Bill expected to clear committee

A bill calling for a constitutional amendment to legalize casinos in Kentucky, proposed by Democratic Governor Steve Beshear, was introduced in the Kentucky Senate last week by Republican state Senator Damon Thayer.

The legislation calls for casinos at five of the state’s racetracks, plus two free-standing casinos. The bill stipulates that the free-standing casinos would not be permitted within 60 miles of a racetrack.  The amendment contains a list of potential uses for the state revenue, including education and local government as well as the primary purpose, to support the state’s storied racing industry.

However, the bill leaves details on revenue splits and tax rates to subsequent action by the legislature, should the voters approve the amendment. It also leaves open the question of the games to be permitted, not specifying whether or not table games would be included in the mix as well as slot machines.

Beshear introduced the details of the bill at a press conference. “We’re here today to announce the filing of legislation to put a constitutional amendment on the ballot that lets the people decide once and for all,” he said. “The issue of expanded gambling, after nearly two decades of debate, has reached a tipping point. Recently, the people of this state were polled by two separate organizations, including the state Republican Party. Both surveys found that more than 80 percent of the people of this state, regardless of whether they support expanded gambling or are against it, want the right to vote on it. The question is simple: Do we as leaders listen to our people or do we ignore them?”

The bill is supported by a bipartisan coalition of lawmakers from both chambers of the General Assembly. The 10 co-sponsors include two Republicans and eight Democrats, including Senate Minority Leader R.J. Palmer.

Since the bill calls for a constitutional amendment, a three-fifths vote of both legislative chambers would be required—23 “yes” votes in the Senate and 60 in the House. It then would go on the election ballot next November for statewide voter approval.

The bill was referred to the Senate State & Local Government Committee, of which Thayer is chairman. It was expected to easily clear the 11-member committee. Five members have publicly said they will vote for it, and at least two others have stated in the past they are in favor of a constitutional amendment to expand gaming in the state.

Whether or not the bill has the required votes to pass both chambers is another story. Republican Senate President David Williams, a longtime gaming opponent, has spoken up against the legislation, criticizing what he called a constitutional monopoly for one industry, racing. “It would appear this would require the General Assembly to give at least one racetrack license and at least one non-racetrack license, whether the General Assembly can agree on whether the racetrack should get it or not,” Williams told the Lexington Herald-Leader. “What if the General Assembly were to decide the horse industry does not deserve protection? This amendment does not guarantee them anything.”

In the House, Speaker Greg Stumbo has consistently pushed for gaming expansion through legislation, preferring a law to a constitutional amendment.

Beshear began work last week to gather support among lawmakers who prefer the legislative route to expansion, and others who object to certain portions of the constitutional amendment plan, such as the bill’s restriction on free-standing casino locations or the absence of any guaranteed locations. Some lawmakers object to the fact that the eight racetracks would have to compete for five licenses, and that, because of the 60-mile restriction, cities like Lexington, with two racetracks, would only qualify for one license.

Stumbo has said he will remain open to supporting the amendment if it clears the Senate. “I have promised the governor I would stay open on this,” Stumbo told the Herald-Leader.

Beshear had wanted to introduce the amendment in the first days of the legislative session, but held back while a battle over redistricting took place. The newly drawn congressional districts were approved two weeks ago, but appeals of those new lines are working through the courts, and could cause further delays a the bill moves forward.

Expanded gaming is an issue on which Beshear has been consistent since the beginning of his first term four years ago, when he introduced his first proposal for a constitutional amendment, calling for up to 12 casinos. That proposal was later lowered to nine casinos, but the bill ultimately failed—as have gaming expansion bills in nine legislative sessions over the past 11 years.

In addition to Republicans like Williams, who Beshear defeated in last year’s re-election campaign, gaming expansion proposals have consistently been opposed by religious and conservative groups like the Family Foundation of Kentucky. In a statement issued last week, Martin Cothran, the group’s spokesman, called the bill “an attempt by wealthy horse track owners and casino interests to buy their way into the constitution like box seats at a ball game.”

Beshear has taken the position that Kentucky’s storied racing industry, surrounded by states with racetrack casinos, is in danger of failing without slots at the tracks. “As we all know, Kentucky’s horse industry, one of our signature industries, is under attack by other states,” Beshear said last week. “Other states are using gaming revenue to boost purses and breeders’ incentives to lure race horses, brood mares and stallions away from the Bluegrass State.”

In introducing the bill, Beshear also repeated his oft-stated position that Kentucky needs to recapture the millions its citizens spend gambling in surrounding states. “That money is being used to pay for all kinds of services and public infrastructure in those other states,” he said. “As it stands, we might as well be backing trucks up to the Ohio River and dumping our people’s money into the water. We need to keep that money at home.”

By Staff