SB 516

 Session of 2026
                        SENATE BILL No. 516
                   By Committee on Federal and State Affairs
                                     2-24
1 AN ACT concerning crimes, punishment and criminal procedure; relating
2   to unlawful gambling; exempting certain devices and contests from the
3   crime of unlawful gambling; amending K.S.A. 21-6403 and 21-6404
4   and repealing the existing sections.
5
6 Be it enacted by the Legislature of the State of Kansas:
7     Section 1. K.S.A. 21-6403 is hereby amended to read as follows: 21-
8 6403. As used in K.S.A. 21-6403 through 21-6409, and amendments
9 thereto:
10     (a) (1) "Amusement machine" means a machine or device that:
11     (A) Requires the direct or indirect payment of consideration,
12 including, but not limited to, the insertion of any form of currency or a
13 ticket, token or similar object or the depositing of funds into such machine
14 or device or with the operator or owner of such machine or device;
15     (B) does not contain any material element of chance; and
16     (C) automatically, by or through some mechanical operation, affords
17 music or amusement of some character with or without vending any
18 merchandise.
19     (2) In addition to vending merchandise, an "amusement machine"
20 may entitle the person playing such machine or device to a noncash,
21 merchandise prize or a voucher, billet, ticket, token or electronic credit
22 redeemable only for a noncash, merchandise prize that satisfies the
23 following:
24     (A) The wholesale value of a noncash, merchandise prize awarded as
25 a result of the single play of such machine or device, either directly or as a
26 result of redemption of a redeemable voucher does not exceed $25;
27     (B) redeemable vouchers are not redeemable for any noncash,
28 merchandise prize that has a wholesale value equal to more than $25
29 multiplied by the fewest number of single plays necessary to accrue the
30 redeemable voucher required to obtain such noncash, merchandise prize;
31 and
32     (C) any redeemable voucher or noncash, merchandise prize is
33 distributed at the site of the machine or device at the time of play.
34     (3) A noncash, merchandise prize shall not be:
35     (A) An alcoholic beverage, including alcoholic liquor as defined in
36 K.S.A. 41-102, and amendments thereto, and cereal malt beverage as
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1 defined in K.S.A. 41-2701, and amendments thereto;
2     (B) eligible for purchase or repurchase; or
3     (C) exchangeable for any cash, cash equivalents or something of
4 value.
5     (4) An "amusement machine" shall not deliver or entitle the person
6 playing or operating such machine or device to receive cash, cash
7 equivalents, gift cards or vouchers, billets, tickets, tokens, electronic
8 credits or any other item that can be exchanged for cash, cash equivalents,
9 gift cards, merchandise or something of value, unless the wholesale value
10 of such item is not more than $25.
11     (b) "Bet" means a bargain in which the parties agree that, dependent
12 upon chance, one stands to win or lose something of value specified in the
13 agreement. A bet"Bet" does not include:
14     (1) Bona fide business transactions that are valid under the law of
15 contracts including, but not limited to, contracts for the purchase or sale at
16 a future date of securities or other commodities, and agreements to
17 compensation for loss caused by the happening of the chance including,
18 but not limited to, contracts of indemnity or guaranty and life or health and
19 accident insurance;
20     (2) offers of purses, prizes or premiums to the actual contestants in
21 any bona fide live contest that does not require any electronic device and
22 is for the determination of skill, speed, strength or endurance or to the
23 bona fide owners of animals or vehicles entered in such a contest;
24     (3) a lottery as defined in this section;
25     (4) any bingo game by or for participants managed, operated or
26 conducted in accordance with the laws of the state of Kansas by an
27 organization licensed by the state of Kansas to manage, operate or conduct
28 games of bingo;
29     (5) a lottery operated by the state pursuant to the Kansas lottery act;
30     (6) any system of parimutuel wagering managed, operated and
31 conducted in accordance with the Kansas parimutuel racing act;
32     (7) tribal gaming;
33     (8) charitable raffles as defined by K.S.A. 75-5173, and amendments
34 thereto;
35     (9) a fantasy sports league as defined in this section; or
36     (10) sports wagering, as defined in K.S.A. 74-8702, and amendments
37 thereto;
38     (b) "lottery" means an enterprise wherein for a consideration the
39 participants are given an opportunity to win a prize, the award of which is
40 determined by chance. A lottery does not include:
41     (1) A lottery operated by the state pursuant to the Kansas lottery act;
42 or
43     (2) tribal gaming;
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1     (11) esports competition as defined in this section; or
2     (12) skill-based contests as defined in this section.
3     (c) "Consideration" means anything that is a commercial or financial
4 advantage to the promoter or a disadvantage to any participant.
