CHAPTER 4
Legislative Research Commission PDF Version
1
CHAPTER 4
( HB 594 )
AN ACT relating to the regulation of game machines.
Be it enacted by the General Assembly of the Commonwealth of Kentucky:
Section 1. KRS 528.010 is amended to read as follows:
The following definitions apply in this chapter unless the context otherwise requires:
(1) "Advancing gambling activity" -- A person "advances gambling activity" when, acting other than as a player,
he or she engages in conduct that materially aids any form of gambling activity. The conduct shall include, but
is not limited to, conduct directed toward the establishment of the particular game, contest, scheme, device, or
activity involved; toward the acquisition or maintenance of premises, paraphernalia, equipment, or apparatus
therefor; toward the solicitation or inducement of persons to participate therein; toward the actual conduct of
the playing phases thereof; toward the arrangement of any of its financial or recording phases or toward any
other phase of its operation. A person who gambles at a social game of chance on equal terms with other
participants does not otherwise advance gambling activity by performing acts, without remuneration or fee,
directed toward the arrangement or facilitation of the game as inviting persons to play, permitting the use of
premises therefor and supplying equipment used therein;
(2) "Bookmaking" means advancing gambling activity by unlawfully accepting bets upon the outcome of future
contingent events from members of the public as a business;
(3) "Charitable gaming" means games of chance conducted by charitable organizations licensed and regulated
under the provisions of KRS Chapter 238;
(4) (a) "Coin-operated amusement machine" means a lawful machine or device that requires the direct or
indirect payment of consideration, including but not limited to the insertion of a coin, currency,
ticket, token, or similar object, or the depositing of funds with the operator or owner of the device,
and that contains no material element of chance and automatically, by or through some mechanical
operation, affords music or amusement of some character with or without vending any merchandise,
but in addition to any merchandise.
(b) A coin-operated amusement machine shall not deliver or entitle the person playing or operating the
game to receive cash, cash equivalents, gift cards, or vouchers, billets, tickets, tokens, electronic
credits or any item that can be exchanged for cash, cash equivalents, gift cards, merchandise, or
something of value, unless otherwise provided under this section.
(c) A coin-operated amusement machine may entitle the person playing to a noncash, merchandise prize
or a voucher, billet, ticket, token, or electronic credit redeemable only for a noncash, merchandise
prize under the following rules:
1. The wholesale value of a merchandise prize awarded as a result of the single play of a
machine, either directly or as a result of redemption of a redeemable voucher, does not exceed
twenty-five dollars ($25);
2. Redeemable vouchers are not redeemable for any merchandise prize that has a wholesale
value of more than twenty-five dollars ($25) times the fewest number of single plays necessary
to accrue the redeemable vouchers required to obtain that prize; and
3. Any redeemable vouchers or merchandise prizes are distributed at the site of the coin-operated
amusement machine at the time of play.
(d) The noncash merchandise prize shall not be:
1. An alcoholic beverage;
2. Eligible for purchase or repurchase; or
3. Exchangeable for any cash, cash equivalents, or something of value whatsoever;
(5) (a) "E-sports competition" means a league, competitive circuit, tournament, or similar competition in
which: ACTS OF THE GENERAL ASSEMBLY 2
1. Two (2) or more participants or teams of participants compete directly against each other for
entertainment and prizes in the same video game at the same time, typically for spectators;
2. Results are determined solely on the basis of the skill of the players;
3. The number of participants is fixed before the beginning of the competition;
4. Any fee collected to participate in the competition shall be collected from all participants
before the competition begins;
5. At least one (1) participant shall receive something of value based on the results of the
competition; and
6. The value of any prize shall be predetermined before the competition begins.
(b) E-sports shall not include traditional casino games which include but are not limited to poker,
roulette, craps, or blackjack;
(6) (a) "Gambling" means staking or risking something of value upon the outcome of a contest, game, gaming
scheme, or gaming device which is based upon an element of chance, in accord with an agreement or
understanding that someone will receive something of value in the event of a certain outcome.
