Skill Games Remain in Limbo in Kansas, Supreme Court Says
The Kansas Supreme Court has opted not to settle the ongoing legal ambiguity surrounding so-called “gray machines,” leaving the status of these devices undefined under state law.
Kansas Supreme Court tosses case brought by Pace-O-Matic Gaming.
Key Facts:
- Kansas Supreme Court declines to rule on the legality of controversial gaming machines
- Pace-O-Matic disappointed that its case was tossed by high court
- Several states grappling with the status of so-called “skill games” that exist outside gaming regulatory framework
The court dismissed a case brought by gaming company Pace-O-Matic (POM), ruling the company lacked standing to seek clarification on whether its devices fall outside Kansas’ definition of gambling terminals.
The decision perpetuates uncertainty for businesses operating the machines, as they remain exposed to potential legal action and asset seizure. However, enforcement appears unlikely, as no Kansas law enforcement agency has moved against the devices to date.
Legal Gray Area Persists in Gaming Landscape per Kansas Supreme Court
The legal uncertainty reflects a broader national challenge of adapting gambling laws to emerging gaming technologies. In Kansas, the Supreme Court left the door open for future cases to address these issues, but only with clearer evidence of harm or enforcement action.
POM’s lawsuit stemmed from a letter sent by Kansas Racing and Gaming Commission (KRGC) Director Don Brownlee, which advised law enforcement that the company’s “Dragon’s Ascent” game likely constituted gambling.
The KRGC argued the game relied too heavily on chance to qualify as a skill-based offering. Despite this, no enforcement actions have occurred, leading the courts to rule that POM failed to demonstrate tangible harm or an imminent threat to its business.
Without a judicial declaration, Kansas businesses hosting the devices remain in a precarious position. Yet, the machines continue to operate unchallenged for now.
Nationwide Debate Over “Skill Games” Intensifies
The legal wrangling in Kansas mirrors disputes across the country as states grapple with defining games that blend elements of skill and chance. Courts in North Carolina, Pennsylvania, and Kentucky have recently issued rulings on similar devices, with outcomes varying by jurisdiction. In Virginia, lawmakers have amended statutes to address the issue directly.
In Pennsylvania, casinos have taken a proactive stance, filing legal briefs to support restrictions on such devices. Meanwhile, a Kentucky court upheld a statewide ban on the machines in mid-2024.
The growing presence of these games has forced courts and legislatures nationwide to reconsider long-standing gambling definitions.
Kansas Casinos Could Influence Future Actions
Kansas is home to four state-owned casinos operated by private partners, including Boyd Gaming and PENN Entertainment. While these entities have yet to publicly engage on the issue of “gray machines,” their involvement could shape future regulatory or legislative responses.
In other states, casino operators have supported efforts to limit the proliferation of similar games, viewing them as competition for traditional gambling operations.
Should these devices gain a stronger foothold in Kansas, casinos or the Kansas Lottery may lobby lawmakers to tighten gaming laws or seek a judicial ban under existing statutes.
For now, the fate of gray machines in Kansas remains unresolved, leaving operators and regulators alike to navigate a shifting legal and competitive landscape.
