | Legal; permissive | No special license | Low | SLC Business Licensing |
| Vermont | No state registry | City business license | Legal; permissive | Agency of Agriculture permit | Low | VT Secretary of State |
| Virginia | VDACS entity license ($50 + $5/machine) + local BPOL tax (cap $200 for 10+ machines) | Local business license | Legal; permissive; no cap | VDACS food permit | Moderate | VA DACS |
| Washington | WSGC amusement game registration; B&O tax | City business license | WAC 230-13-045 operational standards; claw must reach/grasp all prizes; 20-sec play minimum | WA Dept. of Ag permit | Moderate | WA Gambling Commission; WAC 230-13-045 |
| Washington, D.C. | Yes — DCRA BBL with Amusement endorsement | DCRA Basic Business License | Moderate — document skill | DOH food permit; 6% sales tax | High | DC DCRA; 10% amusement tax |
| West Virginia | No per-machine state license | City business license | Moderate — VLT context | Dept. of Health permit | Moderate | WV Lottery Commission (context) |
| Wisconsin | WI amusement device operator license | City business license | Legal; permissive | DATCP food establishment permit | Moderate | WI Dept. of Revenue |
| Wyoming | No state registry | City business license only | Legal; permissive | Dept. of Agriculture permit | Low | WY Secretary of State |