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F I S C A L I M P A C T R E P O R T
SPONSOR Griego
ORIGINAL DATE
LAST UPDATED
2/1/07
3/15/07 HB
SHORT TITLE Gaming Machines Used in Private Homes
SB 278/aHBIC
ANALYST Ortiz
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Gaming Control Board (GCB)
SUMMARY
Synopsis of HBIC Amendment
House Business and Industry Committee Amendment added a definition for an antique gambling
device. It inserted a new section to amend Section 60-2E-62 regarding unlawful possession of
gamin devices. It allows distributors or manufacturer licensee to possess unlicensed gaming
devices when waiting for the transfer of the gaming device to a gaming operator licensee for
licensure. A person may also posses an unlicensed gaming device as provided in Section 60-2E-
13.1, which address the activities requiring licensing. It makes it a fourth degree felony for
anyone violating this section.
Synopsis of Original Bill
Senate Bill 278, Gaming Machines Used in Private Homes, would remove ambiguity in the
language of the Gaming Control Act by clarifying that ownership of unlicensed slot machines by
private homeowners is not permitted in New Mexico.
SUBSTANTIVE ISSUES
New Mexico Rel. New Mexico gaming Control Board vs. 10 Gaming Devices docket No. 24479,
pg_0002
Senate Bill 278/aHBIC – Page
2
NM Court of Appeals cert denied by NM Supreme Court states that slot machines are not subject
to Gaming Control Act if located in a private residence.
This case creates a black market for gaming machines in New Mexico. Once in the home it
could be used for illegal purposes. It allows machines to be brought into the state that GCB
cannot regulate.
A problem with this bill is that there are no exemptions for those who currently own machines.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
If this bill is not enacted, the Gaming Control Act will permit sale of unregulated and unlicensed
slot machines in New Mexico, potentially resulting in the sale and use of black market machines.
EO/nt