The risk is increased as everything evolves -- the technological advancement has created pathways for even a toddler to get involved in adult activities, yet nothing has happened critically to stop the insanity.
I'm wondering if OP was able to check on his state laws/jurisdictions?
In a very corrupt system, raising the attention of the authorities to issues like this will have no effect because they will turn a blind eye to it when they are offered a bribe by these owners of small gambling machines.
it's not even about turning a blind eye on your request, how do you even tender a request with the surge of corruptible practices everywhere? In what sector do you begin with? Who's gonna listen to you?... I bet they all know these things but since it fetches them good money, If anyone shows up to counter them, that's it for them.
Am sure the omitting of the state or country where this incident happened is necessary, otherwise, we should know because I read about how much such existed in Brazil and one of the laws enacted was to tax every gambling winnings, just to reduce the addiction and control gambling activities.
A country like Australia had to also ban gambling activities some time back, If I remember correctly, because of the rise in underage gambling and some other major reasons, but wherein such kind of machines are created and granted licenses to be used, there surely must be policies that should check the age status and restrict underage gambling.