Here's who's spent the most lobbying Kentucky's legislature ... and the winners and losers
FRANKFORT, Ky. — For the second consecutive month of the Kentucky General Assembly's 2023 session, the most expensive fight to influence and lobby legislators was the one over so-called "gray machines" — the video games with cash payouts proliferating in stores, bars and clubs across the state.
The latest lobbying reports filed with the Kentucky Legislative Ethics Commission this week show the two main groups facing off against each other on whether to ban the games continued to spend hundreds of thousands of dollars on TV, radio and digital ads to influence legislators.
The two groups — Kentuckians Against Illegal Gambling (KAIG), supporting a ban, and Kentucky Merchants and Amusement Coalition (KY-MAC), opposing a ban on what they call "skill games" — collectively spent nearly $600,000 on ads in just January and February, far eclipsing what any other companies or organizations have spent so far in their efforts to lobby legislators on bills in Frankfort.
More:Battle over 'gray games' dominating lobbying spending in Kentucky
For all of their efforts, KAIG appears to have received the biggest payout on their lobbying investments, as House Bill 594 to ban the games received final passage this week and was sent to the desk of Gov. Andy Beshear, who signed it into law Thursday.
While these two groups far surpassed others in lobbying spending due to their ad buys, a large majority of the more than $5.8 million spent by more than 700 groups to lobby state legislators in the first two months of the session went toward compensating lobbyists who've lined the halls of the Capitol building and annex.
Here is a roundup of the top lobbying spenders through the first two months of the session and the issues and bills they tried to influence.
'Gray' and 'skill' ads stay on screens in February
KAIG and KY-MAC combined to spend more than $320,000 on dueling ads in January, which stayed on screens well into February.
With another $169,150 spent in February — mostly on more TV, radio, digital and print ads opposing the ban — KY-MAC has reported spending $315,425 on lobbying efforts through the first two months of the session, taking over the top spot from KAIG.
To put that in perspective, KY-MAC has spent more to lobby the legislature during the first two months of this year than all but one group spent lobbying the legislature in all of 2022 (the Kentucky Chamber of Commerce, with $408,301).
The skill games coalition also spent $4,000 on a luncheon for legislators in the capitol annex along with $1,250 to rent an RV that was parked in the annex lot for several days, with lobbyists inviting legislators to play simulations of their games.
The coalition to protect the games — made up of small businesses that rely on those games and support an alternate bill to regulate and tax them — is financially supported by major skill games maker Pace-O-Matic. That company also spent more than $55,000 on 12 lobbyists — the third-most among any company or organization in that time — as well as $4,000 toward that same legislator luncheon.
More:Expensive fight over slots-like 'gray machines' looms in Kentucky legislature
However, the battle over the games was not a one-sided fight. KAIG spent another $113,000 on TV and digital ads in February supporting a ban, bringing its total ad spend to $287,623.
The KAIG coalition is financially backed by the horse racing industry, which also spent significant funds on dozens of lobbyists pushing for HB 594.
Though horse industry lobbyists also pushed for House Bill 551 to legalize sports gaming — which also has a chance to pass by the end of the session — more than a dozen horse racing tracks, companies and organizations combined to spend more than $160,000 on lobbyists pushing legislators to ban the games.
These horse racing interests were led by Keeneland and Churchill Downs — which collectively spent more than $47,000 on lobbyists — the same tracks that skill game advocates and lobbyists claimed were pushing a ban to protect their gambling "monopoly."
Chamber targets bourbon barrel taxes
Placing third in total lobbying spending was the Kentucky Chamber of Commerce, the statewide business advocacy organization that led all other groups in such spending for six of the last seven years.
The chamber spent most of its $96,854 on 15 lobbyists, though it also spent more than $7,000 on its annual dinner for elected officials last month in Lexington.
Besides lobbying for phasing out a local property tax on the value of bourbon barrels — House Bill 5, which cleared the House and may still pass the Senate — the chamber also lobbied for the bill to ban gray machines and the bill to legalize, regulate and tax sports betting.
More:Bourbon barrels, state worker raises: Where Kentucky's tax and spending bills stand
Also lobbying for those three bills was Greater Louisville Inc., the Louisville chamber that spent more than $50,000 on lobbyists in the session. The local chamber also lobbied against Senate Bill 115, which would have banned public drag performances in the view of children, a bill that appears dead for the 2023 session.
Another group lobbying for HB 5 and nearly placing in the Top 10 in spenders was the Kentucky Distillers Association, which spent $26,594 on eight lobbyists.
Hospital and physicians groups spend big
Two advocacy groups representing Kentucky hospitals and physicians placed among the top lobbying spenders for the second consecutive month.
The Kentucky Hospital Association has spent $55,059, mostly on eight lobbyists, but also $1,000 on a luncheon for legislators and $4,800 on ads last month pushing for House Bill 75 — a bill allowing hospitals to draw down federal funds at no cost to the state. It received final passage Monday.
The hospital group also successfully lobbied against House Bill 129, which would have allowed freestanding birthing centers to compete with hospitals for clients. Though HB 129 passed a committee in February and received two floor readings, it stalled and is dead for the session.
Just behind the KHA in seventh place is the Kentucky Medical Association, with the professional organization of physicians spending $51,213 on lobbying, mostly on 11 lobbyists.
The KMA in January spent $11,000 on ads supporting the passage of House Bill 134, which would create a prior authorization exemption program that can automatically waive some requirements for physicians. While HB 134 passed a committee and received two House readings, it abruptly stalled in late February, facing opposition from health insurance companies who said it would raise rates.
Kentucky's Top 10 legislative lobbying spenders through February
Kentucky Merchants and Amusement Coalition - $315,425
Kentuckians Against Illegal Gambling - $287,623
Kentucky Chamber of Commerce - $96,854
ACLU of Kentucky - $75,742
Pace-O-Matic - $59,150
Kentucky Hospital Association - $55,059
Kentucky Medical Association - $51,213
Greater Louisville Inc. - $50,334
Altria (tobacco) - $$48,421
Kentucky League of Cities - $34,919
Reach reporter Joe Sonka at jsonka@courierjournal.com and follow him on Twitter at @joesonka.
This article originally appeared on Louisville Courier Journal: 'Gray machines,' bourbon dominate Kentucky lobbying spending
