Kentucky’s Attorney General, Russell Coleman, has issued a stern warning to local prosecutors regarding the legality of new gambling devices that have emerged across the state, described as ‘risk-free’ games resembling casino slots. This declaration comes as part of a broader effort to enforce state gambling laws more stringently.

Clarifying the legal landscape of gambling in Kentucky:

Despite the presence of some legally sanctioned forms of gambling, like state-controlled horse races and lotteries, Kentucky maintains a stringent stance against most gambling devices. Coleman emphasized, “There is no safe harbor in Kentucky’s gambling laws for this kind of game,” underscoring the state’s commitment to curbing illegal gambling activities. Kentucky Public Radio first reported on the proliferation of these machines in gas stations earlier in the year, revealing over 600 such devices currently in operation.

The state’s legislative body had previously moved to curb the spread of so-called “gray machines,” which function similarly to slot machines and had become widespread in various establishments, including gas stations and bars. The legislation prompted significant pushback from the industry, with leading manufacturers like Pace-O-Matic and Prominent Technologies challenging the law. Prominent Technologies, in particular, had attempted to circumvent the new law by introducing these ‘risk-free’ games, arguing they did not fall under the ban due to their pre-reveal mechanism that supposedly informed players of their chances before each play.

However, Coleman’s recent advisory firmly classifies these new devices as illegal, likening them to the earlier gray machines. He stated, “The game lures the player into continuing to play on the chance that the next game play will result in a win worth more than he will have to pay for the current play.” This, he explains, is the element of chance that defines illegal gambling devices. Following this guidance, Bob Heleringer, an attorney for Prominent, expressed disappointment but confirmed that the company would comply by disconnecting the machines by a set deadline.

Legal challenges and community impact:

The controversy surrounding these machines isn’t new. Prominent dropped its legal challenge against the 2023 ban this summer, although Pace-O-Matic’s lawsuit remains pending. The debate highlights the tension between regulatory efforts and business interests in the state, with significant lobbying expenditures reported during the legislative session. As Kentucky Public Radio reports, Heleringer lamented the regulatory hurdles, stating, “It’s just a shame that people can’t come in here and invest in Kentucky and hire employees and grow a company without these legal impediments being thrown up in our faces that we don’t think are justified.”

As the legal battles and discussions continue, the Kentucky Department of Alcoholic Beverage Control has taken minimal enforcement actions so far, issuing only a handful of warning notices. This subdued enforcement raises questions about the effectiveness and consistency of regulatory efforts across the state.

The broader implications of these regulatory and legal challenges are significant, touching on economic, legal, and social issues within Kentucky. As the state navigates these complexities, the outcome of these legal disputes and the enforcement of gambling laws will likely influence the landscape of gambling and economic development in Kentucky for years to come.