Kentucky Lawmakers Advocate for Local Gaming Revenue: Proposed Legislation Seeks to Allocate Larger Portion of Gambling Proceeds to Communities
Kentucky lawmakers are pushing for new legislation that would direct a larger portion of the state’s gambling revenues to local communities, marking a significant shift in how gambling proceeds are distributed. The proposed legislation aims to address concerns about the distribution of funds from Kentucky’s growing gaming industry, ensuring that local governments benefit more directly from the economic impact of gambling activities. The bill, introduced in the state legislature earlier this month, calls for a significant increase in the percentage of gaming revenue that would be allocated to cities and counties where casinos and racetracks are located. Currently, Kentucky’s gaming revenues are primarily directed to the state’s general fund and certain designated programs, such as the Kentucky Educational Excellence Scholarship (KEES) and programs for problem gambling treatment.
However, critics argue that local communities are not receiving enough of the financial benefits that stem from the gambling industry, especially as casinos and racetracks become increasingly popular attractions.
“The people who live in these communities are the ones who bear the brunt of hosting casinos and racetracks, whether it’s through increased traffic, infrastructure demands, or other public services,” said State Senator Morgan McGarvey, one of the bill’s primary sponsors. “It’s only fair that local governments receive a larger share of the revenue to address these needs and invest in their communities.”
The proposed legislation would increase the percentage of gambling revenue allocated to local governments from the current level to a proposed 15%, a move that would potentially direct tens of millions of dollars to local budgets. The funds could be used for a variety of purposes, including infrastructure improvements, local education initiatives, and community development projects. Additionally, the bill would provide local governments with greater flexibility to determine how the funds are spent, allowing them to target specific needs within their communities.
In Kentucky, gambling has become an increasingly important part of the economy. The state is home to several racetracks and casinos, many of which have expanded in recent years. The introduction of sports betting in 2021, as well as the continued growth of online gaming platforms, has only increased the flow of revenue generated by these activities. As the industry continues to flourish, some lawmakers believe that it is crucial to ensure that local communities, particularly those near gaming venues, are not left behind.
Proponents of the bill argue that directing more gambling revenue to local communities would help mitigate the social and infrastructural challenges that arise from having large-scale gambling operations. Local governments could use the funds to improve roads, provide additional public services, and support educational programs—all of which could be seen as a direct benefit to the residents who live near these venues.
However, the proposal has not been without its critics. Some opponents, including certain state officials and gambling industry representatives, argue that diverting more revenue to local governments could undermine the funding for statewide initiatives, such as education and public health programs. They caution that the current revenue-sharing model is effective in ensuring that the state benefits from gambling without overburdening local governments or reducing the funds available for statewide programs. “There is a delicate balance between ensuring that local communities benefit from gambling and making sure that the state’s educational and social programs don’t lose out,” said Tom Miller, a spokesperson for the Kentucky Gaming Association. “We believe that any changes to the revenue-sharing structure should be carefully considered to ensure that the broader public interest is served.”
Despite the opposition, the proposed legislation has garnered significant support from local officials, many of whom argue that the increased revenue could help improve the quality of life for their constituents. Some have pointed out that other states with robust gambling industries, such as Nevada and New Jersey, have found ways to distribute gaming revenues in ways that benefit both local and state governments.
As the bill moves through the legislative process, it remains to be seen whether lawmakers can find a compromise that balances the interests of local communities, the state, and the gambling industry. With Kentucky’s gaming revenues continuing to grow, the debate over how best to allocate those funds is likely to remain a hot topic in the state for the foreseeable future.