Additional prizes for VGM play prohibited
By Rick Ask, Administrator
Gambling Control Division
Can an operator offer prizes for a win on a video gambling machine or award a prize for a specified hand or outcome of play on a machine that is outside those awarded by the video gambling machine?
The answer is no.
By way of explanation, let's review a few fundamentals. First, the state's constitution provides that all forms of gambling activities are illegal unless specifically authorized by the Legislature. Art. III, sec. 9, Mont. Const. Section 23-5-111, MCA, states that in view of this constitutional provision, the gambling code must be strictly construed by the Department and the courts.
The Legislature has placed limits on the prizes that can be awarded in each of the gambling activities it has authorized.
The limit for video gambling is $800, which is found in section 23-5-608 MCA. In 23-5-602, MCA, each type of legal video gambling machine is described to include the award of prizes by the machine.
There is no provision in law to extend the limit outside of the play of the machine. There is also no provision in law for prizes to be awarded for outcomes of play on a video gambling machine outside of those awarded by the machine.
The prize limit for video gambling is $800 a game and there is no provision that authorizes an operator to offer prizes outside of the play of the machine. Using the play of a poker machine as an example, an operator cannot pay any amount over and above what the machine pays if a machine player hits a royal flush or four of a kind.
Likewise, the operator cannot pay players any amount for the worst hand of the night, or any other outcome except for what the machine pays.
Does this not mean that player's clubs or award programs in use by location operators in this state are illegal?
The answer is no.
Generally, the Department approves these programs when they base the points or incentive awards on the amount of time or gross play on machines in their locations; the awards may not be based on how much a player wins or loses.