5 "Consideration" does not include mere registration without purchase of
6 goods or services;, personal attendance at places or events, without
7 payment of an admission price or fee;, listening to or watching radio and
8 television programs; or answering the telephone or making a telephone
9 call and acts of like nature are not consideration. "Consideration" shall
10 does not include sums of money paid by or for:
11     (1) Participants in any bingo game managed, operated or conducted
12 in accordance with the laws of the state of Kansas by any bona fide
13 nonprofit religious, charitable, fraternal, educational or veteran
14 organization licensed to manage, operate or conduct bingo games under
15 the laws of the state of Kansas and it shall be conclusively presumed that
16 such sums paid by or for such participants were intended by such
17 participants to be for the benefit of the sponsoring organizations for the use
18 of such sponsoring organizations in furthering the purposes of such
19 sponsoring organizations, as set forth in the appropriate paragraphs of
20 section 501(c) or (d) of the internal revenue code of 1986 and as set forth
21 in K.S.A. 79-4701, and amendments thereto;
22     (2) participants in any lottery operated by the state pursuant to the
23 Kansas lottery act;
24     (3) participants in any system of parimutuel wagering managed,
25 operated and conducted in accordance with the Kansas parimutuel racing
26 act; or
27     (4) a person to participate in tribal gaming;.
28     (d) (1) "Esports competition" means a league, competitive circuit,
29 tournament or similar competition in which:
30     (A) Two or more participants or teams of participants compete
31 directly against each other for entertainment and prizes in the same video
32 game at the same time and at the same location in view of spectators;
33     (B) results are determined solely on the basis of the skill of the
34 players;
35     (C) the number of participants is fixed before the beginning of the
36 competition;
37     (D) any fee collected to participate in such competition shall be
38 collected from all participants before the competition begins;
39     (E) at least one participant shall receive something of value based on
40 the results of the competition; and
41     (F) the value of any prize shall be predetermined before the
42 competition begins.
43     (2) "Esports competition" does not include traditional casino games,
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1 including, but not limited to, poker, roulette, craps or blackjack.
2     (e) "Fantasy sports league" means any fantasy or simulation sports
3 game or contest in which no fantasy or simulation sports team is based on
4 the current membership of an actual team that is a member of an amateur
5 or professional sports organization and that meets the following
6 conditions:
7     (1) All prizes and awards offered to winning participants are
8 established and made known to the participants in advance of the game or
9 contest and their value is not determined by the number of participants or
10 the amount of any fees paid by those participants;
11     (2) all winning outcomes reflect the relative knowledge and skill of
12 the participants and are determined predominantly by accumulated
13 statistical results of the performance of individual athletes in real-world
14 sporting events; and
15     (3) no winning outcome is based:
16     (A) On the score, point spread or any performance or performances
17 of any single real-world team or any combination of such teams; or
18     (B) solely on any single performance of an individual athlete in any
19 single real-world sporting event.
20     (e)(f) (1) "Gambling device" means any:
21     (A) So-called "slot machine" or any other machine, mechanical
22 device, electronic device or other contrivance an essential part of which is
23 a drum or reel with insignia thereon, and:
24     (i) That when operated may deliver, as the result of any element of
25 chance, any money or property; or
26     (ii) by the operation of which a person may become entitled to
27 receive, as the result of any element of chance, any money or property;
28     (B) other machine, mechanical device, electronic device or other
29 contrivance including, but not limited to, roulette wheels and similar
30 devices, that are equipped with or designed to accommodate the addition
31 of a mechanism that enables accumulated credits to be removed, is
32 equipped with or designed to accommodate a mechanism to record the
33 number of credits removed or is otherwise designed, manufactured or
34 altered primarily for use in connection with gambling, and:
35     (i) That when operated may deliver, as the result of any element of
36 chance, any money or property; or
37     (ii) by the operation of which a person may become entitled to
38 receive, as the result of any element of chance, any money or property;
39     (C) subassembly or essential part intended to be used in connection
40 with any such machine, mechanical device, electronic device or other
41 contrivance described in subparagraph (A) or (B), but that is not attached
42 to any such machine, mechanical device, electronic device or other
43 contrivance as a constituent part:
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1     (i) That when operated may deliver, as a result of any element of
2 chance, any money or property; or
3     (ii) by the operation of which a person may become entitled to
4 receive, as a result of any element of chance, any money or property; or
5     (D) any token, chip, paper, receipt or other document that evidences,
6 purports to evidence or is designed to evidence participation in a lottery or
7 the making of a bet;
8     (E) any mechanical or electronic device that is offered or made
9 available to a person to play or participate in an actual or simulated
10 gambling program in return for direct or indirect consideration; or
11     (F) an electronic, computerized or mechanical contrivance, terminal,
12 machine or other device that:
13     (i) Requires the direct or indirect payment of consideration that may
14 include, but not be limited to, inserting a coin, currency, ticket, token or
15 similar object or by depositing funds into such device or with the operator
16 or owner of such device to operate, play or activate a game; and
17     (ii) offers games in which the outcomes are determined by any
18 element of skill of the player and may deliver or entitle the person playing
19 or operating the device to receive cash, cash equivalents or gift cards or
20 vouchers, billets, tickets, tokens or electronic credits to be exchanged for
21 cash or to receive merchandise or something of value, whether the payoff
22 is made automatically from the device or manually.
