Kentucky 2022 Regular Session

Kentucky House Bill HB608 Latest Draft

Bill / Engrossed Version

                            UNOFFICIAL COPY  	22 RS HB 608/GA 
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AN ACT relating to the regulation of game machines. 1 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 
Section 1.   KRS 528.010 is amended to read as follows: 3 
The following definitions apply in this chapter unless the context otherwise requires: 4 
(1) (a) "Advancing gambling activity" means[-- A person "advances gambling 5 
activity" when, acting other than as a player, he engages in] conduct a person 6 
engages in other than as a player that materially aids any form of gambling 7 
activity. 8 
(b) "Advancing gambling activity" includes[The conduct shall include, but is 9 
not limited to,] conduct directed toward the: 10 
1. Establishment of the particular game, contest, scheme, device, or activity 11 
involved;[ toward the ] 12 
2. Acquisition or maintenance of premises, paraphernalia, equipment, or 13 
apparatus therefor;[ toward the ] 14 
3. Solicitation or inducement of persons to participate therein;[ toward the 15 
] 16 
4. Actual conduct of the playing phases thereof; or[toward the ] 17 
5. Arrangement of any of its financial or recording phases or toward any 18 
other phase of its operation. 19 
(c) A person who gambles at a social game of chance on equal terms with other 20 
participants does not otherwise advance gambling activity by performing acts, 21 
without remuneration or fee, directed toward the arrangement or facilitation of 22 
the game, such as inviting persons to play, permitting the use of premises 23 
therefor, and supplying equipment used therein;  24 
(2) "Bookmaking" means advancing gambling activity by unlawfully accepting bets 25 
upon the outcome of future contingent events from members of the public as a 26 
business; 27  UNOFFICIAL COPY  	22 RS HB 608/GA 
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(3) "Charitable gaming" means games of chance conducted by charitable organizations 1 
licensed and regulated under the provisions of KRS Chapter 238; 2 
(4) (a) "Gambling" means staking or risking something of value upon the outcome of 3 
a contest, game, gaming scheme, or gaming device which is based upon an 4 
element of chance, in accord with an agreement or understanding that 5 
someone will receive something of value in the event of a certain outcome. A 6 
contest or game in which eligibility to participate is determined by chance and 7 
the ultimate winner is determined by skill shall not be considered to be 8 
gambling. 9 
(b) Gambling shall not include:[mean] 10 
1. Any contest, gaming, or wager that is licensed, authorized, permitted, 11 
or regulated by: 12 
a. The Kentucky Lottery Corporation under KRS Chapter 154A; 13 
b. The Kentucky Horse Racing Commission under KRS Chapter 14 
230; 15 
c. The Department of Charitable Gaming under  KRS Chapter 238; 16 
or[Charitable gaming which is licensed and regulated under the 17 
provisions of KRS Chapter 238] 18 
d. Amendment to the Kentucky Constitution or action of the 19 
General Assembly after January 1, 2022; or 20 
2. The use or operation of any devices or machines that are excluded 21 
from subsection (5) of this section; 22 
(5) "Gambling device" means: 23 
(a) Any so-called slot machine or any other machine or mechanical device an 24 
essential part of which is a drum or reel with insignia thereon, and which 25 
when operated may deliver, as a result of the application of an element of 26 
chance, any money or property, or by the operation of which a person may 27  UNOFFICIAL COPY  	22 RS HB 608/GA 
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become entitled to receive, as the result of the application of an element of 1 
chance, any money or property; 2 
(b) Any mechanical or electronic device permanently located in a business 3 
establishment, including a private club, that is offered or made available to a 4 
person to play or participate in a simulated gambling program in return for 5 
direct or indirect consideration, including but not limited to consideration paid 6 
for Internet access or computer time, or a sweepstakes entry, which when 7 
operated may deliver as a result of the application of an element of chance, 8 
any money or property, or by the operation of which a person may become 9 
entitled to receive, as the result of the application of an element of chance, any 10 
money or property; or 11 
(c) Any other machine or any mechanical or other device, including but not 12 
limited to roulette wheels, gambling tables and similar devices, designed and 13 
manufactured primarily for use in connection with gambling and which when 14 
operated may deliver, as the result of the application of an element of chance, 15 
any money or property, or by the operation of which a person may become 16 
entitled to receive, as the result of the application of an element of chance, any 17 
money or property; 18 
(d) [But, ]The following shall not be considered gambling devices within this 19 
definition: 20 
1. Devices dispensing or selling combination or French pools on licensed, 21 
regular racetracks during races on said tracks; 22 
