Kentucky Legislature Overrides Governor Veto of Sweeping Gaming Package

• The Kentucky Senate and House overrode Gov. Andy Beshear’s (D) veto of a sweeping gaming package
• The two legislative chambers voted down Gov. Beshear’s recent veto of HB 904
• Approved legislation will raise the state’s sports betting age to 21, ban under bets on collegiate sports, and modify several other gambling rules in the state
  

In the words of the great college football analyst Lee Corso, “Not so fast, my friend!”

Members of the Kentucky Senate and House yesterday overrode Gov. Andy Beshear’s (D) veto of HB 904, the “Wagering Consumer Protection Act, which will now become law in three months.

The bill will raise the Kentucky’s sports betting age from 18 to 21, prohibit under prop bets on individual collegiate athletes, legalize fixed-odds wagering on horse racing, and prohibit partnerships between licensed sports betting operators and horse tracks in the states with companies offering sports event contracts.

About Face on Governor Veto

The Kentucky House and Senate can override a governor veto by each casting a simple majority, requiring 51 yes votes in the House and 20 in the Senate.

Members of the House and Senate revisited the gambling legislation and Gov. Beshear’s veto late Tuesday night, with the House first overriding the veto by a 67-7 vote. The Senate then received the bill and agreed to override the veto by a 26-5 vote.

The newly approved legislation will go into effect in 90 days without Gov. Beshear’s signature.

Gov. Beshear vetoed the approved bill on Monday, April 13. The governor included the following veto message for the bill:

“I am vetoing House Bill 904 because it would authorize two Executive Branch agencies, the Kentucky Lottery Corporation and Kentucky Horse Racing and Gaming Corporation, to file emergency and ordinary administrative regulations without the Governor ‘s review and signature. Under the Kentucky Constitution, the Governor is the Chief Magistrate of the Executive branch and has a duty to ensure all laws are faithfully executed, including by agencies carrying out the law through regulation. In that role, the Governor reviews proposed emergency regulations to ensure they are necessary and meet legal requirements for emergency filing. Authorizing an agency to file an emergency regulation in this manner would prevent the Governor from carrying out his constitutional duties and allow boards and agencies to impose rules on Kentuckians without executive oversight, including boards whose decisions impact public safety.”

The governor vetoed the bill more due to his official requirements as governor, rather than anything gambling related.

Gambling Bill Details

The legislation, will modify several sports betting, gambling, and daily fantasy sports regulations in Kentucky. The legislation will raise the state’s minimum sports betting age from 18 to 21, as Kentucky is one of the few states in the country to allow 18-year-olds to bet on sports.

Additionally, the legislation will prohibit sports betting users from betting on individual collegiate athlete props “if the successful outcome of the wager is contingent upon the athlete failing to met a specified statistical threshold or experiencing a negative performance outcome.”

The legislation will also bar any track or association holding a license to conduct horse racing, sports betting, or daily fantasy sports from participating in or contract with platforms that offer event contracts through a prediction market in the state.

The bill will also do the following in the state:

• Legalize fixed-odds wagers on horse racing
• Established licensing requirements for daily fantasy sports operators
• Sets a 15% tax rate for both fixed-odds horse racing and daily fantasy sports
• Notify bettors withing 24-hours if they are limited and the reason for the action