Bill Prohibiting Gray Games Advances to Senate Following House Approval Vote
Kentucky House of Representatives managed to resurrect and pass a bill on Wednesday that would outlaw the functioning of so-called skill games throughout the state.
The 64-32 vote to approve House Bill 594 wraps up a chaotic few days in Frankfort that included Republican Party infighting, who command 80 of the chamber’s 100 seats.
Opponents of the bill managed to hold off the measure on Friday, a move that surprised sponsoring state Rep. Killian Timoney, R-Nicholasville, and various GOP leaders who support the bill.
Republican members held intense discussions for hours on Tuesday and Wednesday before the House sessions for those days. There were also whispers among Frankfort insiders in the Capitol hallways that the bill needed to be resuscitated by Wednesday to be deemed viable. At the same time, the House read aloud a secondary bill Timoney submitted as a precaution.
However, this wasn't necessary as the House took action shortly after the break on Wednesday. A 66-10 vote removed the bill from the table (Friday’s vote to table was 42-35), and shortly afterward, with minimal debate, the 2-to-1 vote sent the bill to the Senate.
Gray Matters vs. Skill
The controversy surrounding the machines is intricate.
Supporters of the games label them skill games, arguing that a player can win every time if they rely on their memory and hand-eye coordination. Game manufacturers argue they sent letters to leaders in all 120 counties seeking permission to offer their games to local establishments.
Detractors call them gray games, claiming they lack regulation and that operators covertly introduced the machines. They fear the games will result in an increase in underage gambling and criminal activity. They state there are thousands of such games across the state, and more will appear unless action is taken.
"Kentucky has a rich history of legalized gambling, but no one's interest has ever been served well by illegal gambling," House Speaker David Osborne, R-Prospect, said in a statement. "Today's House vote sends a clear message that there's no room for gambling enterprises that flout the law to flood Kentucky with unregulated casino-style gaming without limit or oversight."
The Kentucky Merchants and Amusement Coalition (KY MAC), which represents hundreds of small businesses that host skill machines in their establishments, criticized HB 594 as a bill backed by Churchill Downs, which controls nearly 60% of the roughly 6,900 historical horse racing machines operational in the state, and other horse racing interests.
KY MAC President Wes Jackson pointed out the irony that the House passed the ban bill on the same day a House committee approved a sports betting bill that will give tracks control over that gaming market.
"It's unfortunate that even after so many Kentucky small business owners contacted their legislators about the benefits of skill games, and even after it became clear that many House members were not in favor of voting on this legislation last week, that several lawmakers decided to call HB594 for a vote and pass it today," Jackson said.
Senate Delves into BillGra
HB 594 now moves to the Senate for its consideration. Senate Majority Floor Leader Damon Thayer, R-Georgetown, has openly endorsed a ban bill.
Thayer claimed Wednesday evening that the bill might reach the Senate floor for a vote next week.
After Wednesday, there are eight legislative days left in the session. Six of those will occur between Thursday and the following Thursday, with the last days scheduled for March 29-30.
Both chambers of the General Assembly voted to ban the machines last year, but the House didn't approve a Senate amendment, causing the bill to fail. Representatives from both chambers collaborated on this year's bill to ensure concerns about the bill not banning arcade games, fair games, and eSports were addressed.
"We must restore the proper hierarchy, empowering the legislature to lead by drafting the laws that precede the inclusion of gaming in the Commonwealth," Timoney said. "HB 594 represents hundreds of hours of effort by a multitude of stakeholders, as well as input from those for and against the proposal. We've consulted retailers and other business owners with machines, as well as law enforcement, state regulators, and even the gray machine companies. Ultimately, we made the decision to outlaw them entirely."
Under the bill, those involved in the operation of the machines would face a fine of up to $25,000. If the bill banning the machines becomes law, it will likely face a court challenge, similar to one currently ongoing in Virginia, which has also moved to prohibit the machines in its establishments.
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