UNOFFICIAL COPY 22 RS HB 606/GA
Page 1 of 52
HB060610.100 - 1000 - XXXX GA
AN ACT relating to wagering and making an appropriation therefor. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. KRS CHAPTER 239A IS ESTABLISHED AND A NEW 3
SECTION THEREOF IS CREATED TO READ AS FOLLOWS: 4
As used in this chapter unless the context requires otherwise: 5
(1) "Adjusted gross revenue" means the total sum of entry fees collected by a fantasy 6
contest operator from all participants entering a fantasy contest, less winnings 7
paid to participants in the contest, multiplied by the resident percentage; 8
(2) "Beginner" means a fantasy contest player who has entered fewer than fifty-one 9
(51) contests offered by a single fantasy contest operator and who does not 10
otherwise meet the definition of highly experienced player; 11
(3) "Cabinet" means the Public Protection Cabinet; 12
(4) "Confidential information" means information related to the play of a fantasy 13
contest by fantasy contest participants obtained as a result of or by virtue of a 14
person’s employment; 15
(5) "Entry fee" means the cash or cash equivalent that is required to be paid by a 16
fantasy contest participant to a fantasy contest operator in order to participate in 17
a fantasy contest; 18
(6) "Fantasy contest" means any fantasy or simulated game or contest that meets the 19
following conditions: 20
(a) The values of all prizes and awards offered to winning participants are 21
made known to the participants in advance of the contest; 22
(b) All winning outcomes reflect the relative knowledge and skill of the 23
participants and shall be determined predominantly by accumulated 24
statistical results of the performance of individuals, including athletes in the 25
case of sports events; 26
(c) No winning outcome is based: 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 2 of 52
HB060610.100 - 1000 - XXXX GA
1. On randomized or historical events; 1
2. On the score, point spread, or any performance or performances of 2
any single actual team or combination of such teams; or 3
3. Solely on any single performance of an individual athlete or 4
participant in any single actual event; and 5
(d) It does not violate any provision of federal law; 6
(7) "Fantasy contest operator" or "operator" means a person who offers or 7
administers one (1) or more fantasy contests with an entry fee to the general 8
public, and awards a prize of value; 9
(8) "Fantasy contest participant" or "participant" means a person who participates 10
in a fantasy contest offered by a registrant; 11
(9) "Highly experienced player" means a person who has either: 12
(a) Entered more than one thousand (1,000) fantasy contests offered by a single 13
fantasy contest operator; or 14
(b) Won more than three (3) fantasy contest prizes valued at one thousand 15
dollars ($1,000) or more from a single fantasy contest operator. 16
Upon making a determination that a player is a highly experienced player, the 17
fantasy contest operator shall continue to classify the player as a highly 18
experienced player indefinitely; 19
(10) "Immediate family" means a person’s parents, grandparents, spouse, siblings, 20
children, or grandchildren residing in a home occupied by the person as a 21
primary residence; 22
(11) "Location percentage" means for each fantasy contest, the percentage, rounded 23
to the nearest tenth of a percent (0.1%), of the total entry fees collected from 24
participants located in the Commonwealth divided by the total entry fees collected 25
from all participants in the fantasy contest; 26
(12) "Net poker revenue" means the rake plus any entry fees or other fees charged to 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 3 of 52
HB060610.100 - 1000 - XXXX GA
online poker players as a requirement to play in a game or series of games of 1
online poker; 2
(13) "Online poker" means any form of poker, including but not limited to Five Card 3
Draw, Seven Card Stud, and Texas Hold'em, at locations removed from other 4
players via the Internet through the use of computers, smartphones, or other 5
types of electronic devices. Online poker shall not include video lottery terminals 6
or slot machines using electronic representations of cards in a game of chance in 7
which skill does not play a part; 8
(14) "Person" has the same meaning as in KRS 446.010; 9
