AGA applauds Kentucky on new gray machine prohibition

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The American Gaming Association’s CEO Bill Miller wrote an open letter congratulating the state of Kentucky on becoming the first state to pass standalone legislation expressly prohibiting gray machines. Gov. Andy Beshear signed the bill into law late last week.

“This win is a testament to what we can accomplish when we unite as an industry behind a common cause—and the American Gaming Association will use it as a springboard to pursue similar success in states throughout the country,” wrote Miller.

Cracking down on illegal gambling has been a major focus of the AGA over the past year, both online and in brick-and-mortar facilities. In a 2022 report, the AGA estimated over $100 billion was wagered annually on these unregulated machines.

Kentucky mulled multiple ways to address the proliferation of these alleged “skill games” machines, including a bill to regulate them. States like Wyoming have pursued similar measures. Major skill games manufacturers like Pace-O-Matic are pursuing similar routes in states like Pennsylvania.

Meanwhile, the AGA continues to appeal to the Department of Justice to take action against both these gray machines and offshore operators. Typically these cases have been handled at the local level. In fact, Pace-O-Matic often works to bring these cases to court in order to get a concrete and favorable ruling for the machines in a state.

Kentucky businesses with these gray machines will have until July to remove them from their venues.