Texas City, TX Gambling & Gaming: Game Room Regulations (2026)

Section 118.026 of the Texas City Code of Ordinances regulates eight-liner style amusement redemption machines and the rooms that house them. A game room is any establishment where five or more amusement redemption machines are displayed or exhibited for public use. Excluded machines include claw and crane machines, ball-throw machines such as skeet ball and bowling, anything that is a gambling device under Tex. Penal Code § 47.01, and electronic sweepstakes machines run with a login ID.

Two separate approvals apply. The room needs a license from the Chief of Police or a designee, at an annual inspection and license fee of $1,000. Each machine needs a permit from the Chief of Police at $100 per machine per year, whether or not it sits in a game room, and the current state and county tax stamps and the city permit sticker go on the front of the machine. Licenses and permits expire on December 31 following issuance. A license is not assignable or transferable, is not refunded or prorated, and a renewal more than 30 days late carries a late fee of 20% of the fee due or of the previous year's fee, whichever is greater. Separately, § 118.022 puts an occupation tax of $15 per machine on amusement redemption machines, paid to the Chief of Police.

Applicants cannot have a felony conviction in the preceding five years or a Class A or B misdemeanor conviction in the past two years, and a convicted sex offender is barred. The application asks for a statement that the machines will not be used as gambling devices and that the location will not violate deed restrictions.

Operating limits in division (G): the building must meet Building and Fire Code standards with a certificate of occupancy, and the room must sit in an area zoned for the use. No alcohol is served or allowed and no activity is allowed outdoors. Hours run from 7:00 a.m. to 2:00 a.m. Parking is one space for each two machines plus one per employee per shift. The owner, operator or manager must be present, machines must be in full public view, minors cannot play during school hours on school days, the operator must be at least 18, and private members-only rooms are prohibited.