FRANKFORT, Ky. (AP) - Gov. Steve Beshear has unveiled a proposal that could legalize casinos in Kentucky.

The newly elected Democrat called Thursday for 12 casinos in various parts of the state.

Although Kentucky has a long tradition of wagering at horse tracks, state law specifically forbids casinos. Beshear wants lawmakers to approve a measure that would allow Kentucky voters to change the constitution to allow them.

Beshear says his proposal could generate $600 million a year in additional revenue for state government after all the casinos are fully operating. He says the proposal also would generate $500 million in upfront application and licensing fees.

BESEHAR PRESS RELEASE:

FRANKFORT, KY (February 14, 2008) – Kentucky Governor Steve Beshear today unveiled proposed legislation that will allow Kentucky voters to determine a constitutional amendment permitting limited expanded gaming. The governor also discussed details of legislation that would govern the way in which expanded gaming would operate once the constitutional amendment is passed.

“For nearly 15 years this issue has been discussed, debated and yet, deferred. Today, I am taking action and responding to the wishes of the vast majority of Kentuckians by sending to the General Assembly legislation that will give our citizens the opportunity to do as they have demanded – let their voices be heard on whether or not to change the state’s constitution to have limited expanded gaming,” said the governor. “Public opinion research shows that more than 80 percent of Kentucky voters want the right to vote on this issue. It’s past time we acted on that demand and be responsive to the people.”

The language of the proposed constitutional amendment limits the creation of expanded gaming facilities to up to seven licenses for horse racing tracks and up to five free-standing gaming facilities with the approval of voters in the five cities or counties where the proposed casino would be located.

Those counties include Daviess, Kenton or Campbell, Boyd or Greenup, Christian, and either Laurel or Whitely. The taxing rate on the casino revenues is spelled out and, more importantly, the allocation of those revenues for additional services and programs is specified in the legislation, according to the governor.

“We face a financial crisis in this state that is slowly destroying our ability to educate, protect and take care of our people,” said Gov. Beshear. “We no longer have the financial ability to fund the programs we should have in order to meet those needs. Nor do we have the ability to look into the future and begin to build on those opportunities to restore Kentucky’s economic viability. By allowing our fellow Kentuckians to vote on this issue, we are sending a clear message that we are joining with them in finding other ways in which to address this financial crisis.”

The fiscal impact of the proposed gaming legislation indicates total receipts for fiscal year 2009 from facility application and license fees would be approximately $500 million. The estimated gaming receipts for fiscal year 2010 would be approximately $482 million with the majority of those receipts from license fees and wagering taxes.

“If the people of Kentucky vote ‘Yes’ for limited expanded gaming, we strongly believe that the annual estimated fiscal impact of the legislation at full implementation would be approximately $600 million,” said the governor.

The legislation that would be enacted, once the constitutional amendment is approved, contains a number of measures that will assure the people of Kentucky that this initiative will be done correctly and with openness, according to the governor.