Will Kentucky ever have full-fledged sports betting and casino gaming? The announcement of a 5th gaming venue spurs an ongoing debate about expanding legal gambling in the state.
The question inevitably came up in the wake of Churchill Downs Inc. (CDI) purchasing a defunct US Bank building in downtown Louisville this past Sept.
CDI will convert the building into an entertainment destination. The new Derby City Gaming Downtown will have 500 historical horse racing machines (HRT), 3 bars and a retail store to keep patrons entertained.
High stakes to expand gambling in Kentucky
Derby City Gaming Downtown is estimated to earn profits of $10-$12 million per year. With so much at stake, it’s no wonder there’s resistance to expanding gambling in KY.
Although it may be a bone of contention for some, many states across the country have embraced expanded gambling as a way to increase tourism revenue.
One newly adopted form of legal gambling taking off is online gambling in the US. Many neighboring states have already jumped on board including, Illinois, Tennessee and Indiana.
About Churchill Downs
Churchill Downs is home to the iconic Kentucky Derby. However, the company is much more than just expensive Thoroughbred horses and funny hats.
The Derby helps generate over $350 million for the local economy every year. For 147 years, the celebrated races are the longest-running yearly sporting event in the US.
CDI has expanded into online sports betting with TwinSpires in 1996. TwinSpires is an online-based platform where players wager on local and international Thoroughbred, Quarter Horse, and harness races through advance-deposit wagering (ADW).
The company also owns several casinos across the country including:
- Calder Casino, FL
- Fair Grounds Race Course & Slots, LA
- Harlow’s Casino Resort & Spa, MS
- Lady Luck Casino, PA
- Miami Valley Gaming, OH
- Ocean Downs Casino, MD
- Oxford Casino + Hotel & Event Center, ME
- Presque Isle Downs & Casino, PA
- Rivers Casino, IL
- Riverwalk Casino Hotel, MS
Giving back to the community is another attribute of CDI. They support over 600 nonprofit organizations every year.
According to CDI the new Louisville site will create 350 construction jobs and have 100 permanent posts. Hiring for these positions will be focused on the poorer neighborhoods in Louisville.
In addition to job creation for the new venue, CDI is donating $1 million to the West End Opportunity Partnership.
Furthermore, many citizens believe the new destination will make the downtown area more appealing.
Opposing views on Kentucky gambling
Unsurprisingly, the idea of bringing Class III games to Louisville is polarizing for both lawmakers and citizens. Some see expanded gaming as a threat to current revenue streams while others believe it can be an economic boost.
Kentuckians are familiar with HRTs, which are slot-style machines allowing the user to bet on past horse races.
However, they aren’t familiar with Class III casino gaming, at least not within Bluegrass State borders. HRTs are legal, but slot machines are not.
Class III gaming is any house-banking game that can include:
- Casino games like slots and roulette
- Table card games like blackjack and poker
- Sports betting
In one interview for WDRB, the pro side is voiced by Sen. Morgan McGarvey who thinks there’s not much difference between an HRT and a slot machine. As such, he wants casinos and sports betting in Kentucky to be legalized.
He went on to say that residents are heading across the border to gamble in Indiana with money that could stay in Kentucky. McGarvey said:
“Let’s go ahead and get actual casino gaming in Kentucky so that we can have the full options and bet on sports”, “We need to have a vote on casino gaming to keep the carloads of cash from going across our border into Indiana”
On the opposing team is Rep. Kevin Bratcher who provided a counterpoint to McGarvey’s push for full-scale casinos. Bratcher believes the horse racing industry will not allow all-out casinos into the state.
Creating more outlets for gambling in KY will cut into profits for historical horse race betting. Bratcher said:
“Now that the historical horse racing is here, you’re going to get more of a resistance from the horse industry for regular-style casinos because it’s competition”
