Louisville, Kentucky, January 16, 2026
Three local nonprofits in Louisville, including Shirley’s Way, have dismissed their lawsuits against the Kentucky Horse Racing and Gaming Corporation regarding electronic pull-tab machines. This decision comes after recent system updates that restored the machines’ functionality following a theft incident. The resolution is expected to help the nonprofits resume their vital services and improve their financial stability, which had been affected by the shutdown of the machines.
Louisville Nonprofits Dismiss Lawsuits Over Gaming Machines
Louisville, Kentucky – Three local nonprofits have ended their legal disputes concerning electronic pull-tab machines. On January 15, 2026, Shirley’s Way, Southwest Center for the Developmentally Disabled, and Educational Justice filed motions to dismiss their lawsuits against the Kentucky Horse Racing and Gaming Corporation (KHRG). This decision follows the KHRG’s November 2025 order to disable certain charitable gaming machines due to theft incidents. After system updates, these machines have been restored, and no further thefts have been reported.
Background of the Dispute
In November 2025, the KHRG mandated the shutdown of specific electronic pull-tab devices after discovering multiple thefts involving these machines. The thefts were carried out using a method known as “fishing,” where thieves inserted and withdrew money to trick the machines into issuing credits. This led to the loss of tens of thousands of dollars from charitable organizations across Kentucky. In response, the affected nonprofits filed lawsuits against the KHRG, arguing that the shutdown order unfairly punished the charities instead of addressing the perpetrators. They contended that the order was unlawful and exceeded the commission’s authority. A court date was set for December 8, 2025, to establish a timeline for the case. However, with the recent system updates and the absence of new theft reports, the nonprofits have chosen to dismiss their lawsuits.
Impact on Charitable Organizations
The shutdown of gaming machines had a significant impact on the affected nonprofits. For instance, Shirley’s Way, which supports cancer patients, reported a loss of several thousand dollars during the days-long interruption. The organization expressed concerns about the long-term effects on their funding and services. Other charities also faced challenges, including canceled financial assistance for cancer patients and the inability to continue developing affordable housing for adults with disabilities. The resolution of the lawsuits and the restoration of the gaming machines are expected to alleviate some of these challenges, allowing the nonprofits to resume their charitable activities.
Conclusion
The dismissal of the lawsuits marks a positive development for Louisville’s charitable organizations. With the gaming machines back in operation and enhanced security measures in place, these nonprofits can continue their missions without the financial setbacks caused by the thefts and subsequent shutdowns. The community can look forward to the ongoing support and services provided by these organizations, which play a vital role in addressing various social needs in the area.
Frequently Asked Questions (FAQ)
What led to the shutdown of the electronic pull-tab machines?
The Kentucky Horse Racing and Gaming Corporation ordered the shutdown of certain electronic pull-tab devices in November 2025 due to multiple thefts involving these machines. Thieves used a method known as “fishing,” where they inserted and withdrew money to trick the machines into issuing credits, resulting in the loss of tens of thousands of dollars from charitable organizations across Kentucky.
Which organizations were affected by the shutdown?
Three Louisville-based nonprofits were directly impacted: Shirley’s Way, Southwest Center for the Developmentally Disabled, and Educational Justice. These organizations rely on the revenue generated from the gaming machines to fund their charitable activities.
What was the outcome of the lawsuits filed by the nonprofits?
The nonprofits filed lawsuits against the Kentucky Horse Racing and Gaming Corporation, arguing that the shutdown order was unlawful and unfairly punished the charities instead of addressing the perpetrators. However, with the recent system updates and the absence of new theft reports, the nonprofits have chosen to dismiss their lawsuits, allowing the gaming machines to resume operation.
How did the shutdown affect the nonprofits’ operations?
The shutdown led to significant financial losses for the nonprofits. For example, Shirley’s Way reported a loss of several thousand dollars during the days-long interruption. Other organizations faced challenges such as canceled financial assistance for cancer patients and halted development of affordable housing for adults with disabilities. The resolution of the lawsuits and the restoration of the gaming machines are expected to alleviate some of these challenges, enabling the nonprofits to continue their missions.
What measures have been taken to prevent future thefts?
Following the theft incidents, the Kentucky Horse Racing and Gaming Corporation implemented system updates to enhance the security of the electronic pull-tab machines. These updates have been successful in preventing further thefts, as no new reports have been received since the machines were restored to operation.
Key Features of the Situation
| Feature | Details |
|---|---|
| Organizations Involved | Shirley’s Way, Southwest Center for the Developmentally Disabled, Educational Justice |
| Issue | Theft incidents involving electronic pull-tab machines leading to financial losses |
| Action Taken | Nonprofits filed lawsuits against the Kentucky Horse Racing and Gaming Corporation; lawsuits dismissed after system updates |
| Impact | Financial losses for nonprofits; disruption of charitable services |
| Resolution | System updates restored machine functionality; no new thefts reported |
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