Kentucky Lawmaker Proposes Bill to Expand Casino Gaming
January 14, 2025 Marija D
In a bid to reshape Kentucky’s gaming landscape, state Representative Thomas Huff has introduced House Bill 33 (HB33). Filed for the 2025 legislative session, the bill proposes establishing a framework for riverboat and land-based casinos under the oversight of the Kentucky Horse Racing and Gaming Corporation (KHRGC). This comprehensive legislation also includes regulations for fantasy sports, aiming to bring a new era of gaming to the state.
Eligibility and Local Approval Process
HB33 stipulates specific criteria for counties to host casinos. To qualify, a county must have at least 30,000 residents. If a county meets this requirement, local voters can initiate a referendum through a petition signed by 25% of ed voters from the previous election. Alternatively, county officials may an ordinance to trigger the referendum.
For smaller counties with populations under 30,000, collaboration with neighboring counties is required to form a combined population of at least 30,000. These coalitions would then follow the same petition and referendum process. However, counties already hosting horse racing facilities, such as Kentucky Downs in Simpson County, are exempt from the population threshold. These areas can approve casino expansions through a direct referendum without the need for petitions.
Casino Licensing and Revenue
HB33 outlines a transparent bidding process for casino licenses. The minimum bid for a land-based casino license starts at $750,000, while riverboat casino bids begin at $500,000. The KHRGC will evaluate and rank bids, granting provisional licenses to the highest bidders within four business days of the bidding deadline. Existing horse racing facilities are given preferential treatment, with the option to submit bids up to two days after the process closes, provided their bid exceeds the highest offer by at least 8% and matches the amenities proposed by the top bidder.
Casinos under this proposal would be subject to a 21% tax on revenue, one of the higher rates compared to other states. Additionally, operators must charge a $3 ission fee per entrant. Funds generated could potentially address Kentucky’s financial challenges, including its underfunded pension system, which saw a slight improvement from 22.2% funding in 2023 to 24.8% in 2024, partially due to sports betting revenue.
The bill also seeks to regulate fantasy sports, encoming both peer-to-peer and house-based contests. Operators would be required to pay a $5,000 licensing fee annually or 6% of their in-state revenue, whichever is higher. Fantasy sports would only be open to participants aged 18 and older, with contests prohibited from involving collegiate sports or relying on the performance of a single athlete or team.
Balancing Tradition and Progress
Although Kentucky has historically resisted expanded gambling, attitudes have gradually shifted. The state legalized historical horse racing (HHR) machines in 2021 and launched sports betting in 2023. HHR machines simulate slot gaming but determine outcomes based on historical horse race data rather than pure chance. HB33 could represent the next step in modernizing the state’s gaming industry, with potential benefits extending to both local economies and state funding needs.
While Huff’s proposal faces potential hurdles, including resistance from anti-gambling advocates, the growing demand for additional revenue sources could influence its success. Provisions to allocate a portion of casino revenue to pension funding might further bolster for the bill.
As Kentucky state debates the future of its gaming industry, HB33 presents a significant opportunity to transition from limited gambling options to a more robust system. The bill’s comprehensive approach to casino licensing, taxation, and fantasy sports regulation could pave the way for economic growth and fiscal stability.
Source:
”Kentucky lawmaker files bill to bring casinos to state, but bidders should pony up”, iGamingBusiness. January 09, 2025.
As a reader, I find this proposed bill intriguing, as it appears to strike a balance between expanding the gaming industry and giving communities a say in the process. The idea of requiring voter referendums adds a layer of ability, ensuring that the public s such developments in their counties