Aces Wired, operator of Ace Gaming amusement centres in the US, has settled a long running legal battle with the State of Texas over the legality of its amusement with prize electronic games.
A plea agreement covering company directors, officers and employers has dismissed all criminal cases brought against more than two dozen employees across the state, as well as parent company Aces Wired in three Texas counties.
The cases stemmed from a gambling investigation by the Texas Attorney General’s office and raids conducted in May 2008 at amusement centres located in Corpus Christi, Fort Worth and San Antonio.
Aces Wired contended that its electronic game technology was legal because it rewarded players with prize points that could only be redeemed for non-cash merchandise.
In Nueces County, all cases were dismissed against Ken Griffith, president and CEO; Knowles Cornwell, executive vice president and COO; and Jeremy Tyra, vice president, who all agreed to enter a guilty plea for one Class A misdemeanour offence of Hindering Apprehension in state district court in Tarrant County paying a fine of $4,000 each - deferred for a two-year period.
Gordon Graves, chairman of the board of Aces Wired, agreed to enter a plea of guilty to one third degree felony of Tampering with Evidence in Neuces and Tarrant County with adjudication to be deferred for a two-year period and agreed to pay $1,000 fine in each county.
Graves commented: "We believed that the amusement with prize electronic system was designed to comply with the spirit and letter of Texas’ gaming laws. The Attorney General and state prosecutors felt differently. I accept responsibility and want to protect employees who innocently conducted business on behalf of the company. My plea puts the threat of criminal prosecution to rest for them."