Potential Funding Solution For Problem Gambling In Kentucky

Written By Robert Mattox on March 15, 2022 - Last Updated on May 22, 2023
KY problem gambling funding solution

Problem gamblers in Kentucky may soon have somewhere to turn for much-needed help.

Historically, the state of Kentucky has not had any support for those with gambling problems. Despite billions of dollars gambled by residents.

Where is that money suddenly coming from? If State Rep. Adam Koenig has his way, funding will come from a rather unusual source.

It has to do with the parent company of PokerStars, Flutter, which is indebted for a $300 million settlement, 15 years after the so called “Black Friday”.

Koenig, who is a strong advocate and has committed bills to legalize sports betting in Kentucky, gleaned the idea from Michael Stone, executive director of the Kentucky Council on Problem Gambling.

Details of funding solution for KY problem gambling programs

Essentially the state would take roughly $20-30 million from the PokerStars settlement and place it in a trust. The interest generated from the trust, estimated at $1-2 million dollars per year, would be a big bump towards covering problem gaming treatment programs in Kentucky.

This strategy would benefit the state, the problem gambler, and provide Rep. Koenig with more ammunition in his push to legalize sports gambling in KY.

Koenig plans to assemble a board that will oversee the funds and make sure it’s distributed appropriately. Oversight must be strictly maintained, as Kentucky would be new to legal sports gambling and the potential pitfalls that come with it.

What’s the current aid for problem gamblers in KY?

Unfortunately, and perhaps embarrassingly Kentucky spends next to nothing on treatment programs for problem gamblers. Curious considering the state’s rich horse racing history.

At present, the aforementioned Kentucky Council on Problem Gambling only has an annual budget of around $75,000. Most of which is provided from the gaming industry and donations.

If Kentucky seeks to expand gambling, more must be spent to assist those who may and likely will run into trouble.

And if Kentucky is to justify legalizing sports betting, the onus is on the state to provide adequate services to those who take it too far.

Kentucky needs funding help

Rep. Koenig had hope that some level of funding would be included in the state budget. But on Jan. 20, the budget passed with no provisions for the needed money.

While the funding could be added before the budget goes through the Senate, it doesn’t seem likely. Perhaps prompting Rep. Koenig to file a separate bill.

Keith Whyte, of the National Council on Problem Gambling, has been urging Kentucky to fund problem gambling for some time. Though the state has yet to adequately address the issue.

Bottom line is, if Kentucky wants to join surrounding states and keep tax revenue here, then the state in some form or fashion must step up and prove they will take care of folks that get in trouble.

If sports betting, in particular is legal, then many more Kentuckians will be gambling on sports. Subsequently, more Kentuckians will at some point need help.

If that’s the case, then adopting Koenig’s idea and finding other methods of funding treatment programs will be a necessity.

Photo by Ruslan Grumble / Shutterstock
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Robert Mattox

Robert Mattox is a lifelong Kentuckian and avid sports fan. He studied at the University of Kentucky. When not working or writing about the Cincinnati Bengals or fantasy sports, he can be found at a game, a concert, camping or hanging with his lovely wife and kids.

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