FRANKFORT, KY— A bill many Kentuckians have spent years asking for advanced off the House floor on Friday.
House Bill 606 would legalize in-person and online sports betting in Kentucky.
“House Bill 606 brings activities that go on in every corner of this state out of the darkness and into the light,” said primary bill sponsor Rep. Adam Koenig, R-Erlanger. “It legalizes sports wagering and regulates it. It regulates the daily fantasy sports, which goes on openly on U.S. companies today, and it legalizes and regulates online poker.”
Koenig said sports betting is legal in most of the states surrounding Kentucky. He also cited a statistic from American Gaming Association that estimates $2 billion is illegally wagered on sports in Kentucky each year.
The bipartisan bill would tax sports betting by implementing a 9.75% tax on the adjusted gross revenue for in-person sports betting and a 14.25% tax on the adjusted gross revenue for online sports betting. The money would go toward the state’s pension fund.
Koenig said the state estimates that legalizing sports betting in Kentucky would bring in $22.5 million in revenue for the state.
“Given how many states have exceeded their projections, I think $22.5 million is probably a minimum,” Koenig added.
Rep. Josh Calloway, R-Irvington, called a floor amendment to set a $1,000 limit on how much a bettor can lose in a 24-hour period online.
“For instance, if you are a bartender and you see someone that is (drunk), you would stop and not serve them anymore, and I believe that we could put these same types of limits on this if this is going to move forward,” he said.
Koenig said he “trusts adults to make adult decisions,” and he could not support the amendment because it would be easy to avoid the limit by going to another state. Koenig also mentioned he knows of people in Kentucky who already make their livelihood on sports betting.
Calloway’s amendment failed by a voice vote.
While voting on HB 606, several lawmakers explained their “no” votes.
Rep. Daniel Elliott, R-Danville, said while he is a “big believer in personal responsibility,” he would not be voting in favor of HB 606.
“I think the appropriate way to deal with this issue and all issues of gaming in Kentucky and gambling is through a constitutional amendment. That I would support,” Elliott said.
Rep. David Hale, R-Wellington, said he was voting “no” on the bill because he does not like that the purpose of the bill is to generate revenue and that it would hurt vulnerable people.
Rep. Rachel Roberts, D-Newport, voted “yes” on HB 606. She said she was proud to co-sponsor the measure.
“I, like many others have said, received so many messages from constituents in District 67 who overwhelmingly want this,” Roberts added.
Rep. Cherlynn Stevenson, D-Lexington, also voted in favor of HB 606. She said the bill is “without a shadow of a doubt” the issue she has received the most phone calls and emails about in her four years in the House with 99% of those messages being in favor of sports betting in Kentucky.
HB 606 cleared the House by a 58-30 vote. It will now go before the Senate for consideration.
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