Kentucky 2023 Regular Session

Kentucky House Bill HB539 Latest Draft

Bill / Introduced Version

                            UNOFFICIAL COPY  	23 RS BR 1766 
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AN ACT relating to the regulation of game machines and declaring an emergency. 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 11 
activity 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 
4. Actual conduct of the playing phases thereof; or[toward the ] 16 
5. Arrangement of any of its financial or recording phases or toward any 17 
other phase of its operation. 18 
(c) A person who gambles at a social game of chance on equal terms with other 19 
participants does not otherwise advance gambling activity by performing acts, 20 
without remuneration or fee, directed toward the arrangement or facilitation of 21 
the game, such as inviting persons to play, permitting the use of premises 22 
therefor, and supplying equipment used therein; 23 
(2) "Bookmaking" means advancing gambling activity by unlawfully accepting bets 24 
upon the outcome of future contingent events from members of the public as a 25 
business; 26 
(3) "Charitable gaming" means games of chance conducted by charitable organizations 27  UNOFFICIAL COPY  	23 RS BR 1766 
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licensed and regulated under the provisions of KRS Chapter 238; 1 
(4) (a) "Gambling" means staking or risking something of value upon the outcome of 2 
a contest, game, gaming scheme, or gaming device which is based upon an 3 
element of chance, in accord with an agreement or understanding that 4 
someone will receive something of value in the event of a certain outcome. A 5 
contest or game in which eligibility to participate is determined by chance and 6 
the ultimate winner is determined by skill shall not be considered to be 7 
gambling.  8 
(b) Gambling shall not mean charitable gaming which is licensed and regulated 9 
under the provisions of KRS Chapter 238; 10 
(5) "Gambling device" means: 11 
(a) Any so-called slot machine or any other machine or mechanical device an 12 
essential part of which is a drum or reel with insignia thereon, and which 13 
when operated may deliver, as a result of the application of an element of 14 
chance, any money or property, or by the operation of which a person may 15 
become entitled to receive, as the result of the application of an element of 16 
chance, any money or property; 17 
(b) Any mechanical or electronic device permanently located in a business 18 
establishment, including a private club, that is offered or made available to a 19 
person to play or participate in a simulated gambling program in return for 20 
direct or indirect consideration, including but not limited to consideration paid 21 
for Internet access or computer time, or a sweepstakes entry, which when 22 
operated may deliver as a result of the application of an element of chance, 23 
any money or property, or by the operation of which a person may become 24 
entitled to receive, as the result of the application of an element of chance, any 25 
money or property; or 26 
(c) Any other machine or any mechanical or other device, including but not 27  UNOFFICIAL COPY  	23 RS BR 1766 
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limited to roulette wheels, gambling tables and similar devices, designed and 1 
manufactured primarily for use in connection with gambling and which when 2 
operated may deliver, as the result of the application of an element of chance, 3 
any money or property, or by the operation of which a person may become 4 
entitled to receive, as the result of the application of an element of chance, any 5 
money or property; 6 
(d) But, the following shall not be considered gambling devices within this 7 
definition: 8 
1. Devices dispensing or selling combination or French pools on licensed, 9 
regular racetracks during races on said tracks; 10 
2. Devices dispensing or selling combination or French pools on historical 11 
races at licensed, regular racetracks as lawfully authorized by the 12 
Kentucky Horse Racing Commission; 13 
3. Electro-mechanical pinball machines specially designed, constructed, set 14 
up, and kept to be played for amusement only. Any pinball machine 15 
shall be made to receive and react only to the deposit of coins during the 16 
course of a game. The ultimate and only award given directly or 17 
indirectly to any player for the attainment of a winning score or 18 
combination on any pinball machine shall be the right to play one (1) or 19 
more additional games immediately on the same device at no further 20 
cost. The maximum number of free games that can be won, registered, 21 
or accumulated at one (1) time in operation of any pinball machine shall 22 
not exceed thirty (30) free games. Any pinball machine shall be made to 23 
discharge accumulated free games only by reactivating the playing 24 
mechanism once for each game released. Any pinball machine shall be 25 
made and kept with no meter or system to preserve a record of free 26 
games played, awarded, or discharged. Nonetheless, a pinball machine 27  UNOFFICIAL COPY  	23 RS BR 1766 
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shall be a gambling device if a person gives or promises to give money, 1 
tokens, merchandise, premiums, or property of any kind for scores, 2 
combinations, or free games obtained in playing the pinball machine in 3 
which the person has an interest as owner, operator, keeper, or 4 
otherwise; or 5 
4. Devices used in the conduct of charitable gaming; 6 
(6) "Lottery and gift enterprise" means: 7 
(a) A gambling scheme in which: 8 
1. The players pay or agree to pay something of value for chances, 9 
represented and differentiated by numbers or by combinations of 10 
numbers or by some other media, one (1) or more of which are to be 11 
designated the winning ones; and 12 
2. The ultimate winner is to be determined by a drawing or by some other 13 
method based upon the element of chance; and 14 
3. The holders of the winning chances are to receive something of value; 15 
and 16 
(b) A gift enterprise or referral sales plan which meets the elements of a lottery 17 
listed in paragraph (a) of this subsection is to be considered a lottery under 18 
this chapter; 19 
(7) "Mutuel" or "the numbers games" means a form of lottery in which the winning 20 
chances or plays are not determined upon the basis of a drawing or other act on the 21 
part of persons conducting or connected with the scheme, but upon the basis of the 22 
outcome or outcomes of a future contingent event or events otherwise unrelated to 23 
the particular scheme; 24 
(8) "Player" means a person who engages in any form of gambling solely as a 25 
contestant or bettor, without receiving or becoming entitled to receive any profit 26 
therefrom other than personal gambling winnings, and without otherwise rendering 27  UNOFFICIAL COPY  	23 RS BR 1766 
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any material assistance to the establishment, conduct, or operation of the particular 1 
gambling activity. A person who engages in "bookmaking" as defined in subsection 2 
(2) of this section is not a "player." The status of a "player" shall be a defense to any 3 
prosecution under this chapter; 4 
(9) "Profiting from gambling activity" -- A person "profits from gambling activity" 5 
when, other than as a player, he accepts or receives or agrees to accept or receive 6 
money or other property pursuant to an agreement or understanding with any person 7 
whereby he participates or is to participate in the proceeds of gambling activity; 8 
(10) "Simulated gambling program" means any method intended to be used by a person 9 
playing, participating, or interacting with an electronic device that may, through the 10 
application of an element of chance, either deliver money or property or an 11 
entitlement to receive money or property; and 12 
(11) "Something of value" means any money or property, any token, object, or article 13 
exchangeable for money or property, or any form of credit or promise directly or 14 
indirectly contemplating transfer of money or property or of any interest therein, or 15 
involving extension of a service, entertainment, or a privilege of playing at a game 16 
or scheme without charge.  17 
Section 2.   Whereas the number of illegal game machines in Kentucky continues 18 
to multiply at an exponential rate, an emergency is declared to exist, and this Act takes 19 
effect upon its passage and approval by the Governor or upon its otherwise becoming a 20 
law. 21