(15) "Principal stockholder" means any person who, individually or together with his 10
or her immediate family members, beneficially owns or controls, directly or 11
indirectly, fifteen percent (15%) or more of the equity ownership of a registrant or 12
who, together with his or her immediate family members, has the power to vote or 13
cause the vote of fifteen percent (15%) or more of a registrant; 14
(16) "Rake" means a percentage of the total wagers placed in an online poker game 15
that the online poker provider collects as its fee for providing the platform upon 16
which the online poker game is played; 17
(17) "Registered fantasy contest operator" or "registrant" means a fantasy contest 18
operator that has been issued a valid registration by the cabinet; 19
(18) "Script" means automating a manual act using a coding language online, 20
whereby a list of multiple commands may be executed without the user’s 21
interaction; 22
(19) "Secretary" means the secretary of the Public Protection Cabinet; and 23
(20) "Wager" means a sum of money or representation of value that is risked on an 24
occurrence for which the outcome is uncertain. 25
SECTION 2. A NEW SECTION OF KRS CHAPTER 239A IS CREATED TO 26
READ AS FOLLOWS: 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 4 of 52
HB060610.100 - 1000 - XXXX GA
(1) No fantasy contest operator shall offer a fantasy contest to residents of the 1
Commonwealth without a valid registration issued by the cabinet, except that 2
fantasy contest operators with fewer than one hundred (100) participants located 3
in the Commonwealth in a calendar year shall be exempt from this requirement. 4
(2) Any person seeking to be registered as a fantasy contest operator shall submit an 5
application to the cabinet on a form prescribed by the cabinet as promulgated in 6
an administrative regulation, accompanied by payment of the required fee 7
established in subsection (4) of this section. 8
(3) The fantasy contest operator applicant shall provide the following information to 9
the cabinet as a prerequisite for registration: 10
(a) The name of the applicant; 11
(b) The location of the applicant's principal place of business; 12
(c) A disclosure of ownership of the applicant including all directors, officers, 13
and principal stockholders; 14
(d) A designation of the responsible party who is the agent for the contest 15
operator for all communications with the cabinet; 16
(e) 1. The criminal record of all officers, general partners, and principal 17
stockholders of the applicant. 18
2. An applicant may not be eligible for registration or renewal as a 19
fantasy contest operator if the applicant or any of its officers, general 20
partners, or principal stockholders has been convicted of or has 21
entered a plea of nolo contendere or guilty to a felony; and 22
(f) Any other documentation the cabinet may require. 23
(4) (a) The initial registration fee for a fantasy contest operator shall be five 24
thousand dollars ($5,000). 25
(b) The annual renewal fee for a fantasy contest operator shall be an amount 26
equal to the greater of: 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 5 of 52
HB060610.100 - 1000 - XXXX GA
1. Six percent (6%) of the adjusted gross revenues for the prior calendar 1
year; or 2
2. Five thousand dollars ($5,000). 3
(c) The initial registration fee and the annual renewal fee shall be deposited 4
into the wagering administration fund established in Section 4 of this Act. 5
SECTION 3. A NEW SECTION OF KRS CHAPTER 239A IS CREATED TO 6
READ AS FOLLOWS: 7
(1) (a) The cabinet shall promulgate administrative regulations for the operation 8
of fantasy contests as necessary to enforce the provisions of this chapter, but 9
the cabinet shall not promulgate administrative regulations limiting or 10
regulating: 11
1. Rules or the administration of an individual contest or contests; 12
2. The statistical makeup of a contest or contests; or 13
3. The digital platform of an operator. 14
(b) The cabinet shall promulgate the administrative regulations listing the 15
requirements for registration within thirty (30) days of the effective date of 16
this Act. 17
(2) The cabinet shall consider all applications for registration and shall issue a valid 18
registration to an applicant that meets the criteria set forth in Section 2 of this 19
Act and any administrative regulations promulgated by the cabinet. 20
