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 groundbreaking legal battle, the State of Texas faces off against gambling machines in a case that could set a precedent for the future of such devices in the jurisdiction. The hearing, presided over by the 336th District Judge in Fannin County, marks the first time a Texas court is deciding the legality of these devices.

Skill Games Remain a Contentious Topic in Many Jurisdictions

Texas law explicitly forbids chance-based gambling machines. However, skill-based games circumvent existing restrictions and remain permitted despite their similarities. The legal scrutiny follows a county-wide seizure of gambling machines in March last year, impacting several locations. Fannin County District Attorney Richard Glaser and local law enforcement initiated the seizure, contending that the machines violated Texas gambling regulations.

A recent report by media outlet KXII revealed that the central question in this hearing was whether the 35 confiscated machines were skill-based or chance-based. Glaser firmly believes these machines operate on chance, making them illegal. If successful, the state plans to seize the machines and their proceeds. Such a move could also lead to more seizures, making business owners reluctant to invest in these devices.

These look like gambling machines, they play like gambling machines. We wanted to seize them all at one time.

Richard Glaser, Fannin County District Attorney

This ongoing legal battle mirrors a similar case in Pennsylvania, where a recent court decision deemed that skill games were legal. The decision caused significant backlash from the gambling sector, which claims that these devices, exempt from gaming taxes and oversight, threatened regulated operators and posed a danger to the public due to non-existent player protection measures.

The Machines Circumvent Existing Laws

While Pace-O-Matic, the company behind the devices, asserts that its games have been deemed legal in other parts of Texas, this hearing is the first instance of a court making a definitive decision. Joe Brown, a member of Pace-O-Matic’s counsel, argues that the games were meticulously designed to comply with Texas law and are, in fact, skill-based.

The skillful player can win every time that they play, and that takes it out of the definition of a gambling device.

Joe Brown, counsel for Pace-O-Matic

As the debate neared its conclusion, Fannin County District Judge Laurine Blake ruled that the game devices were skill-based and legal. She will be issuing an order for the return of seized property. This landmark decision could potentially impact similar machines across the state, setting a crucial precedent for the future of gambling devices in Texas.

Although the hearing has not concluded, the ruling signals a likely victory for skill games. Similar cases across the USA highlight the need for proper regulation. Treating them similarly to slot machines would solve most issues, bringing them out of the legal grey area and ensuring jurisdictions can collect taxes and enforce proper control.

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This mostly came with no strings attached from the government, other than preparing the necessary paperwork and making sure that certain standards for responsible gambling and underage gambling have been observed.

Poker Machines Now Need a RG Officer to Tend to Customers

Yet, a wave of regulatory changes across the state will now expect pubs and other venues that have at least 20 poker machines to a more rigorous standard whereby they also employ Responsible Gambling Officers whose purpose will be to determine whether a patron is at risk of harm.

Venues that have more than 20 poker machines will only employ a single such person, but if the poker machines exceed 100, then additional staff will have to take over. There is a grace period still, as venues will be given time to adapt, and not least – the measure is not going to come into effect until July 1, 2024.

Once it does, businesses will have further time to make sure that they are compliant with the law. “The introduction of Responsible Gambling Officers is the next important step in supporting people who may be experiencing gambling harm,” has been vastly welcomed by responsible gambling groups and advocates, including Clubs NSW, an industry body, that said it was very much for the proposed changes.

The group’s CEO, Rebecca Riant, said that she was very much for minimizing harm and that the 1,200 members of the trade group were prepared to comply with the measures as necessary to ensure that patrons are protected and out of harm’s way.

The measure does put a financial burden on businesses that will now have to train and find qualified individuals as the nation, and New South Wales in particular, is responding to a growing need for a more scrupulous approach towards responsible gambling.

New South Wales Toughens Measures on Gambling

More measures are forthcoming. Some, such as the removal of gambling inducements from physical signs outside of pubs and clubs, have also come into effect, but others, including the restriction of AU$500 ($330) input into a poker machine are to take effect later.

