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Kentucky VLT bill headed to House floor

Posted: Thursday, June 18, 2009 3:12 PM

by Frank Angst

The Kentucky House of Representatives will consider a bill that would add video lottery terminals at Kentucky racetracks.

With several representatives noting that they did not want to prevent the bill from being heard by the entire House, the House’s Appropriations and Revenue Committee moved the bill forward on Thursday with a 19-9 vote. The House is scheduled to consider the bill on Friday.

The forwarded bill was crafted by House Speaker Greg Stumbo, who changed the bill proposed by Governor Steve Beshear. Stumbo’s bill would provide up to $850-million to build Kentucky schools and up to $450-million for Kentucky colleges and universities. The bill also provides money for tourism and to help problem gamblers.

The horse industry’s cut—14.5% to purses and 1% to breeding funds—is not affected by the changes, which simply outline where the revenue generated for the state will be spent. The personal property tax cut also is still included.

Representative Brent Yonts (D-Greenville) said he came into the special session of the General Assembly opposed to added gaming but noted the bill’s benefits for all breeds of horses and tax benefits for soldiers would be especially attractive to his constituency. He said his decision also was influenced by the fact that the bill does not add casino locations like previous gambling bills considered in Kentucky.

“This is allowing slots at a place where gambling is already taking place,” Yonts said. “I would oppose adding gambling to additional facilities.”

Representative Mike Denham (D-Maysville) said his yes vote at the committee level should not necessarily be interpreted as a vote for the bill.

“But the House should have the opportunity to debate this bill,” Denham said.

Representative Scott Brinkman (R-Louisville) does not believe the proliferation of gambling in the United States in recent years has been good for the country but said it is important to allow Kentucky tracks the same gambling options offered in nearby states such as Indiana, Pennsylvania, and West Virginia.

“Do I vote ‘no,’ and turn my back on a very important industry?” Brinkman said.

Stumbo’s bill would increase the licensing fees paid by the seven tracks from $360-million in Beshear’s bill to $500-million. He said the tracks would have additional time to pay those fees, five years, as opposed to Beshear’s two years.

Stumbo said while Beshear’s bill committed more money to the general fund, his bill is more specific about where the money will go. The bulk of the government money will be spent on education, as $1.3-billion will be committed.

The Kentucky Horsemen’s Benevolent and Protective Association issued a notice after the vote on Thursday that encourages those who support the state’s horse industry as well as the legislation to gather on Friday at the Capitol Building for the meeting at 10 a.m. EDT.

Frank Angst is senior writer for THOROUGHBRED TIMES