Ban them or regulate them? Debate over game machines in Kentucky to resurface this year

IT’S JUST A FUN GAME TO SIT DOWN AND PLAY IT. NEW AT 530, THE DEBATE OVER NEW GAMING MACHINES IS LEADING TO A LEGAL FIGHT IN FRANKFURT. NOW, YOU MAY HAVE NOTICED SOME NEW GAMING MACHINES POPPING UP AT LOCAL GAS STATIONS AND BARS IN THE LAST COUPLE OF YEARS. THE INDUSTRY CALLS THEM GAMES OF SKILL, BUT OPPONENTS CALL THEM GRAY MACHINES, A REFERENCE TO THEIR MURKY LEGAL STATUS. AS WLKY MARK VANDERHOFF REPORTS, THERE’S A FIGHT BREWING IN FRANKFURT OVER THEIR FUTURE. IF YOU’VE NEVER SEEN ONE OF THESE GAMES BEFORE, THIS IS IT. THE OBJECT OF THIS PARTICULAR ONE IS TO GET THREE IN A ROW. AND WE PUT THEM IN HERE AND THEY’VE BEEN GREAT. PEOPLE LOVE THEM. GERARD MATTHEWS HAS SOME OF THE GAMES AT HIS SPORTS BAR AND RESTAURANT, THE FOX DEN IN SAINT MATTHEWS. I THINK IT’S JUST SOMETHING ENTERTAINING, YOU KNOW? I MEAN, PEOPLE COME TO ESTABLISHMENTS LIKE THIS TO KIND OF GET THIS GABRIEL A LITTLE BIT TO POUR, YOU KNOW, RELAX, WATCH A GAME, AND IT JUST ADDS TO IT. IT’S JUST A FUN GAME TO SIT DOWN AND PLAY. BUT AS THE GAMES HAVE INCREASED IN POPULARITY, A MOVEMENT HAS EMERGED TO BAN THEM. IF THE LEGISLATURE DOESN’T BAN THESE GRAY GAME MACHINES, WE’RE GOING TO BE LOOKING AT THE LARGEST EXPANSION OF GAMBLING IN THE HISTORY OF KENTUCKY. CRITICS SAY THESE ARE GAMES OF CHANCE, MAKING THEM LITTLE MORE THAN SLOT MACHINES. THERE’S A SOMETHING ON THE SCREEN THAT SAYS UNDER 21 BIG RED DASH. BUT THE CLERK BEHIND THE COUNTER IS NOT GOING TO MONITOR THESE MACHINES. SO YOU’RE GOING TO HAVE IF WE THINK KIDS PLAYING THEM, THAT’S BEEN THE EXPERIENCE IN OTHER STATES. YOU’RE GOING TO HAVE READY ACCESS FOR PEOPLE WHO HAVE GAMBLING ADDICTIONS. SUPPORTERS OF THE GAME SAY THEY DO REQUIRE SKILL. SO BY TAPPING THAT CORNER THERE, I MADE THAT A WILD TO FEND OFF A BAN. THEY PLAN TO PROPOSE LEGISLATION TO REGULATE THE GAMES. LIMIT HOW MANY CAN BE IN ONE BUSINESS AND TAX THEM AT 6%. WELL, WE THINK SOME OF THAT MONEY SHOULD GO TOWARDS OVERSIGHT AND REGULATION OF THE MACHINES TO MAKE SURE THAT EVERYBODY’S OPERATING ON THE SAME. PLAYING FIELD. SO SO MONEY TOWARDS LAW ENFORCEMENT, SOME OF THAT MONEY WOULD GO TOWARDS THAT, OF COURSE. FOR MATTHEWS, THE GAMES ALSO PROVIDE EXTRA REVENUE DURING A TOUGH TIME FOR THE RESTAURANT INDUSTRY. SO EVERY LITTLE BI

They've begun popping up in gas stations, bars and restaurants in the past couple years, with flashy screens promising jackpots.Critics call them "gray machines," saying they exist in a gray area of Kentucky's law but really amount to nothing more than illegal gambling.Supporters say they require skill – and therefore are not gambling devices – and could be a source of extra revenue for small business owners and the state government alike.Both camps are expected to push competing bills in Frankfort this year."I think it's just something entertaining," said Jared Matthews, owner of The Fox Den, a sports bar and restaurant in Louisville's Saint Matthews area. "People come to establishments like this to kind of escape reality a little bit. Shoot some pool, relax, watch a game and it just adds to it. It's just a fun game to sit down and play."Matthews and others hope state lawmakers will approve a bill to regulate the industry and tax the machines at 6%. It's hard to know exactly how much tax revenue the games would produce, but a spokesperson for the Kentucky Merchants and Amusement Coalition put the estimate between $10 million-$250 million per year. But opponents of the games will be pushing their own bill – an outright ban."If the legislature doesn't ban these gray game machines, we're going to be looking at the largest expansion of gambling in the history of Kentucky," said Mark Guilfoyle, executive director of Kentuckians Against Illegal Gambling. Guilfoyle predicts the proliferation of the machines will attract crime and addiction. Preventing minors from accessing the games in gas stations also will be difficult, he said.Supporters of the game say those concerns are overblown and argue the payout kiosks have the technology to scan drivers licenses and verify someone's age. Both sides expect their bills to be filed shortly after state lawmakers return to Frankfort on Feb. 7.

FRANKFORT, Ky. —

They've begun popping up in gas stations, bars and restaurants in the past couple years, with flashy screens promising jackpots.

Critics call them "gray machines," saying they exist in a gray area of Kentucky's law but really amount to nothing more than illegal gambling.

Supporters say they require skill – and therefore are not gambling devices – and could be a source of extra revenue for small business owners and the state government alike.

Both camps are expected to push competing bills in Frankfort this year.

"I think it's just something entertaining," said Jared Matthews, owner of The Fox Den, a sports bar and restaurant in Louisville's Saint Matthews area. "People come to establishments like this to kind of escape reality a little bit. Shoot some pool, relax, watch a game and it just adds to it. It's just a fun game to sit down and play."

Matthews and others hope state lawmakers will approve a bill to regulate the industry and tax the machines at 6%. It's hard to know exactly how much tax revenue the games would produce, but a spokesperson for the Kentucky Merchants and Amusement Coalition put the estimate between $10 million-$250 million per year.

But opponents of the games will be pushing their own bill – an outright ban.

"If the legislature doesn't ban these gray game machines, we're going to be looking at the largest expansion of gambling in the history of Kentucky," said Mark Guilfoyle, executive director of Kentuckians Against Illegal Gambling.

Guilfoyle predicts the proliferation of the machines will attract crime and addiction. Preventing minors from accessing the games in gas stations also will be difficult, he said.

Supporters of the game say those concerns are overblown and argue the payout kiosks have the technology to scan drivers licenses and verify someone's age.

Both sides expect their bills to be filed shortly after state lawmakers return to Frankfort on Feb. 7.

Ban them or regulate them? Debate over game machines in Kentucky to resurface this year

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