Kentucky ban on slot-like ‘gray machines’ to stand, Court of Appeals rules
The Kentucky Court of Appeals ruled unanimously Friday that a ban on so-called “gray machines,” or skill games, can remain in effect.
Operators of the machines, which proliferated quickly in gas stations, convenience stores and bars in Kentucky during the COVID-19 pandemic, argued that the games were not technically gambling, and they were being unlawfully singled out.
A 2024 ruling from Franklin Circuit Court Judge Phillip Shepherd disagreed, arguing it was well within the General Assembly’s right to regulate the games. The Court of Appeals agreed with Shepherd in their ruling, citing a ruling from 1931 that recognized the power of the legislature over gaming.
“For nearly half a century the General Assembly and the Court of Appeals have proceeded upon the general understanding that the whole subject of betting and gaming was within the power of the Legislature to prohibit, regulate, or classify, prohibiting in part and permitting in part, according to its view of the public policy to be enforced,” the 1931 ruling reads.
Attorney General Russell Coleman, who defended the 2023 bill, claimed victory in a press release cheering the ruling.
“As Kentucky’s policymaker, the General Assembly has taken strong and bipartisan steps to protect families from illegal gaming. Our office constantly stands ready to defend Kentucky law in court, and we are proud to deliver this hard-won victory for our commonwealth,” Coleman wrote.
The bill in question, House Bill 594, was sponsored by former state Rep. Killian Timoney. It faced pushback from some Republicans leery of the bill improperly favoring the horse industry, which operates their own slot-like machines called “historical horse racing,” but was ultimately passed in both chambers and signed by Gov. Andy Beshear.
The horse industry is a key donor base for both Republicans and Democrats in Kentucky. Groups linked to the “gray machines” industry have also donated extensively to state legislative candidates in the recent past.
House Speaker David Osborne, R-Prospect, joined Coleman in applauding the Court of Appeals ruling.
“Today’s decision by the Court of Appeals is good news for Kentuckians and upholds a duly-enacted law passed to protect Kentuckians and strengthen our communities. We appreciate the Attorney General’s work in defending this law and will continue to pass commonsense laws that protect families and uphold the rule of law,” Osborne said in a statement.
Larry Thompson, who serves as chief judge of the Court of Appeals, wrote for the majority.
The groups who brought the case forward — which include operators as well as manufacturers and businesses that had the machines — could appeal the ruling to the Kentucky Supreme Court.
