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Kentucky sports betting bill passes out of Senate committee

Sports betting
Posted at 10:08 AM, Mar 15, 2023
and last updated 2023-03-15 20:22:13-04

FRANKFORT, Ky. (LEX 18) — Supporters of sports betting had a breakthrough on Wednesday as a bill to legalize sports wagering passed out of Senate Committee for the first time.

"That's a big step. It's never happened before," said Senate Majority Floor Leader Damon Thayer. "And it was a very strong vote as well."

The Senate Licensing and Occupations advanced House Bill 551 on a 9-1 vote.

However, the bill's biggest challenge still remains - the full Kentucky Senate. Rep. Michael Meredith, the bill's primary sponsor, is optimistic but he said they're still short of a few votes.

"Probably somewhere in the range of 1 to 3 votes that we need to sure up," said Meredith. "So, I think we're getting really, really close."

The Kentucky House easily passed HB 551 on Monday on a 63-34 vote. If supporters manage to get the votes needed in the Senate, there likely won't be much wiggle room.

How many votes are needed in the Senate? HB 551 needs 23 votes in 2023 because revenue-producing bills have a higher threshold in odd-numbered years. In an even-numbered year, only 20 votes would be required for passage. And the extra three votes required in 2023 are proving to be a challenge.

"If we only required 20 votes, like in a 60-day session, I think we could pass it," said Thayer. "But getting to 23 votes is going to be a challenge."

And that's because not everyone thinks legal sports betting is a good idea.

During Wednesday's committee meeting, opponents voiced their concerns. They called sports betting a highly addictive form of gambling that would come with social costs.

"Expanded gambling preys on poor people," said Todd Gray, the executive director of the Kentucky Baptist Convention. "It's often the poorest people in our communities that are the most vulnerable to the slick advertisement and the promise that DraftKings will put out - and FanDuel will put out - about get rich quick."

David Walls, the executive director of The Family Foundation, said legalized sports betting would result in “more broken families, increased addictions and divorce."

The bill would “turn every iPhone in Kentucky into a digital casino” for wagering on sporting events, Walls said.

Meredith responded to the criticism by saying he's not going to "debate anyone’s morals" or "religious convictions." However, he emphasized that Kentuckians are already betting on sports.

"There are over a billion dollars bet illegally right now and we know there's a significant amount of the marketplace that is just going across the state line, across the river, to place their wagers as well," Meredith said.

“The people of Kentucky want this,” Thayer said as he cast his vote on Wednesday. “It’s time that we give them the choice - for free will, God-given free will - to engage in legal sports betting.”

Supporters also pointed out that the debate over sports betting is happening as the NCAA men's basketball tournament begins.

"How many people do you think here in Kentucky are going to place a bet on the NCAA tournament?" asked Sen. Reggie Thomas, a democrat from Fayette County.

HB 551 still needs to receive procedural readings in the Senate. A vote cannot happen until the bill has three readings on three separate days, meaning a showdown vote could occur in late March during the final two days of this year’s legislative session. That would take place after the veto break -which allows Gov. Andy Beshear to consider signing or vetoing bills sent to him.

House Bill 551 would allow Kentucky’s horse racing tracks to be licensed as sports betting facilities for a $500,000 upfront fee and an annual renewal fee of $50,000.

Participating tracks could contract with up to three service providers to provide sports wagering services at the track itself, or through online sites and mobile applications. Service providers would have to pay $50,000 for an initial license, with a $10,000 annual renewal fee. Revenue generated from taxing such wagering would cover those regulatory costs. A percentage of the revenue would go into a fund focused on dealing with problem gambling. The leftover revenue after that would flow into the state public pension system.

Under the bill, the Kentucky Horse Racing Commission would regulate sports wagering operations.

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The Associated Press contributed to this report.