The Kentucky House Licensing, Occupations and Administrative Regulations Committee approved House Bill 175, a sports betting bill authored by state Rep. Adam Koenig that would allow daily fantasy sports, online poker and sports betting in person at the state’s nine horse racetracks and the Kentucky Speedway and through those locations’ apps. Koenig said the apps would monitor bettors’ locations to make sure they don’t place bets beyond the state lines.
The legislation is a substitute for an earlier bill, lowering the initial licensing fee from $1 million to $500,000.
An analysis by Commonwealth Economics indicated the state could receive up to $48 million a year in taxes if Kentucky legalizes sports betting while most of its neighbors do not. But if neighboring states also offer sports betting, the revenue projection falls to $20 million a year. Most of the sports betting revenue would go toward the state’s public pension systems, one of the worst funded in the U.S. A portion also would go toward regulation and problem gambling services.
Koenig said, “People are crying to do it legally. This is part of our culture, not just Kentucky’s culture, but America’s culture, and I think it’s time we brought these issues out of the shadow.”
Wagerers in Kentucky could bet on college sports, but not wager on games that include teams from Kentucky schools, including the basketball teams at the University of Kentucky and University of Louisville. Officials from FanDuel have questioned that provision. FanDuel spokeswoman Stacie Stern said, “Kentucky will be leaving money on the table with a ban on Kentucky collegiate athletic events.”
The proposal would require bookmakers to pay a 9.75 percent tax on revenue and would tax online wagers at 14.25 percent.
The Kentucky Horse Racing Commission would regulate sports betting and the Kentucky Lottery Corporation would oversee online poker and fantasy sports operations.
