LOUISVILLE, Ky. (WDRB) — The Kentucky Horse Racing & Gaming's Office of Charitable Gaming has ordered the disabling of electronic pull-tab devices manufactured by Light & Wonder Gaming and Creative Game Technologies.
The order said the disabling is due to illegal "fishing" activities on electronic pull-tabs throughout Kentucky, which had led to the theft of tens of thousands of dollars.
Fishing involves inserting and then pulling money back out of a gaming machine using plastic lines, which leads the machine to think more money has been deposited than actually has.
"While those engaged in the fishing ultimately are responsible for the theft, organizations licensed by KHRG failed to appropriately prevent the criminal activity," the order said.
Light & Wonder Gaming owns Grover Gaming, which also owns local charity Shirley's Way, where a majority of its machines are used.
"That's about 90% of our gaming machines around Louisville, and that's going to basically shut Shirley's Way down," Shirley's Way founder, Mike Mulrooney, said.
Mulrooney said the games are the charity's primary source of funding. That funding goes towards helping cancer patients, feeding 3,500 kids every Friday, kid's programs, little leagues, reading programs, homeless initiatives and more.
"Every bit of that has ended right now because all of our funding has been permanently stopped, and I'm not too sure we see a path forward," said Mulrooney.
James Saylor said he goes to different Shirley's Way locations to play the games every Friday. He said they were shocked to hear about them being shut down.
"They are an organization to help with charity through this gambling, and it just kills you that somebody is taking advantage of them and the system," Saylor said.
Mulrooney said some of their machines were hit by the thefts, but it was happening all over the state of Kentucky.
The KHRG's order also adds that no machine can be enabled without written approval from the director of charitable gaming. To get that approval, locations have to follow a certain number of conditions.
Each charitable organization licensee must have a chairperson present at the location of the electronic pull-tab devices. That person is responsible for regulating the charitable gaming activity and can't be employed or compensated by the business the devices are at.
The organizations also need to confirm the places they have pull-tab devices at are restricted to people 21 and over.
With the new regulations, Mulrooney said he doesn't know what their next steps are.
"If these changes are implemented permanently. Shirley's Way, I don't know how our gaming is even going to continue with that," Mulrooney said.
In the order, KHRG said the decision is "in the best interest of charitable gaming in Kentucky and to protect the public and charitable originations of the Commonwealth".
People can still game at the Shirley's Way office located on Dixie Highway, Shirley's Deals at Indian Trail and Fern Creek, Hideout Pizzeria, and More Shenanigans on Bardstown Road.
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