As
skill with prize machines, merchandisers are in a legal grey area, due to containing elements of skill and of chance, particularly since payout percentages can to a large extent be set by the operator – such setting leads to machines being described as rigged. In 2017, the Maryland State Lottery and Gaming Control Agency set out regulatory definitions, stating that "'Merchandiser device' means a skills-based amusement device by which a player controls a mechanical or electromechanical claw or other device to retrieve merchandise or prizes." See
Claw vending machine § Legality for further statutes pertaining to claw machines. The Maryland regulations provide that merchandiser machines must not provide awards that are "readily convertible to cash," and the games must be fair for all. Similar legislation exists in Alabama, where the law states that the games must require the player to actually have control over the "claw or grasping device," to ensure some level of skill is involved. Merchandiser machines, like most arcade games, are considered legally distinct from
slot machines. However, claims of being largely or entirely skill-based can expose the operator to accusations of
unfair practices; thus some lawyers advise operators to not advertise the machines as being skill-based. == References ==