On February 24, 2026, the Kansas Senate Committee on Federal and State Affairs formally introduced Kansas Senate Bill 516, a proposal designed to clarify how the state treats certain gaming machines.
The core goal of Kansas Senate Bill 516 is to amend parts of the Kansas criminal code, specifically the K.S.A. 21-6403 amendment and related provisions, to exempt certain machines and skill-based contests from being labeled as unlawful gambling.
Lawmakers say the move addresses a long-standing gray area in Kansas law. Many businesses, including bars and family entertainment venues, operate amusement-style machines that resemble gambling devices but are intended purely for fun. At the same time, regulators remain concerned about illegal “gray market” slot machines appearing across the state.
By tightening the legal definition of a gambling device, SB516 aims to protect legitimate amusement operators while strengthening enforcement against unlawful gambling crimes in Kansas in 2026.
The proposed Kansas SB516 gambling device exemptions focus heavily on what qualifies as a true amusement machine.
Under the bill, machines can qualify for exemption only if they award non-cash merchandise prizes or vouchers. Any device that pays out cash or cash equivalents would still fall under illegal gambling rules. This distinction is central to Kansas amusement machine laws, which traditionally separate arcade-style entertainment from wagering.
SB516 also introduces a clear value limit. The wholesale value of any single-play prize must not exceed $25. Lawmakers believe this cap helps ensure machines remain low-stakes amusement devices rather than hidden gambling tools. Higher prize values often attract regulatory scrutiny because they can mimic slot-style payouts.
Another major clarification involves the role of skill. The bill states that devices without a material element of chance can qualify for protection. This provision is key to Kansas skill-based gaming regulations. It formally distinguishes games that depend primarily on player ability, such as claw machines or certain arcade competitions, from traditional slot machines that rely on random outcomes.
While SB516 creates safe harbors for legitimate amusement devices, it also strengthens the state’s enforcement tools.
The bill expands the technical definition of a gambling device to include machines that:
These features are commonly found in illegal, unregulated machines. By targeting the mechanics rather than just the appearance of devices, Kansas regulators hope to close loopholes used by gray market operators. This tighter regulatory oversight of gambling devices in Kansas signals a more modern enforcement strategy.
SB516 also provides legal clarity for bona fide skill contests. Live competitions based on sports, speed, strength, or similar abilities would remain legal as long as electronic gambling devices do not determine winners. This provision protects common promotional contests hosted by bars, community groups, and entertainment venues.
Industry observers say the bill could bring much-needed clarity to the Kansas gaming environment. For years, restaurant and bar owners have operated skill-based machines under legal uncertainty. Some faced enforcement actions even when they believed their games were compliant. If passed, SB516 may help clean up the market by:
The proposal follows another 2026 measure, Kansas SB376, which seeks to adjust age requirements for antique slot machines. Together, the bills suggest Kansas lawmakers are actively modernizing older gaming statutes.
Kansas Senate Bill 516 represents a careful balancing act. The state continues to support legalized sports wagering in Kansas and commercial casino growth while working to eliminate unregulated electronic machines that compete outside the licensed system.
For businesses, the bill could finally provide clear rules on what qualifies as legal amusement. For players, it reinforces the state’s push toward a safer and more transparent gaming environment. As the legislative process moves forward, stakeholders across the Kansas gaming market will be watching closely to see whether SB516 successfully closes the gray areas that have challenged regulators for years.
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