Yesterday a bill calling for a constitutional amendment that would allow casinos at eight Kentucky racetracks was filed in Frankfort. It has long been argued that Kentucky is losing millions of dollars from its residents who travel to neighbouring states to gamble, and racing is no longer the draw it once was. Famous for its horses, bluegrass and top races, Kentucky is just one in a long line of horse industry areas around the world that sees an expansion of gambling as part of a rescue package to shore up its economy.

Many are surprised that it has taken so long for Kentucky to take this first step. Legislators need to approve the constitutional amendment by at least 60% in order to get the issue placed on November’s ballot. The state governor has already declared himself neutral on the subject, and the proposed legislation will likely restrict casino gaming to a limited number of facilities. Amongst those would be evocative names like Kentucky Downs, Keeneland and Churchill Downs, although the legislation is an initial step with unspecified locations.

Naturally enough, the racing industry is keen to limit casino facilities in the state to racetracks. Any other decision would limit the benefits the horse industry would hope to gain. Kentucky Equine Education Project (KEEP) ‘Horses work for Kentucky’ has issued an extensive study entitled ‘Keep it in Kentucky – Kentucky Gaming & Revenue Plan’ where common misconceptions on gambling are discussed. It refutes many arguments against allowing casino gaming in the state by outlining what research actually shows. KEEP supports a voter referendum to amend the state constitution to allow for full gaming casinos for those holding licenses to operate racetracks in Kentucky, and supports earmarking significant and quantified gaming tax revenues for education, healthcare, local governments and environmental preservation. Under KEEP’s Plan, all Kentucky counties would receive revenue from casino gaming regardless of the location of the casinos.

As the study points out, “There are 566,000 Kentuckians who already travel four or more times each year to casinos in other states. Currently there are six casinos in Indiana and Illinois that border Kentucky. In 2004, Kentuckians spent $671 million at those casinos. KEEP’s plan is to keep this money in Kentucky. The $671 million that was spent out of state translated to $236 million in tax revenue those states spent on education, healthcare and economic development. Estimates show that 51 percent of gross gaming revenues in bordering states come from Kentuckians.”

With budget limitations and growing demands on state revenue, the momentum pushing Kentucky towards licensing racinos is growing. Other places in the state that need regeneration have not been ruled out for casino consideration. There will be opposition to amending the Kentucky constitution, whether to allow racinos or a wider gambling offering but, with the bill now filed, the starters flag is raised. (E-02.17.06)

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