"Gambling" includes playing or offering for play any game, contest, or competition utilizing a
gambling device.
(b) "Gambling" does not include:
1. A contest or game in which eligibility to participate is determined by chance and the ultimate
winner is determined by skill;
2. Charitable gaming which is licensed and regulated under the provisions of KRS Chapter 238;
3. E-sports competitions;
4. Skill-based contests; or
5. The use or operation of any devices or machines that are described in subsection (7)(b) of this
section[shall not be considered to be gambling.
(b) Gambling shall not mean charitable gaming which is licensed and regulated under the provisions of
KRS Chapter 238];
(7) (a) [(5)] "Gambling device" means:
1.[(a)] Any so-called slot machine or any other machine or mechanical device[ an essential part of
which is a drum or reel with insignia thereon, and] which when operated may deliver, as a result
of the application of any[an] element of chance, any money or property, or by the operation of
which a person may become entitled to receive, as the result of the application of any[an]
element of chance, any money or property;
2.[(b)] Any mechanical or electronic device permanently located in a business establishment, including
a private club, that is offered or made available to a person to play or participate in a simulated
gambling program in return for direct or indirect consideration, including but not limited to
consideration paid for Internet access or computer time, or a sweepstakes entry, which when
operated may deliver as a result of the application of any[an] element of chance, regardless of
whether the result is also partially or predominantly based on skill, any money or property, or
by the operation of which a person may become entitled to receive, as the result of the
application of any[an] element of chance, regardless of whether the result is also partially or
predominantly based on skill, any money or property;[ or]
3.[(c)] Any other machine or any mechanical, electronic, or other device, including but not limited to
roulette wheels, gambling tables and similar devices, designed and manufactured primarily for
use in connection with gambling and which when operated may deliver, as the result of the
application of any[an] element of chance, any money or property, or by the operation of which a
person may become entitled to receive, as the result of the application of any[an] element of
chance, any money or property; or
4. Any electronic, computerized, or mechanical contrivance, terminal, machine, or other device
that: CHAPTER 4
Legislative Research Commission PDF Version
3
a. Requires the direct or indirect payment of consideration which may include and shall
not be limited to the insertion of a coin, currency, ticket, token, or similar object, or by
depositing funds with the operator or owner of the device, to operate, play, or activate a
game; and
b. Offers games the outcomes of which are determined by any element of skill of the
player and may deliver or entitle the person playing or operating the device to receive
cash, cash equivalents, or gift cards or vouchers, billets, tickets, tokens, or electronic
credits to be exchanged for cash or to receive merchandise or something of value,
whether the payoff is made automatically from the device or manually.
(b) The[(d) But, the] following shall not be considered gambling devices within this definition:
1. Devices dispensing or selling combination or French pools on licensed, regular racetracks during
races on said tracks;
2. Devices dispensing or selling combination or French pools on historical races at licensed, regular
racetracks as lawfully authorized by the Kentucky Horse Racing Commission;
3. Electro-mechanical pinball machines specially designed, constructed, set up, and kept to be
played for amusement only. Any pinball machine shall be made to receive and react only to the
deposit of coins during the course of a game. The ultimate and only award given directly or
indirectly to any player for the attainment of a winning score or combination on any pinball
machine shall be the right to play one (1) or more additional games immediately on the same
device at no further cost. The maximum number of free games that can be won, registered, or
accumulated at one (1) time in operation of any pinball machine shall not exceed thirty (30) free
games. Any pinball machine shall be made to discharge accumulated free games only by
reactivating the playing mechanism once for each game released. Any pinball machine shall be
made and kept with no meter or system to preserve a record of free games played, awarded, or
discharged. Nonetheless, a pinball machine shall be a gambling device if a person gives or
promises to give money, tokens, merchandise, premiums, or property of any kind for scores,
combinations, or free games obtained in playing the pinball machine in which the person has an
