Arizona Charities Face Legal Threat Over Electronic Bingo Machines

20

In the sun-drenched state of Arizona, charitable organisations are feeling the heat as they face regulatory crackdowns over the use of slots-style electronic bingo machines. The authorities argue that these devices, marketed primarily to charities including the American Legion and Veterans of Foreign Wars, flout the state’s gambling laws. Currently, the proprietors of the main company marketing these contentious devices are under threat of criminal prosecution. Furthermore, authorities have issued warnings to charities, painting a stark picture: they face legal ramifications if they continue to house the machines.

The Arizona Department of Gaming, in its recently released notification to bingo licensing entities, emphasized that “Possession of a bingo gambling device remains a crime”. Since the beginning of September, state regulators have knocked on the doors of at least 17 establishments licensed to host bingo games, echoing this warning.


Arizona’s statutes embrace only traditional live-call bingo games, where one engages with the thrill of having balls pulled and numbers called in real-time interaction with other participants. The devices in question introduce a new dynamic, closely mirroring slot machines. Nevertheless, their outcome still remains tethered to bingo pulls carried out by charity organization staff.

The rift between the state and the charities stemmed from a 2017 legislation. This legislation gave a conditional nod to the usage of electronic devices in aid of disabled bingo participants in line with the Americans with Disabilities Act. However, it appears that the provisions of this law have been used as a loophole to facilitate the widespread operation of slots parlors dotted around Arizona, a misinterpretation vehemently denied by the proponents of the legislation, including its chief lobbyist, State Sen. Sonny Borrelli.

The murky legal waters sound an alarm for Arizona’s long-standing gaming compact with the state’s Native American tribes. These tribes enjoy exclusive rights to offer certain casino-style games, which could be violated if charities began deploying similar devices.

Borrelli, once a cautious advocate for confined application of electronic devices, has since changed his stance. At a press conference earlier this month, Borrelli, flanked by veterans, accused the state of targeting veterans groups who heavily depend on the revenue generated from the machines. This allegation was swiftly dismissed by the Arizona Department of Gaming with a firm assurance: their priority is the protection of Arizonans from unregulated gambling.

Consistency seems to be the guiding principle taken by regulators when it comes to the interpretation of the law. Interestingly, this battle of wills regarding the use of electronic bingo machines has not resulted in any formal sanctions from the state against charities hosting the devices yet.

The legislation, largely credited to Borrelli, was co-authored by a local gaming entrepreneur, Greg Mullally. Today, Mullally along with three other individuals associated with Lynxx Gaming, face felony charges related to these controversial bingo machines. A trial is imminent next year.

While the physical casinos face a storm of regulatory scrutiny, the future of digital casinos remains on firmer ground. As part of our ongoing coverage, we took a deeper look into the landscape of online casinos on our blog. If you’re interested, you can explore the best Canadian online casinos, and find your preferred digital gaming experience. Despite what seems to be a controversial period for the gambling industry overall, online platforms offer a more regulated, less disputed alternative for those looking to dab into the thrill of gaming.