Kentucky lawmaker files bill to bring casinos to state, but bidders should pony up

A Kentucky lawmaker is trying to bring traditional casinos to the state and levy a 21% tax on their revenue.

This week Representative Thomas Huff introduced House Bill 33, which would task the Kentucky Horse Racing and Gaming Corporation with regulating land-based and riverboat casinos, as well as the fantasy sports market.

The 21% tax on casino revenue would be on the higher side compared to other states. But Huff’s bill would also require patrons to pay $3 to enter the casino, so that would be an extra jolt to operator revenue.

Which Kentucky counties would be eligible?

In addition to graduating Kentucky from a historical horse racing (HHR) machine industry to a traditional casino industry, HB33 also has a section dedicated to allowing counties to decide whether they even want a casino built in their area.

It also sets restrictions on the counties eligible to build a casino.

Some specifics:

• The county must have 30,000 or more residents to be eligible (unless it already has a horse racing facility – then it would be eligible no matter its population);
• A voter referendum to approve a casino could be initiated either via a countywide petition garnering the equivalent of 25% of the population in signatures in the preceding election cycle, or via the county legislative body passing an ordinance to conduct a voter referendum; 
• If a county has fewer than 30,000 residents, it must join with one or more adjoining counties to form a multi-county coalition of more than 30,000 residents in order to pursue adding a casino in their area;
• A county that already has a horse racing facility – regardless of population – may approve adding a casino via voter referendum if the traditional casino games would simply be added to the current facility.

Read the full story here.

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 A new effort to bring traditional casinos to the state includes a 21% revenue tax and a complex bidding process.