Full Senate expected to vote Thursday on casino gambling bill

By Janet Patton
jpatton1@herald-leader.com

FRANKFORT — Decades of debate about allowing casino gambling in Kentucky may come to a crescendo Thursday in the state Senate, where Republican leaders say they will vote on a constitutional amendment to allow up to seven casinos.

The move comes after the Senate State and Local Government Committee approved a revised version of the bill backed by Democratic Gov. Steve Beshear on a 7-to-4 vote Wednesday afternoon. It was the first time a Senate committee has approved a constitutional amendment to expand gambling.

“The governor is going to get his vote on the Senate floor tomorrow and we’ll see if it wins on the Senate floor tomorrow,” Senate President David Williams said late Wednesday.

Republican Sen. Damon Thayer, as sponsor of the bill, said he will ask leaders to delay a vote on the bill because some members will be absent on Thursday.

“I think a fair vote would be one with all members present,” Thayer said.

He said Senate Minority Leader R.J. Palmer, D-Winchester, told him that two members of the 15-member Democratic caucus will be absent Thursday. Thayer identified one as Sen. Gerald Neal, D-Louisville.

Palmer said Neal is out of the state on business and that Sen. Joey Pendleton, D-Hopkinsville, will have to attend a state Fair Board meeting.

“I would prefer a delay in the vote,” Palmer said. “If the Senate does vote on the bill Thursday, it will hurt its chances of passing. Every vote counts.”

The bill approved by the committee dropped a key protection for horse racetracks and Thayer, R-Georgetown, said he will propose more changes that could sour racetracks on the legislation.

As amended Wednesday, the bill no longer guarantees that five of the seven casinos will be located at racetracks.

Also, Thayer said he will offer floor amendments to eliminate a provision that prohibits free-standing casinos from locating within 60-miles of racetracks and to alter language that says the General Assembly “shall” create gambling regulations if voters approve the constitutional amendment. Instead, the bill would say lawmakers “may” create regulations that allow casino gambling.

Beshear and Republican Commissioner of Agriculture Jamie Comer testified in favor of the revised bill during a two-hour hearing, saying it would adequately protect the horse industry.

It’s unclear what effect the changes proposed by Thayer would have on the bill’s chances. Gambling proponents were happy with Wednesday’s vote but said they will be watching the changes closely.

“We’re not supportive of anything that doesn’t support the racing industry in Kentucky,” said D. Brett Hale, Churchill Downs’ senior vice president for corporate and government relations. “The (60-mile) radius is very important to us.”

Beshear indicated at the hearing that he thinks Kentucky voters want new gambling confined to existing locations such as racetracks.

“I think the people of this state will appreciate the fact we are limiting the areas where we already have gambling. They don’t want it in their back yards,” Beshear told the committee.

The governor argued that Kentucky should allow casinos to recapture millions in tax revenue generated by Kentuckians who gamble in West Virginia and Indiana.

Thayer said he informed Beshear before the hearing that he planned to offer the floor amendments as options when the bill is debated by the full Senate.

In a statement afterward, Beshear hailed the vote.

“It’s a significant step and shows that these senators are listening to the desire of Kentuckians to vote on this issue,” Beshear said. “I urge the full Senate to approve this bill, and I call on all Kentuckians to contact their senators to let them know that it is time to let the people vote.”

Beshear testified that surveys have shown more than 80 percent of voters favor putting an amendment to allow casinos on the November ballot.

“Voters have said repeatedly that they do not want to leave the decision in my hands or — honestly — in your hands, our 138 members of the General Assembly. They want it in their hands,” Beshear said.

He also spoke in favor of language saying the General Assembly “shall” pass gambling legislation, rather than the optional “may.”

“If the people of this state vote for it, the General Assembly has to step up and do it. It won’t be discretionary,” Beshear said. “The General Assembly will have to honor the will of the people.”

Comer told lawmakers that casino gambling at tracks is necessary to boost Kentucky’s horse breeding industry, which is threatened by slots-fueled incentives in other states.

“Obviously my interest here is the horse industry and the domino effect it could have on the agriculture community if it should fail. … When the horse industry hurts, the agriculture community feels the pain,” Comer said. “I believe our signature industry deserves the opportunity to makes its case. … You have an opportunity to place the fate of Kentuckians in the hands of Kentuckians. I urge you to save a valuable member of the agriculture community.”

Dave Adkisson, executive director of the Kentucky Chamber of Commerce, also spoke in favor of the bill on behalf of a coalition of unions, educators, business chambers, and horse industry groups.

But several senators were sharply critical of the legislation. Senate Majority Caucus Chair Dan Seum, R-Louisville, repeatedly asked why Churchill Downs should be given a monopoly on a Louisville casino, saying he has constituents who want to put one downtown instead.

“I’m embarrassed as a businessman that my chamber would support any kind of monopoly,” Seum said. “That’s sad. That’s absolutely sad.”

Sen. Alice Forgy Kerr, R-Lexington, pointedly questioned Beshear on aspects of gambling, such as age restrictions. Beshear said college students who are 18 and older can go to Keeneland and bet, and get there via city bus.

Kerr got a negative response from the largely pro-gambling audience when she said “I was dismayed earlier today when governor indicated he would like to bus college students into the casinos.”

“I don’t think he said that,” Thayer replied.

Opponents of the legislation criticized the introduction of a new version right before the vote. Stan Cave, an attorney for the conservative advocacy group The Family Foundation, said the bill had been drafted in a “veil of secrecy.”

He and others testified that it will harm Kentucky families by draining away income in the pursuit of easy riches and that lawmakers were punting their responsibility by putting it on the ballot.

Some senators clearly disagreed with Cave’s assessment.

“The people that we were sent here to represent have said ‘we are tired of you all dealing with this. You’ve shown us you are not willing or able to deal with this,’” said Palmer. “That’s what this discussion is about. It’s time to let the people of this state decide. That’s what this is about.”

But at least one senator — Johnny Ray Turner, D-Prestonsburg — indicated that he might oppose the bill on the floor of the Senate after voting for it in the committee.

Jack Brammer contributed to this story.

Filed Under: Damon Thayer • David Williams • KY General Assembly • State Government • Steve Beshear