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Op-Ed

Skill game ban works against Kentucky’s small businesses | Opinion

A pending House bill would ban unregulated gambling machines, like these at Bluegrass Mart in Lexington.
A pending House bill would ban unregulated gambling machines, like these at Bluegrass Mart in Lexington. swalker@herald-leader.com

One of the reasons why I felt called to serve in state government was to support free market values. I believe this is a common cause for most of the Republican caucus in Frankfort.

Free markets work because they foster innovation and efficiency, both of which ensure economies can thrive.

In our tough economy, many Kentucky small businesses have found a way to offer entertainment to their patrons while creating much needed revenue through legal skill games. Some of my peers in the legislature, however, are determined to punish these Kentuckians for innovating after Covid-19 closed their businesses.

These lawmakers are willing to risk the livelihoods of small business owners to appease gambling giants and special interest groups.

Skill games are not “gray machines.” They do not function in any gray area. The law in Kentucky is very clear, it states: “A contest or game in which eligibility to participate is determined by chance and the ultimate winner is determined by skill shall not be considered to be gambling.” 528.010.4(a)

The Frankfort special interests perceive a few games of skill, primarily in local mom-and-pop restaurants and bars, as competition for massive gambling halls spreading across the state. There is a movement underway that seeks to restrict the rights of the many, in favor of the wealthy few.

In what world should legal businesses have to beg the legislature for permission to operate? In what world should a company have to defend a legal business against government officials committed to creating a monopoly?

This sounds more like the Russian oligarchy than the United States.

The reality is a ban bill will do absolutely nothing to curb illegal gambling in Kentucky. Historically, we know that bans do not stop bad actors. Did alcohol go away during prohibition? No, prohibition only pushed bad actors out of the public eye and exacerbated the problem. It served to strengthen organized crime for generations to come.

Kentucky has an illegal gambling problem. No doubt about it. But that problem does not rest with legal skill games. The legislation I have proposed, House Bill 525, is the only bill currently filed that would do something to stop illegal gambling in Kentucky, while providing law enforcement with the tools necessary to shut down organized crime.

My bill balances the need to oversee skill games, while creating a framework by which law enforcement can better identify illegal slot machines and receive funding to help them more effectively enforce the law.

The ban bill dangerously targets family-owned games of skill currently providing revenue to small businesses and veterans organizations. Its vague language could also potentially impact popular entertainment venues like Chuck E. Cheese, Dave & Buster’s, arcades, and even local fairs and festivals. All of which are operating skill games legally.

Conversely, my bill would eliminate the estimated 25,000 illegal slot machines operating across the state. Oversight and a level playing field are the only means to tackling predatory gambling in Kentucky.

More than ever, it is incumbent on the Republican party to innovate and protect small businesses. What would our Commonwealth look like if we continue to propose such anti-free market legislation that puts small struggling businesses at risk? What kind of state would we be if we always gave into the demands of big business at the expense of Main Street Kentucky?

As legislators, we should not be in the business of making policy decisions based on who spends the most money and has the most influence in the halls of Frankfort. Rather our attention should be focused squarely on improving the financial position of our small businesses especially in this time of great need.

Rep. Steven Doan
Rep. Steven Doan

Representative Steven Doan is a lawyer and representative for Kentucky’s 69th house district. He is the bill sponsor for HB525 and an advocate for small businesses.

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