Kentucky set to have new sports betting regulator after legislature overrides Gov. Andy Beshear's veto

Kentucky’s Republican-controlled legislature overrode two dozen vetoes of bills and resolutions of Democratic Kentucky Gov. Andy Beshear on Friday, including his veto of Senate Bill 299, legislation that creates an independent Kentucky Horse Racing and Gaming Commission to oversee gambling including KY sports betting. 

The existing Kentucky Horse Racing Commission sits under the governor’s purview as part of the Kentucky Cabinet for Public Protection.

The Senate overturned the veto with a vote of 26-12, with the House following suit, 57-38. SB 299 initially passed the Senate, 26-12, and the House, 64-28. 

Republican Senator Damon Thayer, who was a driver of last year's sports betting legislation, unveiled the regulatory reorganization plan in late March. The governor would nominate members for the agency’s board of directors but require Senate confirmation. 

The new agency would oversee six different areas of horse racing and gambling including pari-mutuel wagering, live horse racing, breed development and integrity, sports betting, licensing and investigation, and charitable gaming. There would be 15 board members, representing a range of industries overseen by the corporation. Employees and equipment of the existing commission will transfer to the new agency.

Gov. Andy Beshear

Beshear vetoed the bill because he viewed it as an "unnecessary and unworkable bill, and its unintended consequences would tremendously affect horse racing, sports wagering, and charitable gaming industries and the ability of people to serve on the newly-created corporation," he wrote in his veto message. 

Earlier this session, Beshear signed House Bill 281, which created a division of sports betting within the Kentucky Horse Racing Commission. While he did not completely disavow a separate agency, he said it should take more time than SB 299. 

Since launching in September 2023, Kentucky sports betting has seen more than $900 million wagered. According to Beshear, Kentuckians bet more than $34 million during the first weekend of March Madness betting. They also wagered more than $17 million during Super Bowl betting.

The governor told reporters that a conversation should be had about the move during the legislative interim session and pointed out that it was finalized shortly before the veto period began. 

"The Public Protection Cabinet worked so hard to get sports betting launched," Beshear said. "They brought all of their resources to bear and look at how well it’s gone. There’s that old axiom, 'if it ain’t broke,' right? If it ain't broke, don't fix it."