Waco council bans amusement redemption machines, exempts pure skill games after public debate

WACO — The Waco City Council on Oct. 21 approved an ordinance prohibiting amusement redemption machines that involve chance or a combination of skill and chance while not banning games the city deems "purely skill based."

The ordinance, approved on second reading, amends multiple sections of the city code regulating amusements and indoor amusement facilities and changes licensing requirements for nightclubs and similar venues. Sarah Bridal, assistant director of development services, told the council the ordinance was drafted to match the approach used in Fort Worth and to implement the council's direction to prohibit devices the courts have found to function as lotteries.

"Our definition of 'amusement redemption machine' specifically calls out games of chance or combination of skill and chance, and those are the machines that are being prohibited," Bridal said.

Why it matters: Supporters of the ban told the council the machines are functionally gambling devices and cited a recent appellate ruling used as legal guidance; opponents said the change would shut dozens of small businesses, eliminate jobs and remove a social outlet for seniors and people in recovery.

Public comment: More than a dozen speakers spoke during the prolonged public comment period. Amy Knight, owner of Jezebel Gypsy Boutique, said the machines support small businesses and local charity fundraising.

"These games ... help us stay open. They support employees, and they give it back to the city that we love," Knight said, adding that a portion of proceeds from her shop's games supports spay-and-neuter and other local causes.

Several speakers described the machines as social spaces used by senior citizens and people in recovery. Misty Ball, who said she works at one of the venues, told councilmembers the rooms offer social contact that helps avoid isolation.

Several landlords and business owners warned the ordinance's effective date could create abrupt lease and property impacts. Stan Haddock, a longtime local developer and landlord, said a ban would put tenants into default and leave buildings vacant.

"You're about to put 80, 90 people in default of their lease right now," Haddock said.

David Dixon, a local attorney, urged the council to give landlords and operators time to transition, proposing a delayed effective date so owners could find new tenants or restructure leases.

Council response and legal basis: Staff and several councilmembers cited the recent Fort Worth appellate decision and said the city's ordinance mirrors the legal rationale used there: devices that rely on chance may meet the statutory definition of an unlawful lottery. Bridal said the ordinance followed Fort Worth's drafting and therefore targets machines that are games of chance or mixed chance-and-skill devices.

Councilmember discussion emphasized the legal risk of allowing machines the courts have identified as unconstitutional lotteries to continue operating while also noting the economic and human impacts raised by speakers. One councilmember said extending the compliance date would only allow operators more time to run devices the city believes are unlawful under the cited appellate guidance.

Outcome: A motion to approve the ordinance on second reading passed with an affirmative roll call; council recorded "Yes" votes during the roll call for Lozano, Waterloo (recorded variably in the transcript), Barefield, Ewing, Chase and Holmes. The motion was recorded as passing by the mayor.

What the ordinance does and does not do: According to staff, the ordinance prohibits machines that are games of chance or that combine chance with skill (the devices often called "8-liners"). It explicitly does not prohibit machines that are purely skill-based. Staff also said the city uses zoning and licensing rules to distinguish indoor amusement facilities from secondary-use machines placed inside other businesses.

Next steps and local impacts: Several business owners requested more time or alternative regulatory approaches such as higher registration fees or clearer licensing rather than an outright ban; council moved forward with the ordinance after hearing those concerns. Business owners and landlords said they will look for legal and business options to mitigate near-term impacts.

Speakers quoted in this article spoke at the Oct. 21 council meeting during the formal public comment period for the ordinance. The city attorney or staff may provide additional written guidance about implementation and any appeal periods following the formal adoption.