In short, the state adopted Appendix X2 a couple of years ago which allowed the machines to accept cash, increase the maximum wager from $5 to $20 on 15% of the floor, among other things. It tool a while before the new machines and systems were designed, approved by the state and installed.
As a side note, the card system was not mandated by law. Instead, it was one vendors (MGAM) approach to dealing in a non-cash environment. Other vendors (IGT and Bally) use tickets to move money between machines.
I hope that helps.
Thanks,
John