Battle over 'gray games' dominating lobbying spending in Kentucky
FRANKFORT, Ky. — Two groups opposing each other on legislation involving the cash payout games proliferating in stores around Kentucky are on pace to shatter lobbying spending records in the 2023 session, according to reports filed with the Kentucky Legislative Ethics Commission.
Called "legal skill games" by supporters and "illegal gray machines" by opponents, the video games resembling slot machines were nearly banned in the 2022 session of the Kentucky General Assembly, an expensive fight pitting the horse racing industry against Pace-O-Matic, the largest maker of the games in Kentucky and other states.
Those two industries are once again the main players financing the fight over the games through the first month of this year's session, with another bill to ban them expected to be filed by the deadline next week, as well as another bill supported by the skill game industry to formally regulate and tax the games.
More:Expensive fight over slots-like 'gray machines' looms in Kentucky legislature
While most of the roughly $2.4 million spent by more than 600 groups to lobby state legislators in January went toward compensating registered lobbyists, the two leading groups in the gray machines fight collectively spent more than $320,000 on advertisements urging Kentuckians to contact their legislators on the issue.
'Gray machine' battle hits the airwaves
Leading all groups in legislative lobbying spending through January was Kentuckians Against Illegal Gambling — a new coalition comprised of the horse racing and gaming industries — which reported spending $174,000 on TV and digital ads calling for legislators to ban the machines they claim are illegal.
The TV ad of KAIG says gray machine gambling is "a predator lurking" that "destroys families and puts kids at risk," potentially bringing "violence, organized crime, money laundering (and) robberies" to your neighborhood.
Ten horse racing industry groups — which effectively lobbied in 2021 to legalize historical horse racing machines, which also resemble casino slots — also collectively spent more than $80,000 on lobbying in January. Churchill Downs and Keeneland both placed in the top 30 in spending, lobbying to ban "gray games."
Placing second in lobbying spending was the Kentucky Merchants and Amusement Coalition, made up of retailers, bars, restaurants and fraternal organizations who say they rely on the games to stay afloat and urge legislators to regulate and tax them.
Kentucky MAC, which is funded by Pace-O-Matic, reported spending $146,275 on radio and TV ads as well as direct mail to "operators/locations" around the state.
More:Here's who spent the most lobbying the Kentucky legislature in 2022 - and what they wanted
One ad of the coalition showed happy people playing the "totally legal video games where you win cash for your skills," saying they "also create critical Kentucky jobs and allow restaurants, bars and fraternal organizations to survive during tough times."
Also among the top lobbying spenders was Pace-O-Matic, which reported spending $20,500 on nine lobbyists, ranking it sixth among all companies and organizations.
Kentucky MAC and KAIG are both on pace to break legislative lobbying spending records, as each spent more in January than any organization spent lobbying in the first three months of the 2022 session. They also have spent more than what all but six groups spent in all of 2022.
Though House Bill 256 was filed this week to regulate and tax skill games, Kentucky MAC has indicated it will support a different bill that is expected to be filed in the House next week.
Rep. Killian Timoney, R-Lexington, is expected to once again carry a bill to ban the games.
In the larger context of the issue, this lobbying spending mirrors similar fights in recent years between Pace-O-Matic and competing gambling interests in other states, while the skill games maker recently joined the horse racing industry in becoming a prominent political donor to candidates and committees of the Republican supermajority in Kentucky.
Chamber trails skill game groups in spending
Placing third in legislative lobbying spending was the Kentucky Chamber of Commerce, which is typically the perennial leader of such spending.
The chamber spent $41,744 in January, nearly all of which went to its 15 registered lobbyists. Among the legislation the business advocacy group lobbied for was House Bill 1 — cutting the individual income tax rate to 4% next year — which has already passed both chambers and been sent to Gov.. Andy Beshear for his signature or veto.
More:Tax cuts, school choice and TikTok: Here's what's moving in Kentucky's legislature
Greater Louisville Inc., the business chamber for the Louisville region, also place seventh in lobbying spending with $25,000,
The ACLU of Kentucky placed fourth by spending $29,432 to lobby for and against at least 50 bills in January, advocating for criminal justice reforms and LGBTQ rights.
Hospital, doctor groups lobby on birthing centers, prior authorization
The Kentucky Medical Association placed fifth among groups in January by spending $29,397 to lobby the legislature, with just over a third of that on compensation for its 11 lobbyists.
The largest expense for the professional organization of Kentucky physicians was $11,000 for social media and streaming ads to support the passage of House Bill 134, which would create a prior authorization exemption program that automatically waives such requirements if a physician has regularly been approved for a specific procedure or service.
More:LIST: Here's the latest on key bills from the 2023 Kentucky legislature
The Kentucky Hospital Association also cracked the Top 10, placing ninth by spending $19,744 on six lobbyists.
The hospital advocacy group lobbied for House Bill 75 to allow hospitals to draw down federal funds at no cost to the state, while opposing House Bill 129 to allow freestanding birthing centers, which could compete with hospitals.
Rounding out the Top 10 legislative lobbying spenders in January was tobacco giant Altria with $23,342 and Elevance Health (formerly known as Anthem) with $16,500
Kentucky's Top 10 legislative lobbying spenders through January
Kentuckians Against Illegal Gambling - $174,500
Kentucky Merchants and Amusement Coalition - $146,275
Kentucky Chamber of Commerce - $41,774
ACLU of Kentucky - $29,432
Kentucky Medical Association - $29,397
Pace-O-Matic - $26,500
Greater Louisville Inc. - $25,000
Altria - $23,342
Kentucky Hospital Association - $19,744
Elevance Health (Anthem) - $16,500
Reach reporter Joe Sonka at jsonka@courierjournal.com and follow him on Twitter at @joesonka.
This article originally appeared on Louisville Courier Journal: 'Gray games' fight dominates lobbying spending in Kentucky legislature
