Kentucky Legislature Overrides Gov’s Veto on Sports Betting Reforms
Much has been made about changes to Kentucky’s sports betting laws, but the final act has finally played itself out as the legislature passed the bill, overriding the governor’s veto.
Change is Now
Representative Michael Meredith’s HB 904 proposed several substantive changes to Kentucky’s sports betting law. As it turned out, many of his colleagues agreed as the bill passed the House and the Senate with one major sticking point removed.
That bone of contention focused on prohibiting sportsbooks from operating their prediction market brands not only in the Bluegrass State but throughout the nation. The ultimatum was clear—either give up your prediction market enterprises entirely or shutter your operations in Kentucky.
The Senate was quick to strike that from the legislation, which was ultimately passed by the House in its amended version, 69-19. But sportsbooks like DraftKings, FanDuel, and Fanatics still can’t operate their prediction markets in Kentucky. However, all three of those companies already have a policy of operating their prediction markets only in states where they do not run sports betting platforms, which is designed to appease the gaming commissions that license them.
In addition to that clause, HB 904 also includes the following:
- Raises betting age to 21 from 18.
- Restricts in-state collegiate athlete prop bets.
- Authorizes fixed-odds wagering on horse racing.
- Sets up fantasy sports regulations, taxing those companies at 12.5% and banning house pick’em contests.
Gov Vetoes Bill
Many believed Governor Andy Beshear would immediately sign the legislation, but he found one objectionable element that he could not overlook. The governor took exception to the language in the bill allowing the Kentucky Lottery Corporation and Kentucky Horse Racing and Gaming Corporation to file emergency and ordinary regulations without his review or consent.
“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 by agencies carrying out the law through regulation,” Beshear wrote in a statement. “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.”
However, it was clear that the legislature was ready, willing, and able to override the governor’s veto with a simple majority in Kentucky.
“Virtually any bill that passed, we can override the veto on and almost always do, unless there was a technical error,” stated Representative John Hodgson.
Indeed, it was a short-lived power play as the House quickly voted 67-7 to override the governor’s veto, while the Senate voted 26-5 to do the same. The law is slated to take effect in 90 days, after which anyone under the age of 21 will be prohibited from using online or retail sportsbooks in Kentucky.
