Kentucky lawmakers are making another push to legalize casino gambling to help plug the state’s $60 billion pension shortfall. Kentucky state Rep. Jerry Miller’s House Bill 229, a proposed constitutional amendment authorizing casino gambling, would be placed on the November ballot if 60 percent of the membership of both the state House and Senate approve it. “It’s going to be hard and it’s going to take people contacting their legislators and saying, ‘I want to vote on this because I think Kentucky needs more revenue.’ It’s much more palatable than a tax increase,” Miller said.
Under Miller’s proposal, all of the tax revenue generated in the first 20 years by casino gambling would go to bolster the public pension system. “This would free up tax dollars now going to pensions to be spent on other things in the budget,” Miller said.
State Senator Morgan McGarvey also sponsored legislation that would legalize casino gambling and generate up to $250 million a year. “The reason this idea has been on the radar for years is that we know we’ve been headed towards very bleak budgets. Well, we’re there now. The budget we’re looking at this year is dire and that has greatly increased the appetite for revenue options,” McGarvey said. “We’re not asking people whether they want casinos, we’re asking people if they want to turn around the carloads of cash that are leaving our state on a daily basis. If the voters say no, we’ll stop talking about it in Frankfort and look for other ways to raise revenue.”
Miller and McGarvey said they decided not to file enabling legislation spelling out details regarding the number of casinos, their locations, allowing slots at racetracks and other considerations. “We decided not to muddy the waters. We decided, let’s first find out if the people want it,” Miller said.
Greater Louisville Inc. and the Northern Kentucky Chamber of Commerce both support the proposed amendment as a way to create jobs. County government groups, retired teachers and professional firefighters also have endorsed the proposal. Supporters also have noted the Kentucky Lottery’s Keno game and other gambling is legal in the state, so casinos would not create new societal costs.
But Governor Matt Bevin disagrees, noting societal costs make legalized gambling “a sucker’s bet.” He said he will propose a comprehensive tax reform measure to address the revenue problem later in the current legislative session or in a special session later this year.
Opponents expect the measure to fail again this session. Kentucky Baptist Convention lobbyist Tom Troth said, “I don’t think its chances are any better this year. I expect most legislators still agree that this is a terrible way to implement public policy and a favor to multinational gambling interests. There are other revenue alternatives without the social costs.”
