Wagering update given to lawmakers
House Minority Caucus Chair Al Gentry, D-Louisville, says he would like to see local governments benefit more from sports wagering during Thursday’s Interim Joint Committee on Licensing, Occupations and Administrative Regulations meeting. A high-resolution photo can be found here.
FRANKFORT — Sports wagering is a relatively new pastime in Kentucky. The practice joined pari-mutuel wagering as a legal betting activity in the commonwealth in 2023.
On Thursday, representatives from the Kentucky Horse Racing and Gaming Corporation told the Interim Joint Committee on Licensing, Occupations and Administrative Regulations that Kentuckians have wagered nearly $5 billion in the last two years.
“Of the $5 billion wagered, $4.4 billion was won back by Kentucky players, meaning nearly $9 out of every $10 wagered has returned to a player in the form of winnings,” Hannah Simms, the corporation’s director of sports wagering, said.
Sports wagering revenue supports the state’s public pension system and problem gambling assistance account, Simms added.
In the last two years, $73 million in sports wagering revenue has gone to the public pension system, and $2 million has been added to the problem gambling assistance account.
Since 2023, sports wagering has expanded to 13 retail facilities across 11 counties, Simms said. Additionally, 933 occupational licenses have been issued.
“These licenses are the individuals and companies who make up the sports wagering workforce in Kentucky and are helping ensure a responsible and accountable industry statewide,” Simms said.
Melissa Combs-Wright joined Simms in giving the committee an update on pari-mutuel wagering.
Combs-Wright, who serves as the director of pari-mutuel wagering for the corporation, said more than $11 billion has been wagered through track betting, simulcasting, advanced deposit wagering and historical horse racing this year.
Tax revenue is then deposited to the general fund, equine development funds or equine industry programs.
“Pari-mutuel wagering continues to be a powerful driver of Kentucky’s economy and a cornerstone of its equine legacy,” Combs-Wright said.
Although pari-mutuel and sports wagering revenue is distributed among numerous funds, House Minority Caucus Chair Al Gentry, D-Louisville, said he would like to see local governments benefit more from the practice.
“It’s the biggest flaw in our gaming model today in Kentucky, and it’s something that we have to look at, (but) not from a tax raising standpoint,” Gentry said. “There are social costs involved with gaming. I’ve always been a gaming advocate, but a lot of those costs fall upon the local governments where these things are housed.”
In addition to wagering, the Office of Charitable gaming falls under the Kentucky Horse Racing and Gaming Corporation.
Rep. Tom Smith, R-Corbin, said he’s noticing the formation of poker and card clubs. He asked Jamie Eads, who serves as the corporation’s president and CEO, if the card clubs are obtaining a charitable gaming license like a bingo license.
“I see (a card club) every morning when I pass through my district,” Smith said. “They claim since they don’t cut the pot, that they take an hourly rent on the seat, that that makes it legal.”
Eads said she is aware of the card clubs, but charitable gaming has not issued any licenses to poker rooms.
Committee co-chair Rep. Matthew Koch, R-Paris, thanked the corporation for their efforts in making the entire horse racing industry successful.
“Kentucky has always been the horse racing capital of the world, and now we’re absolutely walking the walk,” Koch said.
The next Interim Joint Committee Licensing, Occupations and Administrative Regulations is scheduled to meet at 11 a.m. on Oct. 23.
