LOUISVILLE, Ky. (WDRB) -- Illegal gambling or games of skill, the debate over certain gaming machines in Kentucky is likely finding an arena in Frankfort.
Supporters are doubling down on regulation of what they consider to be skill game machines.
Operators of the machines — which can be found in bars, veterans halls and truck stops — argue they take memory, dexterity, and skill to win, and are legal.
However, opponents — including Churchill Downs and the broader horse racing industry — refer to these games as "gray machines" and want them banned. They're called "gray games" because of their murky legal status.
"Gray games" such as Burning Barrel and Wildcat, which look like slot machines, are popping up across the commonwealth.Â
"They are not illegal, and they do take skill, thus the name," said Karma Reed.
Reed is the vice president of B.J. Novelty, who said the machines have transformed struggling bars and restaurants after the pandemic.
"Now they have another source of revenue and entertainment for all of their customers," she said.
Reed is a member of the Kentucky Merchants and Amusement Coalition (KY MAC), an organization that's going all in, pushing lawmakers to pass a bill to regulate what they call "skill games."
"Gray, you can't win every time, but skill game, if it's truly a skill game, it can truly be won every time," said Jim Layton, another operator.
Advocates for skill game machines packed Rotunda on Wednesday, Feb. 8, 2023, to rally for lawmakers to support regulation. (WDRB photo)
Supporters argue that a bill would do the following: Establish a gaming commission to oversee skills games, create decals identifying the legal machines, limit the number of game terminals, set an age, and add a 6% tax that would fund the enforcement of the bill. They've even brought in a Louisville legend, former UofL Quarterback Chris Redman, to support their case.
"It's a win-win for the state," said Redman. "They get extra jobs, they get extra revenue, I don't see why you should take that away."
Opponents argue these "gray machines" don't fit the definition of legalized gambling in Kentucky. Kentuckians Against Illegal Gambling, which is backed by the racing industry, told WDRB Investigates that they are illegal.
"And the cases are very clear in Kentucky that, if a game involves chance, an element of chance, it's gambling," said KAIG attorney Mark Guilfoyle. "And that means under Chapter 5.28, that is a crime. To me, it's clear these things, 'gray machines,' are illegal gambling."
Both groups are throwing in more coins, and lots of money, to lobby lawmakers, hoping they will take a chance on their side.
"We are concerned, and yet very hopeful, they see the small business owners' sides," Reed said.
No bills, to either ban or regulate the machines, have been submitted or assigned to a committee at this time.
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