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FYI

In Belgium, the tax is called tax on automatic entertainment devices .

In France, the tax is called tax on automatic devices 2 , tax on traditional games or tax on automatic games .

Characteristic 

All devices that do not fall into the category of gambling - offering no winnings to players - are subject to the tax on gaming. These are foosballs , pinball machines , billiards , darts , jukeboxes , etc., whether they are operated in cafes and bar-tabacs or not. These devices are subject to declaration to the customs and payment of tax 3 . A sticker must appear on each device.

History 

The 1910 budget introduced a tax on gaming 4 . In 1941, this tax was 15 francs per year and per automatic device (distributor, phonograph, game etc.) operating in a place open to the public (hotel, coffee, debit, etc.) 5 .

In the 1980s, this municipal tax varied according to the size of the municipality. Municipal councils could also increase it by a factor ranging from 2 to 4.

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A vending machine is a machine which dispenses items such as snacks, beverages, alcohol, cigarettes, lottery tickets, cologne, consumer products and even gold and gems to customers automatically, after the customer inserts currency or credit into the machine.

History

The first reference to a vending machine is in the work of Hero of Alexandria, a first-century engineer and mathematician. His machine accepted a coin and then dispensed holy water. When the coin was deposited, it fell upon a pan attached to a lever. The lever opened a valve which let some water flow out. The pan continued to tilt with the weight of the coin until it fell off, at which point a counterweight snapped the lever up and turned off the valve.

 

Vending machines waited for the Industrial Age before coming to prominence. The first modern coin-operated vending machines were introduced in London, England in the early 1880s, dispensing post cards. The first vending machine in the U.S. was built in 1888 by the Thomas Adams Gum Company, selling gum on New York City train platforms. The idea of adding games to these machines as a further incentive to buy came in 1897 when the Pulver Manufacturing Company added small figures, which would move around whenever somebody bought some gum from their machines. This idea spawned a whole new type of mechanical device known as the "trade stimulators". The birth of slot machines and pinball is ultimately rooted in these early devices.

 

In December 1970, Ussery Industries of Dallas, Texas at its Dallas convention displayed its "talking" vending machine, the Venda Talker. With insertion of a coin, the machine said "thank you" and added a one-liner voiced by comic Henny Youngman.

After paying, a product may become available by:

 the machine releasing it, so that it falls in an open compartment at the bottom, or into a cup, either released first, or put in by the customer, or

 the unlocking of a door, drawer, or turning of a knob.

 

Some products need to be prepared to become available. For example, tickets are printed or magnetized on the spot, and coffee is freshly concocted. One of the most common form of vending machine, the snack machine, often uses a metal coil which when ordered rotates to release the product.

 

The main example of a vending machine giving access to all merchandise after paying for one item is a newspaper vending machine (also called vending box) found mainly in the U.S. and Canada. It contains a pile of identical newspapers. After a sale the door automatically returns to a locked position. A customer could open the box and take all of the newspapers or, for the benefit of other customers, leave all of the newspapers outside of the box, slowly return the door to an unlatched position, or block the door from fully closing, each of which are frequently discouraged, sometimes by a security clamp. The success of such machines is predicated on the assumption that the customer will be honest (hence the nickname "honor box"), and need only one copy.

Bulk candy machines are mechanical machines that vend a handful of candy, a bouncy ball, or perhaps a capsule with a small toy or jewelry, for one or two coins. The items may be unsorted; in that case what the customer exactly gets is subject to chance. In other instances, the customer is guaranteed a specific type of candy.

 

The gross margins in the bulk candy business can be quite high — gumballs, for instance, can be purchased in bulk for 2 cents apiece and sold for 25 cents in the US. Gumballs and candy have a relatively long shelf life, enabling vending machine operators to manage many machines without too much time or cost involved. In addition, the machines are typically inexpensive compared to soft drink or snack machines, which often require power and sometimes refrigeration to work. Many operators donate a percentage of the profits to charity so that locations will allow them to place the machines for free.

 

Bulk vending may be a more practical choice than soft drink/snack vending for an individual who also works a full-time job, since the restaurants, retail stores, and other locations suitable for bulk vending may be more likely to be open during the evening and on weekends than venues such as offices that host soft drink and snack machines.

 

Cigarette vending

Cigarettes were commonly sold in the United States through these machines, but this is increasingly rare due to concerns about underage buyers. Sometimes a pass has to be inserted in the machine to prove one's age before a purchase can be made. In the United Kingdom, legislation banning them outright came into effect on October 1, 2011. In Germany and Japan, cigarette machines are still common.

 

Since 2007, however, age verification has been mandatory in Germany - buyers must be 18 or over. The various machines installed in pubs and cafés, other publicly accessible buildings and on the street accept one or more of the following as proof of age: the buyer's identity card, bank debit card (smart card) or European Union driver's license.

 

Full-line vending

A full-line vending company may set up several types of vending machines that sell a wide range of products. Products may include candy, cookies, chips, fresh fruit, milk, cold food, coffee and other hot drinks, bottles, cans of soda, and even frozen products like ice cream. These products can be sold from machines that include coffee, snack, cold food, 20-oz. bottle machines, and glass-front bottle machines. Almost all machines accept bills with more and more machines accepting $5 bills. This is an advantage to the vendor because it virtually eliminates the need for a bill changer. Larger corporations with cafeterias will often request full line vending with food service.

Coin fraud

One issue with vending machines, particularly mechanical vending machines, involves the use of coins of foreign currency, or, in more extreme cases, worthless tokens or washers (commonly referred to as slugs), which have the same size and shape as the coin accepted by the machine. This is done to pay less for merchandise, and sometimes in order to get change that has more value than the originally inserted object.

 

One remarkable example of this was the use of Libyan coins of 100 Dirhams and 50 Dirhams denominations in Maltese vending machines in the late 1990s. The 100 Dirham coin was used in place of the 1 Maltese Lira coin which had, back then, a de facto black market value of approximately 10 Libyan Dinars and thus having a value 100 times higher than that of the fraudulent coin. Similarly, the 50 Dirhams coin was used in place of the 25 Maltese cent, which meant a 50-fold increase of value according to the black market price. However, this problem was quickly solved when the machines involved were quickly replaced with new ones that could detect the difference between the Libyan and the Maltese coins, especially in tourist areas. In another case, the 2 euro coin is similar in size to the 10 baht coin (worth only €0.25). As a result, many vending machines in the eurozone will not accept €2 coins, such is the extent of the 10-baht scam. However, most of the currently used vending machines still accept 5-rouble coin instead of 2 euro coin, which leads to the visible losses of their owners, due to the increasing number of Russian tourists.

 

In the United States, most vending machines have advanced currency detection techniques that can discern coins by reading the coins' "magnetic signature;" thus, many American vending machines will not take coins from other countries, even if their sizes are similar. This can cause some issues due to the fact that Canadian coins, which are identical in size and shape to their American counterparts, generally circulate alongside U.S. currency in the northern United States and in small sums are usually accepted at par (the discrepancy between the two currencies is small enough to be neglected), but cannot be accepted in many vending machines due to a different metallic composition. (To a certain extent, this issue also affects Caribbean coinage, countries whose currencies are pegged to the U.S. dollar, and the British 5p, 10p, and 50p, all of which are similar in size and value to the U.S. and Canadian dime, quarter and dollar coins; the Atlantic Ocean generally minimizes the cross-circulation of these coins. The coins of the Mexican peso and the euro are much different from those of the aforementioned countries, eliminating the threat of cross-circulation.)

 

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