BILL ANALYSIS Senate Research Center C.S.S.B. 517 89R23328 BEE-D By: Middleton State Affairs 4/10/2025 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Electronic gambling devicescommonly known as "eight-liners"have become increasingly prevalent in Texas. These devices mimic traditional slot machines and offer prizes based on chance, often skirting the line between amusement and illegal gambling. Despite ongoing efforts by local jurisdictions to restrict or regulate their use, enforcement has proven inconsistent, creating legal ambiguities and opportunities for abuse. The lack of clear statewide guidelines has allowed some operators to exploit loopholes, leading to unregulated gambling activity under the guise of entertainment. S.B. 517 addresses this issue by updating the Penal Code to clearly define eight-liners and expand the definition of "gambling device." The bill eliminates ambiguity by establishing objective criteria for determining when a device is used for illegal gambling versus lawful amusement. It also introduces statutory defenses for legitimate amusement devices that reward only noncash prizes of limited value or additional plays. Additionally, S.B. 517 creates consistency across the state by repealing local regulations that conflict with this standardized framework. This legislation strengthens the state's ability to regulate gambling activity, reduces the potential for abuse, and preserves space for lawful, skill-based amusement. (Original Author's/Sponsor's Statement of Intent) C.S.S.B. 517 amends current law relating to gambling criminal offenses and a defense to prosecution for a gambling offense and increases criminal penalties. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 47.01, Penal Code, by adding Subdivision (2-a) to define "device" and amending Subdivisions (4) and (9) to redefine "gambling device" and "thing of value." SECTION 2. Amends Section 47.03(b), Penal Code, to provide that an offense under Section 47.03 (Gambling Promotion) is a felony of the third degree, rather than a Class A misdemeanor. SECTION 3. Amends Section 47.04(c), Penal Code, to provide that an offense under Section 47.04 (Keeping a Gambling Place) is a felony of the third degree, rather than a Class A misdemeanor. SECTION 4. Amends Section 47.05(c), Penal Code, to provide that an offense under Section 47.05 (Communicating Gambling Information) is a felony of the third degree, rather than a Class A misdemeanor. SECTION 5. Amends Section 47.06(e), Penal Code, to provide that an offense under Section 47.06 (Possession of Gambling Device, Equipment, or Paraphernalia) is a felony of the third degree, rather than a Class A misdemeanor. SECTION 6. Repealer: Section 47.02(e) (relating to providing that it is a defense to prosecution that a person played for something other than money using certain devices excluded from the definition of "gambling device"), Penal Code. SECTION 7. Makes application of this Act prospective. SECTION 8. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center C.S.S.B. 517
89R23328 BEE-D By: Middleton
State Affairs
4/10/2025
Committee Report (Substituted)
Senate Research Center
C.S.S.B. 517
89R23328 BEE-D
By: Middleton
State Affairs
4/10/2025
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Electronic gambling devicescommonly known as "eight-liners"have become increasingly prevalent in Texas. These devices mimic traditional slot machines and offer prizes based on chance, often skirting the line between amusement and illegal gambling. Despite ongoing efforts by local jurisdictions to restrict or regulate their use, enforcement has proven inconsistent, creating legal ambiguities and opportunities for abuse. The lack of clear statewide guidelines has allowed some operators to exploit loopholes, leading to unregulated gambling activity under the guise of entertainment.
S.B. 517 addresses this issue by updating the Penal Code to clearly define eight-liners and expand the definition of "gambling device." The bill eliminates ambiguity by establishing objective criteria for determining when a device is used for illegal gambling versus lawful amusement. It also introduces statutory defenses for legitimate amusement devices that reward only noncash prizes of limited value or additional plays. Additionally, S.B. 517 creates consistency across the state by repealing local regulations that conflict with this standardized framework.
This legislation strengthens the state's ability to regulate gambling activity, reduces the potential for abuse, and preserves space for lawful, skill-based amusement.
(Original Author's/Sponsor's Statement of Intent)
C.S.S.B. 517 amends current law relating to gambling criminal offenses and a defense to prosecution for a gambling offense and increases criminal penalties.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 47.01, Penal Code, by adding Subdivision (2-a) to define "device" and amending Subdivisions (4) and (9) to redefine "gambling device" and "thing of value."
SECTION 2. Amends Section 47.03(b), Penal Code, to provide that an offense under Section 47.03 (Gambling Promotion) is a felony of the third degree, rather than a Class A misdemeanor.
SECTION 3. Amends Section 47.04(c), Penal Code, to provide that an offense under Section 47.04 (Keeping a Gambling Place) is a felony of the third degree, rather than a Class A misdemeanor.
SECTION 4. Amends Section 47.05(c), Penal Code, to provide that an offense under Section 47.05 (Communicating Gambling Information) is a felony of the third degree, rather than a Class A misdemeanor.
SECTION 5. Amends Section 47.06(e), Penal Code, to provide that an offense under Section 47.06 (Possession of Gambling Device, Equipment, or Paraphernalia) is a felony of the third degree, rather than a Class A misdemeanor.
SECTION 6. Repealer: Section 47.02(e) (relating to providing that it is a defense to prosecution that a person played for something other than money using certain devices excluded from the definition of "gambling device"), Penal Code.
SECTION 7. Makes application of this Act prospective.
SECTION 8. Effective date: September 1, 2025.