For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
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. Such conduct includes 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 it 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 of facilitation of the game as inviting persons to play, permitting the use of premises therefor and supplying equipment used therein.
BOOKMAKING. Advancing gambling activity by unlawfully accepting bets upon the outcome of future contingent events from members of the public business.
GAMBLING.
(1) 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.
(2) GAMBLING does not include:
(a) A contest or game in which eligibility to participate is determined by chance and the ultimate winner is determined by skill;
(b) Charitable gaming which is licensed and regulated under the provisions of KRS Chapter 238;
(c) E-sports competitions;
(d) Skill-based contests; or
(e) The use or operation of any devices or machines that are described in division (2) of the GAMBLING DEVICE definition.
GAMBLING DEVICE.
(1) (a) 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.
(b) Any mechanical or electric 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.
(c) Any other machine or any mechanical, electronic, or other device (including but not limited to roulette wheels, gambling tables and similar devices) designated and manufactured primarily for the 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.
(d) Any electronic, computerized, or mechanical contrivance, terminal, machine, or other device that:
1. 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 be depositing funds with the operator or owner of the device, to operate, play, or activate a game; and
2. 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.
(2) But, the following are not to be considered GAMBLING DEVICES within this definition:
(a) Devices dispensing or selling combination or French pools on licensed, regular racetracks during races on said tracks.
(b) 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.
(c) Electro-mechanical pinball machines specially designed, constructed, set up and kept to be played for amusement only; provided any such pinball machine shall be made to receive and react to the deposit of one five or ten cent coin and no more during the course of a game; provided the ultimate and only award given directly or indirectly to any player for the attainment of a winning score or combination on any such pinball machine shall be the right to play one or more additional games immediately on the same device at no further cost; provided the maximum number of free games that can be won, registered, or accumulated at one time in operation of any such, pinball machine shall not exceed 30 free games; provided any such pinball machine shall be made to discharge accumulated free games only by reactivating the playing mechanism once for each game released; and provided any such pinball machine shall be made and kept with no meter or system to preserve a record of free games played, awarded or dis-charged. 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 such pinball machine in which such person has an interest as owner, operator, keeper or otherwise.
(d) Devices used in the conduct of charitable gaming.
(e) Coin-operated amusement machines.
(f) Devices used for wagering exempted from the application of this chapter pursuant to KRS 436.480.
(g) Devices used in e- sports competitions.
(h) Devices used in skill-based contests, provided such devices do not meet the definition of gambling devices in this section.
LOTTERY AND GIFT ENTERPRISE.
(1) A gambling scheme in which:
(a) The players pay or agree ro pay something of value for chances, represented and differentiated by numbers or by combinations of numbers or by some other media, one or more of which are to be designated the winning ones;
(b) The winning chances are to be determined by a drawing or by some other method based upon the element of chance; and
(c) The holders of the winning chances are to receive something of value.
(2) A gift enterprise or referral sales plan which meets the elements of a lottery listed in division (1) above is to be considered a lottery under this chapter.
MUTUEL or THE NUMBERS GAMES. 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.
PLAYER. A person who engages in any form of gambling solely as a contestant or better, 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 herein is not a PLAYER. The status of a PLAYER shall be a defense to any prosecution under this section.
PROFITING FROM GAMBLING ACTIVITY. A person PROFITS FROM GAMBLING ACTIVITY when, other than as a player, he or s he 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.
SIMULATED GAMBLING PROGRAM. 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.
SKILL. The knowledge, dexterity, or any other ability or expertise of a natural person.
SKILL-BASED CONTEST. A live, in- person competitive event among two 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.
SOMETHING OF VALUE.
(1) 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.
(2) 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.