Kentucky Creates Problem Gambling Finance Prior to Sports Wagering Debut
Governor Andy Beshear of Kentucky has put into place emergency measures to help tackle problem gambling, especially since the state is ready to launch its new sports betting program.
These regulations specify the process for community service organizations or behavioral health professionals to seek grants from the Kentucky Problem Gambling Assistance fund. This account was created when the sports betting law was passed earlier this year. The money allocated can be used for problem gambling counselling, education, or even for covering costs related to treatment and recovery.
In a statement released on July 27, Beshear emphasized the positive effects of sports betting - creating new jobs, boosting tourism and growth. But he also insisted that individuals participate responsibly, pointing out that the aforementioned funds would aid Kentuckians facing gambling issues.
The fund is set to accumulate around $575k in its initial year. Legal sports betting is projected to generate around $23m in annual income at the beginning, with 2.5% of this total being allocated for dealing with problem gambling.
The fund will be managed by the Kentucky Cabinet for Health and Family Services. Administrative costs are expected to reach around $50k annually, which covers half of an average worker's salary.
Recent data suggests that 100,000 adults in Kentucky demonstrate characteristics of problem gambling, while 45,000 people struggle with gambling addiction. KY's adult population is estimated to be close to 3 million.
Current resources appear low. Only seven mental health professionals in Kentucky are certified to treat gambling disorders.
Sports betting in Kentucky hopes to launch by September 7 to align with the start of the NFL season. A total of nine sportsbook operator licenses will be issued, tied to the state's existing race tracks.
Applicants seeking a sports wagering license must pay a $500k fee up front. Sports betting revenue will be taxed at a rate of 9.75% for in-person bets and 14.25% for mobile sportsbooks.
Beshear, who is running for re-election in November, firmly supports sports betting. He has even stated that he will place the first bet when the sportsbooks start operating.
The emergency gambling problem regulations are open for public comment until the end of September. These rules will be eventually swapped out with permanent laws following the public comment session.
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Source: www.casino.org
