Kentucky Lawmakers Eyeing Greater Gambling Regulation Through New Bill

Article by : Erik Gibbs Mar 28, 2024

• 
• 

Tuesday saw the unveiling of a comprehensive legislative proposal aimed at overhauling Kentucky’s gambling and horse racing landscape. Spanning an extensive 281 pages, the proposed bill outlines the creation of the Kentucky Horse Racing and Gaming Corp., an autonomous government entity tasked with regulating virtually all aspects of parimutuel wagering.

This includes oversight of historical horse racing machines, sports betting operations, and charitable gaming activities.

If enacted, the corporation would supersede the current regulatory bodies, namely the Kentucky Horse Racing Commission and the Department of Charitable Gaming, which currently operate under the Public Protection Cabinet’s purview.

Earlier in the legislative session, a significant amendment proposed by Senate Majority Floor Leader Damon Thayer, which aimed to integrate the racing commission with the Kentucky Department of Agriculture, has been supplanted.

The current iteration of the bill, spearheaded by Thayer himself, now embraces a more innovative approach, thanks to the insight of House Speaker David Osborne.

The new proposal envisions establishing the regulatory body as an autonomous entity akin to the Kentucky Lottery Corp. or the Public Service Commission.

The Kentucky Horse Racing Commission, tasked with overseeing all equine-related activities in the state, including prestigious events like the Kentucky Derby, as well as the operation of numerous historic horse racing machines across the state, stands at the forefront of this legislative discussion.

Senate Bill 299 underwent thorough deliberation during a joint session of the House and Senate economic development committees. While the Senate committee greenlit the bill on Tuesday, the House committee is slated to review it later this week.

Subsequently, the bill received approval from the full Senate later that same day, with overwhelming support from Republicans and unanimous opposition from Democrats.

Notably, this legislative development unfolded on the 56th day of the session, which is slated to conclude on April 15.

The proposed legislation entails the transformation of the existing racing commission members into the inaugural board of a newly established corporation, with subsequent appointments requiring Senate confirmation and ethics oversight.

This measure aims to institutionalize the regulatory body, safeguarding it against dissolution by future administrations.

Extensive consultations were conducted with industry stakeholders to refine the proposed changes, with the corporation’s jurisdiction excluding oversight of Kentucky’s horse breeding or sales industry.

The governor would appoint the corporation’s president from a board-provided shortlist. Charitable gaming oversight would transition to the corporation by July 2025, with other provisions taking effect in July of this year.

Despite assurances from Osborne and Thayer, concerns were raised during a committee hearing regarding potential adverse impacts on charitable organizations reliant on gaming activities. Notably, the Kentucky Lottery Corp. would maintain its independent status.