Kentucky Sports activities Betting Invoice Clears Legislature in Session’s Remaining Day

Ultimately, legalizing sports activities betting in Kentucky on Thursday got here right down to politics.

Kentucky Senate President Robert Stivers (proper) speaks with Senate Democratic Chief Gerald Neal on the ground of the Senate Thursday. Hours later, the chamber would vote to cross a invoice to legalize sports activities betting. (Picture: On line casino.org)

Lawmakers within the Common Meeting, looking for to wrap up a number of items of serious laws on the ultimate day of the 2023 session, got here to agreements to cross sports activities betting and different points, together with on a invoice that reforms how the state will tax bourbon barrels.

Bourbon and betting. That’s so Kentucky.

Each payments cleared the chamber early Thursday night, with House Bill 551, the gaming measure led by state Rep. Michael Meredith (R-Oakland), doing so on a 25-12 vote. It wanted 23 votes for passage due to constitutional necessities on revenue-generating laws in a nonbudget session. As of Wednesday night, proponents stated that they had 22 particular votes on their facet.

The Senate handed an amended model of the bourbon tax reform invoice that wanted the Home to approve the adjustments, which it did a few hours later.

Senate Majority Ground Chief Damon Thayer, R-Georgetown, stated having two main points like that “coming to a head” led to collaboration and their passage.

Senate President Robert Stivers, R-Manchester, concurred.

Once you ask the Home what’s necessary to them, what’s necessary to different payments that need to get via, it turned evident that there was quite a lot of assist for each payments to maneuver,” Stivers instructed reporters Thursday night. “And so it’s extra of a cumulative dialogue after we communicate with Home leaders.”

HB 551 now heads to Gov. Andy Beshear’s (D) desk. An ardent proponent of expanded gaming, Beshear thanked lawmakers for passing sports activities betting in a tweet Thursday evening and making the Bluegrass State the thirty seventh to take action.

After years of urging lawmakers to legalize sports activities betting, we lastly did it! Immediately’s outcome exhibits that arduous work pays off. 1/2

— Governor Andy Beshear (@GovAndyBeshear) March 30, 2023

Concerning the Kentucky Sports activities Betting Invoice

The invoice permits the state’s 9 racetracks to host retail sportsbooks at their tracks and satellite tv for pc gaming services. It additionally provides them the flexibility to companion with three on-line operators, which means the state might have as many as 27 licensed apps.

Tracks can pay $500K for his or her licenses, whereas operators can pay $50K. Annual renewal charges will likely be $50K for tracks and $10K for operators.

The state will tax operators’ revenues at 9.75% for the retail books and 14.25% for the net operators. The income will cowl the KHRC’s administrative prices, with 2.5% being earmarked for the state’s first downside playing help fund, and the rest going to the state’s pension fund.

The legislation will take impact in 90 days, though the lawyer common will set the official date within the close to future. After that, the KHRC can have six months to ascertain the regulatory framework and licensing processes. That may doubtless arrange sportsbooks to take their first bets, maybe by the tip of this 12 months.

Earlier forecasts have estimated the sports activities betting tax would generate about $22 million yearly for the state. Thayer, in his flooring speech, stated the overall may be even increased due to what different states are elevating.

Not a ‘Large Win’ for Kentucky Racetracks

Some have criticized the invoice as a sweetheart deal to the horse trade. Nonetheless, Thayer instructed reporters after the vote that it was the sportsbooks that have been pushing for the invoice greater than the tracks.

The tracks have been extra involved concerning the grey video games/talent video games ban that handed the legislature earlier this month, and as soon as that occurred, the tracks turned extra engaged in sports activities betting, Thayer stated.

“They’ll be blissful to have it,” he stated. “There will likely be partnerships labored out with the suppliers, however it’s not an enormous win for the tracks. It’s in all probability a base hit, possibly a double for them.”

A number of gaming firms had a presence in Frankfort final 12 months and this 12 months. The Sports activities Betting Alliance, which consists of BetMGM, DraftKings, FanDuel, and Fanatics, has spent greater than $80K because the begin of 2022, based on the Kentucky Legislative Ethics Fee.

“We need to thank the Kentucky Common Meeting for passing laws that can convey authorized sports activities betting to the Bluegrass State, pending motion from Governor Andy Beshear,” stated Griffin Finan, DraftKings’ senior vp and deputy common counsel, in an announcement to On line casino.org. “We look ahead to the potential alternative to introduce Kentucky sports activities followers to our top-rated cellular sportsbook product.”

Sports activities Betting Tally a Shock

Meredith and state Rep. Al Gentry, the Louisville Democrat and HB 551’s main co-sponsor, stood off to the facet within the chamber because the Senate clerk referred to as the roll.

Afterward, Meredith stated he anticipated they might get 23 or 24 votes, however there was one “actual shock,” though he declined to determine that senator.

He described Thursday’s vote as a end result of a motion that’s been taking place throughout the nation. Not solely did 36 states beforehand approve sports activities betting, however six states round Kentucky have as nicely, encouraging 1000’s of Kentuckians to cross state strains regularly to make their wagers.

Then there was Missouri, Kentucky’s solely neighboring state with out authorized sports activities betting, making progress on their measure.

“We’d really be an island in and of ourselves … I feel individuals noticed that the chips preserve falling in that course, and we’d proceed to be an outlier,” Meredith stated. “Then it simply made sense due to all of the border states and what we have been capable of current on all of the unlawful wagering within the state.”

‘Take it Off the Desk’

Among the many shocking sure votes have been Stivers and state Sen. Brandon Smith (R-Hazard). For years, Stivers would categorical ambivalence concerning the affect sports activities betting would make within the state, describing the thousands and thousands it could generate as an “appetizer” in relation to the state’s multibillion-dollar funds.

I felt it was time as a result of the votes ultimately are going to be there, be it now or subsequent 12 months to cross this,” the Senate president instructed reporters. “The query on the vote whole solely was as a result of it was an odd-numbered 12 months and wanted 60%. Due to this fact, there have been greater than sufficient votes on this chamber to cross the invoice. So, go forward and do it now and take it off of the desk.”

Smith defined his shocking sure vote on the ground, saying that his district, redrawn after the 2020 Census, modified considerably and included huge assist for the invoice.

“I’ve made a reasonably exhausting case towards this invoice,” he stated on the ground. “However I’ll let you know how I come up quick. The voters of my new district need to have the ability to have this freedom.”