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A group of Kentucky lawmakers want gaming revenue from retail facilities to be shared with local communities. Currently, gaming tax revenue goes entirely into the state’s general coffers. The move to boost local benefits from legal gambling comes alongside another bill in the House this year that would legalize casino gaming, allowing the state’s racetracks to upgrade their offerings.
The bill, HB 782, creates a “pari-mutuel racing local government support fund” that would send money from the state’s general fund to the local communities in which casinos operate.
Fund would help offset cost of casino presence
Kentucky’s Local Government Support Fund gives local governments the freedom to choose how they want to spend their money. The legislation suggests (but does not limit spending to) the following uses:
- Law enforcement retention
- Homelessness
- Affordable housing
- Policing live and historical horse racing facilities
The bill’s proposed uses hint at a major roadblock for certain states trying to legalize casinos: local concerns about casinos bringing increased crime and cost of living.
Generally speaking, anti-casino lobbies point to increased crime around casinos as a “not in my backyard” deal breaker. More crime means local municipalities need more cops, an expense that some areas aren’t willing to pay.
HB 782 essentially provides a way for local governments to pay for any services that need to be expanded to accommodate a Kentucky casino, whether it’s hiring more law enforcement or building affordable housing.
Local revenue feature may sweeten the pot for local communities on the fence about casinos
HB 782 acts as a companion piece for HB 33, a bill that would legalize Kentucky casinos. What makes the interplay between the two bills interesting is that HB 33 gives local municipalities to right to vote on whether or not they want a casino (provided they meet certain population requirements).
Other states have taken the “opt-in” approach to gaming and succeeded. Louisiana sports betting is a good example of this. Lawmakers gave parishes the right to vote about whether or not they wanted casinos. Of 64 parishes, 55 voted “yes”.
Virginia had a similar approach. Lawmakers legalized casinos in five cities with the caveat that voters in each city had to approve a casino. Four of the five cities approved casinos, with Richmond rejecting a casino twice.
If history is any indication of how many communities will approve casinos, Kentucky should have no problem with widespread adoption of casino gaming. Many localities believe that the economic benefits of casino gaming outweigh the drawbacks of crime and poverty. That being said, passing HB 782 would provide further incentives for communities to welcome casino gaming.
