Thread by @joesonka

House Licensing committee is under way, taking up HB 606 to legalize sports betting in Kentucky. The first of 4 gambling-related bills this morning.

Sponsor and chairman Rep. Koenig is cut off immediately with motion to proceed on bill. Now Family Foundation is testifying against it, saying sports betting is "designed to prey on human weakness"

HB 606 to legalize, regulate and tax sports betting in Kentucky passes out of House L&O committee by a wide margin. I did not hear any no votes.

Next up is HB 607 to "modernize" pari-mutuel wagering. It changes up the tax rate on various types of bets, but not HHR (historical horse racing) machines. BAckground: courier-journal.com/story/news/pol…

Koenig is detailing the additional estimated revenue from the bill, which appears to by ~$25M/year in a few years. He says there was talk of raising HHR rate in 2021 but advocates of that didn't give him a rate they wanted. (There are bills filed this year that raise this)

Koenig said pari-mutuel tax revenue to general fund in 2016 was just $4 million but it was $18M in 2020, $41M in 2021 and is estimated to be $62M next year, even if this bill doesn't pass. The dramatic increase largely due to HHR.

HB 607 on pari-mutuel wagering also passes by I believe a unanimous vote.

Committee now moving on to HB 609 to create a problem gaming trust fund to deal with addiction issues by devoting all of the $225 million PokerStars settlement to it. Background: courier-journal.com/story/news/pol…

Koenig says this huge settlement deposit may be enough to fund it for hundreds of years. He says no one will be left here to take credit for it them, except perhaps Rep. Burch.

Gene Cole of Kentucky League on Alcohol Gambling Problems and Substance Use Disorders says he supports HB 609.

HB 609 passes unanimously.

Now on to HB 608 of Rep. Timoney to ban gray machines. Background on those machines and the bill: courier-journal.com/story/news/pol…

Kentucky Lottery CEO says gray machines have grown 42% since just November, more than 1,500 in just retailers where Lottery vending machines are, too. 1 gray machines per 316 people in Laurel County. Lottery stands to lose ~$60M from scholarship funds.

Lancaster Bingo Company says Kentucky charitable gaming receipts could decline by $200M if gray machines aren't stopped.

I'll be interested to see who testifies in support of gray machines. Reminder: One of the biggest gray machine companies gave $125k to the KY FOP yesterday.

https://twitter.com/joesonka/status/1503856417136070661

Heleringer, a lobbyist for Prominent Technologies, and John Tiley, a lobbyist for Pace-O-Matic, are testifying along with other gray machine company officials against HB 608.

Paul Goldean, president of Pace-O-Matic, says they have a "disruptive" business model "in that it focuses on providing sustainable and supplemental income to small businesses."

Here's some background on the heavily legislative lobbying efforts of these gray machine companies and those who opposed them in Kentucky: courier-journal.com/story/news/pol…

Former state Rep. John Tilley and current Pace-O-Matic lobbyist testifying against bill, says company didn't come in the dark of night. Says as head of Justice Cab he helped prosecute the PokerStars case and says there's no comparison to that company's actions.

Jason Underwood, another Pace-O-Matic lobbyist, is testifying.

Pace-O-Matic expended $47K lobbying legislature in Jan and Feb and Prominent spent $18K.

Underwood says HB 608 language would outlaw Chuck E Cheese and Dave & Busters games.

Again says they help businesses with 40% of revenues and Lottery gives smaller cut.

Notes HHR was also illegal and legislature legalized on the back end, too.

Ryan Straw with FOP is also testifying for HB 608. Pace-O-Matic donated $125k to the FOP yesterday, according to a press release.

Straw outlining how gray machines revenue has helped fund FOP charitable projects.

Straw: These aren't really "gray machines." But if you outlaw them we'll no longer have them in our union halls.

Koenig says to Tilley: "It seems like you spoke to everyone except the legislature."

Koenig also says HHR was never illegal.

Former state Rep. Bob Heleringer, a lobbyist for Prominent Technologies that makes the "Wildcat Skill" games, is not testifying against the bill.

Heleringer says this bill means they would have to get permission to exist by their competitors (horse racing, Lottery and charitable gaming).

There is an apparent committee sub that is up that would allow gray machines and allow them to be regulated and taxed. No details on this yet....

Heleringer says HB 608 is a "protectionism bill" and "picks winners and losers" and "is not pro-freedom," making a direct appeal to Rep. Bratcher.

I believe Rep. Banta brought forth the committee sub to allow gray machines and regulature them.

Rep. Gentry appears to be speaking in favor of the committee sub to allow them. says he doesn't really support HB 608.

Gentry says he has very limited information on this

The committee sub motion to allow gray machines and regulate them FAILS.

Voting on HB 608 now. Banta and Bratcher and Gentry a no.

Also members passing on HB 608. I haven't heard many yes votes yet... more passes

This is going to be a close vote on HB 608.

HB 608 passes out of committee on a very close vote.

The official vote count on HB 608 was 11 yes, 3 no , and 4 passes. The no votes were Reps. Gentry, Banta and Bratcher. Passes were Reps. Flannery, Herron, Huff and Westrom.

HB 606, 607 and 609 all passed 18-0.

Tomorrow House H&W will hear HB 7, the GOP priority bill to tighten controls on public assistance benefits for the poor in Kentucky.