On Monday afternoon, Kentucky Governor Andy Beshear vetoed a comprehensive bill aimed at updating various gambling and horse racing regulations that had recently passed through the state legislature.
In his veto message regarding House Bill 904, Beshear did not address the proposed changes to gambling laws. Instead, he expressed concerns about a specific clause that would empower the Kentucky Horse Racing and Gaming Corporation and the Kentucky Lottery Corporation to implement both routine and emergency regulations without requiring the governor's review and approval.
Beshear argued that allowing such authority would undermine the governor's constitutional responsibilities and enable agencies to enforce regulations on Kentuckians without any executive oversight, potentially affecting public safety.
The veto was not related to issues of sports betting, fantasy sports, prediction markets, or charitable gaming; rather, it centered on the ongoing struggle over the governor's powers that has characterized Beshear's administration since the COVID-19 pandemic.
Monday marked the deadline for Beshear to respond to legislation presented to him by March 31. Shortly before 4 PM ET, his office released a statement highlighting various bills he had either signed, allowed to pass without his signature, or vetoed. Notably, House Bill 904 was not mentioned, although the veto notice was recorded by the House clerk at 4:27 PM ET.
The Kentucky General Assembly reconvenes on Tuesday for the final two days of its session, focusing on potential veto overrides. With Republicans holding a supermajority in both chambers, they only need a simple majority to overturn the veto. Given the previous votes on HB 904, an override is likely.
In the Senate, the vote was 24-13, with 23 Republicans in favor. Although some Democrats may have supported the bill, concerns regarding the prediction market provisions and their implications for the Kentucky Derby led to dissent among some members. The House also supported the Senate's amendments with a 64-19 vote, including backing from 10 Democrats.
House Bill 904, a 150-page document sponsored by state Representatives Michael Meredith and Matthew Koch, was one of the more intricate pieces of legislation this session, addressing multiple facets of regulated gaming. Key elements of the bill included raising the minimum age for sports betting from 18 to 21, establishing a regulatory framework for daily fantasy sports, and implementing various changes to horse racing and charitable gaming regulations.