Attorney General reaches $1 million settlement against gaming company

PHOENIX (3TV/CBS5) – The Attorney General’s office released a statement today announcing they had reached a $1,000,000 settlement with New Jersey-based game company, Betson.

The settlement was reached as a consent judgement in the Maricopa County Superior Court, according to Attorney General Mark Brnovich.

Betson Coin-Op Distributing Company, Inc. was largely known for their distribution of the Sega Key Master Prize Redemption Machines (“Key Master”) electronic gaming device throughout Arizona.

The Key Master game appears to have a set of three rows of key holes parallel to expensive prizes. The user must guide the joystick button in attempt to get the key into the key hole in an attempt to win the prize.

The “low cost- high reward” appearing game was set to entice kids with rewards such as iPads, Beats headphones and Sony Playstations.

There was no sign to warn users about what was really going on. The State alleged that the Key Master machines were equipped with an auto-percentaging system.

This system is similar to slot machines in casinos, guaranteeing there are a certain number of users before a reward is ever dispersed.

Certain Key Master machines were set to lose 2,200 times before a skilled player would have a chance to win the game.

“Under Arizona law, outside of casinos, it is illegal for gaming machines to have settings that permit an operator to alter the odds of participants winning the game,” said Attorney General Mark Brnovich.

In addition to the settlement to the state, Betson agreed not to sell, lease or finance any Key Master or merchandiser games with with Auto-Percentaging systems in Arizona.

Assistant Attorneys General Alyse Meislik and Todd Lawson handled this case.

If you believe you have been a victim of consumer fraud, please contact the Arizona Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the metro areas at 1(800) 352-8431. Bilingual consumer protection staff is available to assist. Consumers can also file complaints online.

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