Just ahead of the Kentucky Legislature’s final day of session on April 22, lawmakers overrode Democratic Gov. Andy Beshear’s veto of Senate Bill 299.
The measure now creates an independent Kentucky Horse Racing and Gaming Commission to regulate all gambling in the state.
Currently, the Kentucky Horse Racing Commission reports to the governor as part of the Kentucky Cabinet for Public Protection. Also under the measure, the governor would nominate members for the agency’s board of directors but require Senate confirmation.
The Senate voted 26-12 to overturn Beshear’s veto and the House voted 57-38. The bill previously passed the Senate 26-12 and the House 64-28. It was one of more than two dozen bills Beshear vetoed on April 12.
In his veto message, Beshear called Senate Bill 299 “unnecessary and unworkable.” He said he supports an independent agency but the new structure would require it to focus more on generating profits than on oversight. He also said the enacting date of July 1, 2024 would not allow enough time for a smooth transition.
Beshear wrote, “In helping administer sports wagering in Kentucky, the Public Protection Cabinet and other central government agencies provide significant support services to the Kentucky Horse Racing Commission that would cease under Senate Bill 299. The bill mandates that beginning with fiscal year 2027, the corporation will no longer receive the $3.7 million from the General Fund and must be self-funded and self-sustaining. This will likely mean increases in assessments on race tracks and fee increases on racing industry licensees.”
He noted, “Any effort to create an independent corporation should be drafted, vetted and approved over months. This version had just days. In its current form, it endangers horse racing, sports wagering and charitable gaming.”
Beshear noted since sports betting launched in Kentucky last September, more than $900 million has been wagered. He said Kentuckians bet more than $34 million during the first weekend of March Madness betting and more than $17 million on the Super Bowl.
Earlier in the session, Beshear signed House Bill 281 which created a division of sports betting within the Kentucky Horse Racing Commission.
