Kentucky Governor Snuffs Out Betting Bill Proposing Regulatory Changes

Kentucky’s governor has vetoed a bill proposing a list of sports betting regulatory changes, citing concerns about wording that would provide unconstitutional powers to the Kentucky Lottery Corporation and Kentucky Horse Racing and Gaming Commission.

HB 904 Fails to Cross the Finish Line

House Bill 904 was a sports betting measure that made quick strides in the House and Senate, gaining significant momentum. The measure was introduced last month and proposed various regulatory changes to the Bluegrass State’s regulatory framework.

Under the bill, Kentucky would have raised the minimum age for participating in legal sports betting to 21 (currently 18). In addition to that, the bill would have prohibited licensed sportsbooks from offering under prop bets on college athletes from Kentucky schools, in line with the broader pushback against prop bets in college sports.

Additional changes included prohibiting licensed sports betting operators from running prediction market businesses in the state.

House Bill 904 also sought to require horseracing tracks in the state to update their pari-mutuel wagering systems and introduce fixed-odds wagering. In line with Kentucky’s broader opposition to the prediction markets sector, the bill also banned tracks from teaming up with event contract operators.

The bill would have also changed the charitable gambling rules and paved the way for the introduction of regulated daily fantasy sports.

The Bill Was Not Aligned with the Kentucky Constitution

While HB 904 secured strong approval from both the House and Senate, it has now been vetoed after appearing on Gov. Andy Beshear’s desk. In a statement, Beshear attributed his decision to a section concerning the regulatory organization, under which the Kentucky Lottery Corporation and Kentucky Horse Racing and Gaming Commission would have received extra powers.

The section stated that the two regulatory bodies would be allowed to file “emergency and ordinary administrative regulations without the Governor’s review and signature.”

Beshear argued that this wording contradicts the Kentucky Constitution, under which the governor is the chief magistrate of the executive branch. This means that the governor is also responsible for reviewing any emergency filings. If passed, HB 904 would have therefore prevented the Kentucky governor from carrying out his constitutional duties.