Bill would legalize sports betting

Mar. 2—A bill filed Monday in Frankfort would legalize sports betting and fantasy sports gambling in Kentucky, while funneling much of the state's proceeds from fees to the state's pension system.

House Bill 610 was filed by Rep. Adam Koenig, an Erlanger Republican.

Koenig's bill would allow horse tracks to provide wagering on professional and college sports and other sanctioned sporting events, like the Olympics.

The bill would also legalize betting on fantasy sports and online poker gaming.

In order to provide the expanded gambling option, tracks would need a license issued by the state.

Sports betting would be allowed at physical locations operated by the tracks. The bill would allow sports betting at up to two facilities within 60 miles of the track.

Last year, Ellis Park announced plans to create an offtrack facility at Towne Square Mall for historic gaming and simulcasting. On Tuesday, the company announced it has leased the 62,000-square-foot former JC Penney store on the mall's north side.

Jeffery Inman, general manager of Ellis Entertainment LLC, said Tuesday that the company would be interested in having sports betting at the planned Owensboro facility.

"It's not our primary goal, but it is something we would be interested in," Inman said. "It certainly would be nice to have.

"One of the benefits of the facility we are looking at is there is a large amount of storage area that could be converted into additional gaming space."

License fees for tracks would be $500,000 initially, with an annual renewal fee of $50,000. The initial fee for online poker providers would be $250,000, with an annual $10,000 renewal. Online poker providers would also pay 6.75% of their net revenue to the state.

"I first filed the bill in 2019," Koenig said Tuesday. When asked how much state revenue the law would produce, Koenig said an analysis of the 2019 bill estimated annual revenue of $22 million.

"My guess is it would outperform that" estimate, Koenig said.

The bill would be written in consultation with the Kentucky Council on Problem Gambling, Koenig said.

The bill would create a Wagering Administrative Fund to cover any state administrative expenses for issuing licenses, with the remaining funds "deposited in the Kentucky permanent pension fund."

A state Problem Gambling Assistance Board would also be created, as would a state gambling assistance fund. The money would come from a settlement the state reached last year with Flutter Entertainment, an online gambling company, and would be used to support treatment for compulsive gambling.

Koenig said he was "hopeful" for the bill's prospects, but said "it's a touchy subject in a lot of places."

"If it was a secret ballot, it would probably pass 80-20 in the House," Koenig said.

The state is surrounded by casinos and sports betting in neighboring states, so Kentuckians have had access for years, Koenig said.

"It has always been here," he said, pointing out that the bill would allow the state to "reap the benefits" from gaming while "giving people some protection" and eliminating black market gambling.

Other bills filed by Koenig would tax historic horse racing and simulcasting at facilities owned by horse tracks.

James Mayse, 270-691-7303, jmayse@messenger-inquirer.com, Twitter: @JamesMayse