NEWS
Kentucky governor details expanded gaming plan
Posted: Thursday, February 14, 2008 6:45 PM
by Jeff Apel
Kentucky Governor Steve Beshear on Thursday unveiled legislation that would ask voters to approve 12 casinos in the state, seven of which would be located at horse racing tracks.
Four Thoroughbred tracks—Churchill Downs, Ellis Park, Turfway Park, and Kentucky Downs—would pay $50-million to $100-million each to obtain a casino license. Keeneland Race Course would share a license with the Red Mile, a harness track that is also located in Lexington.
Bluegrass Downs in Paducah and Thunder Ridge Race Track in Prestonsburg would also obtain casino licenses under the legislation, which also allows for five additional free-standing casinos. With voter approval, those casinos could be built in Daviess, Christian, Kenton or Campbell, Boyd or Greenup, and Laurel or Whitely counties.
Both chambers of the Kentucky legislature must approve the measure by a three-fifths majority before it can be placed on the November ballot as a constitutional amendment.
“For nearly 15 years this issue has been discussed, debated and yet, deferred. Today, I am taking action and responding to the wishes of the vast majority of Kentuckians by sending to the General Assembly legislation that will give our citizens the opportunity to do as they have demanded—let their voices be heard on whether or not to change the state’s constitution to have limited expanded gaming,” Beshear said. “Public opinion research shows that more than 80% of Kentucky voters want the right to vote on this issue. It’s past time we acted on that demand and be responsive to the people.”
Beshear said casinos could have an annual estimated fiscal impact of $600-million once the legislation is fully implemented.
“We face a financial crisis in the state that is slowly destroying our ability to educate, protect, and take care of our people,” Beshear said. “We no longer have the financial ability to fund the programs we should have in order to meet those needs. Nor do we have the ability to look into the future and begin to build on those opportunities to restore Kentucky’s economic viability. By allowing our Kentuckians to vote on the issue, we are sending a clear message that we are joining with them in finding other ways in which to address this financial crisis.”
Tracks would retain approximately 60% of all casino revenues for the first five years, with approximately 16% of adjusted gross revenues subsidizing purses and breeders awards. The remaining 40% of revenues would go to the state.
Tracks would retain approximately 50% of casino revenues after five years, with the remainder going to the state.
Fifty-percent of gaming tax proceeds will go to education, 20% will help fund health care, and 10% to city and county governments. Host cities and counties will receive 3% of all gaming tax revenue, with 17% divided among other programs, including livestock research and agricultural easements.
A seven-member gaming commission, appointed by Beshear and approved by the state Senate, would oversee the casinos. Commission members will serve four-year terms under the direction of an executive director.
“This is a critical time for Kentucky and its citizens,” Beshear said. “Our legislators should listen to their constituents and allow them to vote on this question. There will be no better opportunity to help move Kentucky forward.”
Jeff Apel is a Thoroughbred Times assistant daily news editor
