• Tue. Jun 15th, 2021

Kentucky Lawmaker Information Sports activities Betting Invoice for the 2021 Legislative Session


Jan 12, 2021

Posted on: January 11, 2021, 06:40h. 
Final up to date on: January 11, 2021, 07:23h.

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Kentucky state Rep. Adam Koenig has as soon as once more filed laws in search of to legalize sports activities betting within the state.

State Rep. Adam Koenig, seen right here in a 2016 photograph discussing laws with then-state Rep. Addia Wuchner, has refiled a invoice within the 2021 Common Meeting session that seeks to legalize sports activities betting within the state. (Picture: Kentucky Legislative Analysis Fee)

The Erlanger, Kentucky Republican has beforehand filed comparable laws. Final yr, the state Licensing, Occupations, and Administrative Laws (LOAR) Committee, which Koenig chairs, unanimously accredited the invoice. Nonetheless, it by no means acquired a ground vote within the state Home of Representatives.
This yr’s model, Home Invoice 241, appears to be like similar to final yr’s laws. Along with legalizing sports activities betting, it additionally offers the framework to control on-line poker and day by day fantasy sports activities. The Kentucky Horse Racing Fee would regulate sports activities betting within the state. The state’s Public Safety Cupboard would oversee day by day fantasy, and the Kentucky Lottery Corp. would administer on-line poker.
The state’s horse and harness racing tracks can be eligible to obtain sports activities betting licenses, in addition to any skilled sports activities venue that seats 50,000 or extra followers. Solely the Kentucky Speedway, situated roughly midway between Louisville and Cincinnati in Sparta, meets that standards.
The invoice, filed formally on Saturday, permits every licensed facility to function a retail sportsbook and a web based utility. Anybody in search of to bet utilizing a cellular machine would wish to register in particular person on the affiliated retail venue till Jan. 1, 2023.
The proposed tax construction intently resembles New Jersey’s in that income from retail is taxed at a decrease price. Sportsbooks’ adjusted gross income from the brick-and-mortar institutions can be taxed at 10.25 p.c, with .5 p.c of that going towards racing improvement funds.
The state would tax on-line betting at 14.25 p.c of AGR.
Kentucky is sort of surrounded by states that provide sports activities betting. Of its seven neighbors, it’s at the moment accessible in Illinois, Indiana, Tennessee, and West Virginia. Virginia expects to launch by the Tremendous Bowl. Ohio had a invoice go the state Home final yr, however did not clear the legislature, and Missouri lawmakers are additionally contemplating legalization.
Loads of Challenges Forward
As beforehand reported, sports activities betting faces an uphill battle within the Kentucky Common Meeting this yr due to COVID-19 and different causes. First, legislative leaders selected to maintain committee conferences to an hour every, permitting employees to wash convention rooms between hearings.
Second, legislative leaders have positioned a precedence on different payments on this session. That features payments that may give legislators extra enter and authority over emergency govt orders. Lawmakers additionally should go a one-year funds this yr because the Common Meeting held off from passing a two-year plan final March, citing the unsure financial forecast.
These payments have eaten into the odd-year 30-day session that began final week. Sometimes, lawmakers in odd-year periods maintain organizational conferences for 3 or 4 days. Then, they recess for the remainder of the month. This yr, legislative leaders scheduled a Saturday session this previous weekend and plan to fulfill by way of this Wednesday.
Meaning when lawmakers return to Frankfort in February, they’ll have simply 22 days left within the session, which should finish by March 30.
As well as, legislative leaders have stated historic horse racing (HRR) laws must take precedence, as lawmakers should discover a option to permit the KHRC to allow and oversee the slot-like machines. Final fall, the Kentucky Supreme Courtroom issued an opinion saying the video games don’t meet the definition of pari-mutuel gaming.
The invoice, although, does have some distinguished backers. On Monday, Kentucky Authorities Retirees President Jim Carroll tweeted an announcement endorsing it.

Kentucky Authorities Retirees helps HB 241 as a standard sense measure to tax an present exercise in Kentucky whereas serving to fund pensions,” Carroll tweeted.

It’s unsure if the cash from sports activities betting can be used to assist alleviate the state’s public pension issues. In accordance with the Kentucky Retirement Techniques 2020 Abstract Annual Monetary Report, the state’s pension plans had an unfunded legal responsibility of $28.3 billion.
Final yr, officers anticipated sports activities betting to generate $22.5 million in annual tax revenues.
Extra Cosponsors Anticipated to Be part of
HB 241 was initially assigned to the Home Committee on Committees, a bunch that features Republican and Democratic Home management. In a textual content Monday, Koenig advised On line casino.org he expects the invoice to make it to his committee through the session.
The present invoice has simply 5 cosponsors, all of whom both serve on the LOAR Committee or the Interim Joint LOAR Committee that meets between periods. Lawmakers count on that to develop.
Final week on KET’s Kentucky Tonight, Home Minority Chief Joni Jenkins, D-Shively, stated she anticipated most of her caucus to signal on as sponsors. Kentucky Gov. Andy Beshear, a Democrat, can be a vocal supporter.

Final yr, of the invoice’s 42 sponsors, 30 have been Democrats. Nonetheless, of these Democratic sponsors, 10 are now not within the Home. 9 of them both misplaced to Republicans in November’s election or didn’t run for re-election and noticed a Republican choose up the seat.

It’s nearly a certainty the invoice will want a major quantity of Republican help to go the Home. The GOP controls 75 of the 100 seats within the chamber. So, even when all 25 Democrats help it and 25 of Koenig’s Republican colleagues do as nicely, that also means practically two-thirds of the bulk caucus doesn’t.
There’s some excellent news on that entrance. One of many new cosponsors is freshman state Rep. Killian Timoney, R-Lexington. Timoney took over a district beforehand held by state Rep. Stan Lee, who was considered probably the most ardent social conservatives within the Home.
Even when the invoice didn’t go on this session, Koenig and supporters might use the time in Frankfort to teach members, particularly newly elected ones, on the deserves of legalized sports activities betting. That might set it up for passage in 2022.

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