House committee approves bill that would legalize sports wagering in KY

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Legislation to legalize sports wagering in Kentucky cleared its first hurdle on Wednesday, winning unanimous approval from a House committee.

Under the bill, sponsored by Rep. Adam Koenig, R-Erlanger, the Kentucky Horse Racing Commission would be the state body that oversees sports betting.

It provides for sports wagering only to be permitted at Kentucky racetracks, a professional sports venue, such as Kentucky Speedway, or by an online or smartphone app.

According to the bill, some of the professional events that could be bet on include the National Football League, National Basketball Association, Major League Baseball, the Professional Golfers Association, NASCAR races and others.

Koenig presented the House Licensing, Occupations and Administrative Regulations Committee a changed version of his bill, known as a committee substitute. The most noticeable change, “Last year’s version had a prohibition on wagering on in-state college teams. We have removed that. It was easily the item about which I heard the most negative feedback.”

The measure also regulates fantasy sports.

John Ferris of Commonwealth Economics says they estimate at least $22.5 million per year in tax revenue, from Koenig’s bill. He also noted that the American Gaming Association estimates $150 billion is bet illegally across the county today, and his company has determined it’s $1.6 to $2 billion a year in Kentucky.

Martin Cothran of the Family Foundation says his group opposes the bill. “There are many reasons to be concerned about the societal effects of this bill, in particular its effects on those who can least afford to be on the losing end of the wagers. We believe it would further serve to target the poor and particularly young people.”

He also quoted from the bill a passage which he said goes beyond sports wagering, to expanded gambling.

“’Sports wagering means the placing of wagers on outcomes of professional sports contests and other events in conformance with federal law and as authorized by the racing commission.’ You know, that sounds a lot to me like expanded gambling, and it requires a constitutional amendment.”

Gene Cole, with the Kentucky Ethics League, also spoke against the measure.

“Gambling is addictive, bankruptcies increase, suicides increase, gambling is a fac tor in many divorce cases, it damages the local economies, and it stimulates illegal gambling.”

He also noted Kentucky Baptist Convention action condemning gambling. “In 2019, the Kentucky Baptist Convention passed a resolution opposing all forms of gambling in the state of Kentucky. The Kentucky Baptist Convention represents 750,000 Kentuckians.”

Kentucky Today is a part of the KBC.

The bill received an 18-0 favorable vote, and now heads to the House floor.

By Tom Latek, Kentucky Today