Kentucky House approves sports betting bill with a margin of almost 2:1 votes.
Kentucky House passed legislation to legalize sports wagering in the state late Monday evening.
Voting 63-34 in favor of House Bill 551, the bill surpassed the required three-fifths majority due to its revenue generation and appropriations made during a non-budget year.
The bill proposes that Kentucky's racetracks will be authorized to set up retail sportsbooks at their respective tracks and simulcasting facilities. Additionally, each track can form partnerships with up to three mobile operators. A license fee of $500,000 will be charged for track licenses, with an annual renewal fee of $50,000. Operators will need to pay a $50,000 license fee and an annual renewal fee of $10,000.
Retail sports betting revenues will be taxed at 9.75% of the adjusted gross revenues, while online operators will pay a 14.25% tax. The sole deductions allowed will be for the 0.25% federal excise tax per wager imposed by the federal government.
This is the second consecutive year that the House has endorsed a sports betting bill. Last year's bill, however, stalled in the Senate after failing to receive a committee hearing or floor vote before the session ended. To pass in the Senate this year, the bill needs 23 "Yes" votes from its 37 members.
Advocates are hopeful about this year's bill, despite the remaining five days in the legislative session.
State Rep. Michael Meredith, R-Oakland, the bill's main sponsor, believes they are close to acquiring the 23 votes needed to pass the bill in the Senate this year.
Fund for Problem Gambling Introduced in Bill
The reason for Meredith's optimism is due to a House floor amendment passed on Monday, which included a provision for a problem gambling fund. This fund will receive 2.5% of the annual tax revenue.
This addition was specifically made at the request of a few senators, according to Meredith.
State Rep. Al Gentry (D-Louisville) supported the creation of this problem gambling fund. Gentry has been instrumental in sponsoring sports betting legislation in the House.
Kentucky lacks a problem gambling fund, making it one of the few states lacking such a resource.
"I've invested a lot of effort in pushing this for a few years now, and I'm glad to see it's included," said Gentry.
Meredith and Rep. Matt Koch (R-Paris) have discussed introducing a more comprehensive problem gambling fund for next year's session.
The problem gambling fund is not the only positive change for the bill. Last week, the House Licensing, Occupations, and Administrative Regulations Committee approved a substitute bill that removed a 12-month, in-person licensing requirement for mobile account registrations.
Although the House passed Meredith's floor amendment, two amendments proposed by an opponent of the bill failed.
State Rep. Josh Calloway (R-Irvington), aimed to prohibit the use of credit cards for sports betting transactions and increase the minimum age for placing a sporting event wager from 18 to 21. Both proposals were rejected: the age increase vote resulted in a 39-48 defeat.
Calloway, following the failure of his amendments, stated on the floor that he would continue fighting for Kentuckians, particularly against measures that could usher in long-term damage.
Crunch Time in Kentucky General Assembly
Advocates of the sports betting bill received positive news last week when Tuesday's Senate Licensing and Occupations Committee hearing agenda included HB 551.
Following Monday's vote, Meredith stated that the committee may not take up his bill until possibly Wednesday. The Senate L&O Committee is also set to consider the skill games bill, which passed the House last week, and a bill to legalize medical marijuana.
Supporters of the sports betting bill are optimistic about its chances, despite the session's approaching conclusion.
After Monday, there remain only five legislative days in the session. Three of these days occur this week, with lawmakers scheduled to take a recess on Thursday for Gov. Andy Beshear's veto consideration period.
The session will conclude on March 29-30.
Governor Beshear's support of the bill is another advantage it holds. He campaigned four years ago on the legalization of sports betting and reaffirmed his support for it earlier this year in his State of the Commonwealth address.
"I don't believe you'll see a veto," Meredith said. "So, I think everyone is pretty comfortable waiting until after the veto period."
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