Kentucky moved one step closer to legalizing sports betting when the House on March 13 approved HB 551. The proposal now moves to the Senate, where it died last year. This year is no guarantee either.
“This does create a regulated marketplace for sports wagering, taking sports wagering in Kentucky out of the shadows, out of the darkness and moving it into the light,” Rep. Michael Meredith, the bill’s lead sponsor, told the Associated Press.
The House vote of 63-34 proved comfortable enough but the Senate is another story even with Governor Andy Beshear in favor of the legislation.
Meredith hopes the $23 million a year in tax revenue expected to be generated would be enough of an incentive. Supporters argue that the time has come for Kentucky to get on board, given revenue lost to adjoining states which have legal sports wagering.
Opponents say legalization creates social problems and hurts families. “This is not legislation that Kentucky can be proud of,” said Rep. Chris Fugate. “It’s not good for families. It’s not good for people.”
The terms of the bill would permit the nine horse racing tracks to be licensed for sports betting with a $500,000 initial fee with a renewal fee of $50,000. Participating tracks could contract with as many as three sportsbooks providers for the track or for mobile sites at $50,000 for an initial license each and a $10,000 annual renewal fee. The Kentucky Horse Racing Commission would regulate the system.
In-person wagers would be taxed at 9.75 percent and online at 14.25 percent. The revenue would cover regulation costs, with a percentage earmarked for problem gambling and the state public pension system.
The House added responsible gambling measures, but the prohibition of credit cards and raising the minimum age to 21 failed.
Unlike last year’s measure, this version does not include daily fantasy sports and online poker, which supporters hope will help garner votes in the Senate.
Meanwhile, North Carolina Rep. Jason Saine introduced an online sports betting bill.
HB 347 would let the state’s tribal gaming operators run mobile betting and would license as many as a dozen commercial operators. Tribal casinos already offer retail sports betting. An unusual regulation: mobile operators could not take bets if gamblers are inside tribal lands.
Another provision: pro sports venues could open retail sportsbooks within a half mile radius.
The bill resembles the one that failed by a single vote in the House last year. The one difference is this year’s version permits bets on college sports.
The North Carolina Lottery Commission would regulate sports betting.
