Dodge County Sheriff reminds public about video gambling machines after questions arise

Submitted by Dodge County Sheriff, Dale Schmidt

Recently, several community members have brought concerns about these machines to my attention. As a result, it is clear that additional education is needed to ensure that both residents and
businesses fully understand the laws governing these devices.

To support that effort, I am sharing this letter along with the attached document, “VGM – Fact Sheet” published by the Wisconsin Department of Revenue. This fact sheet explains the current state laws related to video gambling machines, and the summary below is based directly on that document.

According to the fact sheet, video gambling machines are considered illegal gambling devices when they offer a chance to win something of value, even if an element of skill is involved. Wisconsin law prohibits possessing, operating, setting up, collecting proceeds from, or participating in the earnings or maintenance of these machines for commercial gambling purposes. Violations constitute a Class I Felony, which may include fines up to $10,000, imprisonment up to three years and six months, or both. It is also illegal for property owners or tenants to allow their premises to be used for gambling, which is a Class A Misdemeanor carrying fines up to $10,000 and up to nine months of imprisonment.

The fact sheet also explains a narrow statutory exception for Class “B” alcohol-licensed establishments with five or fewer video gambling machines, in which violations result in a $500 forfeiture per machine enforced solely by the Wisconsin Department of Revenue. This exception does not make the machines legal, but it does place these specific violations under a different penalty structure than more serious misdemeanor or felony offenses.

Because this nuance may not be widely understood, I encourage all Class “B” establishments to review their operations and ensure that, if video gambling machines are present, the number does not exceed five machines.

Remaining within this threshold helps prevent a situation where an establishment or individual unknowingly commits a more serious criminal violation under Wisconsin law. This is not an
endorsement of gambling machines — they remain illegal statewide — but a proactive step to help local businesses avoid harsher penalties while staying within the boundaries established in the statute.

It is also important to note that gambling machines are classified as contraband and may be seized. Municipalities may enact ordinances permitting seizure, destruction, or local forfeitures related to illegal gambling activity, as outlined in the attached fact sheet.

Our goal as a Sheriff’s Office is to educate, support lawful business operations, and ensure compliance, not to punish businesses that may be unaware of the law. I encourage all business owners and residents to carefully review the attached “VGM – Fact Sheet” for a complete understanding of the statutes and penalties.

If you have concerns or wish to report possible violations, you may contact your local law enforcement agency. Violations are more appropriately reported directly to the Wisconsin Department of Revenue through their Alcohol Beverage Complaint portal referenced in the attachment.

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Video Gambling Machines in Wisconsin
Gambling Laws
Fact Sheet 4100 revenue.wi.gov
This fact sheet provides information about the illegality of owning or operating video gambling machines in Wisconsin.

A gambling machine is a contrivance which for a consideration affords the player an opportunity to obtain something of value, the award of which is determined by chance, even though accompanied by some skill and whether or not the prize is automatically paid by the machine (sec. 945.01(3), Wis. Stats.).

It is illegal for a person to possess, operate, setup, collect proceeds, or participate in earnings or maintenance of a video gambling machine for commercial gambling (sec. 945.03(1m), Wis. Stats.).

It is illegal for a person to allow any real estate owned or occupied or under the person’s control to be used as a gambling place, or to permit a gambling machine to be set up for the purpose of gambling at a place under the person’s control (sec. 945.04(1m), Wis. Stats.).

Note: A municipality may pass an ordinance that prohibits all forms of gambling in all places, including video gambling machines on any licensed or permitted premises (sec. 66.0107, Wis. Stats.).

Class I Felony: A violation for possessing, operating, collecting proceeds, or participating in earnings or maintenance of a video gambling machine for commercial gambling has the following penalties: The premises has five or fewer video gambling machines.

Only special agents of the Department of Revenue may enforce violations on such premises (secs. 945.03(2m), 945.04(2m), and 175.38, Wis. Stats.).

Note: Gambling machines are contraband and may be seized by law enforcement officers, including Special Agents of the Wisconsin Department of Revenue. In addition, if an ordinance has been enacted by a municipality, penalties for municipal ordinance violations may include seizure of the device, destruction of the device, and/or a forfeiture (secs. 968.13, 66.0107(1)(b), and 66.0113(1)(a), Wis. Stats.).

Violations may be reported to any law enforcement agency that has jurisdiction (sec. 165.60, Wis. Stats.). If you wish to report violations to the Wisconsin Department of Revenue, you may do so by visiting the Alcohol Beverage Complaint page.

Note: Violations of municipal ordinances should be reported to the police department in that municipality (secs. 66.0113 and 66.0114, Wis. Stats.).

Questions or Comments?
If you have questions or comments about this fact sheet, email, write, or call the department.
Visit our website: revenue.wi.gov
Email: DORVideoGambling@wisconsin.gov
Write: Wisconsin Department of Revenue
P.O. Box 8934
Madison, WI 53708-8934
Telephone: (608) 264-4573