In Kentucky, two gambling-related bills, HB 606 and HB 609, got a second reading just before a 10-day veto recess began on March 31. Legislation must be read three times in the House and Senate before it can pass.
HB 606, which has bipartisan support in the House, would allow seven horse racetracks in the state to offer online poker and have one skin each for sports betting, plus offer fantasy sports. HB 609 would allocate $50 million from a $300 million settlement with PokerStars to fund problem gambling services.
At the end of the recess, the Senate will have to act on any pending legislation on April 13 and 14, before the legislature adjourns. Having the bills be read twice gives Koenig and Senate Majority Floor Leader Damon Thayer time to seek support. “I’ll be fighting for passage until 11:59 p.m. April 14, when the legislative session ends,” Koenig said.
The bills’ sponsor, state Rep. Adam Koenig, said, “HB 606 is very much alive. Not saying it is going to pass, but I’m having active conversations with Senators and believe there is a path. We went from four years ago, where you could only bet on sports in Nevada, to now 33 states and the District of Columbia where sports betting is legal. It’s everywhere. It doesn’t matter what party the state is run by, Democrat or Republican. It’s a non-partisan issue.” Koenig noted when legalizing sports betting first was suggested three years ago, analysts estimated it would raise $22.5 million in annual tax revenue.
Still, sports betting has plenty of opposition in Kentucky. Martin Cothran, spokesman for the conservative Family Foundation, said, “We don’t sense any desire on the part of state lawmakers to expand gambling in this state two years in a row. There is just no sentiment for getting into another ugly and divisive fight on gambling just a year after historic horseracing slot machines only barely made it through.” Senate President Robert Stivers also is opposed to HB 606. But Governor Andy Beshear said he supports it since Kentuckians are spending gambling money in Indiana.
Also in Kentucky, the American Gaming Association recently sent a letter to state legislators, encouraging them to pass House Bill 608 which would ban unregulated skill games that have proliferated in the state since 2021. HB 608 passed a House committee March 16.
Kentucky Lottery Senior Vice President, Communications, Public Relations and Social Responsibility Chip Polston said approximately 1,400 machines are operating in lottery retailer locations in 71 counties, excluding those in bars and restaurants. Kentucky Lottery President Mary Harville said the number of illegal machines in Kentucky is up 42 percent since November 2021, which is projected to cut into revenue earmarked by the lottery for college scholarships.
Chris Cylke, AGA senior vice president, government relations, said the so-called gray machines are “very much different than the legal regulated products that our industry offers which undergo rigorous testing. It is a bit of a zero-sum game in terms of allowing these things to continue operating. There will be economic impacts, but also impact on responsible gaming. On the policymaking side, this is something that needs to have a lot of attention paid to it. These things clearly fall outside of what we would determine as a responsible operating environment.”