(3) (a) The cabinet shall have thirty (30) days after receiving an initial application 21
to issue a registration or deny the application. 22
(b) The cabinet shall prepare and issue a written statement setting forth the 23
reasons why an application for registration has been denied. 24
(4) All fantasy contest operators who meet the requirements for registration shall be 25
registered by January 15, 2023. 26
(5) The cabinet may revoke, deny, or suspend the registration of a fantasy contest 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 6 of 52
HB060610.100 - 1000 - XXXX GA
operator if it finds that: 1
(a) Any partner, member, officer, principal stockholder, or director of the 2
operator has been convicted of a felony in this state, a felony in another 3
state which would be a felony if committed in this state, or a felony under 4
the laws of the United States. For purposes of this paragraph, the term 5
"convicted" means having been found guilty, regardless of adjudication of 6
guilt, as a result of a jury verdict, nonjury trial, or entry of a plea of guilty 7
or nolo contendere; or 8
(b) Any fantasy contest operator has: 9
1. Violated any order of the secretary or any of the provisions set forth in 10
this chapter; 11
2. Failed to meet the requirements for registration under this chapter; or 12
3. Used fraud, misrepresentation, or deceit in applying for or attempting 13
to apply for a registration or otherwise in operating or offering to 14
operate a fantasy contest. 15
(6) If it appears to the secretary, based upon credible evidence presented in a written 16
complaint, that a person is operating or offering to operate a fantasy contest 17
without being registered, the secretary may issue an order to cease and desist the 18
activity. 19
(7) The secretary shall set forth in the order: 20
(a) The statutes and administrative regulations alleged to have been violated; 21
(b) The facts alleged to have constituted the violation; and 22
(c) The requirement that all unauthorized practices immediately cease. 23
(8) (a) Within ten (10) days after service of the order to cease and desist, the person 24
may request a hearing on the question of whether acts or practices in 25
violation of this section have occurred. The hearing shall be conducted 26
pursuant to KRS Chapter 13B. 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 7 of 52
HB060610.100 - 1000 - XXXX GA
(b) The person may appeal the final order of the cabinet to the Franklin Circuit 1
Court within thirty (30) days of the hearing. 2
(9) To ensure that the cabinet is not spending more than what is necessary to cover 3
administrative expenses, on June 30 of each year, the cabinet shall submit to the 4
Legislative Research Commission and the Interim Joint Committee on Licensing, 5
Occupations, and Administrative Regulations a written report detailing financial 6
transactions, including: 7
(a) The number of applications received; 8
(b) The number of applications approved; 9
(c) The number of applications denied; 10
(d) The amount of funds received from initial registration fees; 11
(e) The amount of funds received from annual renewal fees; and 12
(f) The amount of funds expended to enforce this chapter. 13
(10) KRS Chapters 230 and 528 shall not apply to fantasy contests operated in 14
accordance with this chapter. 15
SECTION 4. A NEW SECTION OF KRS CHAPTER 239A IS CREATED TO 16
READ AS FOLLOWS: 17
(1) (a) There is hereby established in the State Treasury a restricted account to be 18
known as the wagering administration fund. The fund shall consist of 19
moneys received from the moneys collected under Sections 2, 7, 16, and 20 20
of this Act and state appropriations. 21
(b) 1. Amounts deposited in the fund shall be used for administrative 22
expenses of the cabinet and shall be disbursed by the Finance and 23
Administration Cabinet upon the warrant of the Public Protection 24
Cabinet. 25
2. The remaining funds shall be deposited in the Kentucky permanent 26
pension fund established in KRS 42.205. 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 8 of 52
HB060610.100 - 1000 - XXXX GA
3. Any interest accruing to the fund shall become a part of the fund and 1
shall not lapse. 2
(2) Notwithstanding KRS 45.229, fund amounts not expended at the close of a fiscal 3
year shall not lapse but shall be carried forward into the next fiscal year. 4
