May 24, 2012
11pm: State of Commonwealth Addresses Gambling
UPDATE 2/23/12 @ 5:25 p.m.
FRANKFORT, Ky. (AP) -- The state Senate has voted down a proposal to change the state Constitution to legalize casinos in Kentucky.
Despite the long history of wagering on horses, Kentucky has never allowed casinos. And many lawmakers have been reluctant to vote to change that, knowing they may face disapproving constituents in upcoming legislative elections.
They voted down the casino proposal 21 to 16.
Gov. Steve Beshear has been pushing for more gambling opportunities in Kentucky in hopes that it would generate more revenue for the horse industry and for state government coffers.
Beshear said Kentucky could collect $266 million in one-time license fees by allowing casinos to open. Taxing them, he said, could generate an additional $377 million a year in revenue for government programs and services.
Gov. Steve Beshear released the following statement in reaction to the gaming amendment vote:
“Obviously, I am disappointed that several of the Senators who had publicly said they would support letting the people decide did not follow through on their commitment to our citizens.
"I am also disappointed that Sen. Williams chose to sabotage the chance for our citizens to decide by scheduling the vote for today, when he knew that a Senator who planned to vote “yes” would not be in town.
"However, for the very first time, we were able to get this issue considered by the state Senate, and I appreciate the bipartisan cooperation of Sen. Thayer and others, which allowed that to happen.
"This is a good omen for the future of expanded gaming in our state, and I look forward to continuing to work with the legislature to address this issue.”
The State and Local Government Committee voted 7-4 after hearing testimony from the state's leading casino proponent, Democratic Gov. Steve Beshear.
Beshear has been pressing lawmakers for a constitutional amendment that would allow Kentuckians to wager on more than horse races, which is a longstanding tradition in the Bible-belt state.
Wednesday's vote was the first on the issue since lawmakers convened in early January. The measure now goes to the full Senate for consideration. If approved there, it then would have to be approved by the House before being submitted to voters.
Republican state Sen. Damon Thayer of Georgetown proposed the change that no longer requires up to five of the proposed casinos to be built at horse tracks.
The new language allows up to seven casinos in the state with no guarantee that they would be built at horse tracks.
The Senate State and Local Government Committee is expected to vote Wednesday afternoon.
Gov. Steve Beshear personally appealed to members of the Senate committee to approve the proposal for the constitutional amendment to allow casinos.
If the constitutional amendment is approved by the General Assembly, it would be placed on the November ballot for voters to ratify or reject.
The Senate State and Local Government has the issue on its agenda for a noon meeting, and Gov. Steve Beshear's office says he will testify.
Beshear has been pressing lawmakers for a constitutional amendment that would allow Kentuckians to wager on more than horse races, which is a longstanding tradition in the Bible-belt state.
If lawmakers approve, the proposal will be placed on the November ballot for voters to ratify or reject.
Wednesday's vote would be the first on the issue since lawmakers convened in early January. If it passes the committee, it still has to make its way through the full Senate and House.
The much-anticipated proposal was announced Tuesday at the Capitol.
The Democratic governor also introduced the sponsor of the measure, Republican state Sen. Damon Thayer of Georgetown.
Despite a long history of wagering on horse races, Kentucky doesn't allow casinos. And many lawmakers in the Bible-belt state have been reluctant to support the proposal in years past.
Beshear argues that Kentuckians now are wagering hundreds of millions of dollars in casinos in neighboring states. He said if Kentucky legalized casinos, that money could increase General Fund revenue and to bolster the struggling horse racing industry.
The second-term Democrat told a joint session of the House and Senate on Wednesday that Kentucky is losing hundreds of millions of dollars in tax revenue to the neighboring states of Illinois, Indiana, Ohio and West Virginia that allow gambling.
Beshear said it's money that could be used to pay for education, public protection and transportation projects if Kentuckians didn't have to travel out of state to gamble.
The governor said state leaders might as well be dumping that money into the Ohio River.
In his State of the Commonwealth address Wednesday night, Gov. Steve Beshear is expected to detail his expanded gambling plan. And as WSAZ.com discovered, the betting battle is already gearing up in Ashland.
Ashland restaurant owner Paul Runnels says he's worked in other cities with riverfront casino gambling. He says he worked with the casinos themselves. Runnels says he knows from experience that bringing table games and the like to downtown Ashland would be an instant win-win for his Chimney Corner Cafe restaurant, as well as for others in town.
“It will bring all kinds of jobs -- bartender and waitress and construction -- and it will boost the small businesses all around it, like mine and so many others,” Runnels said.
Along with the church bulletin, the pastor at Ashland’s Unity Baptist Church offers all a sophisticated anti-gambling church website. And Dr. Floyd Paris says besides the moral and addiction problems with gambling, casinos in Ashland would reap the same economic devastation that Tunica, Miss., had after it approved gambling.
“Crime went up, unemployment went up, taxes even went up -- all after the casinos came in,” Paris said.
Admitting that Ashland has the newly developed riverfront infrastructure to support a riverboat casino, the city's economic development director says he needs to know how the Legislature will decide the issue.
Ashland Economic Development Director Chris Pullem also said he needs to know how profits would be divided before laying any Ashland casino groundwork.
“There will be challenges with infrastructure, with public safety," Pullem said. "We will look at a city that has done it successfully, if and when we get to that point."
We talked with Ashland’s state Representative Kevin Sinette who has opposed expanded gambling. He says he’s concerned that a majority of low income players should not carry the state's budget burden.
But Sinette says he wants to see the nuts and bolts of Beshear’s plan before making any further judgment.
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