Kentucky AG suggests sports betting solution to the state’s massive pension fund deficit

Faced with a massive state pension fund deficit, Kentucky Attorney General Andrew Beshear has recommended to state lawmakers that they carefully consider a controlled expansion of gambling within state borders.

Financial experts have predicted that the state will need between $39 billion and $70 billion over the coming 30 years to pay the pensions of state employees.

In Kentucky at present only limited horserace pari-mutuel betting is permitted, and the AG observes that Kentucky residents are taking their money (an estimated billion dollars a year) to other states in order to gamble, depriving the Kentucky government of potential tax revenues.

In his recommendation, Beshear suggests: “The solution is not to cut legally promised benefits, but to create a new and dedicated stream of revenue solely for pensions that does not raise any Kentuckian’s taxes.

“The answer is simple – expanded gaming, including casino, fantasy sports, and sports gaming, as well as preparing for the eventual legalization of online poker.”

Limited new legislation is ready to be discussed in the state legislature early next year in the form of Representative Dennis Keene’s bill, BR15, which calls for the legalisation of intrastate sports betting under the supervision of the Kentucky Lottery Corporation (see previous report).

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