The Kentucky Senate recently voted 26-11 to pass Senate Bill 299, which would create a new government corporation to oversee nearly all gambling and horse racing in the state.
The sweeping 281-page bill would establish the Kentucky Horse Racing and Gaming Corporation to regulate live horse racing, parimutuel wagering, sports betting and charitable gaming. The new corporation would replace the current Kentucky Horse Racing Commission and the Department of Charitable Gaming, both overseen by the Public Protection Cabinet, effective July 2024.
Currently, charitable gaming is not governed by the racing commission. It would be regulated by the new corporation effective July 2025. Licensing and regulating charities like veterans and church groups would not change.
The bill’s co-sponsor, Senate Majority Floor Leader Damon Thayer, said House Speaker David Osborne was the one who suggested creating a standalone regulatory agency, similar to the Kentucky Lottery Corp. or the Public Service Commission.
According to the Kentucky Lantern, Thayer said, “It’s an idea whose time has come. I think this would bring increased scrutiny, integrity and transparency to all legal forms of gaming in Kentucky.” The bill now moves to the House Economic Development and Workforce Investment Committee.
The Kentucky Horse Racing Commission regulates all horse racing in the state, including the Kentucky Derby, plus gambling parlors offering so-called “gray machines,” the thousands of historical horse racing machines proliferating across the state. Thayer said the proposed bill would not affect those games, which were banned by the legislature last year.
The current racing commissioners would become the first board members of the new corporation, serving 2-year terms, Thayer noted. Future members still would be appointed by the governor, but subject to Senate approval. The governor also would select the corporation president from three choices provided the board.
The bill’s sponsors said they consulted racetrack officials, horsemen’s groups and Gov. Andy Beshear’s office. Osborne said the corporation would not regulate the state’s horse breeding or sales industries.
The legislative session will end April 15.
