The Kentucky State Senate passed HB 607 on Tuesday, a bill which streamlines the various taxes on horse racing betting but leaves historical horse racing alone.
Senator Damon Thayer, who co-chaired with Rep. Adam Koenig the task force that led to the creation of HB 607, told the Senate Tuesday the bill: “I believe has us on track to be the most lucrative year-round racing circuit in North America within the next 18 to 24 months.”
HB 607 calls for taxing pari-mutuel wagers off the top at 1.5 percent. That is the same rate currently assessed for HHR gaming. However, the bill raises the current rate for bets placed through online platforms (or Advance Deposit Wagering, commonly referred to as ADWs) from 0.5 percent. The tax rate on simulcast wagers placed at a Kentucky track on an out-of-state race would drop from 3 percent. The majority of bets are now placed through ADWs, while simulcasting has shrunk considerably as horseplayers opt for the convenience of wagering online.
Koenig has received national attention and praise from horseplayer advocates for being a champion of the virtual elimination of breakage. That's where tracks round winning payoffs down to the nearest dime based on a $1 bet. Breakage under HB 607 requires tracks to pay off to the nearest penny, resulting in more money being returned to horseplayers. Koenig cited the example of 2018 Triple Crown winner Justify paying $7.80 on a $2 Kentucky Derby win bet, a payout that would have been $7.92 without the breakage.
The Kentucky Equine Education Project (KEEP) released this statement following the passage of HB 607:
KEEP applauds the Kentucky General Assembly for the passage of HB 607, legislation that will modernize taxation on pari-mutuel wagering.
A tremendous amount of work went into crafting this new tax policy and KEEP is grateful to the legislators who served on the Pari-Mutuel Wagering Taxation Task Force for the time and effort they put into fully understanding the economic structure of Kentucky's horse industry. We would also like to applaud Senate Majority Floor Leader Thayer and Representative Koenig for their leaderships as co-chairs of the task force. The resulting legislation was able to strike a delicate balance between increasing revenue for the state, while at the same time not arbitrarily raising tax rates in a way that would damage the economic success of the industry.
The entire horse industry was engaged in this process and KEEP was proud to work closely with legislators to ensure that they had access to the full picture of what economic benefits the industry has on the Commonwealth.
KEEP will continue working on behalf of Kentucky's entire horse industry and community to advocate for policies that benefit everyone within the industry's economic ecosystem. Growing the success of the industry's more than 60,000 jobs and $6.5 billion economic impact on the state benefits all Kentuckians.
Sen. @damon_thayer, who co-chaired w @RepKoenig task force that led to HB 607, tells Senate the bilI 'I believe has us on track to be the most lucrative year-round racing circuit in North America within the next 18 to 24 months.' #KyStrong #KTDF @SenatorSchickel @NationalHBPA pic.twitter.com/dRchvPmcOu
— KyHBPA (@KyHBPA) March 29, 2022
We thank #KYSenate for bringing #HB607 to passage today 33-1. Reforms protect 60,000 jobs and position KY Racing for future growth. Thanks to @damon_thayer @repkoenig @DeniseharperAn1 Matt Koch & Ors. for your leadership on the Pari-Mutuel Wagering Taxation Task Force pic.twitter.com/Ar6nxeUoyv
— KY Tbred Assoc./KTOB (@KYTbred) March 29, 2022
The post Kentucky Senate Passes Wagering Bill Which Eliminates Breakage, Streamlines Taxes appeared first on Horse Racing News | Paulick Report.
