Kentucky gambling regulators face a tall order this year.
At the end of March, Gov. Andy Beshear signed legislation legalizing sports betting in Kentucky. He wants the industry to launch before this year’s NFL season on Sept. 7. But is the Kentucky Horse Racing Commission up to the task?
The KHRC plans to vote on a draft of rules for the new industry in early July. If approved and signed by the governor, sports betting operators could begin the application process with the Commission. The KHRC would have about two months to get the ball rolling on an industry that could handle about $2 billion annually.
In terms of dollars, a $2 billion sports betting handle would be more than three times what horse racing handled last year and a 25% increase in betting activity in the state. Needless to say, the KHRC will need to add staff to regulate the new gambling sector.
At a June 20 KHRC meeting, Chairman Jonathan Rabinowitz addressed this reality.
“Earlier this month, we announced the KHRC staff is growing with 14 new positions in sports wagering,” Rabinowitz said. “These positions include leadership roles as well as investigative, analytical and administrative positions. We are pleased to update that we have some good candidates in the hiring process and hope to make some additional staffing announcements soon.”
Will 14 new enforcement positions be enough?
Currently, Indiana employs 38 times more gambling enforcement personnel than Kentucky and Ohio has 30 times more, according to reporting from Cincinnati’s WCPO.
An additional 14 regulation employees would seem inadequate, comparatively.
WCPO tracked the KHRC’s staffing and says there has been a lack of job postings that specifically mention sports betting. In a June 28 story, three of six job postings for the KHRC on the KY personnel website specifically dealt with horse racing. None of them specifically dealt with regulating sports betting.
More employees are just one part of the bigger picture
Rabinowitz said a lot is going on behind the scenes to prepare for the launch of sports betting in Kentucky. KHRC members have been meeting with regulators in other states where sports betting is live to confer on the best regulatory practices.
“Meetings with service providers and visits to multiple sportsbook sites provided a look at the extensive technologies employed to protect the integrity of wagering,” he said. “There have been discussions with stakeholders about problem gambling programs in Ohio to inform the program being developed in Kentucky at the Cabinet for Health and Family Services.”
Aside from regulators, KHRC staff is meeting with industry experts and representatives from professional sports leagues to implement effective regulation.
“Our legal counsel has met with counsel from sports associations such as Major League Baseball to learn about emerging legal issues in wagering,” Rabinowitz said. “We have contracted with Gaming Labs International to provide consulting services and training for our staff.”