(3) Moneys deposited in the fund are hereby appropriated for the purposes set forth 5
in this section and shall not be appropriated or transferred by the General 6
Assembly for any other purposes. 7
SECTION 5. A NEW SECTION OF KRS CHAPTER 239A IS CREATED TO 8
READ AS FOLLOWS: 9
(1) (a) A registrant offering fantasy contests shall annually submit its records to a 10
certified public accountant to perform an annual independent audit 11
consistent with the standards of the American Institute of Certified Public 12
Accountants to ensure compliance with all of the requirements in this 13
chapter. 14
(b) The registrant shall pay all costs of the audit. The audit shall cover one (1) 15
fiscal year. 16
(2) (a) Each registrant shall keep daily records of its operations and shall maintain 17
the records for at least six (6) years. 18
(b) The records shall sufficiently detail all financial transactions to determine 19
compliance with the requirements of this chapter and shall be available for 20
audit and inspection by the cabinet during the registrant's regular business 21
hours. 22
SECTION 6. A NEW SECTION OF KRS CHAPTER 239A IS CREATED TO 23
READ AS FOLLOWS: 24
(1) A fantasy contest registrant shall implement commercially reasonable procedures 25
for the conduct of fantasy contests requiring an entry fee that are intended to: 26
(a) Prevent the registrant, its employees, and the immediate family of employees 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 9 of 52
HB060610.100 - 1000 - XXXX GA
from competing in any public fantasy contest with a cash prize offered by 1
any fantasy contest operator; 2
(b) Prevent sharing of confidential information with third parties that could 3
affect fantasy contest play until that information is made publicly available; 4
(c) Verify that each fantasy contest participant in each fantasy contest is 5
eighteen (18) years of age or older; 6
(d) Prevent an individual who is a participant or game official in an actual 7
sporting event or competition from participating in any fantasy contest that 8
is determined in whole or in part on the performance of that individual, the 9
individual’s actual team, or the accumulated statistical results of the 10
sporting event or competition in which the individual is a participant or 11
contest official; 12
(e) Allow an individual, upon request, to exclude himself or herself from 13
entering a fantasy contest and provide reasonable steps to prevent that 14
person from entering the fantasy contests offered by the fantasy contest 15
operator; 16
(f) Disclose the number of entries that a participant may submit to each 17
fantasy contest; 18
(g) Provide reasonable steps to prevent participants from submitting more than 19
the allowable number of entries; 20
(h) 1. In any fantasy contest involving more than one hundred (100) entries, 21
prevent a participant from submitting more than the lesser of: 22
a. Three percent (3%) or more of all entries; or 23
b. One hundred fifty (150) entries. 24
2. Notwithstanding subparagraph 1. of this paragraph, a registrant may 25
establish contests in which there are no restrictions on the number of 26
entries if: 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 10 of 52
HB060610.100 - 1000 - XXXX GA
a. The registrant clearly discloses that there are no limits on the 1
number of entries by each participant in the contest; and 2
b. The entry fee is fifty dollars ($50) or more per entry; 3
(i) Segregate participants’ funds from operational funds or maintain a reserve 4
in the form of cash, cash equivalents, payment processor reserves, payment 5
processor receivables, an irrevocable letter of credit, a bond, an escrow 6
account approved by the cabinet, or a combination thereof, in the amount of 7
the deposits in participants’ accounts for benefit and protection of the funds 8
held in those accounts; 9
(j) Distinguish highly experienced participants and beginner participants and 10
ensure that highly experienced participants are conspicuously identified to 11
all participants; 12
(k) Prohibit the use of external scripts in fantasy contests that give a participant 13
an unfair advantage over other participants and make all authorized scripts 14
readily available to all fantasy contest participants; 15
(l) Clearly and conspicuously disclose all rules that govern its contests, 16
including the material terms of each promotional offer at the time the offer 17