Australia is also flirting with the introduction of a mandatory cashless payment option, which is so far stuck between different trials, and which has caused rather more indignation than other measures. Clubs have spoken out against the measure arguing that the government equates their clientele to criminals, and raised data standards.

Clubs have come under a lot of scrutiny recently, with some penalized for having ATMs next to their gaming rooms.

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Recent measures introduced in the Florida legislature aim to tackle the longstanding issue of illegal slot machines proliferating across the state, presenting a growing concern for authorities. Bills SB 1046 and HB 189 have been tabled to provide clarity on existing laws surrounding these machines and to ramp up penalties for their possession and operation.

Legal Experts Push for Tougher Penalties in Florida’s War Against Illegal Slots

Dan McGinn, a special counsel for the law firm Jones Walker, emphasized the intention behind the bills, highlighting their role in dissuading proprietors from harboring illegal slot machines. Speaking to CDC Gaming Reports, McGinn underscored the significance of elevating penalties to felonies, suggesting it would incentivize law enforcement to pursue cases more vigorously.

The presence of illegal slot machines extends beyond authorized gambling establishments, such as pari-mutuel facilities and properties owned by the Seminole Tribe of Florida. 

Eric Carr, Director of External Affairs for the Florida Gaming Control Commission, shed light on the clandestine nature of these operations, often camouflaged within adult arcades and internet cafes.

Carr emphasized the broader ramifications of such illicit activities, linking them to the funding of violent criminal enterprises like drug trafficking and human exploitation. He cited recent instances of violence at illegal gambling sites across various counties, underlining the urgency for legislative intervention to curb this menace.

Florida Shines Light on Slot Machine Regulations

Unlike states grappling with ambiguity over gambling definitions, Florida’s stance on slot machines remains clear due to statutory prohibitions. McGinn dismissed any ambiguity, stressing that Florida’s legal framework unequivocally outlaws such machines except in designated areas.

The American Gaming Association (AGA) has thrown its weight behind efforts to eradicate illegal gambling apparatus. AGA President and CEO Bill Miller emphasized the importance of empowering law enforcement to combat this underground market, aligning with Florida’s legislative push to enhance penalties and enforcement measures.

McGinn echoed sentiments of support for the proposed bills, emphasizing their potential to mitigate the spread of illegal gambling activities statewide. He underscored the broader societal benefits of curtailing unregulated gambling, pointing to the associated social and economic harms.

As the legislative debate unfolds, stakeholders remain optimistic that these measures will provide much-needed clarity and deterrence against the proliferation of illegal slot machines. 

With bipartisan support and backing from industry advocates, Florida’s crackdown on illicit gambling endeavors signals a concerted effort to safeguard communities and uphold the integrity of the state’s gaming regulations.

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Illegal gambling is a growing concern across the United States. While this applies to the online counterpart of the activity, illegal or unlicensed slots, bookmakers and poker rooms continue to rake money without paying taxes or complying with gambling regulations, if such even exist where they operate. Now, a gas station in Park City, Kansas, may be in hot water after a search uncovered illegal gambling machines.

As announced by KAKE, on Wednesday this week, the Park City Police Department along with representatives of the Kansas Racing and Gaming Commission, the gambling regulator in the state, executed a search warrant at a gas station in Park City near I-135. Police officers and Commission representatives entered the premises, uncovering 13 illegal gaming devices. The illegal machines were consequently seized.

The latest raid marks another one for law enforcement and the regulator as they continue to battle illegal gambling establishments across Kansas. Customers who use the services of illegal gambling operators put their money at risk. This is because illegal operators are not obligated to comply with the established regulations. In other words, such illegal machines can altered to ensure that users lose far more when compared to playing at licensed casinos.

Illegal Gambling Increases Other Criminal Activities

Despite the efforts of the gambling regulator in Kansas and law enforcement, illegal establishments continue to offer their services. According to Kristopher Gupilan, an officer with the Wichita Police Department, the newly seized illegal machines further increase the number of confiscated devices. He revealed that for a decade, law enforcement seized more than 1,500 such machines and that number continues to grow.

