A lockout system for a laser device of a type having a laser emitter operable to emit a laser beam at a plurality of intensity levels includes a lockout switch operable to be placed in either a first state or a second state, wherein the laser device is configured to prevent actuation of the laser emitter at an intensity level above a preselected threshold intensity level when the lockout switch is in the first state and to permit actuation of the laser emitter at an intensity level above the preselected threshold intensity level when the lockout switch is in the second state. A lockout key operable to transition the lockout switch between the first state and the second state. In a further aspect, a laser sight device incorporating the lockout system herein is provided.