interest as owner, operator, keeper, or otherwise;[ or]
4. Devices used in the conduct of charitable gaming;
5. Coin-operated amusement machines;
6. Devices used for wagering exempted from the application of this chapter pursuant to KRS
436.480;
7. Devices used in e-sports competitions; or
8. Devices used in skill-based contests, provided such devices do not meet the definition of
gambling devices in paragraph (a) of this subsection;
(8)[(6)] "Lottery and gift enterprise" means:
(a) A gambling scheme in which:
1. The players pay or agree to pay something of value for chances, represented and differentiated
by numbers or by combinations of numbers or by some other media, one (1) or more of which
are to be designated the winning ones; and
2. The ultimate winner is to be determined by a drawing or by some other method based upon the
element of chance;[ and]
3. The holders of the winning chances are to receive something of value; and
(b) A gift enterprise or referral sales plan which meets the elements of a lottery listed in paragraph (a) of
this subsection is to be considered a lottery under this chapter;
(9)[(7)] "Mutuel" or "the numbers games" means a form of lottery in which the winning chances or plays are
not determined upon the basis of a drawing or other act on the part of persons conducting or connected with
the scheme, but upon the basis of the outcome or outcomes of a future contingent event or events otherwise
unrelated to the particular scheme; ACTS OF THE GENERAL ASSEMBLY 4
(10)[(8)] "Player" means a person who engages in any form of gambling solely as a contestant or bettor, without
receiving or becoming entitled to receive any profit therefrom other than personal gambling winnings, and
without otherwise rendering any material assistance to the establishment, conduct, or operation of the
particular gambling activity. A person who engages in "bookmaking" as defined in subsection (2) of this
section is not a "player." The status of a "player" shall be a defense to any prosecution under this chapter;
(11)[(9)] "Profiting from gambling activity" -- A person "profits from gambling activity" when, other than as a
player, he or she accepts or receives or agrees to accept or receive money or other property pursuant to an
agreement or understanding with any person whereby he or she participates or is to participate in the proceeds
of gambling activity;
(12)[(10)] "Simulated gambling program" means any method intended to be used by a person playing,
participating, or interacting with an electronic device that may, through the application of any[an] element of
chance, either deliver money or property or an entitlement to receive money or property;[ and]
(13) "Skill" means the knowledge, dexterity, or any other ability or expertise of a natural person;
(14) "Skill-based contest" means a live, in-person competitive event among two (2) or more individuals or teams
of individuals in which the ultimate winner is determined by skill and the competitive event does not utilize
a gambling device; and
(15)[(11)] (a) "Something of value" means any money or property, any token, object, or article exchangeable
for money or property, or any form of credit or promise directly or indirectly contemplating transfer of
money or property or of any interest therein, or involving extension of a service, entertainment, or a
privilege of playing at a game or scheme without charge.
(b) "Something of value" does not include the award of a free, extended, or continuous play which is
awarded as a prize for playing a game or scheme for a charge.
Section 2. KRS 528.100 is amended to read as follows:
(1) Any gambling device or gambling record possessed or used in violation of this chapter is forfeited to the state,
and shall be disposed of in accordance with KRS 500.090[, except that the provisions of this section shall not
apply to charitable gaming activity as defined by KRS 528.010(3)].
(2) In addition to any other penalty provided by law, any person who conducts, finances, manages, supervises,
directs, or owns a gambling device intended for use in the Commonwealth in violation of this chapter shall
be subject to a civil penalty not to exceed twenty-five thousand dollars ($25,000) for each device, payable to
the county in which the device was operated.
(3) The Attorney General, the Commonwealth's attorney for any locality, or the county attorney for any locality
may cause an action in equity to be brought in the name of the Commonwealth or of the locality, as
applicable, to:
(a) Enjoin the operation of a gambling device in violation of this section;
(b) Request an attachment against all such devices and any moneys within those devices pursuant to
KRS 500.090; and
(c) Recover the civil penalty not to exceed twenty-five thousand dollars ($25,000) per device.
Signed by Governor March 16, 2023.