Kentucky government approves significant reforms for charitable gaming and horse racing

In a pivotal meeting held on March 11, 2025, the Senate Standing Committee on Licensing and Occupations of the Kentucky Legislature addressed significant changes in charitable gaming, horse racing, and the overall structure of the gaming industry in the state. The atmosphere was charged with anticipation as committee members gathered to discuss reforms aimed at enhancing regulation and ensuring fair practices.

The meeting began with a focus on charitable gaming, an area that has drawn considerable public concern. Representative Cook outlined key reforms, including the locking in of tax fees and an increase in board representation to three members, effective immediately. This change aims to provide better oversight and representation for charitable organizations, such as school districts, which can now obtain a single gaming license to cover various groups like football and band boosters.

A notable aspect of the discussion was the emphasis on self-funding for the corporation overseeing these activities. Up to 10% of funds generated can be allocated for administrative purposes, ensuring that the corporation operates without relying on general fund dollars. This move is designed to bolster the financial independence of the gaming sector while addressing issues like uncashed vouchers, with a portion of funds directed towards problem gambling initiatives.

The committee also explored the burgeoning field of quarter horse racing, with plans for a new racetrack in Eastern Kentucky. This initiative aims to increase the number of quarter horses in the state, creating a pathway for importing pregnant mares and establishing a Kentucky-bred registry. The proposed changes are set to sunset in three years, prompting a sense of urgency among stakeholders to capitalize on this opportunity.

As the meeting progressed, senators raised questions about enforcement and resource allocation within the corporation. Concerns about the capacity to regulate the expanding charitable gaming landscape were voiced, but assurances were given that a diverse board would oversee operations, combining expertise from various sectors of the gaming industry.

The session concluded with a vote on House Bill 566, which passed with favorable expression despite some dissent from members concerned about the implications for veterans' groups. The outcome reflects a commitment to balancing growth in the gaming sector with responsible oversight, a theme that resonated throughout the discussions.

As Kentucky navigates these changes, the implications for charitable organizations, horse racing, and the broader gaming landscape will be closely watched, marking a significant chapter in the state's regulatory evolution.