A month ago, there was optimism among Kentucky-based gamblers that state was slowing headed towards an expanded gambling industry that would involve the introduction of online poker, Daily fantasy sports (DFS) and sports betting. While it was amazing that the bill made it this far this time around, it is unfortunately not likely to make it any further this year. The talks on the HB 175, the bill, slowly deteriorated up until the lawmakers made the decisions to shelve it for this year.
On the brighter side, the fact that bill has not been completely removed and instead just been sidelined is enough proof that there is still hope for the industry – it will just take a little longer. Speaking on the bill, Representative Adam Koenig pointed out that while nothing is truly dead until the very last day of the legislative session, the simple majority required to see the bill through will be impossible to attain within the remaining period of time.
As it stands, the bill has a total of 20 proponents which means that to achieve the simple majority, the bill will need at least 31 more votes from the 100-member House.
“We will regroup and reload with a better plan to win the hearts and minds of the public next year. We will only need a simple majority, and it will be a budget year where that $20-48 million [in tax revenue] will look a lot more important. I really like the chances next year,” Rep. Koenig said.
House Bill 175’s Chances in 2020
Well, it seems like the bill will be better suited to make a run for the roses in 2020 and part of the reasons for this is because next year will be a budget year and new sources of revenue will be major considerations. As stipulated in the bill, Kentucky residents will be able to be on sporting events at the state’s horse racing tracks. In addition to this, the gamblers will also be able to download and utilize mobile betting apps for the same.
To receive the licenses, the racing tracks will be required to part with $500,000 in licensing fees after which they will be subject to a 10.25 percent tax rate – mobile betting apps will attract a higher 14.25 percent tax rate. Both of these revenue streams will be very beneficial to the state especially considering that it currently has pension debt of a whopping $40 billion. If passed, the proposed law would allow the Kentucky Horse Racing Commission to handle regulations concerning daily fantasy sports (DFS) and sports betting while the online poker industry would be overseen by the Kentucky Lottery. Hopefully, that is enough incentive to see more progress in this regard when the 2020 legislative session begins.
