An economic-impact study conducted for Kentucky’s pro-casino groups projects that eight racetrack casinos would produce $1.14 billion in revenues in 2015, the first year all expanded gambling sites would be fully operational.
The Kentucky Chamber of Commerce released the report Monday, carried out by Spectrum Gaming Group, a New Jersey firm that specializes in casino industry studies. An executive summary said the consultants were hired by a “consortium of Kentucky horseracing interests.” Brett Hale, Churchill Downs Inc’s senior vice president for corporate and government relations, said the Louisville-based racing and casino company is part of the consortium. A Keeneland Race Course spokeswoman said the Lexington track also is part of the consortium.
Beshear is expected to release a proposed constitutional amendment to expand gambling by the end of the month. He has not provided specifics. An amendment requires three-fifths approval in both chambers of the legislature and ratification in a statewide vote.
The study makes several assumptions for its projections, including that a new racetrack is built near London or Corbin — which could appeal to the Knoxville, Tennessee market — and that there is only one casino in Lexington, where there are two tracks. Using a 40.65 percent tax rate, the casinos would generate about $465 million in taxes in 2015, of which $164.6 million would be given to racing purse and breeding programs. The study estimates that casinos would employ almost 11,000 people with a payroll of $289.3 million.
|
|
|
|
|
|
|
|
“The final details are going to be left up to the legislature,” Hale said. “We simply wanted to provide a conservative analysis of the economic benefits to the state to use as a guidepost for the legislators in Frankfort.” Hale added that the consortium settled on the parameters and took input from “several sources,” but said Governor Steve Beshear’s office is not a participant.
The study estimated that Kentuckians gambled $546 million at casinos in other states last year, including $451 million in neighboring states. Without expanded gambling in Kentucky, the study also estimates that Kentuckians’ gambling would increase to $527 million in neighbouring states’ casinos in 2015.
The market analysis study concluded that a Kentucky Downs casino at Franklin, on the Tennessee border close to Nashville, would provide the most revenue — with $365.5 million in 2015. Churchill Downs with $251.2 million would be second. Turfway Park in Florence — once viewed as a huge potential market for Kentucky adjacent to Cincinnati — would be the fifth-highest grossing site, with $78.9 million. (E-01.19.12)
|
|
