Bluegrass tracks to pay $500 million in licensing fees

Kentucky Governor Steve Beshear announced Thursday morning he will propose a constitutional amendment that would allow 12 casinos in the Bluegrass State, including seven at existing racetracks, which would each pay between $50 million and $100 million in licensing fees. The Red Mile would be a partner with Keeneland Thoroughbred racetrack in the city of Lexington.

The proposal calls for nearly 16 percent of the tax revenue from casinos operated by the tracks to go to purses and a breeders incentive program. It calls for a 51-percent tax rate, which Beshear says would produce nearly $600 million in annual revenue for the state after five years. According to the proposal, 50 percent of the tax monies from casino gaming would go to education; 20 percent to health care; 10 percent for city and county governments; three percent for host cities and counties; and 17 percent for other programs.

If an existing track chooses not to build a casino on its property, then it would have to gain local approval to build on another site. The five stand-alone casinos would also require local approval from voters in the city or county in which they are proposed: Daviess County; Kenton or Campbell counties; Boyd or Greenup counties; Christian County; and Laurel or Whitney counties.

If the legislature approves the proposal, it would then go on the November ballot to be voted on statewide as the following: "Are you in favor of increasing state financial support for elementary and secondary education, expanding health care for senior citizens, children and others, support for local governments, and combating drug and alcohol abuse and other important programs by permitting the General Assembly to authorize up to five casinos subject to approval of the voters in the city or county where the casino is located; and up to seven casinos licenses for existing horse racing associations, all of which will be subject to the approval of a state agency created to oversee casino gaming."

A supporting bill calls for the creation of a seven-member gaming commission, which will have funding of up to $5 million a year, as well as $2 million in annual funding to help compulsive gamblers.

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