SENATE BILL 299 SUMMARY - Kentucky Horse Racing and Gaming Corporation

Establishes the Kentucky Horse Racing and Gaming Corporation to over see the activities of horse racing, pari-mutuel wagering, sports wagering, and charitable gaming in Kentucky.

Intent

"...it is hereby declared the policy and intent of the Commonwealth that charitable gaming conducted by charitable organizations is an important method of raising funds for legitimate charitable purposes and is in the public interest. The intent of this chapter and KRS Chapter 238 is to prevent the commercialization of charitable gaming, to prevent participation in charitable gaming by criminal and other undesirable elements, and to prevent the diversion of funds from legitimate charitable purposes, and that charitable gaming shall be best controlled and overseen by the Kentucky Horse Racing and Gaming Corporation."

Too Long Didn't read version: Charitable gaming entities just became a small fish in a big pond.

Effective date

Law takes effect July 1, 2024, except for charitable gaming, which comes under the corporation's oversight on July 1, 2025.

All existing DCG regs will switch over on July 1, 2025 and remain in effect until amended, repealed, or otherwise acted on by the Corporation

Dead Period for Expansion

Section 114. Between July 1, 2024, and July 1, 2025, the Department of Charitable Gaming shall not authorize additional locations for the play of electronic charity game tickets beyond the office location of the charitable organization, the location where the charitable organization is licensed to conduct bingo, and the location where pre-approved charitable fundraising events are authorized. This section shall not prevent electronic charity game ticket activities and electronic charity game ticket locations operating prior to July 1, 2024, from being resupplied or updated between July 1, 2024 and July 1, 2025.

Organization and Structure

Similar to the Kentucky Lottery Corporation.

President as executive officer. Selected by Governor from list of 5 candidates chose by the Board. President serves at the pleasure of the Governor.

Offices

Divisions or "offices" headed by Office Managers. President has leeway to establish, but the following offices are specified in statute:

Pari-mutuel wagering;

Live horse racing;

Breed development and integrity;

Sports wagering;

Licensing, compliance, and investigations; and

Charitable gaming

Board

Corporation overseen by 15 Member Board:

Three (3) members who represent the Thoroughbred industry:

One (1) member who represents the standardbred industry;

One (1) equine veterinarian who currently practices with race horses;

One (1) member shall be selected based on his or her training and experience in the fields of investigation and law enforcement;

Three (3) experts in the gaming industry, with knowledge about the technical and logistical sides of the wagering experience. At least one (1) of these experts shall have expertise in the technical and logistical sides of pari-mutuel wagering on previously run horse races;

One (1) expert in the operational aspects of the horse industry, with particular knowledge of horse breeding;

One (1) expert in the operational aspects of the horse industry, with particular knowledge of horse racing;

One (1) horse trainer licensed under this chapter;

Two (2) charitable gaming representatives; and

One (1) at-large member with no financial interest in the business or industry regulated.