The board of directors of the Kentucky Equine Education Project (KEEP) has voted unanimously to support calls for a voter referendum to amend the state constitution to allow full casino gaming at Kentucky racetracks. KEEP stated that it approved of using gaming tax revenues for education, healthcare, local development funding and preserving the environment. The KEEP proposal would limit casinos to the racetracks in the state, but another proposal has been made that would allow competition by granting four casino licences off racetracks.

The Kentucky Racing Authority recently approved a recommendation to endorse an in-state programme for Kentucky-bred horses, and last spring legislation created a Kentucky Breeders Incentive Fund aimed at strengthening the state’s signature industry with an annual US$15 million tax concession. The goal has been to stimulate the economy and create jobs, as over recent years horse racing revenues have seen a decline across the United States. Promoting racinos is seen as a means to reverse the trend. The equine industry in Kentucky employs in the region of 100,000 people with an economic impact of over US$1 billion.

As Jim Navolio, executive director of KEEP, declared: “Given the choices between a tax increase and expanded gaming with casinos, the most strategic decision is to go with gaming, which also makes us more competitive with many of our neighboring states. We believe the KEEP Plan is the right approach at the right time.” He went on to add that his organization saw the plan as a winning situation for everyone, particularly the people of Kentucky who could see millions of dollars of new revenue for education and infrastructure without raising taxes. The estimated revenue for the state from Kentucky casinos is around US$400 million annually.

Naturally enough, the KEEP casino proposal stops short of supporting general casino licensing in Kentucky. It wants only existing racetracks to be able to operate casinos and to become tourist destination venues. Any other plan, they say, would bring a proliferation of gaming operations. Getting a voter referendum to alter the state constitution will be just the first leg of a long uphill race to win legislative approval for Kentucky casinos. (E-09.19.05)

© Copyright 2005 CasinoCompendium



>>> return to archives
>>> return to frontpage