Sports betting bill clears committee in Kentucky

LEXINGTON, Ky. -- A committee in the Kentucky House of Representatives advanced a bill on Wednesday that would allow sports betting at the state’s racetracks.

By unanimous vote, the House Licensing, Occupations, and Administrative Regulations committee sent the bill to the full House of Representatives, after amending the bill to allow for sports betting on in-state teams, which had been prohibited in an earlier version of the bill. The committee is chaired by Rep. Adam Koenig, a Republican from northern Kentucky, who is the sponsor of the bill and who pre-filed the legislation last year.

The bill, known as HB 137, is supported by the racing industry, which would benefit by being the only legal purveyors of sports betting, with the exception of Kentucky Speedway, which lies in Koenig’s district. Under the bill, sports betting would be legal at the locations and through mobile applications offered by the licensees. The bill includes a provision that requires a bettor to first visit a licensed location before being able to download a mobile app, but that provision would expire in 2022.

“This legislation ensures that Kentucky will be competitive with our neighboring states, while protecting our signature industry,” said Elisabeth Jensen, the executive director of a racing industry lobbying group. “HB 137 will give us an opportunity to attract sports fans to our state's racetracks and allow them to place sports wagers in a safe and trusted environment."

The bill’s larger fate is uncertain in a state where gambling is a moral issue in many rural districts. However, the bill has far greater support than a movement to legalize casinos, which, despite support from the state’s new governor, has been declared a non-starter by Republican leaders in both houses of the legislature.

Under the bill, revenues from in-person sports wagering would be taxed at a rate of 10.25 percent, while revenues from mobile applications would be taxed at a rate of 14.25 percent.