Gov. Beshear Calls for Support of HHR, Sports Gambling

In his State of the Commonwealth and Budget address Jan. 7, Kentucky Gov. Andy Beshear called on lawmakers to back legislation that would protect historical horse racing, which has been critical for racing and breeding in Kentucky, and approve sports wagering in the state.

While it was a quick point as he was calling for laws that restrict business innovation to be lifted, he again expressed his support for HHR, which has provided important revenues for horse racing and breeding, and sports betting, which failed to be approved during last year's general assembly.

"Speaking of laws that unduly restrict us from growth and innovation," Beshear said in his speech from the Governor's Mansion in Frankfort, "it is time to legalize medical marijuana, pass sports betting, and save historic horse racing."

The legality of HHR, which benefits the racing industry and its many jobs in Kentucky, was called into question in September when the state Supreme Court found at least one brand of HHR game that has operated in the state is not pari-mutuel, in turn, making it not legal. 

In December industry leaders called on state lawmakers to protect HHR, which has helped boost Kentucky racing and breeding through millions of dollars generated for purses, breeder awards, and tracks, as well as the state. In that Dec. 14 hearing before the Interim Joint Committee on Licensing, Occupations, and Administrative Regulations industry leaders noted that thousands of high-paying jobs are on the line.

In a Jan. 4 interview on KET's Kentucky Tonight preview of the 2021 General Assembly, Kentucky Senate President Robert Stivers II (Republican, Manchester) said when it comes to gaming issues in the state, the historical horse racing issue takes precedent over sports gambling.

"I think the horse industry, and individuals interested in the well-being of the horse industry need to focus on historical horse racing before they start thinking about sports books and gambling," Stivers said. "Historical horse racing is not really a viable option right now based on a Supreme Court opinion from about three months ago. It generates about $35 million in tax revenue for the state, $15 (million) of which goes to our general fund and $20 (million) to the industry that increases purses, breeders' incentives, and has a pretty substantial ripple effect in the economy."

Since its initial launch at Kentucky Downs in 2011, HHR games have operated as pari-mutuel games that have helped nearly double purses from $65.3 million in 2012 to $113.6 million in 2019.

On the same show, Kentucky Speaker of the House David Osborne (Republican, Prospect) said discussions are ongoing on how to best ensure that HHR can continue in the state. He said the focus needs to be there first, ahead of sports wagering, because HHR is already in place.

"These are existing businesses, existing facilities that have invested hundreds of millions of dollars in Kentucky," Osborne said.

He added that sports wagering has been a divisive issue.

After meeting for four days in January, most of the legislative work at this year's session is expected in February (17 legislative days) and March (nine legislative days). 

Thursday's address had originally been scheduled Jan. 6 but was pushed back one day following the rioting at the U.S. Capitol Wednesday.