Kentucky AG Calls Out Skill Games Masquerading as ‘Risk-Free’ Games

Article by : Erik Gibbs Sep 9, 2024

• 
• 

Kentucky Attorney General Russell Coleman has raised concerns about a growing number of so-called “risk-free” games in the state, which closely resemble slot machines. These games, which have started appearing in gas stations across Kentucky, are being promoted as legal due to their claim of being “risk-free.” Still, Coleman asserts that they are illegal under Kentucky’s gambling laws. In a recent advisory to local prosecutors, Coleman emphasized that there is no legal protection for these types of machines in the state.

The proliferation of these machines has been a topic of concern since early 2024, with over 600 of the devices now in operation in Kentucky. These games claim to inform players whether their next spin will be a winner before they place their bet, thus removing the element of risk.

However, Coleman argues that this format still constitutes illegal gambling, as players are motivated by the chance of winning on subsequent plays. This, he says, introduces an element of chance that makes them no different from the “gray machines” that were banned in the state last year.

In 2023, the Kentucky General Assembly passed legislation to outlaw gray machines, which were common in gas stations, bars, and other establishments across the state. These devices offered cash payouts, and their manufacturers claimed they were games of skill rather than chance.

Two of the largest manufacturers, Pace-O-Matic and Prominent Technologies, disconnected their machines following the new law and sued to overturn the legislation. While the lawsuits are still ongoing, Prominent Technologies introduced a new type of machine, which they claimed bypassed the ban by being “risk-free.”

Coleman’s advisory, however, challenges this assertion, stating that these new devices are just as illegal as the previously banned machines. He urged local prosecutors to investigate and take legal action against establishments that continue to operate them.

In response, Prominent Technologies has instructed stores using their devices to disconnect them by a set deadline. The company, however, expressed disappointment with Coleman’s stance and indicated that it would explore legal options to challenge the advisory.

The conflict over these machines has been part of a broader debate in Kentucky about the role of gambling in the state. The 2023 ban on gray machines followed a high-profile lobbying battle, with significant spending from both sides. The powerful horse racing industry supported the ban, while companies like Pace-O-Matic fought against it.

Despite the legal battles, the issue of gambling devices in the Bluegrass State remains unresolved, as other manufacturers continue to push similar devices into gas stations across the state. While enforcement has been limited, with only a handful of citations issued so far, Coleman’s recent advisory could lead to stricter actions against these devices.