Two House Democrats are rolling the dice again and proposing legislation for the 2018 General Assembly to legalize casino gambling in Kentucky.
Representatives Dennis Keane of Wilder and Rick Rand of Bedford are touting legalized gambling as a way to shore up Kentucky’s ailing public pension systems that are underfunded by billions of dollars.
Keene, who is also the House Democratic Caucus chairman, said casinos are already located along Kentucky’s borders and those states are reaping the benefits of additional tax revenues.
“Kentucky’s lottery gambling is highly successful and by expanding existing gaming venues to allow for casino-type games, we will grow a new revenue source to help us catch up on the pension shortfall,” he said.
According to former Budget Committee Chairman Rick Rand, once fully operational, casino tax revenue could reach a half-billion dollars over two years.
“Based upon actuarial assumptions and looking at revenue generated from our neighboring states, this could be a windfall for Kentucky,” he said. “Initial license fees for casinos would generate a one-time $325 million, followed by $236 million annually. That would be a great step in the right direction toward decreasing our pension shortfall.”
The two representatives said without a designated revenue stream to address the minimum $33 billion public pension shortfall, Kentucky retirees will be asked to shoulder too much of the burden of making the pension system solid.
“Before we look at a plan that involves cuts to retirees’ benefits, we have opportunities to bring new revenue that will be designated to the pension fund,” Keene said.
Current uncertainty in the pension system is leading to a mass exodus of experienced teachers, state police officers and state and county workers who will flood the retirement system, Rand said.
“Do voters want to allow the new revenue from expanding gaming to build the pension fund or would they rather have cuts made on the backs of the state’s over 100,000 retirees? It’s time to put the gaming issue on the ballot so the public can have their say on this issue.”
The proposed legislation would take the form of a proposed constitutional amendment requiring voter approval with the Kentucky Lottery Corporation overseeing and administering expanded gaming. Casinos would be limited to four free-standing locations, which would require a local option election, as well as horse racing tracks that already have pari-mutual wagering. Participants in wagering would have to be 21 or older.
However, expanded gaming faces an uphill legislative battle. Even when Democrats still controlled the House, they were unable to get casinos on the ballot.
Republican Gov. Matt Bevin reiterated last week that he plans to call a special legislative session in October to address pension reform, but expanded gaming likely won’t be a part of the solution.
Legislative leaders also concurred with that earlier this month.
House Speaker Jeff Hoover, R-Jamestown, said, “I haven’t heard it discussed.”
Senate President Robert Stivers, R-Manchester, agreed with Hoover that the subject hadn’t been broached. “Never have” heard it talked about, he said.
By Tom Latek, Kentucky Today
Photo courtesy of Kentucky Today
