A new government corporation will be handling the creation of new rules for sports betting, horse racing and other types of gambling in Kentucky, even if Governor Andy Beshear isn’t 100% on board. Let’s take a look at what this might represent for the state’s top-rated sportsbooks heading into the Kentucky Derby.
Political Horseplay
Kentucky’s General Assembly, which the Republicans control, overrode Governor Beshear’s vetoes of 12 laws, including Senate Bill 299. It suggested setting up a separate company called the Kentucky Horse Racing and Gaming Commission to oversee gambling, including KY sports betting.
Governor Beshear vetoed it, but the Senate did not agree with the Governor and voted 26-12 to ignore his rejection. Then, they sent it to the House. The House also disagreed with the Governor and voted 57-38 to turn Senate Bill 299 into a law. So, it’s now a law.
“I think this would bring increased scrutiny, integrity, and transparency to all legal forms of gaming in Kentucky,” Senate Republican Floor Leader Damon Thayer told the Kentucky Lantern. Thayer previously said that the growth of historical horse racing – which has generated hundreds of millions of dollars for racetrack owners over the past decade – and the recent legalization of sports betting had driven the talks to create a new framework for gambling regulation.
There’s Now a New Gaming Commission in Town
This act dissolves the Kentucky Horse Racing Commission and the Department of Charitable Gaming, which was part of the Bluegrass State’s Cabinet for Public Protection.
The revised version of the bill states that the corporation will supervise live horse racing, sports betting and charitable gaming starting in July 2025.
The Horse Racing Commission will be dissolved in July 2024, with its staff and duties being transferred to the corporation. The following summer, the charitable gaming department will also be dissolved, and its staff and duties will be incorporated into the corporation.
What Will the New Agency Do?
The new agency will take charge of overseeing six different areas of horse racing and gambling, including:
- Pari-mutuel wagering
- Live horse racing
- Breed development and integrity
- Sports betting, licensing, and investigation
- Charitable gaming
The corporation will have 15 board members, each representing a different industry, appointed by the governor and then subject to Senate confirmation. The current board members of the commission and department would serve two-year terms on the corporation.
Beshear Was Not Totally Against the Idea
In his veto message to the legislature, Beshear was not against the formation of a separate agency but said lawmakers should take more time to vet the potential options, rather than quickly moving forward with SB 299.
“Any effort to create an independent corporation should be drafted, vetted, and approved over months,” he wrote. “This version had just days. In its current form, it endangers horse racing, sports wagering, and charitable gaming.”
Since its inception in September 2023, sports betting in Kentucky has attracted over $900 million in wagers. Governor Beshear highlighted in his veto message that the first weekend of March Madness alone saw Kentuckians placing bets exceeding $34 million, and the Super Bowl generated more than $17 million in wagers.
So, with numbers that big, the new agency will have a lot on its plate right out of the gate.
Calculators
