Sports betting legislation was introduced last legislative session in the Commonwealth of Kentucky but failed to pass. It even had bipartisan support and backing from Governor Andy Beshear.
The tax rates would have been over 14% for sportsbooks in the state, driving real revenue into the budget. With Kentucky’s budget crisis, they can’t afford to pass on this option for long.
A Reason to Cross the Bridge
Just across the river from Kentucky’s biggest city, Louisville is Indiana. It’s less than a 30-minute commute to the closest casino, which Kentucky still cannot have.
Indiana now has mobile sports wagering across the state, which started last fall. People can drive across the bridge and place bets on a mobile app.
Those are Kentucky tax dollars that could have stayed in the state. However, Kentucky is falling behind. State after state has begun to legalize sports wagering, especially after the COVID pandemic hit the budgets so hard.
Just two weeks ago, Indiana hit $1 billion wagered since last September. Once sports came back in July, it saw the handle double to $70.9 million.
DraftKings and BetRivers were among the first to launch in the Hoosier state last fall, then BetMGM, Caesars, and PointsBet all joined in the spring of this year.
Problems in Kentucky
Kentucky already has horse racing, and it is one of the most lucrative businesses in the state. But that is considered “strategic” wagering and not gambling.
A recent article in the Courier-Journal, Louisville’s biggest newspaper, wrote:
“It makes no sense. Any Kentuckian who wants to bet on sports today has no shortage of options. Anyone near the Indiana border is a quick drive away from a slew of choices, and with the mobile platforms poised to launch in Tennessee, those in the southern part of the state will soon have similar opportunities.”
The legislators in Kentucky who are holding this back oppose gambling in the state. Many people believe that legalizing sports betting is just one step closer to casinos in Kentucky.
Sure, sports betting can be an extension of a casino, but that needs to be an entirely different bill. The old notions of gambling driving crime into the state need to die in 2020. These are mobile app platforms that are generating revenue for states across the country.
But as some of those legislators continue to believe the old notions, Kentucky will continue to struggle. Governor Beshear estimated a budget shortage of over $1 billion next fiscal year.
A budget shortage seems like one of those things that is going to happen sooner or later. But the longer that Kentucky waits, the bigger the budget hole will be.
Sports teams are beginning to partner with sportsbooks, so what does that tell business owners in Louisville? Questions of an NBA team have been mentioned on several occasions, but the state can’t continue on the same path and expect outside companies to enter the bluegrass state.
It’s time for legislators in Frankfort to wake up regarding sports betting.
