Q: Does a keymaster arcade game be considered a vending machine?

A: A keymaster arcade game may not be considered a vending machine under California law. According to Bus. & Prof.Code § 17571, a "vending machine" is defined as any mechanical device that operates by the insertion of a coin or other thing of value and dispenses a product, service, or exchange of equal value (Bus. & Prof.Code § 17571. Similarly, 9 CCR § 7211 excludes machines providing services of a recreational nature from the definition of vending machines (9 CCR § 7211). Additionally, 21 CCR § 2204 defines vending machines as devices that are self-service, coin-operated, and used for the sale and dispensing of food or merchandise (21 CCR § 2204).

However, keymaster arcade games, which involve an element of chance and potentially offer prizes, may be more closely related to slot machines or gaming devices. Under Cal.Penal Code § 330b, a slot machine or device is defined as one that operates by the insertion of money and, due to an element of chance, may entitle the user to receive money, credit, or other things of value (Cal.Penal Code § 330b).

Case law, People ex rel. Green v. Grewal, has held that devices offering prizes based on chance are considered slot machines (People ex rel. Green v. Grewal (2015) 61 Cal.4th 544.)

Therefore, a keymaster arcade game is more likely to be classified as a slot machine rather than a vending machine under California law.

Obviously, I cannot advise you whether placing a slot machine would violate your lease agreement without reviewing its specific terms. If you’d like to discuss this matter further, please feel free to reach out.