“Risk-free play” gaming machines have no chance of surviving in Kentucky, according to state Attorney General Russell Coleman. These new machines, which pay out cash prizes, began popping up in response to the state’s crackdown on skill machines, another type of gray market slots-like device. Although the no-risk machines use a different argument to skirt traditional definitions of gambling, they are still illegal, Coleman notified prosecutors and law enforcement officials in a Sept. 3 advisory.
The first “risk-free” machines manufactured by Prominent Technologies began appearing in Kentucky gas stations in March, reported Joe Sonka of Kentucky Public Radio (KPR).
Coleman now estimates that there are more than 500 “risk-free play” machines in Kentucky. He said Kentucky Supreme Court precedent about the 2023 ban on games with an “element of chance” means Prominent’s machines are just as illegal as “skill games.”
In his Sept. 4 press release about the Sept. 3 advisory, Coleman said:
The law is clear — gray machines and other games like them are illegal gambling devices that have no place in Kentucky.
Possessing a “gray” machine — whether it be a “skill game” or a “risk-free play” device — is a Class A misdemeanor, he notified officials on Sept. 3.
Lexington criminal defense law firm Dan Carman and Attorneys tells potential clients that that class of misdemeanor carries a potential punishment of a year in jail and up to $500 in fines.
In the 3-page-long advisory, Colman wrote:
At least one ‘gray machine’ manufacturer has created a new style of game it calls ‘Risk-Free Plays.’ These games are starting to appear in communities throughout the Commonwealth. The distinctive feature of these games is that, before each game play, the games communicate to the player what the outcome of the next single game play will be. Thus, a player will always know whether the next game play will be a win or a loss. The manufacturer believes this format eliminates all element of chance, and so argues that these games do not fit within the statutory definition of ‘gambling device.’
‘No-Risk Play’ and ‘Skill Games’ Companies Sue
Coleman told prosecutors and law enforcement officials to continue to enforce the law against possessing gray machines. The game manufacturers are suing to try to overturn the skill games ban, but for now it stands.
Similar legal battles are playing out in other states, including Pennsylvania. Perhaps the most prominent skill game manufacturer, Pace-O-Matic, contends that its machines that resemble slot machines aren’t gambling devices because they involve skill. However, what the Kentucky Court of Appeals may be concentrating on in that case is the definition of a game of “chance.”
However, Coleman contends that the gray machine ban already addresses both matters. He said the law addresses “any mechanical or electronic device where the outcome of the game is determined by ‘any element of chance, regardless of whether the result is also partially or predominantly based on skill.’ ”
Coleman told officials in his Sept. 3 advisory:
We are prepared to provide whatever assistance your office may need if your investigation or prosecution of illegal ‘gray machines’ is challenged in court or results in additional constitutional challenges to the law or litigation against your office.
Prominent argues that its “risk-free” machines eliminate the element of luck by showing the player ahead of time whether the next play will be a win or a loss. However, Coleman contends that players will pay for a losing play in order to see if the next one will win, which is still an outcome that hinges on luck. Neither party’s opinion has been tested in court yet.
Some ‘No-Risk’ Gaming Devices Disconnected
Sonka reported on Sept. 4 that Prominent told stores with its “no-risk” gaming machines in Kentucky “to disconnect” what it estimated were “600-700 games in roughly 70 counties.” He noted that Friendly Amusement has games in Louisville gas stations and manufacturer names on other “no-risk” machines weren’t visible.
So, the state known for eons of legal horse racing betting remains relatively devoid of gambling devices.
Mobile sportsbooks launched in Kentucky on Sept. 28, 2023.
However, no Kentucky online casinos, poker rooms, or land-based casinos exist.
About the Author
