Kentucky gubernatorial candidate in favor of allowing casinos in state

LEXINGTON, Ky. - A gubernatorial candidate in Kentucky has come out in support of casino gambling in the state, resurrecting an old issue that has never gained full traction in the legislature despite longtime racing industry support for slot machines at racetracks.

Andy Beshear, the current Kentucky attorney general and the son of former governor Steve Beshear, announced his intention to run for governor on Monday, and he said during a press conference that he would support the legalization of casino gambling as a way to raise revenue to shore up the state’s ailing pension funds for state employees.

“People are ready,” he said, referring to casino gambling. “They see where $1.2 billion goes to Indiana and Pennsylvania and other bordering states that they can use for their pension system. It’s time to keep those dollars at home.”

Beshear is resurrecting a platform policy also advocated by his father, who introduced legislation in 2008 calling for a constitutional amendment allowing for up to 12 licensed casinos in the state. The proposal made headway on several occasions during his father’s two terms, but it never survived floor votes in the legislature.

Beshear is the first candidate to announce a gubernatorial run for the 2019 election, and he is expected to face a crowded field among other Democratic candidates. The current governor of Kentucky, Matt Bevin, a tea party Republican, has not stated whether he intends to run for a second term. Bevin has been opposed to the legalization of casinos.

Kentucky’s pension problems have become a fierce political talking point over the past two years. Legislation this year to make changes to the plans, supported largely by Republicans but staunchly opposed by teachers in the state, was thrown out by a court that ruled the bill violated several constitutional provisions. Beshear brought the lawsuit leading to the ruling, and he selected a teacher as his running mate for governor.

Legislators in Kentucky have been trying to shore up the state’s pension plans without raising any additional revenue in the face of opposition from a vocal portion of the electorate that cries foul at any suggestion of higher taxes despite chronic budgetary shortfalls. Beshear also said that he would make changes to the state’s tax system to raise additional revenue.

This year, the legislature cut taxes for corporations and individuals while implementing sales taxes on a handful of services that had previously been exempt, such as lawn services and tanning salons. The legislature also authorized sales taxes on tickets for movies and sporting events, but exempted tickets for racetracks, including tickets for the Kentucky Derby at Churchill Downs.

Kentucky racetracks have supported plans to allow for casino-type gambling for more than a decade. But faced with persistent opposition from anti-gambling legislators, the racetracks turned to the state racing commission to lobby for regulations allowing for the operation of so-called historical horse racing machines, which closely resemble slot machines. The racing commission authorized the machines in 2010.

Four racetracks in the state now operate the machines, and Churchill Downs is constructing a parlor that is expected to open this fall.