VLTs to be discussed during upcoming special legislative session

Kentucky Gov. Steve Beshear on Tuesday afternoon released details of his proposal to allow video lottery terminals at the state’s racetracks, which will be discussed during a special legislative session scheduled to begin Monday, June 15. The proposal calls for 14.5 percent of net terminal revenue to fund the horse industry through purse supplements and other incentives.

To read a complete overview of the video lottery terminal legislation, click here to go to Kentucky.com

Under the proposal, each track site would pay an initial application fee of $25,000, plus additional licensing fees that would generate $360 million toward the state’s General Fund. The Red Mile would be partners with Keeneland Thoroughbred track, with the two entities having to pay a combined license fee of $75 million. Each of the state’s other two Standardbred tracks, Thunder Ridge and Bluegrass Downs, would pay $20 million. Initial licensing would be for 10 years, with subsequent five-year renewals.

“It will also, ultimately, help generate some much-needed funds for the state during these difficult economic times.”

The proposal also allows for one additional license at an approved track with a license fee not to exceed $100 million, with no more than nine total licenses granted by the Kentucky Horse Racing Authority for live racing. Any additional license shall not be approved at any new facility within a 60-mile radius of an existing facility. The proposal also provides that local government approval is needed for the license application.

The tax rate on track facilities operating VLTs are: 25 percent of net terminal revenue (the amount wagered less payout) in the first five years, and 35 percent of net terminal revenue after five years.

« Back