Kentucky Bill Aims to Legalize Casino Gaming

As Kentucky's gambling landscape continues to evolve, Rep. Thomas Huff has filed House Bill 33 (HB 33), a proposal that would bring retail casinos to the state for the first time. If passed, the bill would give voters in select counties the option to legalize casino gaming, while the Kentucky Horse Racing and Gaming Corporation (KHRGC) would oversee the regulation of this new form of gambling, along with fantasy sports contests. This bill sets the stage for Kentucky to potentially join the ranks of states with both a vibrant horse racing industry and legal casino gaming.

HB 33 introduces a framework for the establishment of three types of casinos: full, limited, and riverboat. Under the bill, counties with populations of at least 30,000 or adjoining counties with a combined population exceeding 30,000 could hold local elections to approve casino gaming. The law also enables these areas to host land-based or riverboat casinos, where both electronic gaming machines and traditional table games such as blackjack, roulette, and poker would be offered. Meanwhile, counties with fewer than 30,000 residents could opt into the process if they host a licensed racing association facility, allowing them to run limited casinos offering only electronic gaming machines.

 

A Shift in Kentucky's Gambling Landscape

Kentucky has long been synonymous with horse racing, with a rich history dating back to the early 20th century when the state's first racing commission was established. The KHRGC itself was formed in 2024 in response to the rapid expansion of gambling within the state, following the introduction of Historical Horse Racing (HHR) machines in 2021 and sports betting in 2023. Despite these changes, Kentucky's approach to expanded gambling has been cautious, with attempts at legalizing online poker and daily fantasy sports in 2022 falling short. HB 33 represents a significant shift, moving beyond horse racing and sports betting to establish a legal framework for retail casino gaming in Kentucky.

Should HB 33 pass through the legislative process, the bill would create a new avenue for local communities to engage with the state's growing gambling industry. Counties will play a crucial role in determining whether to host retail casinos, while the KHRGC will retain oversight, ensuring regulation and the fair operation of all gambling activities within the state. The bill outlines specific licensing requirements for different types of casinos, with limited licenses being awarded to racing associations that meet established criteria, allowing them to offer electronic gaming devices. Riverboat and full casino licenses would be granted based on geographic location, further diversifying the potential gambling offerings in the state.

For HB 33 to become law, it must navigate the legislative process, which includes review and approval by various committees within the House and Senate. After passing through the House, the bill would proceed to the Senate before reaching the governor’s desk. With a 21% tax on casinos’ gross gaming revenue and licensing fees ranging from $450,000 to $750,000 depending on the type of casino, HB 33 is positioned as both a regulatory overhaul and a revenue-generating measure for the state.

However, even if the bill is signed into law, the legalization of retail casinos would depend on the decisions made at the county level. Each participating county would be tasked with working with the KHRGC to solicit bids for casino licenses. For counties that choose to participate, the expected revenue boost could contribute to local economies, while the new gambling venues could attract tourists and create jobs.

 

HB 33 represents a significant shift, moving beyond horse racing and sports betting to establish a legal framework for retail casino gaming in Kentucky.

 

A Long-Term Vision

Though the focus of HB 33 is on legalizing retail casinos, the bill could serve as a precursor to future discussions about online casino gaming in Kentucky. With gambling expanding across the state in recent years, the introduction of retail casinos could open the door to further regulatory changes down the road. Although legalizing online casinos would likely take years to materialize and would require significant public and legislative support, HB 33's passage could set the stage for Kentucky to eventually consider a broader iGaming agenda.

For now, HB 33 remains in the early stages of the legislative process, but if it passes, it could have far-reaching implications for the future of gambling in Kentucky. Whether it leads to the creation of a new entertainment hub or sparks a broader conversation about online gaming, Kentucky’s shift toward legalized casino gaming marks a notable moment in the state's evolving relationship with gambling.