23     The fact that the prize is not automatically paid by the device does not
24 affect its character as a gambling device.
25     (2) "Gambling device" shall does not include:
26     (A) Any machine, mechanical device, electronic device or other
27 contrivance used or for use by a licensee of the Kansas racing and gaming
28 commission as authorized by law and rules and regulations adopted by the
29 commission or by the Kansas lottery or Kansas lottery retailers as
30 authorized by law and rules and regulations adopted by the Kansas lottery
31 commission;
32     (B) any machine, mechanical device, electronic device or other
33 contrivance, such as a coin-operated bowling alley, shuffleboard, marble
34 machine, a so-called pinball machine, or mechanical gun, that is not
35 designed and manufactured primarily for use in connection with gambling,
36 and:
37     (i) That when operated does not deliver, as a result of any element of
38 chance regardless of whether such result is partially or predominantly
39 based on skill, any money, prize or something of value; or
40     (ii) by the operation of which a person may not become entitled to
41 receive, as the result of the application of an any element of chance, any
42 money, prize or something of value;
43     (C) any so-called claw, crane or digger machine and similar devices
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1 that are designed and manufactured primarily for use at carnivals or county
2 or state fairs; or
3     (D) any machine, mechanical device, electronic device or other
4 contrivance used in tribal gaming;
5     (E) any amusement machine;
6     (F) any device used by competitors in any esports competition; or
7     (G) any machine, mechanical, electronic or other device that does
8 not deliver any money or entitlement to receive any money or property
9 when such machine or device is used for esports competition.
10     (f)(g) "Gambling place" means any place, room, building, vehicle,
11 tent or location that is used for any of the following: Making and settling
12 bets; receiving, holding, recording or forwarding bets or offers to bet;
13 conducting lotteries; or playing gambling devices. Evidence that the place
14 has a general reputation as a gambling place or that, at or about the time in
15 question, it was frequently visited by persons known to be commercial
16 gamblers or known as frequenters of gambling places is admissible on the
17 issue of whether it is a gambling place;.
18     (g)(h) "Lottery" means an enterprise wherein, for a consideration,
19 the participants are given an opportunity to win a prize that is determined
20 by chance. "Lottery" does not include:
21     (1) A lottery operated by the state pursuant to the Kansas lottery act;
22 or
23     (2) tribal gaming.
24     (i) "Skill" means the knowledge, dexterity or any other ability or
25 expertise of a natural person.
26     (j) "Skill-based contest" means a live, in-person competitive event
27 among two or more individuals or teams of individuals in which the
28 ultimate winner is determined by skill, and the competitive event does not
29 utilize a gambling device.
30     (k) (1) "Something of value" means any:
31     (A) Money or property;
32     (B) token, object or article that is exchangeable for money or
33 property;
34     (C) form of credit or promise, provided directly or indirectly, that
35 contemplates the transfer of money or property or any interest therein; or
36     (D) extension of a service, entertainment or a privilege of playing a
37 game or scheme without charge.
38     (2) "Something of value" does not include the award of a free,
39 extended or continuous play that is awarded as a prize for playing a game
40 or scheme for a charge.
41     (l) "Tribal gaming" means the same as defined in K.S.A. 74-9802,
42 and amendments thereto; and.
43     (h)(m) "Tribal gaming commission" means the same as defined in
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1 K.S.A. 74-9802, and amendments thereto.
2     Sec. 2. K.S.A. 21-6404 is hereby amended to read as follows: 21-
3 6404. (a) Gambling is:
4     (1) Making a bet;or
5     (2) playing or offering for play any game, contest or competition
6 utilizing a gambling device; or
7     (3) entering or remaining in a gambling place with intent to make a
8 bet, to participate in a lottery or to play a gambling device.
9     (b) Gambling is a class B nonperson misdemeanor.
10     Sec. 3. K.S.A. 21-6403 and 21-6404 are hereby repealed.
11     Sec. 4. This act shall take effect and be in force from and after its
12 publication in the statute book.