Governor urges Kentucky lawmakers to pass sports betting and historical racing machines

LEXINGTON, Ky. -- Kentucky Gov. Andy Beshear on Wednesday night urged the state legislature to pass bills in 2021 legalizing sports betting and sanctioning gambling devices in use at state racetracks known as historical horse racing machines.

Beshear, a Democrat in a deeply red state, issued the calls during a “legislative preview conference” that was held virtually on Wednesday night. In Kentucky, the governor typically gives a speech outlining the priorities of the executive branch prior to the legislature reconvening, and this year’s speech was conducted virtually due to the coronavirus pandemic.

Beshear has already made it clear that he supports the legalization of sports betting and the formal recognition of the legality of historical horse racing machines by the legislature. Republicans have a super-majority in both houses of the state legislature, and the party has never reached a consensus on gambling issues because of strident opposition to expanded gambling among many of its constituents.

In September, the Kentucky Supreme Court issued a ruling saying that a type of historical horse racing machine in use at some tracks did not fit the definition of “pari-mutuel” wagering. Kentucky racetracks have continued to take bets on the machines as they wait for a lower court to issue a new opinion on the legality of the machines, as instructed by the Supreme Court.

Historical horse racing machines are nearly identical in operation to slot machines. They were authorized by the Kentucky Horse Racing Commission in 2010 and first put into operation in 2012. Since the authorization, purses at Kentucky racetracks have doubled due to subsidies from their operation.

Since the Supreme Court ruling, Churchill Downs has put two projects on hold to build a casino at its track in Louisville and at Turfway Park, which it bought late in 2019.

The legislature begins its 2021 session on Jan. 5.