GOP Lawmakers Trying To Sink KY Sports Betting Bill With Added Amendments

Republican Legislators Attempt to Derail Kentucky Sports Betting Bill by Adding Amendments

Posted on February 19, 2020

The attempts by Republican legislators in the Bluegrass State to delay or derail the legalization of sports betting in Kentucky may be welcomed by Indiana casinos and sportsbook operators. These operators could be some of the biggest supporters of these legislators right now, as their actions work in their favor.

Ever since a bill progressed from a Kentucky House committee to the Assembly’s main floor, Republican representatives have slowed the proceedings by proposing nearly a dozen amendments. These represent their latest tactics in politicizing a matter that should be straightforward.

What is the current status of sports betting in Kentucky?

A number of amendments to HB 137 share similar objectives, although they utilize varying methods to achieve them. The amendments aim to:

  • Increase the tax rates for online and retail sportsbooks.
  • Permit other entities such as restaurants to obtain a license.
  • Increase the proportion of tax revenues allocated to resources for problem gambling.
  • Rewrite the inclusion of information under Open Records Requests access.

The amendments on these topics differ slightly. For instance, some amendments propose to triple the tax rate initially proposed in the original bill.

The bill’s primary sponsor is Rep. Adam Koenig, who is also a Republican. He views the issue as a matter within his party and acknowledges that considerable effort is required to secure support from the majority of his fellow Republicans in the chamber.

However, the abrupt introduction of 11 different amendments suggests not just worries over compulsive gambling issues. It also carries the unmistakable odor of political scheming.

Support from around the state of Kentucky that is non-partisan

With 40 co-sponsors and the backing of Gov. Andy Beshear, HB 137 was presented on the floor. It also successfully passed through a committee, which is under Republican leadership, with unanimous approval.

Media members and businesses, such as the Kentucky Speedway, in Kentucky have expressed their support for the bill.

At this stage, it appears as if political posturing is bogging the situation down, particularly considering the facts at hand. This may be a strategy employed by the Republicans in the state, who recently lost the Governor’s Mansion. They might be opposing the bill as a way to appeal to their supporters in their districts.

It appears that Republicans are doing everything in their power to prevent Gov. Beshear from claiming victory on this issue, not just by subjecting the bill to multiple amendment evaluations, but also by withholding it from a floor vote for more than a month.

Sportsbook operators in Indiana are satisfied with the current situation, regardless of whether this implies a delay or ultimate failure for the bill. Likewise, the state government in the Hoosier State is also content with the status quo.

Why do Sportsbook Operators in Indiana Enjoy Seeing This?

Sportsbooks in Indiana will continue to accept wagers from Kentuckians as long as sports betting is illegal in Kentucky. Revenue from out-of-state bettors is a significant boon for Indiana.

Every dollar gambled by Kentuckians not only contributes to Indiana’s tax revenue but also spares Indiana residents from being taxed. Essentially, it’s as if Indiana is “taking” tax revenue from Kentucky.

Time is of the essence if Kentucky wishes to establish legal sportsbooks to rival Indiana’s operators before the next college football and NFL seasons. Every delay benefits Indiana’s sportsbooks significantly.

Derek Helling Avatar
Written by

Derek Helling

Derek Helling, a 2013 graduate from the University of Iowa, serves as a lead writer for PlayUSA and the manager of BetHer. He specializes in covering the intersections of sports, business, and law.

View all posts by Derek Helling