On January 7, the first day of the new legislative session, Kentucky state Rep. Adam Koenig introduced HB 137, which would legalize sports betting, fantasy sports and online poker.
Soon after, the Licensing, Occupations & Administrative Regulations Committee unanimously approved the legislation. HB 137 now will go before the 9-member House Rules Committee, which will determine if the bill is ready for a vote.
A similar bill failed to gather the necessary votes last year, but observers agree HB 137 likely will pass during the current session. One reason is that even-numbered years are budget years in Kentucky, meaning the legislative session is longer and bills involving taxation, such as HB 137, need fewer votes than they would in non-budget years. In addition, Governor Andy Beshear strongly supports legalized gambling.
A similar bill, SB 24, has been filed in the Senate. If it and the House measure both pass, the two chambers will reconcile the measures and produce a compromise bill. The Senate bill, however, does not cover daily fantasy sports, mobile wagering or online poker. Observers said this could indicate if HB 137 clears the House, its online provisions could face opposition in the Senate.
The primary difference between the Senate and House bills, however, is the Senate measure would allow off-track sportsbooks and the House would limit retail betting to racetracks and other sports venues.
The House bill would require the Kentucky Racing Commission to regulate sports betting, and the Kentucky Lottery Corporation would oversee online poker. HB 137 mandates a 6.75 percent state tax on online poker revenue.
Daily fantasy sports already was legal in Kentucky, but HB 137 would impose formal regulations. One area would be game integrity, such as requiring a third party to annually audit a company’s contest registration. Another area would be customer protection, such as defining what constitutes a “beginner” and a “highly experienced player.”
The bill also would require sports wagerers who want to bet online to first register in person at one of the state’s racetracks or other licensed betting venues. However, in Nevada, Rhode Island and others, in-person registration has led to much lower popularity of online betting compared to other states.
Also in the Kentucky House, legislators introduced HB 7 and HB 181, which would allow casino gambling.
