Kentucky House panel passes gambling-related bills; moves sports betting closer to legalization

Kentucky unanimously passed a bill out of a state House committee on Wednesday, which seeks to legalize and establish rules for most forms of sports gambling, including fantasy sports and online poker. It was one of several gambling-related bills that were discussed and greenlit, including measures that would update pari-mutuel wagering laws, create a problem gambling assistance fund and ban certain gambling machines. All bills have now moved to the House floor. 

Bill sponsor Rep. Adam Koenig remains positive that this year will make a difference in the state as similar bills have advanced in the legislature in the past, but only to stall amid opposition from conservative legislators. As reported by WFPL.org, Koenig assured that “we’re in a position to hopefully have better luck going forward out of this committee”. 

House Bill 606 seeks to allow sports wagering despite strong opposition in the state, as concerns that betting could affect vulnerable families and moral values. The Family Foundation, a conservative Christian organization, has long opposed the effort to legalize sports betting in that jurisdiction.

Good morning this morning. Sports wagering, pari-mutuel modernization, responsible gaming all passed out of committee. Look forward to seeing them move to the House floor, hopefully sooner rather than later. #makeKY34. @Steve_Byk @PatCummingsTIF https://t.co/abr4WpwdmZ

— Adam Koenig (@repkoenig) March 16, 2022

However, Koenig pointed out that what opponents have predicted as the enrichment of the government at the expense of the impoverished has not occurred in other states where sports wagering is currently legal. 

“According to the American Gaming Association, there is $2 billion wagered illegally in Kentucky every year, and I think it’s important to bring those people out of the shadows and  dry up the black market”, he said. 

Koenig also sponsors House Bill 609, which intends to set up a problem gamlbing assistance fund and board to raise awareness about addiction, as well as establishing programs to help and pay costs associated with treatment. The Bill would use $225 million from a lawsuit against PokerStars, which collected losses from thousand Kentuckians who played on its websites.  

House Bill 607 was also passed, which intends to modernize pari-mutuel wagering by establishing a single tax rate for this sort of wagering of 1.5% and eliminating admission tax. According to Koenig, the bill would bolster state revenues by around $27 million in the next couple years.

House Bill 608, also passed Wednesday, proposes a ban on “gray machines”, which look like slot machines and pay out cash prizes to successful players, and have proliferated in convenience stores across the state. According to Kentucky Lottery Corporation CEO Mary Harville, the proliferation of these machines in convenience and grocery stores throughout the state has eroded the lottery’s profits, which support Kentucky college scholarships. 

The bill package was presented earlier this month. Koenig stated back then that  legalizing sports wagering would allow Kentuckians to “do what they would like to do with their own money”. He said that it would “take it away from the bookies and the off-shore accounts”.  

Koenig hopes to combine the multiple proposals in one sweeping measure. However, if his strategy does not work, he will try to pass as many of the individual proposals as possible.

33 states have legalized sports betting, including every state that borders Kentucky except for Missouri.