Compliance Implications of “No Risk Games” in the Expanding Gray-Machine Market

According to an article by Jesse K. Doggendorf and Christian P. Witte of Thompson Coburn, gray machines, often marketed as “no risk games”, have proliferated in gas stations, bars, and similar venues, presenting a growing compliance challenge. The authors explain that these devices resemble casino slot machines but claim to avoid gambling laws by revealing the outcome of the next play. The introduction of this feature has fueled debate about whether the machines eliminate the element of chance required to classify an activity as gambling. The authors’ overview makes clear that the legal landscape is fractured, with courts and lawmakers reaching differing conclusions about what constitutes chance, consideration, and a prize.

Kentucky illustrates the shifting terrain. Legislators attempted a ban in 2023, prompting operators to roll out updated “no-risk” devices in 2024. Yet the state’s Attorney General advised in 2024 that these machines still qualify as gambling, referencing a 1918 state Supreme Court case that held the lure of winning “something for nothing” introduces chance. 

Tennessee courts have taken a similar view, ruling in 2025 that requiring payment to view additional outcomes sustains uncertainty and therefore satisfies the chance element. Missouri remains the most unsettled jurisdiction; although legislative efforts stalled in 2025, a federal jury later found that no risk games violate state gambling law despite their pre-reveal design.

For compliance professionals, the authors’ analysis underscores several takeaways. First, pre-reveal features do not insulate operators from gambling-law exposure. Second, enforcement risk is rising as states revisit long-standing definitions of chance. Finally, businesses that host or distribute these devices should reassess their risk posture now, as ongoing litigation and uneven regulation make the environment likely to remain volatile.