is advertised; and 18
(m) Use technologically reasonable measures to limit each fantasy contest 19
participant to one (1) active account with that operator. 20
(2) A registrant shall not conduct, operate, or offer a fantasy contest that: 21
(a) Utilizes: 22
1. Video or mechanical reels or symbols or any other depictions of slot 23
machines, poker, blackjack, craps, or roulette; or 24
2. Any device that qualifies as or replicates contest activities that 25
constitute gaming; or 26
(b) Includes a university, college, high school, or youth athletic contest or 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 11 of 52
HB060610.100 - 1000 - XXXX GA
event. 1
(3) Officers and directors of registrants along with their immediate family are 2
prohibited from competing in any fantasy contest offered by any fantasy contest 3
operator in which the operator offers a cash prize. 4
(4) (a) Any person who knowingly violates any provision of Section 2, 3, 4, 5, or 6 5
of this Act shall: 6
1. For the first offense, be liable for a civil penalty of not less than one 7
thousand dollars ($1,000) nor more than five thousand dollars 8
($5,000) for each act or omission that constitutes a violation; or 9
2. For a second or subsequent offense, be liable for: 10
a. A civil penalty of not less than five thousand dollars ($5,000) 11
and not more than twenty-five thousand dollars ($25,000); or 12
b. Revocation of registration at the discretion of the secretary. 13
(b) A civil penalty assessed under this subsection shall accrue to the 14
Commonwealth and may be recovered in a civil action brought by the 15
cabinet. 16
(c) Nothing in this chapter shall deprive an aggrieved participant of any 17
personal right of redress. 18
SECTION 7. A NEW SECTION OF KRS CHAPTER 239A IS CREATED TO 19
READ AS FOLLOWS: 20
(1) No person shall offer online poker in the Commonwealth unless that person has 21
received a license from the cabinet. 22
(2) The cabinet shall promulgate administrative regulations prescribing 23
requirements for vendors offering online poker gaming to the citizens of the 24
Commonwealth. The requirements for each game or game provider shall include 25
but not be limited to: 26
(a) Geolocation software to ensure that all online poker is conducted within the 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 12 of 52
HB060610.100 - 1000 - XXXX GA
geographical confines of the state of Kentucky; 1
(b) Age verification to ensure that no person under the age of eighteen (18) is 2
allowed to place wagers through online poker games; 3
(c) Security standards to minimize the risk of cyber theft or hacking; 4
(d) Accounting standards to ensure transparency and accountability of moneys, 5
including: 6
1. Moneys deposited by players into gaming accounts; 7
2. Prize payouts; 8
3. The rake the online poker vendor receives; and 9
4. Any entry or associated fees charged to players; and 10
(e) Conformance with all applicable federal laws. 11
(3) A license to conduct online poker in the Commonwealth shall not be issued by 12
the cabinet until the proposed vendor has demonstrated to the satisfaction of the 13
cabinet that: 14
(a) All the requirements of subsection (2) of this section have been met; and 15
(b) An initial licensing fee of two hundred fifty thousand dollars ($250,000) has 16
been paid. 17
(4) A license issued under subsection (3) of this section shall be valid for one (1) year 18
and may be renewed annually for a fee of ten thousand dollars ($10,000). 19
(5) (a) In addition to the licensing fees imposed in subsections (3) and (4) of this 20
section, a gaming fee of six and three-quarters percent (6.75%) of net poker 21
revenue shall be imposed on each online poker vendor. 22
(b) The gaming fee shall be paid monthly by each licensed online poker vendor 23
to the cabinet, and may be made by electronic funds transfer. 24
(6) Any person who has been issued a license under this section shall have the 25
license suspended by the cabinet if a final judgment is issued against the person 26
for the improper use of Internet domain names. The license suspension shall 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 13 of 52
HB060610.100 - 1000 - XXXX GA
continue until all fines and fees assessed under the judgment are fully paid. 1
SECTION 8. A NEW SECTION OF KRS CHAPTER 239A IS CREATED TO 2
READ AS FOLLOWS: 3
