As for the Cherry Master machines, they are absolutely illegal when they have a "knockdown" device on them to clear and pay credits. But that does not stop some bars, and also many ethic grocery stores from having them. It's all about risk to reward and also a willingness to gamble on not getting busted. The larger more profitable bars will not risk having them for multiple reasons including potential tax issues if busted, suspension of license and just the hassle of the clientele they bring. In PA in most cases you will find them in a smoker corner neighborhood bar when the owner knows most of the customers and doesn't have food or higher margin craft beers to help pay the bills.
I think that is usually true, but I am also aware of a smoke shop (no liquor) that has them as well as three restaurants. One of the three restaurants is a diner that also sells craft beers whereas the other restaurant is actually a really popular Mediterranean restaurant (reservations suggested on weekends) that also has a bar with the Cherry Master being right near the bathrooms. The last restaurant is a lounge sort of deal with decent American food.
As far as I know, kids are allowed in there, but you wouldn't normally bring kids to such a restaurant, except the diner place.
I really just think how much they are cracked down on (which changes the, 'Risk,' side of the equation) depends on the locality. It seems they may be more risky on your side of the state. You'd be surprised how frequently you would see the ones with the, 'Knockdown,' device in the Pittsburgh area. The authorities almost CAN'T have any interest in doing anything about them given how prevalent they are.
As for the potential of state run VP in bars, several bills have been introduced in the State House. Most face immediate objections from the casino lobby due to fear of competition. But with the state continuing to try and find new revenue sources I believe it will happen in the future. Some bar owners are already are working on plans based on the outline of options in the bills. It would be 100% state run with approved vendors placing the machines (between 5 & 10) in bars and restaurants with liquor licenses. This seems similar to a route in Vegas placing machines in bars. All machines would be linked to a state computer and the bar would never touch cash. A TITO machine would be placed in each location. The proposed split naturally favors the state but there is potential for the vendors and bar owners.
I think that it probably well and that it should, screw the casino lobby, it's been great for State Revenues as well as for new small businesses in the State of West Virginia. It has also been great for employment with several, 'Parlors,' having sprung up since the legalization of same at businesses that are basically nothing except the machines, $1.00-$2.00 beers and giveaway pops, coffee, bottles of water and snacks. Some of the places have other foodstuffs for sale, and some don't. Some sell beer (carry-out) and cigarettes, and some don't. A few of them are in what used to be just residences!
Everything else you describe, except the TITO machines, are basically exactly how West Virginia does it. 'Private Clubs,' may have ten machines and everyone else may have five. The places in WV may have optional TITO machines for the players, but most of the WV parlors handle cash and cash out the tickets by hand. The machines in WV, going back to an old law before the casino expansion (and before WV even had parlors) cannot accept bills larger than $20.
There are also maximum bet limits and maximum possible wins, but I can't remember what they are and don't feel like looking them up right this second.
Vultures can't be choosers.