Proposal for New Gaming Regulator in Kentucky Faces Opposition From Governor

Article by : Erik Gibbs Apr 16, 2024

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Governor Andy Beshear has rejected Senate Bill 299, which aimed to overhaul and privatize the Kentucky Horse Racing Commission. Rushed through the legislature at the end of last month, the bill will now return for further consideration.

The proposed legislation sought to establish the Kentucky Horse Racing and Gaming Corporation while dissolving the existing Kentucky Horse Racing Commission.

Notably, it mandated that Beshear propose commission appointments but subject them to Senate approval. In his veto message, Beshear criticized SB 299 as unnecessary and impractical.

Beshear expressed concerns about its potential adverse effects on horse racing, sports betting and charitable gaming sectors, and its impact on individuals’ eligibility to serve on the newly formed corporation.

The bill’s fate now lies in the legislature, where it must navigate both chambers once again for a potential override. During the previous legislative session, the Republican-controlled House and Senate successfully overrode all 15 bills vetoed by Beshear.

Beshear emphasized the unnecessary nature of separating the Public Protection Cabinet from the Kentucky Horse Racing Commission. He commended the PPC for its swift action in facilitating the launch of sports betting in the Commonwealth following its approval in Frankfort.

Furthermore, Beshear highlighted the significant betting activity during the NCAA Tournament, with a staggering $34 million wagered during the first weekend alone, despite the unexpected early exit of the University of Kentucky. Additionally, he pointed out the substantial betting volume of over $17 million during the Super Bowl.

In his letter, Beshear cited betting figures from February and March. However, the Kentucky Horse Racing Commission has not issued a revenue report for any month in 2024.

Although Beshear vetoed SB 299, he didn’t entirely dismiss the idea of reorganizing the KHRC. In a separate move, he signed HB 281 in March, which sets up a specialized sports betting division within the commission.

This year, Beshear vetoed a total of 27 bills, with his initial veto of HB 18 being overridden in early March.

Additionally, the governor exercised line-item vetoes on various sections of the state budget bills. Notably, one provision in the two-year operating budget aimed to restrict the release of emergency funds in the event of a natural disaster, capping it at $25 million.