Illegal Gaming FAQs 

The Kansas Constitution and criminal statutes establish that lotteries are illegal.   A lottery is any game, scheme, gift, enterprise, or similar contrivance wherein persons agree to give valuable consideration for the chance to win a prize or prizes.  The limited exceptions to illegal lotteries include licensed bingo games, tribal gaming, licensed parimutuel racing and wagering, and the state lottery (including casino gambling).  

What is the KRGC's role in illegal gambling?

The KRGC acts as the state's coordinating agency for most questions and complaints regarding illegal gambling.  That role requires the KRGC to employ educational, administrative and law enforcement methods to maintain the integrity of gaming in Kansas and to help curtail illegal gaming.

From its educational perspective, the KRGC provides information to the public about illegal gaming issues.  Five of the more frequently asked illegal gaming questions and responses are detailed below. 

From its administrative perspective, the KRGC works with the Kansas Lottery, the Department of Revenue, other state agencies, and local law enforcement in seeking compliance from individuals and businesses on illegal gaming issues. 

From its law enforcement perspective, the KRGC supports local law enforcement efforts to curtail illegal gambling.  In certain instances, the KRGC directs its own limited resources to the state's most vulnerable areas and to those gambling investigations that are of statewide concern.

 

FAQ No. 1:  Can my organization hold a raffle to raise funds?

Two general rules apply.  First, a raffle is an illegal lottery - and therefore criminally punishable - if it involves the necessary elements of prize, chance and consideration.  The prize and chance elements are part and parcel of what makes a raffle, so those elements are almost always satisfied.The only element that is typically questioned is whether a particular raffle involves sufficient "consideration." 

Under the criminal law, consideration means "anything which is a commercial or financial advantage to the promoter or a disadvantage to any participant." K.S.A. 21-4302(c). The law also states that consideration is not "[m]ere registration without purchase of goods or services," "personal attendance at places or events" without the payment of an admission fee, "listening to or watching radio and television programs," or "answering the telephone or making a telephone call and acts of like nature. . ." Id. Whether a proposed raffle or "sweepstakes" actually satisfies the consideration element can only be resolved on the facts and circumstances of the particular game, and with the guidance of your own counsel. 

 The second important rule is that there is no "charitable exception" to conduct raffles.  That is, Kansas's criminal law entails that even the most worthy causes cannot use illegal raffles to raise money.

Finally, there are potential criminal ramifications for participating in or conducting an illegal lottery. K.S.A. 21-4303 et seq. Again, particular questions about the legality of certain raffles can only be answered by private counsel. The KRGC notes, however, that the Sedgwick County District Attorney has posted raffle guidelines for her constituents here: http://www.sedgwickcounty.org/da/lottery_casino_night.html.

FAQ No. 2:  Are quarter pushers legal?

Quarter pushers are both illegal gambling devices under the Kansas criminal statutes and "gray machines" under the Expanded Lottery Act.

Kansas criminalizes the possession and operation of gaming devices.

Every state that has considered the legality of quarter pushers has concluded that quarter pushers are illegal gambling devices.  U.S. v. Two (2) Quarter Fall Machines; 767 F.Supp. 153 (E.D. Tenn. 1991); Mississippi Gaming C'ssn v. Henson, 800 So. 2d 110 (Miss. 2001); see also State of Indiana v. Maillard, 695 N.E. 2d 637 (Ind. App. 1998).  No cases have determined that the machines are legal.

Additionally, at least six Attorneys General have determined that quarter pushers are illegal gambling devices.  Ark. A.G. Opinion No. 2007-247; Miss. Op. Atty. Gen. No. 2008-19; 2007 Oklahoma Inf. Op.; S.C. Op. Atty. Gen. No. 1978-201; S. Dakota Op. Atty. Gen No. 2008-04; 1978 Tex. Atty. Gen. Op. H-1153.  To be clear, no Attorneys General have provided a formal opinion that these devices are legal.

Finally, the legal outcome in those cases and opinions match our experts' practical analysis of these illegal gaming devices.  Of course, there are criminal ramifications to wagering on, possessing or dealing in illegal gaming devices.  K.S.A. 21-4302 et seq.  Further, illegal activity can jeopardize any administrative licenses that a business may hold.

