A new bill that has just been introduced in Kentucky, House Bill 33, will leave the decision on whether casino gambling will be allowed in communities. The statute, if it is passed, will charge the Kentucky Racing and Gaming Corporation with the regulation of these commercial casinos.

January is the beginning of the year 2025, and state legislatures across the United States are reconvening for their sessions. Among the most prominent topics under discussion is gaming expansion, a recurring issue in many state capitals. This year, the debate reaches Kentucky, a state historically known for its strict stance against most forms of gambling.

On Tuesday, the 7th of January, Kentucky Representative Thomas Huff introduced House Bill 33, which could pave the way for commercial casino gambling in the Bluegrass State. The legislation proposes granting counties the authority to decide, through local referendums, whether to permit casino operations within their jurisdictions.

If approved by the General Assembly and signed by Governor Andy Beshear, House Bill 33 would assign regulatory oversight of brick-and-mortar casinos to the Kentucky Racing and Gaming Corporation (KHRGC).

Tax and revenue proposals

Rep. Huff's proposal includes a 21% tax on casinos' gross gaming revenue per month, encompassing revenue from slot machines, retail sports betting, and table games. The funds generated would be directed to Kentucky's General Fund, providing potential financial benefits for the state.

Additionally, Huff's bill suggests a $3 admission fee for every person entering a casino's gaming floor. This revenue would further supplement the state's income from casino operations.

Guidelines for casino locations

House Bill 33 outlines specific criteria for where casinos can be established. Counties with a population of at least 30,000 residents would qualify to hold local referendums on casino gambling. Smaller counties could join forces with neighboring counties to meet the population requirement or gain eligibility if they host a licensed racing association.

The process for approving casinos involves several steps:

  • County legislative bodies may pass ordinances to hold a referendum, or residents can initiate a citizen-led petition requiring signatures from 25% of voters in the last regular election.
  • Upon voter approval, counties must issue a request for casino proposals through a competitive bidding process.
  • Selected proposals would then require approval from the KHRGC.

A shift in Kentucky's gaming landscape?

For decades, lawmakers in Kentucky have resisted efforts to expand gambling, citing the state's deeply rooted religious values. According to Pew Research, more than 60% of Kentuckians consider religion a central aspect of their lives, shaping legislative priorities and public sentiment.

Despite Republican dominance in both the House (80 out of 100 seats) and Senate (31 out of 38 seats), there has been some movement on gaming in recent years. In 2023, lawmakers legalized online sports betting, and two years prior, they approved slot-like historical horse racing (HHR) machines for racetracks and pari-mutuel facilities.

In fact, HHR has become a critical revenue source for Kentucky's horse racing industry. In 2024, HHR facilities recorded an average monthly handle of $800 million, with a total gross revenue exceeding $302.4 million from July to November. Of this, nearly $23 million went to the state's General Fund.

Challenges and prospects

While Huff's casino bill represents a significant step toward expanding gaming in Kentucky, its passage faces considerable hurdles. Conservative opposition and the influence of religious groups could stall progress. However, proponents argue that casino gambling could generate substantial revenue and create new opportunities for economic development, particularly in regions seeking to diversify their local economies.

Rep. Huff believes his proposal strikes a balance by allowing communities to decide the future of casino gambling locally. Whether the legislation can overcome historical opposition and align with Kentucky's evolving gaming policies remains to be seen. As the 2025 legislative session unfolds, Kentucky lawmakers and residents will keenly await the result to see if this long-standing prohibition on casinos is reconsidered in the Bluegrass State.