New Kentucky laws in opposition to charitable gaming machines blocked

A Jefferson Circuit Court decide issued a restraining order Nov. 25 that blocks the Kentucky Horse Racing and Gaming Corporation’s order for charitable gaming organizations to disable machines made by two main producers, in line with courtroom paperwork. 

The restraining order comes after three organizations — Shirley’s Way, Southwest Center for the Developmentally Disabled and Education Justice — filed a lawsuit in opposition to the order, claiming it’s “an existential threat” to their charitable gaming and their “ability to carry out their charitable missions.” 

The order acknowledged that the machines, made by LNW Gaming, Inc. and Creative Game Technologies, LLC, had been a part of an unlawful “fishing scam,” the place an individual inserts cash right into a machine earlier than pulling it out, tricking the machine into believing they paid with out having really deposited the cash into the sport. The particular person is then in a position to money out their credit, leading to “the theft of tens of thousands of dollars,” in line with a letter from KHRG. 

“While those engaged in the fishing ultimately are responsible for the theft, organizations licensed by KHRG failed to appropriately prevent the criminal activity,” the letter reads. “Facility Licensees have shown an inability to prevent criminal activity and the diversion of funds from legitimate charitable purposes in violation of KRS 238.500.” 

According to the lawsuit, Shirley’s Way was beforehand a sufferer of the rip-off on one event, however neither Education Justice nor Southwest Center imagine they’ve been victims. 

“The order effectively shuts down the majority of plaintiffs’ entire charitable gaming operations overnight and without warning and at the beginning of the holiday season,” the lawsuit learn. 

The lawsuit claimed the group “rely on revenues” from the vacation season, together with Thanksgiving. Without an injunction blocking the order, the organizations “stand to irreparably lose charitable gaming proceeds they depend on” and would “be unable to serve the Kentuckians in need who depend on them.” 

Shirley’s Way founder Mike Mulrooney informed The Courier Journal the nonprofit raised round $5 million in 2024 and was on monitor to boost $6 million in 2025. Mulrooney stated practically 90% of the group’s video games had been impacted by the shutdown. 

Mulrooney stated charities throughout the state misplaced rather more from the few days of shutdown than what was initially stolen.  

“Do you lose [$30,000-$40,000] in theft and shut everybody down, or do you fix the theft and keep the games running because there’s hundreds of thousands, if not millions, lost across the state?” he stated.