Question to be argued before the Iowa Supreme Court: Games of skill or chance?

By: Rox Laird on September 6th, 2018

The Iowa Supreme Court will hear arguments Friday in Iowa City in a case that could determine whether gaming devices that resemble slot machines could be placed in Iowa businesses other than bars.

The Court will hear oral arguments at 10:30 a.m. Friday in Banilla Games Inc. v. Iowa Department of Inspections and Appeals at the Levitt Auditorium at the University of Iowa College of Law. The case presents a question of interpreting the gaming statute on which the Court has not ruled before.

Banilla Games, a North Carolina company, manufactures and sells electronic games that resemble touch-screen slot machines. Players purchase credits, with one cent equaling one credit, and are challenged to match or complete sets of images on the screen. Winners receive a ticket or voucher worth up to $50 that can be redeemed for merchandise within the commercial establishment where the game is played.

At issue is whether Banilla’s Superior Skill game machines must be registered with the State under the gambling regulations in Iowa Code Chapter 99B. Gaming devices that require registration are limited by the statute to businesses holding liquor licenses, whereas non-registered devices can be placed in other locations, such as convenience stores.

The Iowa Department of Inspections and Appeals ruled that Banilla’s Superior Skill machines are subject to the registration requirement, and the agency’s ruling was upheld in a July 2017 decision by Polk County District Judge Mary Pat Gunderson.

Banilla argues in its appeal of the District Court decision that its machines are games of skill, not chance, and thus do not have to be registered.

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