Governor Andy Beshear of Kentucky has taken a decisive step towards regulated and legal gambling in the state by signing House Bill 594 into law. The move comes after the Senate overwhelmingly passed the initiative with a vote of 29-6. The new law primarily focuses on banning “gray machines” in Kentucky, a term used to describe unregulated gaming machines that have become increasingly prevalent in various stores and bars across the state. Governor Beshear, while supportive of expanded legal gambling, believes these gray machines do not comply with current state law.
Reasons for the Ban:
Governor Beshear emphasized the need for proper regulation in the gambling industry, stating that “gray machines” operate entirely without regulation, taxation, or oversight. He expressed concerns that these machines were siphoning funds from Kentucky residents and potentially creating issues for users without any safeguards in place.
He said, “I think it’s time we had full-blown casinos in Kentucky, but it’s an industry that absolutely has to be regulated and it needs to be legal. Gray machines are entirely unregulated, and I don’t believe they are legal.”
Impact on Small Businesses:
While proponents of the ban argue that it will curtail illegal gambling activities, opponents have voiced concerns about its potential impact on small businesses that offer these games. Governor Beshear acknowledged these concerns and expressed empathy for affected businesses. However, he reiterated that the law should be upheld and that the state must move towards regulated gambling practices.
Future Prospects for Regulated Gambling:
Governor Beshear’s vision for Kentucky includes a regulated and legal gambling industry, including full-fledged casinos. He hopes that in the future, the state can introduce additional Kentucky Lottery offerings or other options to replace lost revenue while providing legal and regulated alternatives for residents.
Advancement of Sports Betting Bill:
In addition to cracking down on gray machines, Kentucky has taken steps to introduce legalized sports betting. The Senate Licensing and Occupations Committee recently approved House Bill 551, which allows both retail and online sports betting on a wide range of events, including professional and college sports, international sports, e-sports, and video game events. The bill also outlines the establishment of sports betting licenses for horse racing tracks and associated online sports betting operators. While progress continues in the realm of legalized gambling, the ban on gray machines marks a significant step towards regulation and oversight in Kentucky’s gaming landscape.