House Speaker Greg Stumbo Favors Slot Machines Installation in Kentucky Racing Tracks

On March 12th, 2009, gaming market consultants for the state of Kentucky's horse racing tracks told House members that video lottery machines could earn as much as $937.8 million in total revenue during their initial year if given the green signal for the Kentucky's horse racing tracks. The market review from The Innovation Organization was presented before the committee members of the House Appropriations and Revenue Committee, which held a session but did not decide on House Speaker Greg Stumbo's proposal to permit the slot machines-like video terminal at state racing tracks.

The slots machine proposal appears in a stalemate with days left in the house session, but it could come up again next year or in a special meeting this year that could be convened to study with the state's budget shortfall. House Speaker Greg Stumbo has stated that he wanted a hearing on the proposal to educate members. The Innovation Group review assumed that the final state horse racing track license would be given in southeastern Kentucky, for a total of 8 slots facilities with a pair of Lexington horse racing tracks sharing one license.

The review, which was accomplished late last year, assumed that slots parlors would open late next year in a financial climate that by then would have recovered from the ongoing financial crisis. House Speaker Greg Stumbo's proposal would tax slots machine profits at twenty eight percent for the first 5 years.

Racing tracks would have to shell out substantial licensing costs $125 million for Florence's Turfway Park, which would be the only one in the northern area of Kentucky, $100 million for Churchill Downs and $25 million for Thunder Ridge in Prestonsburg. Gaming critics have argued that slot machines cannot be approved without changing the structure of the state constitution, dismissing House Speaker Stumbo's contention that the video lottery terminals fall under the amendment allowing the state lottery.

Sunday, 12 April 2009
Caroline Mitchell