Key Issues

Kentucky state graphic with gray machine icon

The ISSUE

Illegal Gambling Threatens Kentucky Consumers, Communities and the Integrity of Responsible Gaming

Illegal gambling is constantly evolving. From unlicensed gaming machines to offshore online casinos, sweepstakes platforms, prediction markets and other unauthorized gambling operations, illegal operators continue searching for new ways to circumvent Kentucky law.

Unlike licensed gaming operators, illegal gambling businesses often operate outside Kentucky’s regulatory framework, avoiding the oversight, consumer protections and accountability designed to safeguard the public. As illegal gambling expands, it puts Kentucky consumers, communities, and our regulated gaming industry at risk.

Unmonitored

Many illegal gambling operators function outside established regulatory oversight and lack safeguards such as age verification, responsible gaming measures and consumer protections.

Anonymously Accessible

Easily and anonymously accessible from anywhere with an internet connection, making gambling available at any time and increasing problem gambling among vulnerable individuals and minors.

Significant Threat

Creates an uneven playing field by allowing unlawful operators to compete against businesses that comply with Kentucky law, including the Kentucky Lottery, charitable gaming, and our signature horse racing industry.

The PROBLEM

Illegal Gambling Harms Kentucky

Kentucky has taken important steps to combat illegal gambling, including legislation prohibiting gray machines and enforcement actions against unauthorized gambling operators. Yet as technology evolves, illegal operators continue introducing new platforms and products designed to exploit gaps in existing laws. And the consequences extend far beyond unlawful gambling itself.

INCREASED CRIMINAL ACTIVITY

Illegal gambling has long been associated with broader criminal enterprises, including money laundering, organized crime and other unlawful activities. Operating outside Kentucky's regulatory framework makes these activities more difficult to detect and prevent.

GAMBLING ADDICTION

The availability and lack of regulated monitoring can lead to a spike in gambling addiction, underage gambling and exacerbate mental health risks for anxiety and depression.

ECONOMIC CONSEQUENCES

Illegal operators often divert revenue away from Kentucky businesses, communities and public programs while avoiding the licensing requirements, taxes and regulatory obligations imposed on legal operators.

Benefits of Regulated Gaming Machines Graphic

The SOLUTION

Protect Consumers. Preserve Integrity.
Support Responsible Enforcement.

KAIG supports commonsense policies that prevent illegal gambling operators from exploiting loopholes in Kentucky law. Every gambling operator serving Kentucky consumers should play by the same rules, meet the same regulatory standards and be held to the same level of accountability.

Kentucky has demonstrated its commitment to protecting consumers through legislative action against illegal gaming machines and enforcement efforts targeting unauthorized gambling operations. Continued vigilance is necessary as new forms of illegal gambling emerge.

Legal Gaming Must Promote

Consumer Protection

Support policies that ensure gambling operators implement responsible gaming practices, prevent underage gambling and provide meaningful safeguards for Kentucky consumers.

Regulatory Integrity

Maintain a strong regulatory framework that requires every gambling operator to comply with Kentucky law and prevents illegal businesses from gaining an unfair competitive advantage.

Responsible Enforcement

Support consistent enforcement of Kentucky's gaming laws to preserve fairness, transparency and accountability while protecting consumers and the integrity of the Commonwealth's regulated gaming industry.

TAKE ACTION

Stay tuned for opportunities to engage elected officials on key issues impacting safe and regulated gaming in Kentucky.