Kentucky state Rep. Jerry Miller and state Senator Morgan McGarvey will co-sponsor a bill to allow casino gambling as a way to plug a – billion budget deficit without raising taxes. Miller said casino revenue could provide at least a portion of the billion a year required to back up public pensions. “We have to meet our obligations, the promises we made to retirees. I personally don’t sense a desire in the legislature to have a tax increase,” Miller said.
Previously, state Reps. Dennis Keene and Rick Rand introduced a constitutional amendment that would allow casinos in Kentucky. Keene, the House Democratic Caucus chairman, said it was the “start of the conversation. There’s no other alternative revenue streams being considered. Kentucky’s lottery gambling is highly successful and by expanding existing gaming venues to allow for casino-type games, we will grow a new revenue source to help us catch up on the pension shortfall.” Rand added, “Do voters want to allow the new revenue from expanding gaming to build the pension fund or would they rather have cuts made on the backs of the state’s over 100,000 retirees? It’s time to put the gaming issue on the ballot so the public can have their say on this issue.”
A constitutional amendment requires 60 percent approval in both the House and Senate, followed by a statewide referendum.
The proposal would allow four casinos and six racinos at the state’s existing horse racetracks. Local communities would vote on permitting a casino. Keene and Rand said casinos would generate $325 million in one-time fees and an additional $236 million annually for the state.
In addition, state Senator Julian Carroll filed a bill to legalize sports betting. The legislation establishes a framework to allow any horse racetrack or off-track wagering facility to offer sports betting. “The state has a moral and legal obligation to fund state pensions. Reducing the benefits of thousands of hard-working public servants is not an option,” Carroll said.
Republican Governor Matt Bevin has said he is opposed to expanded gambling besides a state lottery and racetracks. “The benefits are not offset by the cost. The societal cost of that is not proven to work for states that have done it. It just hasn’t,” he said.
The bills face strong opposition from conservative legislators and groups. Democrats were unable to get casinos on the ballot even when they still controlled the legislature. House Speaker Jeff Hooven said, “I haven’t heard it discussed.” And when Senate President Robert Stivers was asked if he heard casino gambling discussed, he replied, “Never have.”
