A San Antonio councilwoman wants to ban eight-liner gaming machines throughout the city, saying the devices have turned into a conduit for illegal gambling despite operating under an exception in Texas law.
Texas Eight-Liners Accused of Bypassing Cash Gambling Restrictions
Council Consideration Request was submitted September 4 by District 5 Councilwoman Teri Castillo asking that the machines be banned in San Antonio, Texas. The proposal calls for tighter inspections and enforcement, as well as increased public awareness of illegal gambling, as reported by local news outlet KENS 5.
Texas is one of the few states that allow eight-liners, thanks to a state law provision known as the “Fuzzy Animal Exception.” This provision was intended to allow for amusement venues such as arcades and carnivals where players may be awarded small non-cash prizes.
The exception is that a machine can give away a prize worth less than $5 or a reward worth up to 10 times the amount paid to play. The machines need to have a skill element, too. However, Castillo says some operators have taken advantage of the provision to make the devices work very much like traditional slot machines.
The authorities have expressed concerns about methods that allegedly circumvent restrictions on cash gambling. These include modifying machine settings and offering cash substitutes such as gift cards, vouchers, or other forms of credit redeemable at affiliated businesses.
Eight-Liner Crackdown Spreads Across Texas Cities
In Texas courts, these practices have previously been challenged as to their legality. The Texas Supreme Court ruled against cash-equivalent payouts in an eight-liner case in 2003. A state appeals court ruled in 2022 that the machines were illegal lotteries. However, that ruling was denied a hearing by the highest court in 2024, giving municipalities more leeway to enact their own restrictions.
Since then, several Texas cities have moved toward local bans, and Castillo wants San Antonio to join them.
The recent law enforcement activity has made it more urgent. Bexar County authorities investigated an alleged illegal gambling operation at a home that had previously attracted police attention, leading to two arrests in March. Some 50 machines and a safe with cash are believed to have been found by officers.
Castillo is being co-sponsored by four other councilmembers, Edward Mungia, Ric Galvan, Marina Alderete Gavito and Marc Whyte. The measure will first go to the City Council’s Governance Committee, which will decide whether to send it to city staff and eventually to the full council for consideration.
The proposed crackdown comes as Texas continues to keep some of the nation’s tightest restrictions on casino-style gambling. The state does not have a commercial or tribal casino market with traditional slots and house-banked table games.
Meanwhile, major gaming companies are still lobbying for expanded casino gaming in Texas. The issue is expected to return to the state legislature in 2027 when lawmakers are in regular session.