KRS § 528.010 — KY Code / Title L / Chapter 528 / Section 528.010
528.010 Definitions for chapter
Status: in_force

528.010 Definitions for chapter.

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 Chapters 230 and 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:

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;

(7) (a) "Gambling device" means:

1. Any so-called slot machine or any other machine or mechanical device

which when operated may deliver, as a result of the application of any

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 element of chance, any money or property;

2. 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 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 element of chance, regardless of

whether the result is also partially or predominantly based on skill, any

money or property;

3. 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 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 element of chance, any money or

property; or

4. Any electronic, computerized, or mechanical contrivance, terminal,

machine, or other device that:

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 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 and Gaming Corporation;

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;

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) "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;

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) "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;

(10) "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) "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) "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 element of chance, either deliver money or property or an

entitlement to receive money or property;

(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) (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.