In a letter to lawmakers, Kentucky Attorney General and Democratic gubernatorial candidate Andy Beshear said legalizing casinos and sports betting was the best way to raise money to help the state’s struggling public pension system. He wrote, “The solution is not to cut legally promised benefits. The answer is simple – expanded gaming including casino, fantasy sports and sports gaming, as well as preparing for the eventual legalization of online poker.”
Beshear made the same suggestion earlier this year and in July when he announced his candidacy for the Democratic nomination for governor in 2019. His father, Governor Steve Beshear, made expanded gambling the centerpiece of his 2007 campaign for governor, but he was unable to convince the conservative-majority legislature to pass legalize casino gambling.
Republican Governor Matt Bevin opposes legalizing casinos. His Chief of Staff Blake Brickman called Beshear’s recommendation “a tired tenet” of the Democratic Party. Brickman said, “Funding alone will not solve the problem. Governor Bevin is the only governor to commit to fixing the pension crisis by fully funding the system and calling for necessary reforms.”
Beshear’s letter noted Kentuckians spend $1 billion on gambling in neighboring Indiana, Illinois, West Virginia and Ohio. He wrote this “leeching” of Kentucky dollars contributed to more than $600 million in direct tax revenue from commercial gaming in Indiana last year alone.” He noted, “Tax revenues in these states from gaming now total more than $2.4 billion per year. These states use these dollars—many of which come from Kentuckians—to improve Indiana’s schools, West Virginia’s infrastructure and these states could even use our dollars to fund their pensions.”
Beshear said legalized sports betting could raise “an additional $30 million” in annual revenue.
Kentucky’s eight pension plans reported $42.7 billion in unfunded pension and health plan liabilities, and have 12.9 percent of the necessary funds to pay future benefits.
