Kentuckians recently got to watch a televised debate regarding a bill that would legalize sports betting, online poker and daily fantasy sports. The debate between the measure’s author and an anti-gambling spokesperson aired on “Kentucky Tonight” broadcast on Kentucky Educational Television, soon after the House Committee on Licensing, Occupation and Administrative Regulations passed House Bill 175, sponsored by state Rep. Adam Koenig, who appeared on the show.
Koenig said, “By no means do I expect this legislation to produce a massive windfall of revenue into the state coffers that will solve all of our financial problems. But with numerous citizens already engaging in betting practices, it is time for the Commonwealth to reap some of that revenue, while also allowing adults the freedom to make their own decisions. It is time that we take the proactive step of providing adults the freedom to legally engage in sports betting. Kentucky has a chance to be ahead of the curve on this issue, while also potentially capitalizing on much-needed revenue gains without raising taxes. He noted gambling revenue could help plug the state’s $39 billion shortage in its public pension fund.
Under Koenig’s bill, sports betting would be conducted at the state’s licensed racetracks and the Kentucky Speedway, which would pay a $500,000 each for a license. It would allow betting on professional and collegiate events but would not allow betting on Kentucky college teams.
Mobile betting statewide would be permitted, but players would have to register in person at a sports book.
Online revenue would be taxed at 14.25 percent and in-person revenue would be taxed at 10.25 percent. An analysis of the Kentucky bill showed sports betting could generate $20 million in annual revenue. That increases to $48 million if neighboring states don’t offer sports betting. However, West Virginia legalized sports betting last year and it’s being considered in all the rest of Kentucky’s neighboring states.
Players would have to be at least 18 years old. “I’m of the opinion that if you can vote and you can go to war and die for this country, you should be able to place a sports wager,” Koenig said during his TV appearance. He also noted Kentucky allows 18-year-olds to bet on horseraces.
Koenig also pointed out 5 percent of sports betting tax revenue would go to helping problem gamblers. Currently, he said, zero percent of the black market goes to problem gambler services. “Your bookies don’t care if you have a gambling problem, they don’t care if you are 18 or not. The offshore books that you can get on your phone, they don’t care what your age is. They just care that you have money to put up,” he said.
Koenig said he needs 60 votes out of the 100-member chamber. Kentucky law requires bills proposed in odd-numbered years that raise revenues to pass with a three-fifths majority. “There’s always misinformation that runs around with bills like this. So, we are informing legislators who want to get there. They just have concerns right now,” Koenig said.
Family Foundation Executive Director Kent Ostrander said he’s concerned expanded gambling would target and exploit the poorest in the state. “Corporations can’t gamble, businesses can’t gamble, non-profits can’t gamble, churches can’t gamble. Only moms and dads and a few single people who may be parents at some point. All of the money comes from Kentucky families. That’s where it comes from. Gambling only targets the family,” he said.
