Kentucky Lawmakers Propose $225 Million Problem Gambling Trust Fund
A bill filed last week in the Kentucky General Assembly could transform the state into a leader for responsible gaming.
Kentucky has been one of the few states to not fund gambling addiction services. That’s despite its traditional horse racing market, a lottery that’s been in place for more than 30 years, and slot-like historical horse racing (HHR) machines increasing at a swift pace.
That would change thanks to House Bill 609, filed Monday by state Reps. Adam Koenig, R-Erlanger, and Al Gentry, D-Louisville. The legislation would create the Kentucky Problem Gambling Fund and set aside $225 million for the program.
The funding for the program would come from the PokerStars lawsuit settlement reached last year. That deal ended more than a decade of litigation, stemming from when PokerStars operated cash games illegally in Kentucky during the height of the online poker craze.
What better use of that money than to put it to problem카지노사이트 gaming,” Koenig told reporters. “So, we create a trust that deals with that issue.”
Koenig said the funding would allow Kentucky to go from having no dedicated program to one of the most robust in the nation. That money, if managed properly, would serve the state’s problem gambling needs for centuries, if not forever. He made the statements at a press conference announcing that bill and three other gaming-related pieces of legislation,
“A New Day for Kentucky”
Responsible gambling advocate Brianne Doura-Schawohl said in a statement to Casino.org that she was “elated” to hear that Kentucky leaders want to correct the “long-overdue neglect” of addressing problem gambling.
Doura-Schawohl said estimates indicate Kentucky has about 30,000 residents struggling with gambling addiction. That roughly works out to about one percent of the state’s adult (18-and-older) population. She added that will grow if and when Kentucky adds sports betting or expands gaming in other ways.
“Those individuals have gone without help and hope for far too long,” she said. “I hope this is a new day for Kentucky and all those struggling.”
How significant would it be to invest $225 million into problem gambling services? As she noted on Twitter after Koenig filed his bill, the entire country spent $73 million to deal with problem gambling in 2016.
As Koenig noted, the funding would likely cover the state’s problem gambling services for several lifetimes. However, Doura-Schawohl said it’s still important that gaming operators in the state contribute to the system.
She also hopes that it can help problem gambling services elsewhere.
“If this bill were to pass and become law, it would be the single largest funded problem gambling program in the nation,” she said. “I would hope that the funding would be used for research, prevention, treatment and recovery that not only helps Kentucky but provides vital information and best practices for the entire nation, to help address this important public health issue.”
What are the Problem Gambling Bill’s Chances?
Currently, the bill sits in the House Committee on Committees. It awaits assignment to a committee, likely the House Licensing, Occupations, and Administrative Regulations Committee, which Koenig chairs.
When Kentucky lawmakers reconvene on Monday, it will be Day 42 of the 60-day session. The legislature will meet for the next three weeks, and a 10-day veto period will start on March 31. After giving Gov. Andy Beshear time to veto legislation, the General Assembly is scheduled to meet on April 13-14 to consider overriding any vetoes.
Lawmakers could still pass new legislation in those final days – as well as during a two-day concurrence period on March 29-30. However, over the next few weeks, legislators must also finalize a budget. They also continue working on reforms to the state’s personal income tax system and unemployment program. Those are the priorities right now in Frankfort. It remains to be seen how much time will be left for other issues.
Besides the four bills on individual gaming topics – sports betting, pari-mutuel reforms, and gray machine regulation were the other topics covered – Koenig also filed an omnibus bill that includes language from all pieces of legislation.
Churchill Downs Optimistic Regarding Richmond Casino Possibility
Churchill Downs Inc. agreed last month to acquire most of Peninsula Pacific Entertainment’s (P2E) assets for $2.485 billion. The takeover includes the casino operator’s development agreement with Urban One for a project in Richmond, Virginia, should voters there approve of the nearly $600 million proposal.
Urban One, a Black-focused media conglomerate, is partnered with P2E on the project known as ONE Casino + Resort. But Richmond voters rejected the $565 million casino during the city’s 2021 election.
Richmond is one of five cities in Virginia that qualifies under a 2020 bill to consider a commercial casino project to spark its regional economy. Richmond is the only city of the handful that has not taken advantage of its casino opportunity by way of a local referendum.
Richmond’s casino ambitions were supported by the City Council and Mayor Levar Stoney. Those officials aren’t ready to give up on the possible economic stimulator. The council has already passed ordinances to initiate a second referendum on ONE Casino + Resort, but state legislation could interfere.
Churchill Interested
Churchill Downs’ nearly $2.5 billion play for Peninsula Pacific was predominantly because of P2E’s extensive operations in Virginia.
P2E owns and operates Colonial Downs Racetrack, a thoroughbred facility in New Kent, plus six Rosie’s gaming emporiums, located across the commonwealth. The Rosie’s venues offer historical horse racing (HHR) terminals, slot-like devices that are based on pari-mutuel horse races previously run.
Peninsula Pacific broke ground on a large HHR-based casino resort in Dumfries in January. Dubbed The Rose Gaming Resort, the $400 million project바카라사이트 in Prince William County seeks to tap into the coveted DC market. Churchill is acquiring that development, too.
Richmond would be icing on the cake. Speaking recently with Richmond’s local ABC affiliate, Churchill Downs CEO Bill Carstanjen says the prospect is attractive.
It’s a great opportunity for Richmond. I think it’s a great opportunity for the state,” Carstanjen said.
Not everyone agrees that Richmond should be able to ask voters on the casino issue for a second year in a row. Virginia Senator Joe Morrissey (D-Richmond) is leading an effort in the state capital to prevent Richmond from holding another casino referendum for at least two years.
Morrissey, whose district includes portions of Petersburg, favors allowing the neighboring city to instead consider its own casino development. But for that to happen, state lawmakers would need to allow the unissued Richmond gaming license to move to Petersburg.
Clarity Coming
Carstanjen said, assuming Churchill Downs’ takeover of P2E goes through in the coming months, his company will be ready to carry on with Urban One. He says the partnership will first wait and see what develops in the Virginia General Assembly.
Urban One CEO Alfred Liggins voiced a slightly less optimistic tone.
The political environment right now is uncertain,” Liggins told the Washington Business Journal last week. “Even if we get a chance to run a referendum again, it’s a 50-50 shot, right?”
The 2021 Richmond casino referendum for ONE Casino + Resort was narrowly rejected by a vote of 51-49%. Voting results showed that white, more affluent neighborhoods voted against the casino, while more diverse — and more impoverished — communities voted in its favor.
