A Franklin County Circuit Judge upheld a Kentucky law that bans “gray machines,” slots-like devices that pay out money. The ruling was announced on June 28 and gave state officials a boost in their effort to rid convenience stores, gas stations and bars across Kentucky of the machines.

Judge Grants Summary Judgment in Favor of Kentucky’s ‘Gray Machine’ Ban

In his decision, Judge Phillip Shepherd granted Attorney General Russell Coleman’s request for summary judgment, meaning he decided the case without going to trial. Coleman praised the ruling, noting the vital role of the Legislature in protecting public interests, as reported by the Associated Press. He commended lawmakers for their bipartisan action against machines often alleged to have tenuous legal status.

The so-called gray machines triggered considerable controversy during this year’s legislative session. They were installed at various locations statewide and drew support as well as opposition. Advocates described them as valid “skill games” and put forward alternate legislative proposals to regulate and tax them as such. Critics warned they would enable the biggest expansion of gambling in Kentucky history.

ARKK Properties led the legal challenge along with other stakeholders including Pace-O-Matic, maker of the popular Burning Barrel machine. The lawsuit raised several arguments against the ban. ARKK Properties together with the other stakeholders claimed the ban violated free speech rights, was arbitrary, and impaired contracts, among other points. 

Judge Shepherd dismissed all these arguments, stating that expecting immunity from regulation for machines operating on the fringes of legality was unreasonable given Kentucky’s history of stringent gambling laws.

Court Decision Brings Closure to Contentious ‘Gray Machine’ Debate in Kentucky

House Bill 594, which initiated the ban, had a tumultuous journey through the legislative process before becoming law. Despite intense lobbying on both sides, it cleared both chambers with overwhelming support and Gov. Andy Beshear signed it. House Speaker David Osborne said he supported Shepherd’s ruling because it reaffirms that these games are illegal and cannot be operated without proper oversight. Regarding the next steps, J.Guthrie True, attorney for plaintiffs indicated an appeal may be coming.

In recent years, Kentucky has passed other significant gambling legislation, including measures that secured the legal status of historical racing machines at horse tracks. These machines, which allow betting on past horse races, have become a substantial revenue source for the tracks, helping to enhance the state’s horse racing industry.

The fight over gray machines has been costly and continued, taking place both in courtrooms as well as in political arenas. This issue involved more than just legal disputes – there were significant political moves made and heavy lobbying done around this subject, which points to how serious people take gambling regulation in Kentucky.

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In a bold move, North Carolina Gov. Roy Cooper has firmly rejected a controversial plan put forth by Republican state lawmakers. The plan aimed to tie the long-awaited expansion of Medicaid to an ambitious proposal to significantly expand casino gambling within the state. 

Medicaid Expansion Jeopardized as Governor Cooper Slams Casino Pairing

Gov. Cooper’s decision comes as little surprise, as he had already expressed his reservations about linking these unrelated subjects. On social media, the governor called the proposed pairing “the most brutally dishonest legislative scheme” he had encountered during his more than three decades in politics.

While both Medicaid expansion and casino expansion had at times been tied to the passage of a new state budget, their fates now remain uncertain. Initially, Republicans had voted in favor of Cooper’s efforts to expand Medicaid under the Affordable Care Act earlier this year. However, they conditioned the final expansion on the approval of a state budget for the current fiscal year, which began on July 1.

Similarly, advocates for casino expansion had sought to incorporate their proposal into the budget, but this faced resistance from both Republican and Democratic members of the General Assembly.

Governor Cooper’s rejection of the Republican scheme indicates his willingness to take a stand, even if it jeopardizes the Medicaid expansion he has fervently pursued throughout his two terms in office. This expansion promises affordable health coverage to over 600,000 North Carolinians and will prevent hundreds of premature deaths each year.

Governor’s Concerns Over Gambling Expansion Influence Decision

An administration official close to Cooper revealed that the governor’s decision was influenced by concerns regarding the potential negative consequences of a massive and unprecedented gambling expansion, including the risks of corruption and addiction, reported NC Newsline. Additionally, the projected tax revenue generated by the casino plan appeared to be comparatively modest.

Earlier this year, Gov. Cooper did sign a bill legalizing online sports gambling in the state, a move that garnered bipartisan support in legislative committees and floor votes despite its controversial nature.

However, while North Carolina is gearing up to launch online sports betting activities next year, and lawmakers are exploring the expansion of casino-style gambling, a recent report revealed that at least eight state lawmakers, including Sen. Phil Berger, received a total of $34,400 in campaign contributions from individuals connected to an out-of-state gambling operator, The Cordish Companies.

While accepting such contributions is not illegal, it has raised concerns among critics and financial analysts about potential unfair advantages as the state considers new casino developments and gambling expansion.

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The executive director’s tweets made derogatory remarks about women and included references to a white nationalist group, sparking widespread criticism and prompting an internal investigation. Champion apologized for his actions, noting he meant his words as satire but failed to judge their implications. His suspension clearly shows that even high-level officials can face consequences for their mistakes.

The Official Failed to Champion the Regulator’s Values

Milt Champion’s private Twitter account faced scrutiny when several tweets surfaced containing his derogatory comments about women and positive references to a white nationalist group. The first social media post referred to women by a pejorative term, while his second tweet noted that a neo-fascist hate group was “at least not burning down cities and looting stores.”

The Gambling Control Unit’s swift investigation and disciplinary action presented a reflection and growth opportunity for Champion. He thanked his colleagues for their hard work and commitment during his absence and offered a public apology. Champion regretted his actions, noting that the tweets did not reflect his views, but acknowledged their potentially harmful language.