What’s more worrying, Gupilan said, is that illegal gambling serves as a breeding ground for further crimes. “Violent crimes, thefts, all sorts of other crimes can stem from illegal gambling machines,” he warned. Gupilan encouraged anyone who suspects illegal casinos across Kansas to immediately report it by contacting Crime Stoppers. He said that such reports are anonymous.

Besides fueling other criminal activities, illegal gambling machines pose a risk for the players, according to the gambling regulator. The Kansas Racing and Gaming Commission confirmed that such devices may be rigged, allowing vendors to select any odds they would like. Unlike illegal gambling devices, licensed casino operators are required to set minimum odds for their slot machines. The Commission reminded that currently, tribal casino operators’ slots pay at 80%, while commercial gambling slots’ RTP is 87%.

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A surge in the popularity of so-called “skill games” has prompted state legislators to reexamine the regulation and taxation of these video gaming machines, now widely found in convenience stores and bars across Nebraska.

Lawmakers and Casino CEOs Sound Alarm Bells Over Unchecked Growth of “Skill Games”

The machines, which resemble traditional slot machines, have multiplied at an astonishing rate, with 4,752 units currently spread across nearly 1,600 retail locations in the state, reported The Nebraska Examiner. Since the beginning of the year, an additional 1,113 skill games have been installed, reflecting a growth rate of 27%. Approximately 900 more machines have received state permits but are yet to be deployed, raising concerns among lawmakers, problem gambling counselors, and casino operators.

Lance Morgan, President and CEO of Ho-Chunk Inc., which operates the WarHorse Casino in Lincoln, expressed his astonishment at the rapid proliferation of skill games. Unlike casinos, where slot machines require costly licenses, skill game machines can be installed after obtaining a $250 state sticker, leading to what Morgan perceives as an unlevel playing field.

State Senator John Lowe of Kearney, chair of the General Affairs Committee, has called for a public hearing at the State Capitol to address the concerns surrounding these machines. Lowe expressed his curiosity about the reasons behind the proliferation of these games, questioning whether they had inadvertently spawned a new industry.

Lawmakers Struggle with Regulation Amidst Rising Addiction Worries

While proponents of skill games argue that they involve an element of skill, critics argue that they are as addictive as traditional slot machines. David Geier, director of the Nebraska Gamblers Assistance Program, highlighted the rising concern of young gamblers engaging with these machines, which are often located in public spaces where age verification is not strictly enforced.

In response to these concerns, Albion Senator Tom Briese introduced a bill earlier this year aimed at increasing regulation and taxation on skill machines. However, the bill failed to advance, leaving the issue unresolved.

Some advocates, like Morgan, are urging for increased regulation and enforcement through the State Racing and Gaming Commission, hoping to level the playing field and address the growing issue of problem gambling associated with these skill games.

Other US states are also battling video gaming machines. A contentious debate recently took place in the Pennsylvania Senate Community, Economic, and Recreational Development Committee over the regulation of “skill games,” which have proliferated in bars, clubs, gas stations, and convenience stores across the state. A proposed bill, Senate Bill 706, aiming to regulate and tax these games, faced opposition from the state’s regulated casino industry, claiming these unregulated machines bypass gaming laws and draw patrons away from casinos. At the same time, the Supreme Court of Virginia unexpectedly reinstated the state’s ban on slots-like skill machines, reversing a lower court decision that prevented enforcement of the ban.

The post Nebraska Grapples with Unprecedented Expansion in Slot-Like Machines appeared first on Keno Wizard.

In a surprising twist, three lucky players hit life-altering jackpots in Las Vegas in July. 

Las Vegas Airport Slot Machines Crown Two Million-Dollar Winners in Quick Succession

One particularly lucky player hit the jackpot on a Wheel of Fortune slot machine, winning an astounding $1,286,324 on July 24. The winning combo was landed while playing the “Wheel of Fortune Red Hot 7’s” game at Terminal 3 at the Harry Reid International Airport in Las Vegas. The winner’s identity remains a mystery, but the airport authorities have officially confirmed the remarkable news.

