FRANKFORT, Ky. (LEX 18) — A group that includes small business owners in Kentucky called Wednesday for the state legislature to regulate and tax so-called "gray games." The group, which calls themselves skill-based gaming, was at the Kentucky Capitol on Wednesday.

Last year, a different group called for legislators to ban the games entirely, which concerned business owners who have the gaming machines at their businesses.

At the office lounge in Lexington, owner Ronnie Shields says the games have been a big boost to his business when they really needed it during the COVID-19 pandemic.

“And we were really struggling, wondering if we were going to stay in business to be honest with you,” Shields said.

With money from the machines, he said they have been able to remodel the club and expand into a space next door. Soon, he said they’ll be able to make major improvements to their kitchen.

On the surface, the gray machines look like slot machines. You press a button to play and can win money. But, proponents of the legislation say it is not gambling.

“It’s like Tik Tak Toe,” said Jeana Bouzek. “And when you have two like symbols and you push a square it gives you a wild basically.”

She works at skill-games developer Pace-O-Matic. In Kentucky, their games fall under the “Burning Barrel Powered by Pace-O-Matic” name. “This is a skill game, 100% legal," she said.

The small business owner gets more than 50% of the revenue from each machine, she said.

One group, Kentuckians Against Illegal Gambling, is pushing back against the proposal.

“We’re going to have these machines woven into Kentuckians' everyday lives and I don’t think Kentuckians are ready for that,” said Mark Guilfoyle, the group’s executive director.

His group is largely backed by horse racing interests. Many racetracks do have slot-like machines, but they are designed to let people bet on historical races.

It’s not possible to regulate them because the state’s department of revenue doesn't have the resources to do it, he said. He also said they draw crime. That’s something Shields said is not true.

He thinks horse tracks are trying to protect their own regulated gaming interests.

At the same time, Guilfoyle said he wants to see games like Burning Barrel’s banned entirely.

“And why is that,” Shields responded. “Why not let the small guy make a little extra.”