(LEX 18) — Thousands of gaming machines in Kentucky have been disabled in response to a state law banning them. You may have seen the games, which look similar to a slot machine, in a gas station, restaurant, or bar.
Those in favor of the ban generally consider them “gray games,” arguing they are unregulated and illegal. Those against the law call them “skill games” arguing they do not violate Kentucky’s gambling laws, which prohibit games based on chance.
Pace-o-matic, who has 2,500 "Burning Barrel” games spread across the commonwealth, disabled their games more than a week before a court mandated deadline, hoping it will give them a chance to double check that no games remain with the flash-drive like component that allows them to operate.
They’ve been arguing in court the state’s ban on the games—which was passed in the last legislative session—is unconstitutional. A judge ordered while the case is adjudicated in the courts, the machines can physically stay in place, but no one can play them.
It leaves small businesses, some of which rely on the revenue, in limbo.
“It’s a bummer, a major bummer,” Wes Jackson, the owner of the Cue Club and President of the Kentucky Merchant and Amusement Coalition, said. “It’s absurd what’s going on.”
Members of his coalition make varying amounts from the games. For Jackson, the 1-2% of his total revenue he gets from the games is enough to pay his water and electric bills.
Danny Collins, the owner of Southland Lanes, said the games help them from having to raise other prices.
Lawmakers moved to band the games because they say they are a game of chance, making them illegal. Jackson says they are a game of skill, saying they are no different from when you go to an arcade where you can win a prize.
“It isn't a game of chance by no means,” Jackson said. “You can win every time on these, you can look forward at the next puzzle to see if there's a winning thing on the next puzzle.”
Governor Beshear signed the bill into law.
“The law is the law, they were unregulated, they were unlawful,” he said when he signed the bill. “They came into Kentucky and just set up and they were taking dollars from Kentuckians and taking them out of state with 0 regulation, 0 taxation.”
Jackson argues they helped to introduce their own bill this season that would have regulated and taxed the games. There has been significant lobbying from both sides.
Churchill Downs recently filed to be part of the lawsuit, joining the side that is arguing the bill is legal.
“I just hope the people see this and understand that small businesses need help here in Kentucky, Churchill doesn't need any more help,” Jackson said
It could be months until the court case is decided. Jackson is hopeful they’ll prevail and the machines will be able to turn back on.
The owner of the Wildcat gaming machines, which number about 1,500 in Kentucky, told LEX 18 their machines will be shut off on June 28.
