are slot machines legal in wisconsin bars

In addition to the tax implications, the Wisconsin statute 945.01 (c) makes it illegal to operate any machine that affords a player to win something of value determined by a game of chance. If auditors identify gambling operations during the course of those audits, they will enlist the help of ATF agents to enforce that part of the statute, as well.' 'We also, of course, conduct tax audits of businesses. 'Our ATF agents come across the illegal machines through the course of normal inspection as well as in the course of investigating other tobacco or alcohol law violations,' Iverson says. To keep things in check, the department relies heavily on tax audits and also enlists the help of Alcohol and Tobacco Enforcement agents. Proceeds generated through video gaming machines are taxable income, and the gross receipts are subject to the state's sales tax. Regulating the machines is big business for the DOR, which has brought in nearly $23 million in taxes since the law went into effect in 2003. The current state law allows bars to have up to five video poker machines and paying out winnings is a civil offense, carrying a $500 fine and no loss of license.īars with more than five machines, however, could face criminal charges, according to Department of Revenue Communications Officer Jessica Iverson. Tommy Thompson revised the state law, violators faced felony charges, fines of up to $10,000, loss of liquor license and prison time. Under a 1999 agreement that reduced penalties for operating illegal machines, enforcement is now handled solely by the state Department of Revenue, which makes sure bar, restaurant and hotel owners are paying appropriate taxes on revenue generated by machines.īefore then-Gov.

The fact is a large percentage of bars offer payouts for gamblers, in direct violation of Wisconsin state statutes. Many times, though, the label is as decorative as beer advertisements on the wall. And for every machine, there is at least one patron willing to dump in money for hours on end, despite labels proclaiming 'for entertainment use only.' In just about every bar, you can find one of these machines. Grab a designated driver and dive in!Īt bars all over the Milwaukee area, patrons sit down, order a drink and take their chances at a video gambling machine.

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Are slot machines legal in wisconsin bars