Kentucky Gov. Andy Beshear created a second regulatory committee to oversee the state’s sports betting industry.
At the end of last week, Beshear signed an executive order creating the Kentucky Sports Wagering Advisory Council. The move came just days after he signed emergency sports betting regulations passed by the Kentucky Horse Racing Commission.
The emergency regulations ensured the Kentucky sports betting industry will launch by the start of the NFL season.
Advisory Council will work in tandem with the KHRC
According to the executive order, the council provides “advice and insight” to the KHRC, Governor’s office and Public Protection Cabinet.
The council will be made up of seven members — the Secretary of the Public Protection Cabinet, a current employee of the KHRC, three members of the KHRC and two at-large members.
Beshear will appoint the at-large members and the three members of the KHRC. The council’s chairperson will be one of the three KHRC members.
Council’s functions include drafting regulations
The council will undertake four main functions. They include:
- Drafting administrative regulations to implement and operate a system of sports wagering.
- Proposing an initial operating budget and subsequent operating budgets that include the expenditure of money deposited in the sports wagering administration fund.
- Recommending agreements with other jurisdictions that may be beneficial for the Kentucky Horse Racing Commission to facilitate, administer and regulate multi-jurisdictional sports wagering that is comparable with Kentucky law.
- Perform all other tasks the Kentucky Horse Racing Commission may delegate to the Council.
The first of the listed duties is interesting since the KHRC already drafted and passed emergency regulations.
However, the commission still has to finalize those regulations. It still needs to hold a public feedback period and make the emergency regulations permanent.
The council will likely help the KHRC through that process, especially since several notable issues were ignored in the emergency regulations. For example, the commission didn’t decide whether sportsbooks can use promotional spending as a tax write-off.
Other states have made similar moves after expanding its gambling market.
After Florida passed a new gaming compact in 2021, it created the Florida Gaming Control Commission. Tennessee created a similar sports betting advisory board after it legalized its online-only sports betting industry.
