In a 58-30 vote, the Kentucky House of Representatives approved House Bill 606, which would allow wagering online, on mobile devices and onsite at horseracing tracks like Churchill Downs. The measure, which also would legalize daily fantasy sports and online poker, now heads to the Senate. The sponsor, state Rep. Adam Koenig, led similar efforts in 2019 and 2020 with bills that made it to the House floor but died there.
Koenig said the state’s pension systems could receive at least $22.5 million annually in gambling revenue from sports betting, based on an estimate that gamblers annually would place $2 billion in bets. “All I know is, it’s more than we’re getting now. The bookies and the offshore accounts will keep taking your money either way. So, let’s do it the right way. Let’s provide a safe, legal method and we’ll generate money for the state’s pension system,” Koenig said.
He added recent polls indicate sports betting has broad bipartisan support. He noted if the bill passes before the General Assembly’s current session ends April 14, sports betting could be up and running before Ohio launches by January 1, 2023.
The bill sets the retail tax rate at 9.75 percent and online sports betting tax rate at 14.25 percent. Unlike Koenig’s 2020 sports betting, this version does not include an in-person registration requirement for wagering.
Opponents of the bill included the conservative organization Family Foundation. Executive Director David Walls said, “There’s further evidence that even advocates for the expansion of gambling understand that there will be victims and destruction to families and communities across our commonwealth. More broken families increased divorce and untold additional social costs.”
But Koenig said people should be able to decide how to spend their money. “I trust people. And what we’re doing with this bill largely is to trust people, adults, to make adult decisions,” he stated.
Under the legislation, the Kentucky Horse Racing Commission would regulate sports betting, which would be offered by a licensed track or “professional sports venue” with at least 50,000 seats, via a smartphone or online app. Tracks could have sportsbooks at up to two of its facilities; for example, Churchill Downs could offer sports wagering at its flagship racetrack and its historical horseracing parlor, Derby City Gaming.
Senate Majority Leader Senator Damon Thayer said, “I am a firm supporter of sports betting and hope enough of my fellow members join me in supporting the measure so that we can join most of America in allowing it to occur.” But, he noted, there is “an awful lot of anti-betting sentiment” in the Senate.
The House also recently approved HB 608 which would ban so-called “gray” machines that resemble slot machines; HB 607, which would change parimutuel tax rates and essentially eliminate the practice of breakage for horse racing; and HB 609, which would fund problem gambling services.
