Kentucky Gov. Andy Beshear vetoed April 13 a broad gaming bill that would allow fixed-odds wagering at the state's racetracks and implement a ban on any Thoroughbred registrar rule that would limit the number of mares bred to a given stallion in a calendar year, among a host of issues covered.
The governor's veto was not related to any of the gaming-related regulations, however. Rather, House Bill 904 was seen as an effort to undermine the executive branch's authority in the adoption of new rules.
An amendment added March 19 in committee to the bill states: the Governor's signature or certification shall not be required for the following administrative bodies to promulgate an emergency or ordinary administrative regulation: (1) The Kentucky Lottery Corporation; and (2) The Kentucky Horse Racing and Gaming Corporation.
In a message from Beshear following his veto, the governor said HB904 would prevent his office from fulfilling its constitutional duties regarding two executive branch agencies.
"Under the Kentucky Constitution, the Governor is the Chief Magistrate of the Executive Branch and has a duty to ensure all laws are faithfully executed, including agencies carrying out the law through regulation," the message stated. "In that role, the Governor reviews proposed emergency regulations to ensure they are necessary and meet legal requirements for emergency filing. Authorizing an agency to file an emergency regulation in this manner would prevent the Governor from carrying out his constitutional duties and allow boards and agencies to impose rules on Kentuckians without executive oversight, including boards whose decisions impact public safety."
HB904 is sponsored by Republican Reps. Matthew Koch and Michael Meredith. The Republican Party has supermajorities in both the House and the Senate and requires a simple majority to override the Democratic governor's veto. The Senate passed HB904 on a 24-13 vote, while the House passed the bill with the Senate's changes on a 64-19 vote, with 10 Democrat legislators among the supporters.
The Kentucky Legislature has until the end of the day April 15, the last day of the regular session, to override the veto.
As part of the legalization of fixed-odds wagering, the bill creates a "purse stabilization fund" that will be supported by excise taxes and fees from fixed-odds wagering. Licensed tracks would pay 9.75% on the adjusted gross revenue of fixed-odds wagers placed on-track, and 14.25% for those placed advance-deposit wagering websites and mobile applications. This fund will be used to supplement purses at live horse racing meets annually at an amount not to exceed 10% of the fund.
The bill also calls on licensed totalizator companies and licensed racetracks to accelerate the adoption of improved technologies for wagering systems and provide "commercially reasonable access to the betting odds for retail bettors by April 1, 2027."
Another provision in the bill is a prohibition against any track or association licensed to conduct horse racing, sports wagering, or fantasy sports being affiliated with or benefiting from any entity that offers prediction market contracts.
Read: KY Lawmakers Approve Fixed Odds, Ban on Mares Bred Cap
