Category: Equine Industry

Expanded Gaming in Kentucky: A Winning Bet

Expanded Gaming in Kentucky: A Winning Bet

By Taylor Forns, Friends of Limestone Chief Development Officer

 

The first Saturday in May. For 144 years, this has been a day of pride for Kentuckians as the entire country tunes in for the Run for the Roses. The majesty, the pageantry, the spectacle of the day is always something to behold.

As I reflect back on this year’s Kentucky Derby, I am drawn to the social and political influences of the race. Though the world’s most famous horse race takes place in Kentucky, the state government refuses to allow gambling on anything other than horse racing. With the Supreme Court’s recent decision allowing states to legalize sports gambling, I could not help but think about the current climate surrounding expanded gaming in the Commonwealth.

In 2017, people wagered $139 million on the Kentucky Derby alone, a horse race that lasts two minutes. Imagine the economic impact that would have on Kentucky if we didn’t have that cash coming into the system. Now imagine the economic impact if the Commonwealth coupled the total earnings from the horse racing industry yearly with expanded gaming in casinos and sports books. It isn’t hard to imagine that funding for many of Kentucky’s programs, including Medicaid, the failing state pension plans, and education, would receive a significant boost and ultimately lead to better outcomes for millions of Kentuckians.

The idea for expanded gaming here in Kentucky is not a novel one. Former Governor Steve Beshear was a strong advocate for it during his term as governor, and his son, Attorney General Andy Beshear, continues to push for legalization of expanded gaming to solve Kentucky’s revenue needs.

Rivals of expanded gaming do recognize its economic impact, but they believe that the “societal costs,” as Governor Matt Bevin put it in September 2017, would be too great to realize any true benefit.

Personally, I side with the idea that we live in a state where the vices of horse racing, bourbon, tobacco, and marijuana make up a large portion of the economy, so we have already paid the Pied Piper in terms of societal costs. Additionally, Kentuckians continue to leave the Commonwealth to gamble in casinos just across the Ohio River in both Indiana and Ohio. Why should we allow our dollars to continue to go to neighboring states that seem to be doing just fine with the casinos in their communities?

Not only would expanded gaming keep money within the Commonwealth, but also bringing casinos to Kentucky would create thousands of jobs, giving more citizens the chance to earn a decent wage and improve the economy. To top it all off, the sheer volume of revenue generated by expanded gaming would help to stave off tax increases to fund many of the state’s programs. To this effect, Democrats would be able to fund the myriad of state-funded programs that support Kentuckians, and Republicans would be able to make good on campaign promises to their constituents by keeping taxes low.

I don’t know about you, but I certainly did not make money on Derby day this year. My pick 6 bet lost on the first race, I didn’t hit my exacta, and I thought Mendelssohn was going to win it over Justify. Clearly, I made the wrong bets that day.

However, I have a bet that is sure to have a big payoff: legalize expanded gaming. It’s a winning bet for Kentucky.

 

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A Kentucky Legislative Session Update

A Kentucky Legislative Session Update

By: Brandon McReynolds, Ph.D, Friends of Limestone Founder

Hey Friends!

We are now a little over halfway through the 2018 Kentucky Regular Legislative Session (the legislature only has 59 legislative days this year), which provides an opportunity to check-in on the bills connected to Friends of Limestone’s mission.

Over the past week, our team reviewed all the proposed legislation from this session. As of publication, over 150 bills have been filed in the Senate and close to 400 in the House. These bills cover a variety of policy areas connected to limestone and the industries that exist in Kentucky because of limestone. Below we listed several of the bills that stand out to us.

We have provided a brief description of each piece of legislation along with why the legislation is of importance to Friends of Limestone. We also recommend checking out the Legislative Research Commission’s website where you can see the bills and resolutions your representatives have sponsored! Also, be on the lookout for a separate blog post about Kentucky’s pension problem, and how it affects us all as Friends of Limestone.

House Bills:

HB 26- Natural resource severance and processing tax

Currently: in House to Appropriations and Revenue

  • Amends state law to define the “processing” of limestone to include the act of loading and unloading
  • Amends state law to allow for a tax credit for identical severance or processing tax paid in another state or political subdivision.

FOL Perspective: the mining and processing of limestone as a natural resource is one use of Kentucky’s large limestone deposit. Legislation focused on the continued mining of limestone needs to consider the environmental, social, and economic impacts of mining each time legislation such as this is proposed.

HB 159- Increase sales tax on alcohol

Currently: in House to Licensing, Occupations, and Admin Regs

  • Amends state law to increase the whole sales tax rate for beer, wine, and distilled spirits to 14 percent
  • Forbids local governments from imposing a regulatory fee on the sale of alcoholic beverages
  • Amends state law to establish a $100 annual transporters license fee
  • Amends state law to require that every distiller, rectifier, winery, and nonresident wholesaler make its brands available to any wholesaler and not grant the distributing rights of any particular brand to only one wholesaler exclusively
  • Amends state law to require that alcohol wholesalers make deliveries to retailers on a timely basis and no later than one week after the order date
  • Amends state law to require that alcohol distributors make deliveries to retailers on a timely basis and no later than one week after the order date
  • Amends state law to permit a quota retail package licensee or a nonquota malt beverage package licensee to transport alcoholic beverages between stores of common ownership if the licensee derives not less than 90 percent of his or her cash receipts from the sale of alcohol and pays the annual license fee

FOL Perspective: The sell of alcohol is highly regulated and taxed in Kentucky. As Kaitlyn pointed out in her recent blog, taxes incurred throughout the process make up a substantial cost that is passed onto consumers. This law adds further taxes and regulation.

