The laws vary from state to state, and within the states, jurisdiction to jurisdiction. In the state of MD, our jurisdictions are generally divided by the counties we do business in, and Baltimore City.

The gaming control board in MD has recommended a law that will limit the prize value in a merchandise game (claw machine, key master, stacker, etc) to $30. Operators of these games would have to register with the GCB and pay a $150 registration fee per game. They would also have to notify the GCB any time one of these games is moved from a location.

Ultimately, they are trying to eliminate the high end merchandisers from the landscape.

Not a lot of people know about it, but there is a federal probe into the dynamics and legality of high end merchandisers. I can't find the link, but the probe was headed by some high-end political type. that is where a lot of this is coming from.

It is easy for all of us to say "well good, screw those games and those damn ticket games, put more pinballs in," but 90% of these establishments cannot survive without prize redemption.