2 Kentucky Senate Republicans meet with horse industry on proposed constitutional amendments

2 Ky. Senate Republicans offer gambling amendments

LEXINGTON, Ky. — Two Kentucky Republican lawmakers are planning to offer different constitutional amendments next year, one that would allow for video gambling and another that would limit how gambling could be expanded.

State Senate President David Williams and Sen. Damon Thayer outlined their proposals Tuesday to a closed meeting of horse industry leaders. Their move is likely to start another chapter in a debate that has raged for years in Kentucky over whether to allow gambling beyond what’s already legal, and if so, how.

“The two amendments when offered together, will allow the people of Kentucky to resolve this issue that the political figures of Kentucky don’t seem to be able to resolve,” Williams said. “

Kentucky already allows betting on horse racing, bingo and a state lottery. But the state horse industry has pushed for expanded gambling that advocates say is needed to generate more money to keep horse racing financially viable.

A plan earlier this year that would have allowed for video gambling machines at Kentucky’s tracks cleared the Democrat-controlled House before stalling in the GOP Senate.

That wasn’t the end, however.

A Democratic candidate who cast a House vote in favor of gambling legislation won a bid for an open Senate seat earlier this in a race that centered largely on the gambling issue. Gov. Steve Beshear is also a strong supporter of expanded gambling, and focused his 2007 race for governor on offering a constitutional amendment that would legalize casino-style games.

Williams said he still does not support expansion, but thought that if it does become legal, Thayer’s proposal is the way to go. Williams said he would offer an amendment to limit any expansion of gambling unless it is done by changing the constitution.

Thayer, a Georgetown Republican, said he’s planning to offer a proposal that would put to voters the question of whether Kentucky should allow video gambling machines in the seven counties that already have horse racing. If approved, the amendment would allow local jurisdictions to have the option, Thayer said.

Still, Senate Minority Leader Ed Worley, a Richmond Democrat, said the move was politically motivated.

“It’s about politics, it’s not about helping the industry,” Worley said.

Among other things, Thayer’s plan would allow Kentucky voters to ultimately decide the issue in the November 2010 general election. It would also call for a competitive bid process for potential license holders, and the video gambling would be run by the Kentucky Lottery, Thayer said.

Revenue would be split with the horse industry, video gambling machine operators and the state, Thayer said. The Horse industry would get either 25 percent of the net terminal revenue or $100 million, while the operators would also get 25 percent, Thayer said. The rest would go toward a state fund that would pay for infrastructure and debt repayments, he said.

“This proposal can pass the Kentucky state Senate,” Thayer said. “It’s time, after debating this issue since 1993 in Kentucky, that we put it on the ballot in November 2010 and let the people of Kentucky decide its fate.”

House Speaker Greg Stumbo, a Prestonsburg Democrat, did not have a comment regarding the proposal

Beshear released a statement criticizing the plans, calling them a “cynical maneuver” aimed at taking pressure away from some lawmakers who did not support the plan that cleared the House earlier this year. The governor urged lawmakers to reject the proposals saying they were “neither serious nor sincere.”

“This move is about politics, not progress,” Beshear said. “It is about spin, not the substance of critical issues confronting Kentucky and our signature industry.”

Bill Farish, chairman of Breeders’ Cup Ltd. and president of Lane’s End Farm, said he did not Thayer’s proposal would be approved. Farish said he did not believe a constitutional amendment was a viable option because it could take years to take effect.

“We still disagree with their position and as an industry we’re united to try to do what’s best for our industry,” Farish said. “We just don’t find many places where we agree.”