Kentucky becomes 38th state to legalize sports betting
By Kate Northrop
A bill supporting legalized sports betting in Kentucky has passed and is estimated to generate an additional $23 million in revenue for the state per year.
As of Friday, sports betting is set to have an official spot among legal gaming avenues in the state of Kentucky.
The new law is expected to add to the state's economic momentum, boost tourism, and keep more gambling revenue in Kentucky.
Governor Andy Beshear signed House Bill 551 on Friday, which legalizes sports betting in the state.
"Now, after years of urging action, sports betting is legal in Kentucky. We finally did it!" Beshear remarked. "Today's result shows that hard work pays off. Kentuckians will soon be able to place their bets here, and for the first time, we are going to keep those dollars here to support our economy and communities."
The law goes into effect in late June, making Kentucky the 38th state to legalize sports betting.
Officials estimate that the newly legalized mode of gaming will generate a revenue increase of $23 million a year from tax and licensing fees once the change is fully implemented, which will largely contribute to the Kentucky permanent pension fund. In addition, 2.5% will go toward the gambling assistance account to combat problem gambling and addiction.
Kentucky's horse racing tracks will be able to apply for a license to operate as a sports betting facility for a $500,000 upfront fee and an annual renewal fee of $50,000. The tracks themselves will also be allowed to contract up to three service providers for sports wagering services or via online and mobile apps. Those contracted service providers will have to pay a one-time $50,000 fee for the license to operate at the track and then $10,000 to renew it each year.
However, opponents of the bill labeled sports betting as a detrimental form of gambling that has the potential to do more harm than good.
"There will be people hurt by this," Senator Whitney Westerfield said of the bill. "There will be people who can't afford to bet, who will bet anyway."
Supporters of the change pointed toward sports betting as a realistic path of progression for the state on account of its many horse tracks and ingrained culture of horseracing.
"I have zero doubt that sports betting will be a natural fit for a state that has made betting on horses its calling card for nearly 150 years," State Representative and primary co-sponsor of the bill Alan Gentry said. "I have been proud to collaborate with and advocate for this legislation with State Representative Michael Meredith, the current bill's sponsor, and former State Representative Adam Koenig, who sponsored previous versions. It took a lot of work to get to this point, but it was worth it."
Churchill Downs Inc., the owner of Ellis Park Racetrack, said that it is looking forward to the launch of legalized sports betting.
"Churchill Downs Incorporated is excited to bring our experience operating brick and mortar sports wagering venues to our home state of Kentucky," a company statement reads. "All of our [Historical Horse Racing] facilities throughout the state were designed with this possibility in mind and will be ready to offer sports betting under the regulations and timing of the Kentucky Horse Racing Commission."
Once the bill goes into effect and sports betting officially becomes legal, the Kentucky Horse Racing Commission (KHRC), the entity that will regulate sports betting in the state, will have about six months to "establish a fully functioning sports wagering system."
Senator Damon Thayer, a supporter of the bill, believes that this is a step forward worth celebrating.
"We love our sports in the commonwealth, and people want to be able to make the choice — of their own free will — to make a wager on a sports event, like almost all of our surrounding states," Thayer said. "This is a great day for the commonwealth and its people. Freedom won the day."
I can not believe there are still people like Senator Westerfield who think that somehow more betting will hurt people. Do they not realize that sometimes it's the poor people who win the money? The Senator's heart is in the right place, but it's a little misguided.
"There will be people hurt by this," Senator Whitney Westerfield said of the bill. "There will be people who can't afford to bet, who will bet anyway."
Somebody should tell Westerfield that we already have 24/7 Online lottery wagering, race tracks, off track betting, and gray slot machines. Oh and a couple race tracks have legal slot machine wagering.
Hello.
I wonder what the statistics are comparing the poor and the rich who win the lottery.
That's a very interesting question, Wendy. But in my opinion, just based on the fact that there are a lot more poor and middle-class Americans than there are millionaires and billionaires I would think that most of the winners are not very wealthy. The wealthiest big winner I can remember was a guy names Jack Whitaker who owned his own business, which might have been a construction company. You just never hear of any rich athletes or Hollywood celebrities winning the lottery. What makes the lottery special is the fact that it's all about dreams. If you are already a millionaire, chances are you have already fulfilled most of your dreams. The poor person is just hoping for a chance.
PS.......This would be a good subject for yet another brilliant Kate video. Have there ever been any millionaires who won the lottery?
That is excellent food for thought, Wendy! And thank you for the suggestion, Mata Garbo!
If you are taking retirement accounts and net worth into consideration, I have no doubt the recent winner who worked at Boeing for 30 years was worth a couple of million pre lottery win. But in 98% of cases, there is no evidence as to their level of income or career.
Millionaires are very common in certain areas and a million does not really mean that much today.
As you probably know that gray machines are supposed to be outlawed very soon.
You cannot play Keno on-line from approximately 0200-0500/seven days a week.
I'm sure you know the slot machines which I agree with you on are still called Historical Racing Machines (HRM). Am hoping that this goes away and have genuine slot machines. Paying taxes on small wins due to small wagering is for the birds. Folks have explained it to me the higher the wager sometimes no taxes unlike across the river where it is automatic $1199 and above.
When the news said this had passed and Governor Beshear signed this it came as a shock.
Like I said in November prior to it coming to a vote, WDRB interviewed me and I said, wearing my KY lottery hat that folks are going to gamble and go to other states if they can't get it here or words to that effect. This was on my way into Derby City Gaming, Louisville, KY.
'They' have six months to get their act together so to speak for sports betting. The new plywood closed section of DCG you can see large LED TV's already up and running. Churchill Downs is being proactive no doubt. They're also building a downtown Louisville casino.
Wouldn't be too surprised if table games aren't next to be approved.
Do they not realize that sometimes it's the poor people who win the money?
Do you realize that the way gambling is profitable for the people who run it is because people lose more than they win? The net cash flow is out of gamblers' pockets, not into it. That said, I suspect that most of the legislators who oppose gambling are actually opposed for reasons other than the possibility that their constituents might lose money.
"You cannot play Keno on-line from approximately 0200-0500/seven days a week."
But you can play other Online games 24/7.
"Am hoping that this goes away and have genuine slot machines."
The Red Mile must have newer slot machines because most say nothing about historical horse racing. And they have a huge off track betting area upstairs.
"across the river where it is automatic $1199 and above"
Doesn't the IRS control how gaming winnings are taxed?