Notably, this wasn’t the only million-dollar victory in the same location. Just a few weeks prior, a different gambler emerged victorious, seizing a jaw-dropping $1.3 million jackpot while playing the Wheel of Fortune Triple Double Emeralds machine at Terminal 1 at the Harry Reid International Airport.

The coincidental succession of million-dollar wins has sparked excitement and speculation among both tourists and locals. The Harry Reid International Airport, with its collection of over 1,400 slot machines dispersed throughout the terminals, has proven itself as a hotspot for hopeful gamblers aiming to strike it big.

The operator behind the airport’s slot machines, Airport Slot Concession, Inc., has enjoyed immense success. Last year, their revenue surpassed the billion-dollar milestone, while the airport itself reaped over $34 million in revenue from these machines. 

Huge Megabucks Jackpot Lands in North Las Vegas Casino

The Wheel of Fortune was not the only lucky slot game in Las Vegas in July. The Las Vegas Review-Journal reported that a local resident, known simply as Jesus, struck gold recently as he secured an astonishing Megabucks jackpot win of $10,488,726 at the Cannery Casino in North Las Vegas. The life-changing moment unfolded on July 7. The impressive win was confirmed by a spokesperson from Boyd Gaming.

Jesus, who usually frequents The Orleans and Gold Coast casinos, experienced his first visit to the North Las Vegas establishment. His elation was palpable as he shared his plans to utilize the windfall to purchase a new home for his mother. April was also a lucky month for IGT slot machine players. IGT set new jackpot records as their progressive games like Wheel of Fortune, Powerbucks, and Megabucks distributed a total of $17 million in jackpots, making it one of the company’s biggest months on record. Noteworthy wins included a $14 million Megabucks jackpot at Atlantis Casino Resort Spa in Reno, Nevada, and the biggest land-based jackpot in Canada.

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A new lawsuit, filed by attorneys in Missouri on behalf of seven plaintiffs, seeks to address the gray market for such machines. The plaintiffs argue that they have been hurt by the illegal operations of the thousands of machines that are currently available in the state, and seek damages from the owners of the venues that host them – usually convenience stores that use the machines as a lifeline to plunge gaps and keep going. Some big names have been named in the latest filing.

Missouri Gambling Machines Targeted in New Lawsuit

Legal action against the machines though is something that casino operators would happily back, as they have been trying to shutter the gray market for these machines for many years now. Missouri though has always come short of discussing the issue more broadly in legislation. This is mostly to do because a lot of constituents run businesses that need video lottery terminals or VLTs in order to stay in business. The lawsuit alleges there is a political backchannel between companies and corrupt politicians, too, although not in as many words.

When the pandemic hit, these machines often proved the only way to stay open, many owners argue. And yet, casinos riposte that because of the sector, their own bottom lines had suffered and they had not been able to contribute nearly as much as they could have if the machines had not been allowed to operate in the first place.

The lawsuit names Warrenton Oil Co, an operator of convenience and gas stores, and Torch Electronics, as the defendants. Torch Electronics is an operator of such machines, and it has been assailed by disgruntled parties repeatedly over the past several years. Mally Inc. is another company which runs supermarkets, and a number of other parties that the attorneys argue are responsible for the proliferation of what they insist is an illegal gambling market.

Unfair Practices and Vulnerable Consumers

Torch, however, is not the manufacturer of these machines. That is a company based in North Carolina, called Banilla Games. But the plaintiffs are not just fighting the legality of the sector per se – in fact, they are more interested in what they see as unfair practices by the machines. Wins are usually rounded down to the nearest whole increment, the lawsuit alleges. So, if you were to win $5.99, players would only be paid back $5 instead.

The lawsuit further takes a hit against the entire institution of these machines, arguing that the games are created in a flashy manner that wrongfully suggests that players may in fact win money. Another issue the lawsuit alleges is that there are hardly sufficient consumer protection measures to keep vulnerable people safe.

The lawsuit goes on to allege that “even toddlers” have been seen gambling at machines run by Torch. The suit also goes on to name various political donations the company, and other defendants, made in order to “guarantee” that no legislation moves against them.

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