Proposal for New Gaming Regulator in Kentucky Faces Opposition From Governor

Governor Andy Beshear has rejected Senate Bill 299, which aimed to overhaul and privatize the Kentucky Horse Racing Commission. Rushed through the legislature at the end of last month, the bill will now return for further consideration.

The proposed legislation sought to establish the Kentucky Horse Racing and Gaming Corporation while dissolving the existing Kentucky Horse Racing Commission.

Notably, it mandated that Beshear propose commission appointments but subject them to Senate approval. In his veto message, Beshear criticized SB 299 as unnecessary and impractical.

Key Concerns Raised by Beshear:

• Potential harm to horse racing, sports betting, and charitable gaming sectors

• Limitations on individuals eligible to serve on the new corporation

• Separation of the Public Protection Cabinet from the KHRC deemed unnecessary

Legislative Context:

• The bill must now pass both chambers again for a possible veto override

• In the previous session, the Republican-controlled legislature overrode all 15 of Beshear’s vetoes

• Beshear commended the PPC for efficiently launching sports betting after its approval

Highlights from Beshear’s Remarks:

• Over $34 million wagered during the first weekend of the NCAA Tournament

• $17 million bet during the Super Bowl

• The Kentucky Horse Racing Commission has not yet issued revenue reports for 2024

Although Beshear vetoed SB 299, he didn’t entirely dismiss restructuring the KHRC. Earlier, he signed HB 281, establishing a specialized sports betting division within the commission.

This year, Beshear vetoed 27 bills in total, with his first veto overridden in early March. He also issued line-item vetoes targeting sections of the state budget, including a cap on emergency fund releases at $25 million in cases of natural disasters.