Kentucky’s latest gaming expansion creates a new funding source for its state addiction fund.
The Bluegrass State dedicated more money to the fund as part of the Kentucky sports betting bill. But more importantly, the government dedicated resources to its problem gambling services.
The Kentucky horse racing industry is among the oldest gambling industries in the US. However, Kentucky has long resisted dedicating public funds to combating problem gambling. The state is allocating 2.5% of annual sports betting tax revenue to the new fund. It marks the first time Kentucky is using public funds to address problem gambling.
Why programs need dedicated funding
The state already had an addiction fund for addiction services, but it failed to address gambling disorders. State programs are more likely to receive funding if they have a dedicated source of revenue instead of a pool of money it competes with other programs for, Kentucky Council on Problem Gambling Executive Director Michael Stone told PlayKentucky.
“Without a dedicated revenue stream, it is very difficult to pull funding from the budget that supports all other programs of government,” Stone said. “Which program would be picked to downsize to start a problem and addicted gambling program? The evidence from the last 30 years is none. The funds available already were going to programs established to address a need, such as alcohol abuse (or) the opioid crisis.”
RELATED: Kentucky Wise To Use National Problem Gambling Hotline Instead Of State-Specific Number
Governments typically underfund problem gambling programs
Since the latest wave of sports betting legalization, most states have allocated some of the treasury for problem gambling. In 2022, only nine states failed to use taxpayer funds for the issue.
Kentucky’s issue of siphoned problem gambling funds isn’t unique, either. Other states struggle to commit funds to problem gambling when other pressing issues compete for money, Executive Director of the National Council on Problem Gambling Keith Whyte told PlayKentucky.
“In Kansas, for example, the (American Gaming Association) found that 90% of the money that came into the fund that was supposed to be for problem gambling went to other addictions,” Whyte said.
In fiscal year 2021, Kansas only used 6.5% of its problem gambling funds on problem gambling services. Another 19.5% went to grants for other addictions, and 50.4% went to Medicaid mental health expenditures.
Addiction challenges overall
In a country where addiction treatment can be prohibitively difficult to obtain, understanding where problem gambling funds go is critical.
The New York Times addressed some of the challenges opioid addicts encounter when seeking treatment. From insurance refusing to cover treatment to doctors who hold “stigmatizing views” about addiction, patients can struggle to access care.
The challenges can be similar for those with behavioral addictions such as problem gambling. But a single revenue stream from sports betting tax revenue helps fix this. Now, the state can audit, direct and, if necessary, redirect funds for problem gambling program treatment.
