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The Courts Games

Sega Sued For 'Rigged' Arcade Machine (polygon.com) 102

An anonymous reader quotes a report from Polygon: Sega's Key Master arcade game is causing problems for the company once again. A new lawsuit alleges that Key Master is intentionally rigged against players. It's marketed as a game of skill, but players claim machines bar against awarding successful runs, making Key Master more of a chance-based game. Marcelo Muto filed the lawsuit on Monday in a California court. It's a proposed class action lawsuit looking for $5 million in damages to be distributed amongst wronged consumers. With Sega, Play It! Amusements (which is owned by Sega and now called Sega Amusements) and Komuse America (which co-manufactures Key Master) are named in the suit.

Key Master has been the target of multiple court cases in the past, dating back to at least 2013. This 2021 lawsuit, as well as the others, claims these machines are rigged only to allow players to win prizes at certain times -- specifically, at intervals determined by player losses. You've probably seen Key Master machines in malls or arcades, touting prizes like iPads, earbuds, and other pricey electronics. To play, you must navigate a key towards a specific keyhole by stopping the automatic movement by hitting a button. If the key goes in, you win the prize. The problem, according to the lawsuit, is that these machines are programmed to only allow players the ability to win after a certain number of player failures. If the machine is not ready to award a prize, it's allegedly programmed to overshoot the keyhole -- even if the player hit the button at the correct time -- and force the player to lose.

The problem here is that Key Master isn't marketed as a game of chance. It's portrayed as "a simple game of pure skill with a straight-forward directive," lawyers said. However, lawyers said that the deception behind the machine -- that it won't award players until certain settings are met -- is laid out in the game's manual, which was provided alongside the lawsuit as evidence. In the manual, according to screenshots, the Key Master machine "will not reward a prize until the number of player attempts reaches the threshold of attempts set by [the] operator." Lawyers for Muto said the default setting is 700, but that each machine can be programmed by individual operators.
"Key Master is no longer listed on the Sega Amusements website; instead, it's been re-named Prize Locker," adds Polygon. "It's the same design, but it's 100% skill-based, Sega said on the website."

"In the lawsuit, Muto's lawyers said Prize Locker and the conversion kit (which 'allows an operator of a Key Master game to convert the game' to a skill-based one) are offered because Sega itself has realized that 'many areas of the world aren't able to benefit from this outstanding category [of arcade game] due to local or state regulations prohibiting their operation.' Lawyers alleged that this is Sega 'tacitly conced[ing] that Key Master is rigged.'"
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Sega Sued For 'Rigged' Arcade Machine

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  • Vegas would be very proud of this machine.

    • Actually its more likely than not illegal as an unlicensed slot machine. I can't find any information on Nevada or Vegas specifically, but the machine in question has already been banned in Arizona for exactly that. see https://www.azag.gov/press-rel... [azag.gov]
    • Vegas would be very proud of this machine.

      Actually, Nevada would probably put them in prison. The gaming laws are very strict, and heavily enforced, where they specify that each play of a gaming machine must be independent, rather than keeping track of the running win/loss ratio and shifting the odds on the plays.

      Nevada is very tough on gaming cheats, not just on the player side, but also on the casino/equipment side of the games.

      Gambling houses already have an adequate edge in the odds. The regulators ex

  • Skill and Chance (Score:4, Insightful)

    by JBMcB ( 73720 ) on Thursday July 15, 2021 @09:39AM (#61584641)

    Games of chance are defined as gambling, pretty much, everywhere in the US. If you are operating a game of chance you need a license to run a gambling operation. Sega marketing the game as purely skill-based is to get around these laws.

    Sega also makes pure gambling machines. They know full well what they are doing, and what the laws are.

    • by tlhIngan ( 30335 )

      The problem is that games are marketed as skill when they're really chance games.

      Think skill cranes, key master, slider games, etc. These are chance games. The operator of the machine sets the win percentage in the computer and the computer obeys it.

