Owners of closed Massachusetts arcades seek changes in gaming laws

Published 8:15 am Wednesday, July 19, 2017

BOSTON — Supporters of coin-operated arcades for adults asked Massachusetts lawmakers on Tuesday to change the state’s gaming laws to allow the popular venues to operate without fear of being shut down.

Nearly four years ago, former Attorney General Martha Coakley closed two Lucky 7 coin-operated venues in Gloucester and at the Liberty Tree Mall in Danvers as part of a statewide crackdown.

Coakley filed illegal gaming charges against the owners of the arcades, Sam and Rosalie Parisi.

The couple, who eventually settled with the AG’s office, have long argued that they never should have been shut down because their games depended on skill, not chance, and as such comply with state laws.

“I was treated like criminal, threatened with arrest and questioned by state police for more than eight hours,” Rosalie told a legislative panel Tuesday. “This should never have happened to us, or any other adult arcade owners.”

A bill filed by Senate Minority Leader Bruce Tarr, R-Gloucester, seeks to allow Lucky 7 to reopen by clarifying the definition of a “bona fide coin-operated amusement machine” in a way that would allow the arcades to operate.

Former patrons and supporters of the Parisi family, who traveled by bus to the Statehouse for Tuesday’s hearing, called on lawmakers to support Tarr’s proposal to clarify the law.

“It was a fun place for seniors to get together, socialize and test their motor skills,” said Mike Nagle, a former patron from Rockport, of the arcade. “We loved the games and really miss it.”

Among other provisions, the legislation would allow players to “redeem accumulated tokens, vouchers, or tickets for non-cash merchandise, prizes, toys, gift certificates, or novelties” so long as the payout for each player doesn’t exceed $25 per play.

Tarr told the panel that “ambiguities” in the state’s gaming law have created numerous hardships for the Parisi family and their patrons.

“That included the raid of their facilities, the confiscation of their equipment and the extinguishment of their businesses that were very well patronized,” he said.

Rep. Ann Margaret Ferrante, D-Gloucester, said the law needs to be clarified.

Coakley and Lucky 7’s owners eventually reached a settlement that required them to remain shut down on a probationary period of three years. That expired July 8. Neither the Parisis nor their business admitted to any wrongdoing.

The Parisis said they want to reopen the arcade but worry that, absent changes in the law, they could be shut down again.

A spokeswoman for Attorney General Maura Healey said the office’s position remains that such coin-operated adult entertainment arcades are fronts for illegal gambling.

A 2012 law restricted internet sweepstakes cafes, which sell time on computers that look similar to slot machines, and video poker terminals with cash payouts.

The AG’s office has cracked down on those operations in recent years, including closing a cyber cafe in Peabody several years ago.

Tarr’s bill faces long odds on Beacon Hill, where lawmakers are skeptical of expanding gaming that could compete with the state’s budding casino industry.

The Parisis said they believe the crackdown that led to the raid on their business was “selective enforcement.”

More than 100 entertainment venues in the state, such as Chuck E. Cheese and Dave & Busters, offer similar arcade games but are allowed to continue operating, they said.

“How are we different than anyone else?” Sam Parisi asked lawmakers Tuesday. “Why did the state come after us and do nothing to them?

“The bottom line is, if the law as it exists today was enforced, many of these arcades could be shut down just like us,” he added.

Janine Parisi, Sal and Rosalie’s daughter who managed the venues with her children, said she hopes lawmakers give Tarr’s bill consideration.

“People are devastated,” she said at Tuesday’s hearing. “They keep calling, asking when we’re going to reopen. We still don’t know why we were shut down.”

Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhi.com.