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Council tackling VGM obsolescense

Pub Date: 10/1/2008
By Gene Huntington
Administrator
Gambling Control Division

When the Gaming Advisory Council (GAC) technology subcommittee held a hearing in June to discuss video gambling machine technology, much of the discussion centered on how to get parts for old video gambling machines.  

Many of those in attendance expressed concern about restrictions that prevent video gambling machine owners from using off-the-shelf components typically bill acceptors, printers and monitors for machines that are no longer supported by the manufacturer.  

The GAC subcommittee has identified this issue as one it would like to pursue by looking at ways to allow video gambling machines to be refurbished.  

In the past, much of the discussion has focused on video gambling machines that were no longer supported by the original manufacturer. There are a number of reasons a manufacturer may stop supporting a machine, including replacing the existing model with a new model or even the manufacturer losing its license or going out of business.  

Gambling law and regulations related to approving modifications to video gambling machines draw no distinction as to whether the machine is supported or not supported by the manufacturer.

nder current law only a licensed manufacturer can submit a modification (a new kind of component) to be tested.
    
The restriction is set out in 23-5-625 MCA: It is unlawful for any person to assemble, produce, test, or manufacture any video gambling machine or associated equipment for use or play in the state without having first been issued a video gambling machine manufacturer's license by the department.

When the manufacturer is no longer supporting the video gambling machine, it is not likely to pay to have other replacement components tested.  

The Gambling Control Division was also asked'; could a different licensed manufacturer submit an off-the-shelf replacement part for a machine that was no longer supported by the original manufacturer?

The response of the Division was that nothing in Montana gambling law would restricts the submission of a modification to an approved video gambling machine by any licensed manufacturer.

There is, however, another part of the discussion that does not involve state regulation.  

If the original manufacturer still supported the machine, it might take legal action to protect its proprietary interest in the model of video gambling machine.  If the original manufacturer no longer supports the video gambling machine, however, it may have little interest in trying to protect any proprietary rights.  

Submitting a modification to another manufacturer s video gambling machine has legal, technical and business ramifications apart from any state approval.

Montana currently has approximately 20 licensed manufacturers who could submit modifications for testing.  A manufacturer could fit an approved model of a video gambling machine with an off-the-shelf component and submit the refurbished machine to the Gambling Control Division for testing.  If the component is approved, it would be approved for anyone to use in the same configuration in the model of machine that was tested.

In coming months the subcommittee of the GAC will try to determine if getting components approved for video gambling machines requires a change in the law, or if the marketplace will provide a solution.  

Source: The Montana Tavern Times, October, 2008, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.































  
















By Gene Huntington
             Administrator
Gambling Control Division
When the Gaming Advisory Council (GAC) technology subcommittee held a hearing in June to discuss video gambling machine technology, much of the discussion centered on how to get parts for old video gambling machines.  
Many of those in attendance expressed concern about restrictions that prevent video gambling machine owners from using off-the-shelf components typically bill acceptors, printers and monitors for machines that are no longer supported by the manufacturer.  
The GAC subcommittee has identified this issue as one it would like to pursue by looking at ways to allow video gambling machines to be refurbished.  
In the past, much of the discussion has focused on video gambling machines that were no longer supported by the original manufacturer. There are a number of reasons a manufacturer may stop supporting a machine, including replacing the existing model with a new model or even the manufacturer losing its license or going out of business.  
Gambling law and regulations related to approving modifications to video gambling machines draw no distinction as to whether the machine is supported or not supported by the manufacturer.
Under current law only a licensed manufacturer can submit a modification (a new kind of component) to be tested.
    The restriction is set out in 23-5-625 MCA: It is unlawful for any person to assemble, produce, test, or manufacture any video gambling machine or associated equipment for use or play in the state without having first been issued a video gambling machine manufacturer's license by the department.
When the manufacturer is no longer supporting the video gambling machine, it is not likely to pay to have other replacement components tested.  
The Gambling Control Division was also asked'; could a different licensed manufacturer submit an off-the-shelf replacement part for a machine that was no longer supported by the original manufacturer?
The response of the Division was that nothing in Montana gambling law would restricts the submission of a modification to an approved video gambling machine by any licensed manufacturer.
There is, however, another part of the discussion that does not involve state regulation.  
If the original manufacturer still supported the machine, it might take legal action to protect its proprietary interest in the model of video gambling machine.  If the original manufacturer no longer supports the video gambling machine, however, it may have little interest in trying to protect any proprietary rights.  
Submitting a modification to another manufacturer s video gambling machine has legal, technical and business ramifications apart from any state approval.
Montana currently has approximately 20 licensed manufacturers who could submit modifications for testing.  A manufacturer could fit an approved model of a video gambling machine with an off-the-shelf component and submit the refurbished machine to the Gambling Control Division for testing.  If the component is approved, it would be approved for anyone to use in the same configuration in the model of machine that was tested.
In coming months the subcommittee of the GAC will try to determine if getting components approved for video gambling machines requires a change in the law, or if the marketplace will provide a solution.