Is this arcade just adult fun, or gambling?

GLOUCESTER -- If any combination of three -- cherries, ladybugs, the number 7 -- land in a row after they stop spinning on the video screen, the player gets a prize. Are they just lucky? Must they be sharp-eyed? Is it chance or skill?

The Gloucester Licensing Commission is trying to decide. The answers could seal the fate of The Lucky 7 Arcade, a Las Vegas-style, video-game parlor on the Gloucester waterfront. The business, which opened last August, was shut down in January amid questions that it may be an illegal lottery.

"We're dealing with some very tough law," said Barry McKay, the commission's chairman who is also the city's fire chief. "We're hoping to decide this as quickly as possible. We're not trying to put anyone out of business."

The commission could decide this week if Lucky 7 will reopen. The three-member panel held a public hearing last week, which drew more than 100 supporters of Lucky 7. "I not only test my skills on the machines," said Joan Oliver, 58, of Rockport, "I also enjoy the friendly atmosphere."

The commission now must decide whether Lucky 7's games -- with names like Triple Jack and Big Boss -- rely more on skill than chance. They've sought an opinion from the city solicitor, Linda Lowe.

"I'm willing to admit there is some level of skill involved here. How much, I'm not clear about," said Robert Whynott, a commission member who is also the city clerk.

The decision looms as Lucky 7 considers a second location on Route 1 in Saugus after dropping a plan to expand into Peabody. Police in that city were the first to question whether Lucky 7's games are really slot machines, which are illegal in Massachusetts.

Video games at Lucky 7 have screens that spin rows of fruit, bugs, and other colorful symbols. Players push a button to stop each row. If three-of-a-kind turn up, they earn points, which can be traded in for gift certificates to restaurants, shops, and other Gloucester businesses. No cash prizes are awarded, officials said.

According to state law, arcades may give non cash prizes for skee ball, pinball, and other games that require physical skill. But lottery games -- which can be licensed only by the state Lottery Commission -- cost money to play and make random payouts. A lawyer for the Lottery Commission told the Gloucester commission he believes that Lucky 7 is running the same type of game.

"Essentially, they're a game of chance," said Charles McIntyre, general counsel at the Lottery.

Lucky 7 is operated by Rosalie and Sam Parisi of Gloucester. The couple, who had worked for many years in the city's struggling fishing industry, were looking for a fresh start. After visiting an adult arcade in Florida, they decided to roll the dice in their hometown.

"We're the first one in the state to ever do this" said Sam Parisi, 64, a former fisherman. "We think there's a lot of potential."

After obtaining an arcade license last May, the Parisi s said they invested $250,000 to buy 50 video games. They leased a vacant store front on Rogers Street and transformed it into a Las Vegas-style casino, with rooms named Bellagio and Monte Carlo. One time, an Elvis impersonator even appeared.

"We're a hard-working family," Rosalie Parisi, 63, said at the hearing. "We hope to operate Lucky 7 into the future."

Questions about Lucky 7 surfaced last November. The Parisis' son, Michael, applied for a license to open a Lucky 7 on Route 1 in Peabody. That city's Police Department sent an officer to Gloucester to check out the arcade. He reported back that the machines may be illegal gambling, officials said.

Gloucester Police Chief John Beaudette, who sits on the Licensing Commission, was notified of Peabody's concerns. Although he voted to grant Lucky 7 its license last year, Beaudette said he must act on the allegations of illegal gambling. "It's a point of law," Beaudette said at the hearing.

Gloucester police Detective Steven Mizzoni visited Lucky 7. He put $5 into a machine. He won enough points to get a $5 gift certificate. But the arcade was out of $5 gift certificates. Instead, they offered him a credit to return to the arcade, or give it to a friend, Rosalie Parisi said.

"We happened to be out of [ $5 gift certificates] that day," she said.

McKay said he thinks the lapse violated the original license. But the commission is more concerned with determining how much skill or chance is involved in Lucky 7's games. "We need to determine how much of this involves skill, and how much chance."

Lucky 7 patrons -- who packed last week's public hearing -- said Lucky 7's machines are tests of skill. "You play. You practice. You understand how to play the game," Richard Royer, a 67-year-old retired engineer, told the commission.

Donna Wright, 62, of Magnolia, called Monkey Land "a very skilled game." She said that she's learned how to make a bomb explode on the screen, earning double points. She noted that a friend "misses the bomb 90 percent of the time. I don't mean to brag, but I get it 90 percent of the time."

Kathy McCabe can be reached at kmccabe@globe.com.