Legal sports gambling in 2022 seems like a no-brainer. Regulate the industry, collect the tax revenue, set up treatment programs for the inevitable folks that can’t control themselves, and join the majority of America in the 21st century.
Well, as we discovered last week, Kentucky isn’t quite ready to join its surrounding neighbors.
Kentucky sports gambling WILL happen eventually. Progress, whether the conservative influences in Frankfort like it or not, generally can’t be stopped.
So what do we do in the meantime? From Keeneland to Churchill Downs, from “gray” games to historical horse racing games, there are still options for gamblers seeking action. Just not what Kentucky residents deserve.
For fun, since the state is bent on limiting gambling, let’s take a quick look at the history of gambling in Kentucky.
Newport bootleggers take on the Cleveland mob
When folks think about Kentucky, especially in terms of gambling, of course, the Kentucky Derby first comes to mind. Horse racing is a tradition in the Bluegrass state.
However, there was a time, especially in the northern part of the state, when backroom casinos and mobsters ruled.
Casino gambling of course has always been illegal in Kentucky, but that didn’t stop certain “entrepreneurs” before and immediately after the Great Depression.
There were a few well-known casinos, essentially operating right out in the open including the:
- Beverly Hills Club
- Flamingo
- Lookout House
- Yorkshire Club
- Primrose Club
Where there’s gambling, there often is booze. Peter Schmidt, a well know local bootlegger opened Beverly Hills in 1934, only to have it burned down by rival Ohio mobsters in the late 1930s.
Schmidt eventually decided to play ball with the Cleveland mobsters and went on to open the Glenn Rendezvous and the Playtorium.
Of course, there were other players in the Northern Kentucky casino game. Former booze runner Buck Brady gained control of the Primrose Club in the mid-1930s. Brady was a tougher character than Schmidt, resisting the out-of-state mob overtures to the point of shooting one of their operatives.
That inevitably led to Brady fleeing for his own life after World War 2, wisely so. In his stead another former associate named Jimmy Brink partnered with the mob, running the Lookout House profitably for years.
Eventually, a reform candidate named George Ratterman led a successful campaign to shut down all the fun and restore law and order.
Due to its strategic location with Cincinnati and Cleveland, Newport Kentucky was the absolute epicenter of illegal gambling in Kentucky.
Future of gambling in Kentucky, the story continues
Much has changed over the years. Newport has evolved from a seedy, mob-controlled gambling haven to a family-friendly jewel on the Ohio River. A world-class aquarium, theaters, restaurants and family activities now exist where booze, casinos, and mobsters once ruled.
What Kentucky is seeking in 2022 isn’t seedy, dangerous, mob-run gambling halls, but rather just the freedom to place a bet on a football game. Not everyone in the state is a horse racing fan.
However, horse racing plays a vital role in the history of our state. Check back for part 2 of the History of Gambling in Kentucky, where I’ll focus on the legal, more reputable, rich history of horse racing in the commonwealth.
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