A bill that would legalize sports wagering in Kentucky passed the House Monday evening and now heads to the Senate, where it’s expected to face a tougher fight.
Rep. Michael Meredith (R-Oakland) said that sports wagering is something the legislature has been considering for around four years — Northern Kentucky Rep. Adam Koenig formerly carried it. Last year, the bill died in the Senate.
Ahead of the floor vote Monday, Meredith said he thought this was the year for sports betting.
“We’ve got the notes on the floor,” Meredith said. “I feel very confident about where we’re at in the house right now.”
The bill presented Monday slightly changed from its original version, with users no longer needing to register their account in person.
“I think if you look at what the national model is showing us right now, everybody has moved away from in-person registration,” Meredith said. “It’s not necessary with the technology that we have today.”
The new bill also clarifies the Horse Racing Commission’s Regulatory Authority and Structure, allowing the tracks to be the main licensees but also allowing them to contract with three sports wagering companies instead of it being just one, like in previous bills.
Tax rates will also be the same — 9.75% on in-person bets and 14.25% on mobile and online bets, which were included in last year’s House Bill 606.
An amendment introduced on the House floor would send 2.5% of the taxes collected to a problem gambling fund.
Meredith said on the floor that this bill would allow the Commonwealth to take advantage of funds already spent on gambling that occurs illegally in the state — he mentioned that Kentuckians pull up gambling websites they think are legal because they can access them via their phone or computer.
“The American Gaming Association estimates $1 billion on illegal, unregulated marketplaces within the Commonwealth each year,” Meredith said.
The fiscal note said the law would generate an extra $23 million annually in revenue for the Commonwealth.
While the bill passed the House, those with moral and religious convictions spoke out against the bill both on the floor and in the committee before the floor vote.
Rep. Josh Calloway (R-Irvington) introduced a floor amendment to disallow those using sports betting to now be allowed to use credit cards.
“I think it’s very important, very important that we as a legislature protect people if they are going to use a debit card,” Calloway said.
The amendment failed on the floor.
Ahead of the floor vote, David Walls, executive director for the Family Foundation — a Christian organization that lobbies the legislature to follow “biblical values” — testified to the House committee where the bill originally appeared.
“This type of predatory gambling is designed to prey on humans, with the government colluding with gambling interests to exploit our Kentuckians,” Walls said.
Walls said that the bill would particularly influence children and normalize gambling for sports.
“Leading kids to believe that gambling is central to playing and watching sports,” Walls said. “Studies have indicated that children, no matter what steps are taken, they will gain access to sports gambling apps on their phones and devices in states where sports betting is legal.”
Calloway agreed and introduced another amendment that would raise the gambling age from 18 to 21 — citing cigarettes and alcohol as addictive examples that require users to be 21.
This amendment also failed.
After Calloway’s amendments, the bill came up for a vote where it passed 63-34.