While the two tweets were intended to be humorous, I recognize they were anything but. They were a mistake and an error in judgment, and I apologize for my actions.

Milt Champion, Maine Gambling Control executive director

The Maine gambling regulator concluded that Champion’s tweets violated the standards of conduct expected of a public servant. A one-week suspension without pay and mandatory workplace harassment and social media etiquette training should ensure that the executive director feels the consequences of his actions. As the head of a high-profile organization, Champion must always strive to uphold professionalism and maintain public trust.

The Official Failed to Champion the Regulator’s Values

Following the incident, the Gambling Control Unit must demonstrate a commitment to fostering a culture of inclusivity and respect. The organization can implement sensitivity training programs, promote diversity and inclusion initiatives, and ensure that all staff members understand the expectations of their professional conduct. Actively engaging with the public and fostering open dialogue should hopefully prevent similar future incidents.

Gambling regulators’ role as protectors of the public makes these organizations significantly more prone to scrutiny, especially concerning their public image. Recent social media controversies regarding high-profile organizations demonstrate the value of proper work ethics and social media awareness. Public servants must exercise good judgment and refrain from engaging in behavior that may compromise their ability to carry out their duties impartially.

Milt Champion’s disciplinary action underscores the expectations placed upon public servants to uphold values of respect, equality, and fairness. The Gambling Control Unit’s willingness to address the incident transparently and implement measures to prevent future occurrences will be instrumental in rebuilding public trust in the organization’s commitment to ethical conduct.

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The company estimates its casino resort would bring approximately 4,000 jobs to the area along with other economic benefits. However, many locals have rallied against the project, concerned about the social costs inherent in a high-profile gambling venue. Such ongoing controversy may affect the planned casino’s chances of obtaining one of the limited New York licenses.

Casino Supporters Highlighted the Attractive Job Opportunities

Thor Equities, known for its real estate ventures and urban development projects, is part of the consortium behind the planned Coney Island casino resort. The company has invested significant efforts in marketing, attempting to convince locals of the benefits such an establishment would bring to the area.

According to the developer, the casino would bring 4,000 well-paid, year-round jobs, providing residents with stable income and potential career growth. Former City Council member Robert Cornegy noted the venue would focus most of its recruitment and job training efforts on local communities, promising wages of up to $30 an hour and enticing benefits.

Being able to bring decent paying, year-round jobs is something that I feel like I am compelled to push and demand… The hotel trade is one of the more lucrative opportunities.

Robert Cornegy, former New York City Council member

Cornegy highlighted the casino industry’s rising popularity, highlighting its attractiveness for people of color looking to earn a middle-class standard of living. The planned venue would also positively impact surrounding businesses, attracting visitors and reinvesting in the community through infrastructure improvements, public services, and social programs.

Community Representatives Remain Unconvinced

Despite the developer’s efforts to bolster the casino project’s public image, many locals remain unconvinced. Critics argue that a casino could contribute to issues such as problem gambling, increased crime rates, and a change in the neighborhood’s character. Brooklyn’s Community Board 13 even urged local officials to reject the project, highlighting its hidden dangers.

According to Board members, a high-profile casino threatened to turn Coney Island into another Atlantic City, bringing all the gambling industry’s negatives to a struggling neighborhood. The area consistently falls behind in income and unemployment rates, but many residents cannot work full-time, diminishing the potential positive impact of a casino.

How do you guarantee a percentage of jobs are going into the community? You just can’t… I don’t see someone in hospitality lasting that long.

Lucy Mujica Diaz, Community Board 13 chairperson

Thor Equities’ recent promises only widen the rift between casino proponents and the stiff local opposition. Despite ongoing efforts to appease the locals, the backlash continues to intensify. Such actions can potentially undermine the consortium’s chances of securing one of New York’s three coveted casino licenses, as few other competitors face the same level of opposition.

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Over the past several days, the Myanmar Provincial Electricity Authority or PEA has reportedly shut down the power supply to an entire town, Shwe Kokko, which is generally considered a hub for casinos and other activities.

China’s Signature All Over

However, the country’s military regime disconnected the town from PEA in a bid to curb gambling that was taking place there. This is one of the most dramatic examples of enforcing gambling prohibition in the region yet and goes beyond China’s snooping program that encourages citizens to spy on each other and report back participation in gambling.

The first media outlet to break the news was The Star which cited its sources and argued that China was involved in the latest crackdown on gambling in Myanmar as well. The country has long been exercising its influence in the region to ensure that countries that are typically visited by Chinese nationals for gambling would begin to phase out the activity altogether, among which Cambodia and a few unsuccessful attempts in the Philippines so far.

However, China’s determination to fight cross-border crime, including gambling, has not faltered over the past years. If anything, it has intensified. Respond to the cutting of power has followed, with the Karen Border Guard Force threatening to shut down the Thai-Myanmar Friendship Bridges if no electricity supply is restored.

Asia to Get Busier for Gamblers

The town is located alongside the border between Myanmar and Thailand and it beckons to gamblers in both countries to come out and try the gambling products. Meanwhile, the Karen Border Guard Force has insisted that the blanket cut of supply resulted in difficulties for local residents who may go on for only a few days without being more seriously affected by the measure.

Asia however is about to become a lot more interesting when it comes to gambling. Thailand is seriously considering introducing multiple locations for upcoming casino resort projects that are still being discussed privately for the most part with reports filtering through media noise. Japan is pushing forward with its own first integrated resort which is due to arrive in 2030 after multiple delays were suffered previously.

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