They are breaking a local ordinance, despite whatever license loop hole they are hiding in, the Kentucky states attorneys are aware and the metro animal control is checking up on it.
The Kentucky local ordinance for Jefferson County.
§ 91.096 OFFERING ANIMAL AS PRIZE OR AWARD.
(A) No person shall offer any live animal as a prize or award in connection with any raffle, protest, demonstration, promotion, or as an incentive to participate in any game, promotion, or otherwise.
I will share updates as I get them.