Kansas criminalizes the possession of gray machines.

"Gray machines" are also prohibited by the Kansas Expanded Lottery Act.  A gray machine is "any mechanical, electro-mechanical or electronic device, capable of being used for gambling, that is: (1) Not authorized by the Kansas lottery, (2) not linked to a lottery central computer system, (3) available to the public for play or (4) capable of simulating a game played on an electronic gaming machine or any similar gambling game authorized pursuant to the Kansas expanded lottery act." K.S.A. 74-8702(g). 

 No quarter pushers in Kansas have been "authorized by the Kansas lottery."  Moreover, no quarter pushers in Kansas are "linked to a lottery central computing system."

It is a felony for any person to place in operation any gray machine for use by members of the public.  K.S.A. 74-8761.  Further, illegal activity can jeopardize any administrative licenses that a business may hold.

Illegal Gambling Device Media  (video)

FAQ No. 3:  Can I run a poker game?

If the poker game involves prize, chance and consideration, then it is an illegal lottery.  See Kansas Ag. Op. No. 2005-4.  Whether there is a "prize" depends on the facts and circumstances of the particular game.  The "chance" element is not much in doubt.  As the Maryland Attorney General stated, "[i]t is well accepted that poker, despite elements of skill or judgment, is a game of chance that depends in substantial part on the hand a player is dealt and the placement of cards."  91 Md. Op. Atty. Gen. 64 (2006).  Finally, "consideration" also depends on the facts and circumstances of a particular poker game.  However, the Kansas Attorney General has previously found that the payment of a required cover charge to enter an establishment and thus be eligible to participate in a poker tournament constitutes "consideration."  Ag. Op. No. 2005-4. 

Under Kansas law, there are potential criminal ramifications to conducting an illegal poker game. K.S.A. 21-4303 et seq

As with any of these illegal gaming issues, you should contact your own attorney if you have further questions regarding poker tournaments or games. 

 

FAQ No. 4:  Are slot machines legal?

Unless the slot machine was manufactured before 1950 and is "not operated for gambling purposes" it is most likely an "illegal gaming device" under the Kansas criminal statutes and a "gray machine" under the Expanded Lottery Act."  See K.S.A. 21-4302(d)(1)(A); K.S.A. 21-4307; K.S.A. 74-8702. 

Under Kansas law, there are potential criminal ramifications to wagering on, possessing or dealing in illegal gaming devices or conducting commercial gambling. K.S.A. 21-4303 et seq; 74-8702

As with any of these illegal gaming questions, you should contact your own counsel for specific guidance with respect to a particular slot machine.

Illegal Gambling Device Media        (video)

FAQ No. 5: Are "skill stop" or "cherry master" machines legal?

As with other potential illegal gaming devices, a few rules show that these machines can generally be considered illegal gambling devices under the Kansas criminal statutes and "gray machines" under the Expanded Lottery Act.

Under the criminal statutes, a "gambling device" includes machines that are "designed, manufactured or altered primarily for use in connection with gambling, and (i) which when operated may deliver, as the result of chance, any money or property, or (ii) by the operation of which a person may become entitled to receive, as the result of chance, any money or property." K.S.A. 21-4302(d)(1)(B). Devices that use tokens for wagers may fit into the gambling device definition. Id. at (d)(1)(D). And the fact that a prize is not automatically paid by the device does not change its gambling device status. Id.

Separately, under the Expanded Lottery Act, a gray machine is "any mechanical, electro-mechanical or electronic device, capable of being used for gambling, that is: (1) Not authorized by the Kansas lottery, (2) not linked to a lottery central computer system, (3) available to the public for play or (4) capable of simulating a game played on an electronic gaming machine or any similar gambling game authorized pursuant to the Kansas expanded lottery act."  K.S.A. 74-8702(g). 

Under Kansas law, there are potential criminal ramifications to wagering on, possessing or dealing in illegal gaming devices or conducting commercial gambling. K.S.A. 21-4303 et seq; 74-8702

Of course, you should contact your own counsel for specific guidance with respect to a particular machine.

Concerns or questions? Email us at krgc@krgc.ks.gov

 

 

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