Kentucky legislators in both chambers overrode the governor’s veto of a new horse racing and gaming commission. The independent body will oversee several facets of the horse racing industry as well as sports betting.
Let’s take a look at the details and how the new regulatory agency might affect top-rated sportsbooks.
No Go Gov
Senate Bill 299 was drafted to create a new and independent governing body to include the nascent sports betting industry. Currently, the Kentucky Horse Racing Commission (KHRC) is the body tasked with overseeing the racing industry and sports betting.
However, this agency is directly under the governor’s control while the new bill would authorize an independent Kentucky Horse Racing and Gaming Commission, which would be outside of the governor’s realm. The bill was initially approved by a vote of 64-28 in the House and 26-12 in the Senate.
Governor Beshear had previously signed House Bill 281, which created a sports betting commission inside the current Kentucky Horse Racing Commission. That appeared to solve the regulatory issue but the newly-created subagency would have remained under the governor’s domain.
Subsequently, Senate Bill 299 arrived on his desk to replace the commission with a new entity outside his control called the Kentucky Horse Racing and Gaming Commission. But Beshear vetoed the bill before the House and Senate voted 57-38 and 26-12, respectively, to override the veto.
Beshear is against the legislation, writing in his veto note that it is an “unnecessary and unworkable bill, and its unintended consequences would tremendously affect horse racing, sports wagering, and charitable gaming industries and the ability of people to serve on the newly-created corporation.”
What Now?
Senator Damon Thayer, who led the sports betting charge in the Senate, and Governor Beshear had agreed on a plan to govern the industry by keeping it under the auspices of the KHRC. When the sports betting legislation was signed in March 2023, Beshear was effusive in his support for the new industry and revenue stream coming to the Bluegrass State.
“After years of urging lawmakers to legalize sports betting, we finally did it!” Beshear said on Twitter. “Today’s result shows that hard work pays off. Kentuckians will soon be able to place their bets here, and for the first time, we are going to keep those dollars to support our roads and bridges, schools and communities.”
Therefore, this newest plot twist is one of the few minor hiccups that has occurred in an otherwise seamless mobile sports betting launch.
The good news for those working for the current commission is that they will transfer to the newly-created Kentucky Horse Racing and Gaming Commission. The commission will sit 15 board members and it will be charged with overseeing the following:
- Pari-mutuel wagering
- Live horse racing,
- Breed development and integrity
- Sports betting
- Licensing and investigation
- Charitable gaming
Needless to say, the governor is not thrilled about the override and stated, “The Public Protection Cabinet worked so hard to get sports betting launched. They brought all of their resources to bear and look at how well it’s gone. There’s that old axiom, ‘if it ain’t broke,’ right? If it ain’t broke, don’t fix it.”
