Kentucky state Representative Thomas Huff has launched House Bill 33 (HB33), a proposal to convey land-based and riverboat casinos to the state. The invoice outlines a framework for regulating casinos and fantasy sports activities underneath the oversight of the Kentucky Horse Racing and Gaming Corporation (KHRGC).
Key Components of HB33
HB33 goals to broaden Kentucky’s playing business past historic horse racing (HHR) machines by permitting conventional casinos in eligible counties. The invoice contains provisions for a 21% tax on on line casino income, one of many greater charges in comparison with different states, and requires casinos to cost a $3 admission charge per patron, which might additional increase operator income.
Eligibility and Approval Process
Counties should meet particular standards to host a on line casino:
- Population Requirement: Counties will need to have at the least 30,000 residents, until they have already got a horse racing facility, during which case the inhabitants threshold doesn’t apply.
- Referendum Process: Counties can maintain a voter referendum by:
- Collecting signatures equal to 25% of the voting inhabitants from the earlier election cycle via a countywide petition.
- Passing a neighborhood ordinance to provoke the referendum.
- Multi-County Coalitions: Smaller counties with fewer than 30,000 residents can be part of neighboring counties to kind a coalition assembly the inhabitants threshold.
For counties with current horse racing amenities, like Kentucky Downs in Simpson County, gaming expansions to incorporate on line casino actions might be accredited via a referendum with no need a petition.
Licensing and Bidding
The invoice establishes a aggressive bidding course of for on line casino licenses:
- Minimum Bid Fees:
- $750,000 for land-based casinos.
- $550,000 for riverboat casinos.
- Licensing bids are ranked primarily based on the quantity supplied, with precedence given to the best bidder.
- Existing horse racing amenities can submit bids inside two days of the bidding deadline, supplied they exceed the best bid by 8% and match the facilities proposed by different bidders.
Fantasy Sports Regulation
HB33 additionally addresses fantasy sports activities, proposing:
- A $5,000 annual licensing charge or 6% of annual income, whichever is greater, for operators.
- A ban on school sports activities contests.
- A minimal age of 18 for members.
Potential Revenue and Challenges
The proposal comes as Kentucky explores new income streams to handle budgetary wants, together with its underfunded pension system, which is just 24.8% funded as of 2024. While sports activities betting taxes have contributed $34.8 million to the pension fund since legalization in 2023, extra funding is required.
However, the invoice’s provisions, such because the excessive tax charge and admission charge, might face resistance. Traditionally, Kentucky has been cautious about playing enlargement, though latest years have seen shifts in public and legislative sentiment.
A Step Toward Modernization
If handed, HB33 would mark a major evolution in Kentucky’s playing panorama, transferring the state towards a regulated on line casino market. With native voter referendums empowering communities to determine, the invoice provides a balanced strategy to increasing gaming whereas addressing financial wants.
HB33 was launched within the House earlier this week and is about to be debated within the 2025 legislative session.
Source:
Kentucky lawmaker files bill to bring casinos to state, but bidders should pony up, iGaming Business, January 9, 2025.
