Hi @Rob!
Since your Background color is Different.
- Convert the Image into HSV Color Space.
- Filter the Background Image Color by using InRange()
- Apply Eroding & Dilate to the Binary Image.
- Find Contours & Filter them by Area and find the Bounding Box Center.
- Now You Know the Co-Ordinates of LED in Image ,the width and Height of each LED.
- Set ROI to this Region to decide whether it is ON or OFF by using HSV Values.
Share your work so that we can find were you struck.