A bill to form a standalone government agency in Kentucky similar to the Kentucky Lottery Corporation that would oversee horse racing, sports gambling, and charitable gaming easily cleared the Kentucky House of Representatives March 28 and appears likely to become law.
With its passage after previous support by the Kentucky Senate, it was delivered to Kentucky Gov. Andy Beshear, a Democrat. Even if he were to veto the bill, which is backed by both halves of the Republican-controlled Kentucky legislature, there would be sufficient votes to override a veto.
The primary sponsor of the Senate Bill 299, Senate Majority Floor Leader Damon Thayer, a Republican from Georgetown, Ky., told BloodHorse March 29 the goal behind the bill is establishing "independence, integrity, and transparency for really what has become a super-sized responsibility for the (Kentucky) Horse Racing Commission."
"It now handles (historical horse racing gaming) and sports betting, and this current racing commission is doing a great job. I've said so publicly on numerous occasions. But on a going-forward basis, I just feel like the time had come for this agency to have independence."
Over the years, the state regulatory agency that oversees horse racing in Kentucky has changed its name and structure depending on the direction of the governor.
"Several governors, Republican and Democrat, have used the executive order to abolish the commission and rename it the Authority and then come back and rename it the Horse Racing Commission, and that was fine when it was just regulating live and simulcast racing," Thayer said.
But with its increased responsibilities, he feels that should no longer be the case.
Thayer's original proposal to administratively attach the commission to the Kentucky Department of Agriculture was revised following further conversations with stakeholders and House Speaker David Osborne, a Republican from Prospect, Ky. It would now establish an independent Kentucky Horse Racing and Gaming Corporation.
A Senate Committee Substitute was adopted to outline the corporation's formation and set forth a framework for its operations.
Senate Bill 299 would create the Kentucky Horse Racing and Gaming Corporation as an independent entity that regulates horse racing, sports wagering, and charitable gaming in the commonwealth, effective in July. KHRC employees and responsibilities would be transferred to the corporation.
The existing racing commission members would transition to become the initial board of the newly formed corporation, serving two-year terms. Future board members would continue to be appointed by the governor but would require approval from the Kentucky Senate and oversight from the Executive Branch Ethics Commission.
The increased Senate responsibilities and lessening of the executive branch's authority are in step with other legislation passed by the Kentucky legislature during Beshear's administration.
"We've been flexing our muscle regarding legislative independence for as long as I've been in the legislature," said Thayer, a senator since 2003. "I mean, we passed bills when (Republican) Matt Bevin was governor to give us more independence and oversight. So I think that's just sort of part of the natural evolution.
"But let me back up. I love horse racing and I would not do this as a political stunt. I care about the legacy that I've left for the racing industry, and to be honest, this is a way to help secure that."
Thayer, who worked for Turfway Park and Breeders' Cup before his time in the Senate, is not seeking re-election this year. His term as Kentucky's 17th District senator will conclude in December.
Thayer also expressed satisfaction with the passage of a revenue bill with equine development initiatives, House Bill 8, that now goes on to the governor.
The equine initiatives within the revenue bill would set up a perpetual funding source through HRR for aftercare and the Kentucky equine management internship program. It would further provide a funding source to incentivize the Breeders Crown for Standardbred horses to come to Kentucky, Thayer said.
