Lawsuit Filed in Kentucky to Challenge Ban on Skill Games

On Tuesday, legal action was taken in the Bluegrass State by Pace-O-Matic and other advocates of skill-based games, in an effort to prevent a newly-passed law banning the machines from taking effect. Michael Barley, Chief Public Affairs Officer for Pace-O-Matic, declared in a statement that the Georgia-based game maker is part of a coalition that has submitted a complaint to Franklin Circuit Court regarding House Bill 594.

Also known as gray games, these electronic gaming devices are said to rely on players’ skills, such as hand-eye coordination and memory, in order for them to win. Opposers, however, allege that the machines are unregulated and would result in criminal activity if they were allowed to remain in use.

Governor Andy Beshear approved HB 594 on March 16, and if upheld, those affiliated with the machines stand to face fines of up to $25,000 per machine if they are not removed after the General Assembly session ends on Thursday.

The lawsuit was filed by Pace-O-Matic, ARKK Properties, B.J. Novelty, The Cue Club, Banners, an American Legion Hall in Lexington, Parlay’s Tavern, and Vincent and Tanya Milano. These plaintiffs claim that skill-based games have been deemed legal for centuries, and that their games should be safeguarded against certain horse racing parties in the state.

In addition, the complaint argues that the bill is unconstitutional due to it infringing on free speech, due process, and equal protection clauses. It additionally requests the court to put a temporary injunction in place while the case is being heard, in order to avoid the legislation from going into effect.

Governor Beshear and Attorney General Daniel Cameron are both listed as defendants in the case. Cameron previously mentioned that his office would defend a law prohibiting gray games, during a GOP gubernatorial debate in Louisville.

The debate over the gaming machines has been an ongoing one for the last two years, and the ban bill was passed in both chambers last year. However, an amendment that was made in the Senate was not given approval in the House before the session ended.

Rep. Killian Timoney and Senate Majority Leader Damon Thayer, the sponsors of the bill, worked on a new version that takes into account games available in arcades and fairs, as well as eSports contests.

Skill games proponents in Kentucky have filed a lawsuit to block the impending ban on their machines. The complaint was filed late Tuesday, seeking to overturn the law on the grounds that it violates free speech, due process, and equal protection clauses. It was submitted by Pace-O-Matic, ARKK Properties, B.J. Novelty, The Cue Club, Banners, an American Legion Hall in Lexington, Parlay’s Tavern, and Vincent and Tanya Milano.

The new law, which was signed by Governor Andy Beshear on March 16 and is set to take effect 90 days after the General Assembly session ends on Thursday, would levy fines of up to $25,000 per machine to those associated with the machines, including host establishments and game manufacturers, should they fail to remove them.

The lawsuit argues that skill-based games “have been legal for centuries” and that the bill is unconstitutional. It also claims that the machines are being targeted by “certain horse racing interests” in the state. Plaintiffs are requesting a temporary injunction to prevent the law from taking effect while the case is being heard in the court system.

The debate over these gaming machines has been an ongoing one for two years, with a ban bill passing both chambers last year before an amendment made in the Senate was not given approval in the House before the session ended. This year, Rep. Killian Timoney and Senate Majority Leader Damon Thayer sponsored a new version of the bill that addressed games available in arcades and fairs, as well as eSports contests.

Kentucky Attorney General Daniel Cameron was listed as the defendant in the case, and he had previously stated that his office would defend a law banning skill games at a GOP gubernatorial debate in Louisville.