Kentucky state Senator Julian Carroll recently introduced the sports betting measure Bill Request 29 for the 2019 legislative session. It would create a framework for any horse racetrack or off-track betting facility to offer betting on other sporting events. In the last session, Carroll sponsored Senate Bill 22 in anticipation of the U.S. Supreme Court lifting the federal sports betting ban. However, the measure was not brought up in committee. “Because of the General Assembly’s failure to act on this bill, Kentucky is losing revenue daily that could be funding our schools and public employees. And frankly, our residents are now vulnerable to an unregulated sports wagering market,” Carroll said.
The latest bill would direct most of the revenue generated from sports betting to the Kentucky Employees Retirement Systems Non-Hazardous and Kentucky Teachers’ Retirement Systems, as well as the Kentucky Educational Excellence Scholarship. The remaining revenue would go to horseracing development funds. The money would come from a 3
Carroll’s legislation also would also ban athletes, coaches, referees and
professional sports team owners and shareholders from betting on their own contests. It also would make it a felony crime with a 5-10 year prison sentence to impact the outcome of a sporting event.
Meanwhile, state Rep. Jason Nemes announced he has assembled a 9-member bipartisan sports betting committee to write regulations authorizing sports betting operations at the state’s horse racetracks and off-track betting venues for professional sports, limited college sports and no high school sports. State Senator Morgan McGarvey, a panel member, said, “We have a draft bill already started that we’re working through and there are a lot of things we have to work out. Who’s going to oversee it? How much is going to be taxed? What’s the state’s take going to be?” He said the panel, made up of five Republicans and four Democrats, will release an early version of the bill for public input.
Nemes said sports betting is “a way that we can bring more money into the state’s coffers to pay for much-needed programs, but it also increases the freedom of our citizens to direct their entertainment dollars where they think they ought to.” He estimated, depending on the tax rate, sports betting could bring in an additional $5.5-$26 million annually. Those figures indicate Nemes’ panel is likely to propose a high tax on sports gambling revenue.
“We should expand gaming and allow sports betting to come to Kentucky. We already have parimutuel wagering on horses, and I think this is the next step and it’s appropriate to do that. There are things that we are going to need to do to make sure we don’t have a Wild West in gaming,” Nemes said.
Kentucky Baptist Convention Executive Director and Treasurer Dr. Paul Chitwood said, “Gambling, legally or illegally, has benefited none of Kentucky’s families or children but has delivered huge payouts in pain. What family or community is stronger or healthier because of gambling? Are there more vexing issues we have to face than sports betting? Of course. But if you’re asking me had I rather be bitten by a Black Widow or a Brown Recluse, my answer is neither.”
Governor Matt Bevin has opposed gambling but has indicated support for sports betting. He noted the state already allows bets on horseracing and he also filed an amicus brief in the New Jersey suit that led to the Supreme Court decision. “Whether this ultimately results in any change for Kentucky is something that will be determined by our legislature and in a future legislative session,” he said.
Vince Gabbert, president and chief executive officer at Keeneland racetrack in Lexington, said, “From our standpoint, sports betting provides an opportunity to open more doors for people to get exposed to our product. Racetracks are uniquely situated to be able to handle this form of wagering because we are already set up from a technology and security standpoint.” However, he noted the racing industry wants to be in the loop as lawmakers write sports gambling legislation.