HB 267- All wet counties through a local option election to approve license fee

Currently: in House to Licensing, Occupations, and Admin Regs

  • Amends state law to allow all wet cities and counties containing wet cities through a local option election to impose a regulatory license fee on the sale of alcoholic beverages

HB 41, 42, and 229– All deal with gambling

FOL’s mission does not directly connect to the issue of legalized casino gambling. However, due to the on-going discussion around casino gambling and Kentucky’s horse industry we wanted to make people aware of these pieces of legislation.

 

Senate Bills

SB 22- Sports wagering

Currently: In Senate to Appropriations and Revenue

  • Requires Kentucky Horseracing Commission to institute a sports wagering system
  • Vest control of sports wagering with the commission
  • Establishes a 20% tax on the total amount wagered at sports wagering facilities

FOL Perspective: The equine industry plays a substantial role in the Kentucky economy.  Legislators and voters need to understand the economic and social impacts of expanded sports gambling along with how legislation such as this will support the long-term growth of Kentuck’s equine industry.

SB 56- Kentucky Horse Racing Commission

Currently: Has passed in the Senate, and is in the House to Licensing, Occupations, and Admin Regs

  • Amends state law to make ex officio members of the Kentucky Horse Racing Commission nonvoting members.

SB 110- Alcohol license quotas

Currently: In Senate, passed out of committee, seven-floor amendments were added, waiting for second reading

  • Codify the quota system for alcoholic beverages for wet counties and cities
  • Creates new process for verifying quota numbers
  • Create a process to allow for a city or county to petition for a quota increase

Various amendments have been added and range from eliminating the quota system to shifting how the system is managed.

FOL Perspective: As legislators debate the pros and cons of Kentucky’s quota system, FOL believes that they should work to give agency and power to counties and cities across the state.

SB 129- Reorganize energy and environmental cabinet

Currently: In Senate to Natural Resources & Energy

  • Amends over 25 state statutes regarding the Energy and Environmental Cabinet
  • Changes names of various portions of the Energy and Environmental Cabinet
  • Amends state law regarding responsibility for who can take legal action regarding various programs

FOL Perspective: Every issue before the legislature is an environmental issue, a reorganization of  Energy and Environmental Cabinet needs to ensure the environmental justice is a part of the policy process both inside and outside of the cabinet.

SB111- Breeder’s Cup exemption

Currently: In Senate to Appropriations and Revenue

  • Amends state law to make permanent the Breeder’s Cup exemption relating to wagering
Understanding Education

Understanding Education

By Brandon McReynolds

Editor’s note: As Friends of Limestone begins it’s journey, we will be outlining each of the four pillars of our work as well as our focus issues. This is the second part of our four part series on our work. Part one on preservation and confirmation can be found here.

As I began to envision what would eventually become Friends of Limestone, I knew early that a key goal would be highlighting the importance of limestone to Kentucky. Across the state there are hints at its historical significance, it adorns street signs and was once the name of a settlement that would become Maysville, KY.

If you have ever been on a bourbon tour, you have likely a guide explain why bourbon is the backbone of Kentucky and it is because of limestone. They may have mentioned how limestone filters water uniquely, preventing iron from having an effect on the finished product.

Perhaps you have wondered why the equine industry is such a strong part of Kentucky. We can attribute that to the nutrients that limestone offers the ground and grass, making the Commonwealth an ideal place for raising horses.

I also thought about all the trips to Kentucky’s caves I took as a kid. Marveling at the vast open spaces that exist hundreds of feet below the ground. At the time, I had no idea (likely because I was not paying attention to the tour guide) that limestone provided the ceiling, which allows the caves to exist. Ultimately, what I recognized is that so many of my experiences growing up in Kentucky are linked to limestone.

I then began to think: what would my old Kentucky home be like without it?

Certainly not the same. I know that many Kentuckians have had similar and unique experiences throughout their lives that connect their own personal story to limestone. Friends of Limestone was started, in part, for us to share those experiences. To show that as Kentuckians, we share more in common than we do differently. We want to show that many of the things we love about the Commonwealth have their foundation in limestone. This is why we chose education as one of our central principles. To yes, inform people about fun facts and numbers but to also share stories.

We want to create a space to talk about, inform, and share both the historical and current impacts limestone has had on Kentucky and the people of Kentucky. This blog will include stories, information, and facts from across the state to educate and highlight how our love for Kentucky is rooted in the importance of limestone.