      The skill cranes have the crane power controlled by the computer - that's why it always grabs the item and then the item always seems to fall midway returning to the drop. The amount of power applied to the grabber arm is controlled by the win percentage - the c

  • I knew a guy that figured out one of the ticket games at Dave and Buster's. He could visit for 20 minutes and clear out the shared jackpot, he timed his visits based on the jackpot recharge rate. 1 play = 1 jackpot.

    He was using the tickets to get the highest end items which he then sold. Making $400 a week at one point (1997 or so) for about an hour of effort including travel time. A little hobby.

    Management figured this out after a few months and had him banned/blocked at the door. He started slipping

    • by jwhyche ( 6192 )

      Management figured this out after a few months and had him banned/blocked at the door. He started slipping in with groups (invading a group space for 20 seconds isn't hard).

      This is something that pisses me off. If they can't prove that you are cheating they shouldn't be allowed to ban you from the establishment. If you come up with a system that beats their system using only your natural talents then that should be the casinos problem. They shouldn't be allowed to ban you just because you are beating them and they can't prove you are cheating.

      • It became a meta-game... He switched up the days he would visit, losing a bit off the top as the timing was no longer perfect. And slinking it with groups of 4-6 is easy.

        It was still annoying. Fix the game, not the player.

      • by BranMan ( 29917 )

        You should be pissed off - and it does not even make any sense for management to interfere with him. The ticket jackpot is the jackpot - if this guy didn't win those tickets someone else will. So the same amount of tickets get won regardless.

        On to claiming the prize - the prize value in tickets is always calculated so that the the prize, divided by the marginal cost per ticket used to claim it, is set to make a nice markup for the house. They make money on you claiming the prize. This too should be obvi

  • You've probably seen Key Master machines in malls or arcades.

    We don't even have malls or arcades around here, you insensitive clod!

    In all seriousness, I really did have to search "SEGA Key Master" on YouTube to even know what we're talking about.

  • Well duh... does someone think sega's going to deny it? It's in the fricking manual, so what do you expect them to do.
  • Interesting... (Score:4, Interesting)

    by prochefort ( 471407 ) on Thursday July 15, 2021 @10:11AM (#61584755) Homepage

    Mark Rober had a similar issue with a machine in an arcade. He had built a rig to beat the machine only to realize that the game was advertised as a game of skill when in fact, it was a game of luck. Go on his YouTube channel and have a look at the video. It's an interesting one.

    Have a great day.

    • Thank you. Great find. I was starting on this same project and glad to know the outcome, saves a lot of time.

      Yup. This is exactly why we have regulations. Hopefully there are some enforcers that can actually come down on these manufacturers/operators.

  • Anyone who didn't think these types of machines were rigged in some way is a fucking fool. There is no way you could be profitable with such machines if they were purely skill, cause some highly skilled person would just come by once a week and clear out all the high value prizes inside the machine every time it was "restocked" Same reason casino games of skill are generally against other patrons rather than the house. The house doesn't give a fuck if you clean out another patron, and they probably still st
    • Anyone who didn't think these types of machines were rigged in some way is a fucking fool. There is no way you could be profitable with such machines if they were purely skill, cause some highly skilled person would just come by once a week and clear out all the high value prizes inside the machine every time it was "restocked" Same reason casino games of skill are generally against other patrons rather than the house. The house doesn't give a fuck if you clean out another patron, and they probably still stand to make some money if that patron desperate to get their money back comes to the casinos loan shark office to take out a loan to keep going.

      They don't even need that since they take a rake of each pot in poker, for example.

    • by Ungrounded Lightning ( 62228 ) on Thursday July 15, 2021 @12:23PM (#61585167) Journal

      The games against the house are all rigged. Slots that only pay out x% of whatever money taken in, card games that are highly rigged in the house's favor, etc.

