Sports betting bill clears Kentucky House, to face tough odds at Senate

A bill seeking to legalize sports betting in the State of Kentucky cleared the House on Monday, setting up a potential Senate showdown on a proposal that creates divisions among the Republican majorities. While past efforts to legalize the market were also able to garner House support, they died in the Senate.

“This does create a regulated marketplace for sports wagering, taking sports wagering in Kentucky out of the shadows, out of the darkness and moving it into the light,” said Republican Rep. Michael Meredith, the bill’s lead sponsor, as reported by Associated Press. If legalized, sports wagering could generate about $23 million a year in tax revenue, Meredith noted.

While the measure cleared the House on a 63-34 vote, its prospects in the Senate are uncertain. The bill needs a three-fifths vote in each chamber to pass since it’s a revenue-producing bill in an odd-numbered year. Legal sports betting is supported by Gov. Andy Beshear.

Lead sponsor Republican Rep. Michael Meredith

A key supporter of the bill, Senate Majority Floor Leader Damon Thayer, admitted on Monday that it’s “going to be tough” to reach that high threshold in the Senate, as per AP. But the push is still ongoing, as supporters argue that it’s finally time for Kentucky to accept sports gaming, which is already available in most of Kentucky’s neighboring states.

However, the bill’s opponents are not of the same opinion. Parties against legalization argue that sports wagering would create more social problems and hurt families. “This is not legislation that Kentucky can be proud of,” said Republican Rep. Chris Fugate. “It’s not good for families. It’s not good for people.”

House Bill 551 would allow the state’s nine horse racing tracks to be licensed as sports betting facilities for a $500,000 upfront fee and an annual renewal fee of $50,000. Participating tracks could contract with up to three service providers to provide sports gaming services at the track itself, or through online sites and mobile applications. 

Service providers would have to pay $50,000 for an initial license, with a $10,000 annual renewal fee. Under the bill, the Kentucky Horse Racing Commission would regulate sports wagering operations. A Meredith amendment that removes a 12-month in-person registration requirement for online betting passed on Monday.

Revenue generated from taxing sports wagering, at 9.75% for in-person and 14.25% for online, would cover those regulatory costs. A percentage of the revenue would go into a fund focused on dealing with problem gambling, and the leftover revenue after that would flow into the state public pension system.

Several responsible gambling measures were added in the House, although amendments to prohibit credit card usage with sportsbooks and to raise the minimum sports betting age from 18 to 21 both failed. Legislators worked on a bill that would be more palatable to the Senate. Unlike last year’s legislation, this year’s effort does not include daily fantasy sports and online poker.