Kentucky slots bill appears to have chance

January 10, 2009

Newly-elected Kentucky House Speaker Greg Stumbo introduced legislation Friday to allow video lottery terminals at racetracks in the state and early reports indicate the bill has a good chance of passage. Saturday's Lexington Herald-Leader reported Republican House Minority Leader Jeff Hoover believes the Democrat Stumbo has enough support to garner the 60 votes needed to approve the legislation by the House, which is dominated by Democrats.

However, Republican Senate president David Williams, who has been vehemently opposed to any legislation for expanding gaming in the Bluegrass, said he still believes there is not enough support for any legislation to pass through the Senate.

Stumbo's bill now goes to the House Licensing and Occupations Committee, which is expected to give its approval within two weeks after the General Assembly convenes on Feb. 3.

Stumbo is a former attorney general for Kentucky and he issued an opinion during his tenure that any bill that allows the lottery to expand gaming to include video lottery terminals does not require a constitutional amendment. Others believe any bll has to be approved by the state's voters.

Stumbo's bill calls for racetracks to receive 10-year licenses with an initial application fee of $25,000. The Red Mile would be partnered with Keeneland Thoroughbred racetrack. The state would receive 25 percent of the first $100 million and 35 percent of anything over $100 million; the tracks and the horse industry would receive 75 percent of the first $100 million and 65 percent of anything over $100 million.

Estimates call for slots at the racetracks to generate $700 million annually in revenue, with $394 million going to the tracks and $67 million going to purses and breeders. Standardbred and Thoroughbred purses, horsemen's groups and breeders' incentives would receive 14.5 percent of the horse industry money, with 84.65 percent going to tracks for operating expenses and capital improvements.

"The time for this bill is now, when we desperately need money in our state government, when our families need tax relief at home and when our horse farmers need a boost before we lose the commonwealth's signature industry. This legislaion is nothing more than the extension of the lottery, and it only applies at racetracks, where gaming is already taking place," said Stumbo in a statement.

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