TOPEKA, Kan. — The Kansas Supreme Court recently resolved a long-standing legal dispute surrounding an electronic game known as Dragon’s Ascent, which has been available in various truck stops and convenience stores across the state. The court affirmed a lower court’s decision that dismissed a lawsuit from POM of Kansas, a subsidiary of the game’s manufacturer Pace-O-Matic, based in Duluth, Georgia. The company had sought a judicial declaration verifying that their game did not fall under the state’s gambling laws due to its design as a game of skill rather than chance.
The lawsuit, initially filed in 2019, aimed to differentiate Dragon’s Ascent from traditional casino slot machines, which are games of chance and thus subject to strict regulatory scrutiny. POM of Kansas contended that their game required skillful play, such as targeting dragons to win prizes, steering it clear of the gambling categories defined by state law.
However, the Supreme Court decided not to rule on the legality of the game itself but determined that the company lacked the legal standing necessary to bring the case. This conclusion was supported by an absence of any direct action against POM of Kansas or its gaming devices by state authorities. According to Justice Keynen “K.J.” Wall, the game has been operational without any legal challenges, such as device seizures or prosecution threats, thereby eliminating the basis for a judicial resolution.
Justice Wall also highlighted that while uncertainties about the game’s legal status might pose business challenges for POM of Kansas, these alone could not warrant the expansion of judicial power. The Supreme Court requires a legitimate legal controversy to engage its jurisdiction, which was not present in this case.
Despite the lack of formal ruling on the game by the Kansas Racing and Gaming Commission (KRGC) or intervention from the former Attorney General Derek Schmidt, POM of Kansas proceeded to market Dragon’s Ascent. The reluctance of state officials to classify the game as either a game of skill or chance left POM in a regulatory gray area, prompting the company to seek legal clarity through the courts.
During court proceedings, details emerged about a letter from KRGC director Don Brownlee to local law enforcement, hinting at the game’s questionable legality without outright condemning it. This correspondence suggested the game possessed elements that blurred the lines between skill and chance, further complicating its legal status. Thomas Hamilton, the attorney representing POM of Kansas, indicated that this ambiguity had tangible negative effects on the business, deterring potential locations from installing the game due to perceived legal risks.
This Supreme Court ruling doesn’t conclude the broader debate over so-called gray games in Kansas. A separate legal battle is currently underway in Shawnee County District Court, where casino operators have alleged that games like Dragon’s Ascent not only operate illegally but also unfairly impact their revenues.
Ultimately, the ongoing legal controversies shed light on the need for clearer regulatory guidelines distinguishing skill-based arcade games from gambling devices—a distinction currently lacking in Kansas law and contributing to the ongoing disputes in the gaming industry within the state.
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