VLT legislation in Kentucky fails to pass Senate Committee

June 22, 2009

Three days after the Kentucky House voted in favor of legislation to allow video lottery terminals at the state's racetracks, a Senate committee early Monday evening rejected the proposal, effectively killing the bill before it could even reach the full Senate floor for discussion. Senate president David Williams, who has been outwardly opposed to expanded gaming at the tracks, said shortly after the House vote that he didn't believe the slots proposal had enough Senate support to carry, stating "stick a fork in it, it's done," and his words came to fruition by a 10-5 vote, with two abstentions, in the Appropriations and Revenue Committee.

Last Friday, the House passed the bill introduced by House Speaker Greg Stumbo by a 52-45 vote, with two abstentions. The Senate received the bill--termed House Bill 2--shortly after 4 p.m. on Monday, less than 30 minutes before the Committee would have adjourned during the special legislative session called by Gov. Steve Beshear, who had expressed favor for the legislation.

The Senate committee heard arguments on behalf of the bill by representatives of the racetracks for about an hour, and then heard viewpoints of opponents for another hour. The committee then rejected the bill in a vote held shortly after 7 p.m.

Shortly after the vote, Gov. Steve Beshear issued a statement expressing his disappointment. �It is too early to determine what steps we will take in the future to try to protect our signature business, but I will continue to work on ideas and proposals that will ensure this vital industry�s continued health,� he said. �We must now move forward. We still have an opportunity during this Special Session to come together to balance our budget and adopt legislation that will create thousands of jobs and stimulate hundreds of millions of dollars in investment for our Commonwealth. I urge my colleagues in the General Assembly to continue this critical work as expeditiously as possible."

Williams has introduced his own legislation in the Senate to aid the racetracks by taxing lottery tickets and out-of-state wagers. Williams' bill would loan some tracks money, including $25,000 to The Red Mile. Ron Geary, the owner of Ellis Park Thoroughbred track was quoted after the Senate committee vote that he would close that track on Labor Day of this year. Earlier in the day on Monday, Bob Elliston, the president of Turfway Park stated the track in northern Kentucky could possibly close at the end of 2010, especially in the wake of the recent announcement that Ohio Gov. Ted Strickland is now in favor of adding slots at that state's racetracks.

Williams' proposal was approved by a Senate committee and the full Senate on Friday. Critics note that the plan calls for the transfer of $7 million from the state employee health insurance trust fund to the Kentucky Horse Racing Commission no later than July 1 before being loaned to the tracks.

Sen, Tim Shaugnessy was quoted afterward that he doesn't believe the slots debate is over. "The reality is, history is on our side," he said. "This is eventually going to happen, whether it's done by an act of the legislature or put before the voters of Kentucky for a formal vote. It may be stopped today, but the issue isn't if this happens, it's when this happens."

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