Democrats say tracks need gambling after Ohio vote

FRANKFORT — Gov. Steve Beshear and some of the state’s leading Democrats say Kentucky needs to pass legislation this winter to expand gambling or risk losing millions of dollars and jobs to Ohio.

Ohio voters on Tuesday passed legislation that would allow casinos in four cities, including Cincinnati.

“Clearly, the time to act on expanded gaming is now,” Beshear said Wednesday in a written statement.” Ohio citizens are going to reap the benefits of thousands of new jobs and millions of dollars in tax revenue. Ohio’s decision reinforces the urgency to pass the video lottery terminal bill I proposed earlier this year.”

Some of the state’s leading horseman also joined the call for swift passage of a measure that would allow video lottery terminals at the state’s race tracks. While Kentucky has debated the issue for more than a decade, other states have acted and are leaving Kentucky behind, they said on Wednesday.

But the state’s top Republican says the expansion of gambling in Ohio could dampen any plans to allow video lottery terminals or slots at Kentucky race tracks because there may not be enough gambling business for both states.

“We’re just not very well situated… to be in competition with other states,” said Senate President David Williams. Williams also noted that projections on the amount of revenue slots at race tracks would generate would be lower now that Ohio will offer gambling as well.

Williams and other anti-casino groups also called on Beshear on Wednesday to follow Ohio’s lead and allow Kentucky residents to vote on the expansion of gambling. Williams, who opposes slots at the race tracks, said Beshear campaigned in 2007 on the promise that Kentucky voters could vote on the issue of expanded gambling.

“It is the only way to put a resolution on this issue,” said Williams of the constitutional amendment. Sen. Damon Thayer, R-Georgetown, has said he plans to file a bill soon that would allow voters to decide if gambling should be expanded in Kentucky.

Beshear, however, has said a constitutional amendment would take too long to pass and Kentucky’s horse industry — which has had to cut racing dates because of competition from tracks with expanded gambling — needs help now.

“Two years ago, I pushed for a constitutional amendment on gaming, and the Republican senators weren’t interested,” Beshear said on Wednesday. ” Now we’re in a crisis situation, and all at once, they are suggesting constitutional amendments. This is nothing but a stall tactic, and we cannot afford to wait any longer. ”

House Speaker Greg Stumbo, D-Prestonsburg, said it is likely that he will file a bill this legislative session, which begins in January, that would not require a constitutional amendment for the expansion of gambling at the state’s race tracks. A similar measure passed the House during a special legislative session this summer but died in a Senate Budget Committee.

“There’s no reason not to file it,” Stumbo said. “I think this puts pressure on the Legislature to act on an issue that we hope would save our industry.”

Senate Minority Leader Ed Worley, D-Richmond, said Wednesday that he believed that the Republican-controlled Senate had enough votes to pass the expansion of gambling during the special legislative session this summer. And he believes that there are votes now to pass gambling.

“I’ve always said there were votes in the Senate,” Worley said. But the measure never made it to the Senate floor for a full vote because leadership wanted the bill to die.

But Williams countered that there have never been enough votes in the Senate to pass the expansion of gambling. If there were enough votes why did Beshear appointed two Republican Senators opposed to the expansion of gambling to key positions in state government. Over the past four months, Beshear appointed Charlie Borders to the Public Service Commission and Dan Kelly to an open judgeship.

“They never had 20 votes and they don’t have 20 votes now,” Williams said. But Williams, said, there would likely be enough votes to get a constitutional amendment through the Senate.

Kentucky race track and horse owners said now that casinos are legal in Ohio, they need slots machines at race tracks to remain competitive in a growing market.

Northern Kentucky’s Turfway Park, which is owned by Keeneland and Harrah’s, will have to go head-to-head with a brand new casino in Cincinnati, which is slated to open in 2012.

“It puts another casino directly in our marketplace to further exacerbate the situation we have with the existing mature casino environment,” said Bob Elliston, Turfway Park president. “That’s 12 out of 12 states that we compete with, and here Kentucky is and we haven’t taken any action.”

This also could make it more likely the state will vote next to put slots at Ohio racetracks, which were left out of this referendum.

“If they move forward with that … that puts two additional competitors in our marketplace,” Elliston said.

Bill Farish, of Lane’s End Farm and Breeders’ Cup board chairman, has been one of the most vocal critics of the state’s failure to allow race tracks to expand operations.

“I think it’s continued bad news for the industry,” Farish said of the Ohio vote. “I think it just heightens the pressure on our racing and breeding industry.”

Farish said horse breeders, trainers and race tracks will continue their campaign to get racetrack-friendly video slots legislation to a vote in the Senate.

“We’re going to support the candidates that support our agenda.” Farish said

– Beth Musgrave and Janet Patton

Filed Under: David Williams • Ed Worley • Featured • Greg Stumbo • KY General Assembly • State Government • Steve Beshear