INTRODUCTION AND BRIEF DESCRIPTION
This section defines a slot machine as any automatic machine or device that operates on the basis of chance or uncertainty, and is not limited to those used for vending merchandise or services.
SECTION WORDING
198(3) In subsection (2), "slot machine" means any automatic machine or slot machine (a) that is used or intended to be used for any purpose other than vending merchandise or services, or (b) that is used or intended to be used for the purpose of vending merchandise or services if (i) the result of one of any number of operations of the machine is a matter of chance or uncertainty to the operator, (ii) as a result of a given number of successive operations by the operator the machine produces different results, or (iii) on any operation of the machine it discharges or emits a slug or token, but does not include an automatic machine or slot machine that dispenses as prizes only one or more free games on that machine.
EXPLANATION
Section 198(3) of the Criminal Code of Canada defines the term "slot machine" for the purposes of the section that makes it an offence to possess, sell, or import a slot machine in certain circumstances. The section is primarily concerned with the regulation of gambling devices and aims to prevent unlawful gambling. According to subsection (2), it is an offence to possess, sell, or import a slot machine that is used or intended to be used for the purpose of unlawful gambling. Subsection (3) defines what constitutes a slot machine for the purposes of the section. It states that a slot machine is any automatic machine or device that is used or intended to be used for any purpose other than vending merchandise or services, or that is used or intended to be used for the purpose of vending merchandise or services if certain conditions are met. The conditions that must be met for a machine to be considered a slot machine include the fact that the result of one or more operations of the machine must be a matter of chance or uncertainty to the operator, the machine must produce different results as a result of successive operations by the operator, or the machine must discharge or emit a slug or token on any operation. This section is important in the context of the Criminal Code of Canada as it seeks to ensure that gambling devices are regulated and that unlawful gambling is prevented. It also makes it clear that certain types of machines, such as those that only dispense free games, are not considered to be slot machines for the purposes of the section. Overall, this section serves as an important tool in preventing the proliferation of gambling and protecting the public from the harms associated with unlawful gambling activities.
COMMENTARY
Section 198(3) of the Criminal Code of Canada defines what a slot machine is and what it is used for. The definition lays out what constitutes a slot machine in Canada and how it is different from other types of machines. It also specifies that using a slot machine for any other purpose than vending merchandise or services is unlawful, unless it is used for vending merchandise or services and satisfies the criteria set out in subparagraphs (i), (ii), or (iii). This definition of a slot machine is important, as it determines whether or not a particular machine is subject to the regulations under the Criminal Code of Canada. The consequences of operating an illegal slot machine can be significant, including fines and imprisonment. Additionally, illegal machines can be seized by law enforcement authorities. The definition of a slot machine in section 198(3) is quite broad and captures a variety of machines that involve the element of chance or uncertainty. This includes traditional slot machines as well as newer, digital versions that offer the same type of gameplay. It also includes machines that offer other types of games, such as video poker or keno, as long as they meet the criteria set out in the section. One of the key elements of the definition is that a slot machine's outcome must be a matter of chance or uncertainty to the operator. This means that the result of the game cannot be influenced by the player in any way. This is intended to prevent games that rely on skill or strategy from being classified as slot machines, as they do not involve the same level of chance as traditional slots. Another important aspect of the definition is that a slot machine must produce different results over a given number of successive operations by the operator. This is designed to prevent machines that are rigged or predetermined from being classified as slot machines. If a machine always produces the same result, then it is not a game of chance, and therefore not subject to the regulations under the Criminal Code. Overall, the definition of a slot machine in section 198(3) is an important part of Canada's legal framework for regulating gaming and gambling. It helps to ensure that machines that involve an element of chance are subject to appropriate regulation and oversight. By providing a clear definition of what constitutes a slot machine, the Criminal Code helps to prevent illegal gambling activities and protect consumers from fraud and other forms of exploitation.
STRATEGY
Section 198(3) of the Criminal Code of Canada poses some strategic considerations when dealing with the legality of slot machines and automatic machines. These considerations stem from the definition of slot machines within this section, and the various conditions under which they can be considered illegal. Businesses or individuals that operate such machines must, therefore, consider these legal definitions and requirements when deciding whether or not to operate these machines and what strategies to employ when doing so.\ One of the strategic considerations is to ensure compliance with the provisions of the Criminal Code. It is essential to note that section 198(3) sets out specific requirements that must be met for a machine to be classified as a slot machine. These requirements include the presence of chance, different results from successive operations, or discharge or emission of slugs or tokens. Therefore, any business or individual operating these machines must ensure that they comply with these definitions and conditions. Another strategic consideration is to stay informed of any changes or updates to the law. The Criminal Code of Canada is subject to amendments, and it is crucial to stay updated on any changes in legislation regarding the operation of slot machines. Maintaining a close relationship with legal counsel or specialized regulatory experts can help navigate any legal changes effectively. The third strategic consideration is to manage public perception. Slot machines have high associations with gambling, which has often been linked to addiction and related societal issues. While operating slot machines may be legal, businesses must be sensitive to public perception, community attitudes, and public concerns around the impact on public health. Proactive measures to address concerns arming themselves with studies and data to demonstrate the impact on a community can help position the operation of slot machines in a positive light. Some strategies that could be employed are; One strategy could be to augment revenue growth by incorporating legal skill-based or prize-based gaming machines such as trivia or other non-chance-based games that do not resemble gambling machines in function. Another strategy could be to develop a responsible gambling program for patrons that offers the tools, resources, and support needed to make informed decisions when gambling. This could include providing patrons with educational resources and self-help tools to recognize and manage addictive behavior. A third strategy could be partnering with addiction treatment centers or charities to invest in responsible gambling initiatives to mitigate the impact of gambling. In conclusion, complying with the provisions of the Criminal Code of Canada is critically important. It is necessary always to remain informed on legal changes as they change. Ensuring sensitivity to public perception and developing sound responsible gambling initiatives can also serve as strategic efforts for businesses and individuals dealing with this section of the criminal code.