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What this covers: Alabama's bona-fide coin-operated amusement machine statute (§ 13A-12-76), state vending machine licensing (§ 40-12-176), Mobile County business privilege requirements, and per-machine decal obligations. Check items off as you complete them — your progress saves in the browser.
Alabama State Law — § 13A-12-76
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Confirm machines are skill-based, not chance-based
Every machine must depend "in whole or in part upon the skill of the player" to qualify as a bona-fide amusement device under Alabama law. Pure chance devices (slot-style machines) are illegal without a gambling license. Pool, darts, jukeboxes, arcade games, and claw machines all qualify.
§ 13A-12-76(e)(1)
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Verify each machine can be legally shipped interstate
The statute requires machines to be "legally shippable interstate under federal law" — meaning they cannot be classified by the U.S. government as requiring a federal gaming stamp. Any reputable distributor will supply machines that meet this standard. Ask for confirmation in writing.
§ 13A-12-76(e)(1)
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Cap free replays at 25 per play on any replay-awarding machines
If a machine awards free replays, no single play may generate more than 25 free replays, or the machine must allow accumulated replays to be discharged. Machines that award merchandise instead (redemption games) are covered under the prize-value rule instead.
§ 13A-12-76(a)
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Confirm prizes are non-cash with wholesale value ≤ $5 per play
Any prizes awarded must be non-cash merchandise (toys, novelties, gift certificates). The wholesale value of any prize earned on a single play must not exceed $5. Giving cash for redeemed tickets is a Class A misdemeanor under § 13A-12-76(f).
§ 13A-12-76(a) + (d)
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For claw/crane machines: confirm no federal gaming stamp required
Crane/claw machines have additional requirements: must be designed only for amusement, involve some skill, and must NOT be classified by the U.S. government as requiring a federal gaming stamp under the Internal Revenue Code.
§ 13A-12-76(c)
State Vending Machine License — § 40-12-176
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Obtain state vending machine license for each amusement machine
All amusement machines (except coin-operated pool tables, which are licensed separately) require a state license under § 40-12-176. The fee is $1 per machine if the play costs one cent, or $8 per machine if the play costs more than one cent. Most bar machines cost more than a penny per play — budget $8/machine.
§ 40-12-176(p)
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Note: pool tables are specifically excluded from § 40-12-176
Coin-operated pool tables are explicitly excluded from the § 40-12-176 vending machine fee and licensed under separate provisions. Ask the Alabama Department of Revenue which section covers pool tables for your venue category, or confirm with your distributor — it's typically handled by the operator.
§ 40-12-176(p) exclusion
Mobile County Licensing
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Apply for Mobile County Business Privilege License
Any business operating "places of entertainment or amusement" must hold a Mobile County business privilege license. Contact the Mobile County License Commission at (251) 574-8566. You'll need: company name, owner's driver's license number, billing + physical address, phone, federal EIN or SSN, Alabama sales tax account number, and a description of your business.
Mobile County License Commission
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Register for Alabama Sales & Use Tax (if not already active)
You must collect Alabama sales and use tax on amusement machine receipts and file reports/payments to the Mobile County License Commission. Register with the Alabama Department of Revenue if you don't already have a sales tax account. This is required for the business privilege license application.
Alabama Dept. of Revenue
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Confirm Certificate of Occupancy covers entertainment use
If you're adding machines to a new area of the bar, or converting a back room, verify your existing Certificate of Occupancy covers entertainment/amusement use. If the space use is changing, you may need an updated CO from the City of Mobile Building Department.
City of Mobile Building Dept.
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Renew all licenses annually
Both the county business privilege license and the state vending machine licenses must be renewed annually. Set calendar reminders at the 11-month mark. Failure to renew is a common compliance gap that creates liability even when the original setup was correct.
Annual renewal
Machine Decals & On-Site Compliance
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Ensure each machine displays the required license decal
After obtaining the state vending machine license, each machine must display the corresponding decal or license sticker. Keep copies of all licenses on-site. Inspectors from the Alabama Department of Revenue or county can audit machines at any time. Machines without current decals can be subject to fines and removal.
On-site requirement
Alabama Distributors
Vetted operators who place machines at no upfront cost, handle maintenance, and split revenue with your venue. Start with your local Mobile contact first.
Mobile, AL — Local
Your first call. Top Music has been the Mobile, AL and Gulf Coast area expert in coin-operated amusement for over 50 years. They're the only operator in the area with National Dart Association (NDA) sanctioned dart leagues and Valley National Eight Ball Association (VNEA) sanctioned pool leagues — meaning they can bring paying league players into your bar on a recurring schedule. Revenue commission splits are negotiated per location.
Coverage
Mobile + Gulf Coast
Typical Split
40–50% to venue
Maintenance
Handled by operator
Digital Jukeboxes
Pool Tables
Dart Machines
Arcade / Redemption Games
ATMs
Merchandiser Games
Serves bars, lounges, hotels, and bowling alleys across Alabama and the Southeast. Offers the full lineup of amusement machines on a commission basis. Worth contacting if Top Music Co. doesn't have availability or if you want competitive quotes on splits.
Coverage
Alabama + Southeast
Typical Split
40–50% to venue
Maintenance
Handled by operator
Jukeboxes
Pool Tables
Video Games
Dart Machines
One of the oldest amusement machine companies in Alabama, in business since 1931. Sells and services arcade machines, pinball, crane games, jukeboxes, and commercial amusement equipment. Useful for sourcing or comparing machine models and understanding market-rate commission terms.
Coverage
Alabama + Nationwide
Known For
Broad inventory
Arcade Machines
Pinball
Crane Games
Jukeboxes
Specializes in the sports bar environment. Features TouchTunes jukeboxes, Golden Tee Golf, and Arachnid Darts — the specific machines that keep sports fans engaged between games. Offers league and tournament play integration and rotates equipment to keep the mix fresh.
TouchTunes Jukeboxes
Golden Tee Golf
Arachnid Darts
Pool Tables
Shuffleboard
How the Commission Split Works
Distributors own the machines. They collect the cash, count it, and split revenue with your venue. Standard bar splits in Alabama run 40–50% to the venue owner, 50–60% to the distributor (who covers equipment, maintenance, and licensing). You can negotiate better terms if you have high foot traffic — ask for 50/50 upfront. Get the split percentage in the contract before any machines are installed. A 10% difference on a jukebox doing $2,000/month is $200 per month — $2,400/year.
Revenue Calculator
Estimate your monthly take from entertainment machines based on machine type, venue traffic, and your commission split.
Monthly Revenue (Your Cut)
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Projected Annual Revenue
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at current settings
Estimates only. Actual revenue varies by location, night-of-week traffic, machine placement, and seasonal patterns. These averages are based on typical commission-based bar installations. Your distributor can provide location-specific estimates after an on-site visit.