The Attorney General of Kentucky knows how profitable the sports betting industry is. Since the repeal of PASPA last June, state legislators have been working on the best ways to regulate the sports betting industry and generate revenue from taxes and licensing fees. The revenue will then be used to fund different socio-economic programs in the state. And the potential to earn so much in the US by experts in the sportsbook pay per head solution industry: it is worth around $67 billion per year.
Kentucky Plans on Legalization
According to Attorney General Andy Beshear, sports betting can help the state deal with the huge problem with the pension fund. According to analysts, Kentucky will be needing around $39 billion to $70 billion in the next 30 years to pay out pensions for firefighters, police officers, educators, plus state employees. Currently, the state does not have the funds to cover that.
The AG sent a letter to the legislators in November, where he says that he wants legislators to look at the expansion of betting and gambling in the state. They only have limited horserace (pari-mutuel) as the only form of betting allowed. He also says that people of their state travel to nearby states to gamble. This alone leads to a possible loss on the $1 billion that crosses state lines.
The AG argues that by allowing gambling to be legal in the state, they will be creating a revenue stream that will solely be for the purpose of funding the pensions – and that this solution will not require any increases in the taxes on the people of Kentucky. He recommends the study of wagering options for gaming, casinos, sports betting, fantasy sports and online poker, even.
Of course, this will be up to state legislators. For now, Rep. Dennis Keene has a pending bill BR15, which gives authority to sportsbooks to operate. This move will be under the Kentucky Lottery Corporation. This will be considered when they return to session early next year. If this effort fails, Beshear can always push for this if he wins. Beshear plans on running for governor in 2019.