Skill Game Industry Faces Shut Down in Kentucky as Governor Beshear Signs New Law

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Last updated: March 22, 2023

Kentucky’s measure to outlaw so-called “grey games” or “skill games” has been signed into law by Governor Andy Beshear following significant discussion. Killian Timoney, a state representative, introduced the bill that forbids institutions from housing the gaming machines that have grown throughout the state. In Kentucky, there has been debate regarding these machines for a while. In a state that permits pari-mutuel horse racing, historical horse racing, a state lottery, and charitable gaming, the horse racing industry and charitable groups demanded a ban on the machines. They claim that they amount to illegal gambling.

On the other hand, manufacturers of games, distributors, companies, and organizations that host the machines, contend that they are legal and do not contravene state legislation. Before collaborating with gas stations, restaurants, and other facilities, businesses like Pace-O-Matic and Prominent Technologies requested approval from the county administration. They were known as skill games because they required players to use their memory and hand-eye coordination in order to succeed. The companies that host the games claim that they are a crucial source of income that helped many of them survive the outbreak.

Proponents of the Ban Claim the Machines Amount to Illegal Gambling

Although he described himself as a “pro-gaming governor,” Governor Beshear said he doesn’t think the games are legitimate and that the state should regulate only legitimate options. He could not extend his support for the devices he referred to as “grey games” to the Senate’s existing sports betting bill.

“I don’t believe that they were legal, yet they came into Kentucky and just set up and were taking dollars from Kentuckians and taking them out of state with zero regulation, zero taxation, zero systems to help those that might develop any issues from using them for gambling,” – stated Governor Beshear.

The machines will be required to be removed from establishments once the law formally goes into effect 90 days after the General Assembly session ends as a result of Beshear’s signature on the legislation. March 30 is the session’s last day. Bill 594 was denounced as “anti-free market, anti-small business, and anti-Kentuckian” by the pro-skill game Kentucky Merchants and Amusement Coalition (KY MAC). The coalition’s president, Wes Jackson, also stated that the organization, which speaks for hundreds of venues that stage sporting events throughout the state, is still weighing its options.

American Gaming Association Sees Kentucky’s Ban as a “Springboard”

The American Gaming Association (AGA) views the law in Kentucky as a “springboard” to seek out success in a similar manner in other jurisdictions around the nation. The group, which has been urging states and the federal government to take action against illicit gambling operations, was alerted to the passage of HB 594. It claims that Americans wagered more than half a trillion dollars on illicit gambling devices, including grey machines.

Prior to two weeks ago, the future of Bill 594 was in doubt since it had been tabled by a majority of lawmakers. State Representative Steven Doan, who proposed House Bill 525 to establish a state gaming commission to control and tax the machines, spearheaded the charge in this regard. There hasn’t been a committee meeting for that measure.

The bill was successfully revived on March 9 and passed by the House by a vote of 64-32. The law was adopted by the Senate’s Licensing and Occupations Committee on Tuesday, and the full Senate followed suit later in the day.

Jackson, a representative for KY MAC, criticized the lawmakers who supported the ban. He said that those who endorsed this ban liked to say they passed it because skill games need to be regulated, then at the same time, wouldn’t even give their regulatory measure a hearing.