      It's legal for the odds to be in favor of the house. It's illegal for the odds to vary from play to play in order to insure the house always receives the set payout ratio, rather than having each play be independent and at the published odds. The player must have the published chance, on every single play (even the ones soon after a big payout), to win big.

      Nevada's gaming laws on this issue are draconian, as is inspection, tip investigation, prosecution, and sentencing. It's one thing to be unlikely to win - that's part of the deal. It's another to be unable to win because the machines are cheating - even if it does insulate the house from losing money on a chance run of payoffs. If payout history odds-twiddling happens, even at a few places, and the knowledge becomes general, it jeopardizes the draw. Player patronage is expected to drop, along with revenue for the honest houses and the state.

      "Lady luck has no memory." Gaming machines are required to emulate this, and it IS enforced - BIG time.

  • Not really. I'm not intimately familiar with each states' gambling laws. But if the probability of winning changes from play to play, it's not really a game of chance. Roulette, even with its slight bias in favor of the house is a game of chance. Since each spin stands on its own.

  • I was on a cruise ship last year where they had this money machine in the casino. Time the arm movement right and it pushes a bundle if cash out into the drop box below. After a couple of attempts it was pretty clear that it had the same algorithm. I could definitely see it continue to move when I released (or hit I can't remember) the button. But who are you going to complain to in a bucket in the middle of the ocean in international waters???
  • In a previous lifetime, I used to repair coin-op arcade games.
    Machines like this one are similar to skill cranes [wikipedia.org] and other similar 'merchandising' machines.
    They've always been teetering right on the edge of what is considered a 'skill game' and what is considered a 'game of chance' or perhaps more aptly described, a 'gambling machine', because literally 'you pay your money, you take your chances'.
    Machines like this, like video card game machines and slot machines you'd find in a casino, have to be desig
    • by kriston ( 7886 )

      I'm a little disappointed in Sega. Back in the day they used to be a premiere company when it came to arcade games

      Same thing happened to Bally/Williams when the exited the pinball business.

      It really is shameful.

      • Bally was started by mob bosses who wanted to 'retire' and 'go legit', so there's a difference I think because I don't think Sega started out that way.
        I don't offhand know the history of Williams Electronics, whether they were like Bally or not.
  • Does nobody know the definition of chance? Just because the game is rigged, and the house always wins, does not make it a game of chance. A game of chance makes it statistically impossible for all players to win given enough time. Slot machines do not automatically give the 10 thousandths pull a jackpot, that would be illegal, they give every pull a 1 in 10 thousandths chance to win.

    This game is programed to win until it has made the profit margin the game is looking for and then it allows the player to win

    • I always thought that a well-aimed laser could burn though the string holding the prizes, and you could clean out the machine.
  • Back in the day, I learned that "crane" machines were actually rigged, and they would only have enough pressure to pick up prizes every n-th attempt. Even if you had the best craning skills, it would gently stroke the toy, will not pick it up. I was a bit sad, but I avoided those machines.

    Now many other things, including video games have embraced gambling to increase their profits even more. When mobile games were first introduced they were either $1, or ad supported. That meant, you need to sell a billion

    • Back in the day, crane games used to be called that because there was a model crane in an enclosure that you could control with a wheel. You could swivel the crane, lower the claw, grab a prize (if you're skilled enough), raise the claw, swing the crane back over to the redemption hopper, and retrieve your prize. Common prizes were zippo lighters or pocket knives. It was tough, but not impossible. It was a game of skill.

      Electronic and computer controls ruined everything - negating the skill requirement. N
  • Anyone with a slow motion camera will be able to tell you this game as well as stacker is rigged. Iâ(TM)ve got to the very top several times, I was convinced so much so I was doing everything right I got my partner to film it on slow motion, my hand and the light where completely aligned if anything I was right on ball with it, however it was programmed when the button was pressed the light went to one over. So yeah, rigged indeed. Shame on you sega.

Love may laugh at locksmiths, but he has a profound respect for money bags. -- Sidney Paternoster, "The Folly of the Wise"

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