Kentucky state Rep. Adam Koenig will introduce a bill to fund problem gambling services from the recent $300 million settlement with Flutter, the parent company of PokerStars.
In 2021, Flutter agreed to pay $200 million to the commonwealth plus $100 million previously forfeited to settle an $870 million judgment. The litigation had sought recovery of alleged losses by PokerStars players in Kentucky from 2006 and 2011.
Koenig earlier said he would sponsor a measure to legalize sports betting. “It’s a unique opportunity to make sure that money is there for generations. It’s a logical and good use for that money,” Koenig said.
Koenig said the plan was suggested by Michael Stone, executive director at the Kentucky Council on Problem Gambling. Stone said the state would place $20 million to $30 million from the Flutter settlement in an irrevocable trust and use the interest generated, an estimated $1 million to $2 million a year, to fund problem gaming treatment and prevention programs.
Koenig said the trust would be managed by a board to ensure the “funds are distributed on a regular basis and done properly.” One or more legislators would serve on the board to provide oversight, he added.
Currently, no state funds are directed to problem gambling services in Kentucky. Stone said the KYCPG has an annual budget of about $75,000, with funding from the gaming industry, sponsorships and donations. Koenig said, “We need to deal with it regardless of whether a sports betting bill gets passed. With billions of dollars wagered in Kentucky, it’s embarrassing that we spend nothing.”
Stone also expressed concern over increased gambling addiction caused by sports wagering. But Koenig said using the Flutter settlement money would fund programs for “generations.”
Koenig said the state budget passed in the House on January 20 with no funds set aside for problem gambling services. However, the bill still has to go through the Senate, “so it could still get added, but I’m inclined to file a separate bill,” he said.
Keith Whyte, executive director of the National Council on Problem Gambling, stated, “We’ve urged Kentucky to fund problem gaming and responsible gaming in general, so that’s very interesting. It’s also important that Kentucky dedicate money from their ongoing revenue and put it into their system as well.”
