Beshear vetoes Kentucky gaming, horse-racing overhaul

Gov. Andy Beshear vetoed House Bill 904 on Monday, returning a 150-page package that would have revised state rules on sports betting, daily fantasy sports, horse racing and charitable gaming. He said a provision would allow the Kentucky Horse Racing and Gaming Corp. and the Kentucky Lottery Corp. to file routine and emergency regulations without gubernatorial review.

Beshear acted on the final day he could sign or veto bills delivered to him by March 31. The governor’s office released other legislative actions shortly before 4 p.m. ET; the House clerk received the veto statement for HB 904 at 4:27 p.m. ET.

In the veto message, Beshear wrote that authorizing an agency to file emergency regulations in that way would ‘prevent the Governor from carrying out his constitutional duties and allow boards and agencies to impose rules on Kentuckians without executive oversight, including boards whose decisions impact public safety.’

HB 904 was sponsored by state Representatives Michael Meredith and Matthew Koch. The bill would raise the minimum age to place a sports bet from 18 to 21, ban ‘under’ proposition bets on college athletes from Kentucky-based schools, bar Kentucky-licensed sportsbooks from operating prediction markets in the state, require operators to forward self-exclusion forms to the KHRGC, and prevent people who owe $500 or more in back child support from wagering. It would create a regulatory framework for daily fantasy sports.

On horse racing, the bill would require tracks to update pari-mutuel wagering systems, mandate that wagering be disabled no later than the opening of the starting gate, authorize fixed-odds wagering at in-state tracks and prohibit tracks from partnering with prediction markets. The measure also includes breeding regulation changes sought by parts of the racing industry.

The charitable gaming changes in HB 904 would set a minimum age of 21 for electronic pull-tab machines, establish rules for where machines may be placed and how games are monitored, and raise the maximum prize on e-pull-tabs from $599 to $1,499.

The Kentucky Horse Racing and Gaming Corp. was created two years ago to replace the Kentucky Horse Racing Commission. The legislature moved oversight of charitable gaming from the Public Protection Cabinet to the KHRGC. KHRGC commissioners are appointed by the governor and must be confirmed by the state Senate.

Republican legislative leaders have signaled they will seek to override the veto. Lawmakers return Tuesday for the final two days of the session to consider veto overrides. A simple majority in each chamber is required to overturn a gubernatorial veto; Republicans hold supermajorities in both chambers. The Senate approved sending HB 904 to the governor by 24-13, with 23 Republican senators voting yes. The House concurred with the Senate’s changes by a 64-19 vote.

Supporters of the bill tied to charitable gaming urged lawmakers to keep the measure intact. Mike Mulrooney, founder of the nonprofit Shirley’s Way, described charitable gaming as ‘a needed lifeline’ for many nonprofits. State figures show wagers with licensed charitable organizations rose from nearly $490 million in 2019 to about $1.37 billion in 2024. Adjusted gross revenues grew from $76.6 million to $151.6 million over that period, and net revenues increased from $47.4 million to $94.9 million. State law requires charities to retain at least 40% of adjusted gross revenue; the statewide average exceeded 61%.

With two days left in the legislative session, lawmakers and industry stakeholders will watch whether Republican majorities vote to override Beshear’s veto and enact the package of changes to Kentucky’s gaming and racing laws.