2. Devices dispensing or selling combination or French pools on historical 23 
races at licensed, regular racetracks as lawfully authorized by the 24 
Kentucky Horse Racing Commission; 25 
3. Electro-mechanical pinball machines specially designed, constructed, set 26 
up, and kept to be played for amusement only. Any pinball machine 27  UNOFFICIAL COPY  	22 RS HB 608/GA 
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shall be made to receive and react only to the deposit of coins during the 1 
course of a game. The ultimate and only award given directly or 2 
indirectly to any player for the attainment of a winning score or 3 
combination on any pinball machine shall be the right to play one (1) or 4 
more additional games immediately on the same device at no further 5 
cost. The maximum number of free games that can be won, registered, 6 
or accumulated at one (1) time in operation of any pinball machine shall 7 
not exceed thirty (30) free games. Any pinball machine shall be made to 8 
discharge accumulated free games only by reactivating the playing 9 
mechanism once for each game released. Any pinball machine shall be 10 
made and kept with no meter or system to preserve a record of free 11 
games played, awarded, or discharged. Nonetheless, a pinball machine 12 
shall be a gambling device if a person gives or promises to give money, 13 
tokens, merchandise, premiums, or property of any kind for scores, 14 
combinations, or free games obtained in playing the pinball machine in 15 
which the person has an interest as owner, operator, keeper, or 16 
otherwise;[ or] 17 
4. Devices used in the conduct of charitable gaming; or 18 
5. Any device used and authorized by KRS Chapter 154A, 230, or 238; 19 
(6) "Lottery and gift enterprise" means: 20 
(a) A gambling scheme in which: 21 
1. The players pay or agree to pay something of value for chances, 22 
represented and differentiated by numbers or by combinations of 23 
numbers or by some other media, one (1) or more of which are to be 24 
designated the winning ones; and 25 
2. The ultimate winner is to be determined by a drawing or by some other 26 
method based upon the element of chance; and 27  UNOFFICIAL COPY  	22 RS HB 608/GA 
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3. The holders of the winning chances are to receive something of value; 1 
and 2 
(b) A gift enterprise or referral sales plan which meets the elements of a lottery 3 
listed in paragraph (a) of this subsection is to be considered a lottery under 4 
this chapter; 5 
(7) "Mutuel" or "the numbers games" means a form of lottery in which the winning 6 
chances or plays are not determined upon the basis of a drawing or other act on the 7 
part of persons conducting or connected with the scheme, but upon the basis of the 8 
outcome or outcomes of a future contingent event or events otherwise unrelated to 9 
the particular scheme; 10 
(8) "Player" means a person who engages in any form of gambling solely as a 11 
contestant or bettor, without receiving or becoming entitled to receive any profit 12 
therefrom other than personal gambling winnings, and without otherwise rendering 13 
any material assistance to the establishment, conduct, or operation of the particular 14 
gambling activity. A person who engages in "bookmaking" as defined in subsection 15 
(2) of this section is not a "player." The status of a "player" shall be a defense to any 16 
prosecution under this chapter; 17 
(9) "Profiting from gambling activity" means[-- A person "profits from gambling 18 
activity"] when, other than as a player, the person[he] accepts or receives or agrees 19 
to accept or receive money or other property pursuant to an agreement or 20 
understanding with any other person whereby the person[he] participates or is to 21 
participate in the proceeds of gambling activity; 22 
(10) "Simulated gambling program" means any method intended to be used by a person 23 
playing, participating, or interacting with an electronic device that may, through the 24 
application of an element of chance, either deliver money or property or an 25 
entitlement to receive money or property; and 26 
(11) "Something of value" means any money or property, any token, object, or article 27  UNOFFICIAL COPY  	22 RS HB 608/GA 
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exchangeable for money or property, or any form of credit or promise directly or 1 
indirectly contemplating transfer of money or property or of any interest therein, or 2 
involving extension of a service, entertainment, or a privilege of playing at a game 3 
or scheme without charge. 4 
SECTION 2.   A NEW SECTION OF KRS CHAPTER 528 IS CREATED TO 5 
READ AS FOLLOWS: 6 
(1) The Kentucky State Police shall establish a task force dedicated to the removal of 7 
any gambling devices not authorized by law. 8 
(2) (a) The Justice and Public Safety Cabinet shall promulgate administrative 9 
regulations establishing membership, procedures, privileges, duties, and 10 
reporting requirements; and 11 
(b) Any reports generated by the task force shall be submitted to the Legislative 12 
Research Commission, the Interim Joint Committee on Judiciary, and the 13 
Interim Joint Committee on Licensing, Occupations, and Administrative 14 
Regulations. 15