(1) Online poker licensing fees and the gaming fee imposed by Section 7 of this Act 4
shall be deposited in the wagering administration fund established by Section 4 of 5
this Act. 6
(2) The cabinet is authorized to use money in the wagering administration fund for 7
the purposes of paying necessary expenses incurred in establishing and 8
overseeing the online poker system. 9
(3) Moneys in excess of the amount needed for necessary expenses shall be used for 10
the purposes established in subsection (1)(b)2. of Section 4 of this Act. 11
(4) Notwithstanding KRS 45.229, fund amounts not expended at the close of a fiscal 12
year shall not lapse but shall be carried forward into the next fiscal year. 13
(5) All moneys held in the fund shall be invested by the cabinet in accordance with 14
the cabinet's investment practices, and all earnings from the investments shall 15
accrue to the benefit of the fund. 16
Section 9. KRS 230.210 is amended to read as follows: 17
As used in this chapter, unless the context requires otherwise: 18
(1) "Advance deposit account wagering" means a form of pari-mutuel wagering in 19
which an individual may establish an account with a person or entity licensed by the 20
racing commission, and may place a pari-mutuel wager through that account that is 21
permitted by law; 22
(2) "Advance deposit account wagering licensee" means a person or entity licensed by 23
the racing commission to conduct advance deposit account wagering and accept 24
deposits and wagers, issue a receipt or other confirmation to the account holder 25
evidencing such deposits and wagers, and transfer credits and debits to and from 26
accounts; 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 14 of 52
HB060610.100 - 1000 - XXXX GA
(3) "Appaloosa race" or "Appaloosa racing" means that form of horse racing in which 1
each horse participating in the race is registered with the Appaloosa Horse Club of 2
Moscow, Idaho, and is mounted by a jockey; 3
(4) "Arabian" means a horse that is registered with the Arabian Horse Registry of 4
Denver, Colorado; 5
(5) "Association" means any person licensed by the Kentucky Horse Racing 6
Commission under KRS 230.300 and engaged in the conduct of a recognized horse 7
race meeting; 8
(6) "Harness race" or "harness racing" means trotting and pacing races of the 9
standardbred horses; 10
(7) "Horse race meeting" means horse racing run at an association licensed and 11
regulated by the Kentucky Horse Racing Commission, and may include 12
Thoroughbred, harness, Appaloosa, Arabian, paint, and quarter horse racing; 13
(8) "Host track" means the track conducting racing and offering its racing for intertrack 14
wagering, or, in the case of interstate wagering, means the Kentucky track 15
conducting racing and offering simulcasts of races conducted in other states or 16
foreign countries; 17
(9) "Intertrack wagering" means pari-mutuel wagering on simulcast horse races from a 18
host track by patrons at a receiving track; 19
(10) "Interstate wagering" means pari-mutuel wagering on simulcast horse races from a 20
track located in another state or foreign country by patrons at a receiving track or 21
simulcast facility; 22
(11) "Kentucky quarter horse, paint horse, Appaloosa, and Arabian purse fund" means a 23
purse fund established to receive funds as specified in KRS 230.3771 for purse 24
programs established in KRS 230.446 to supplement purses for quarter horse, paint 25
horse, Appaloosa, and Arabian horse races. The purse program shall be 26
administered by the Kentucky Horse Racing Commission; 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 15 of 52
HB060610.100 - 1000 - XXXX GA
(12) "Kentucky resident" means: 1
(a) An individual domiciled within this state; 2
(b) An individual who maintains a place of abode in this state and spends, in the 3
aggregate, more than one hundred eighty-three (183) days of the calendar year 4
in this state; or 5
(c) An individual who lists a Kentucky address as his or her principal place of 6
residence when applying for an account to participate in advance deposit 7
account wagering; 8
(13) "Licensed premises" means a track or simulcast facility licensed by the racing 9
commission under this chapter; 10
(14) "Paint horse" means a horse registered with the American Paint Horse Association 11
of Fort Worth, Texas; 12
(15) "Pari-mutuel wagering," "pari-mutuel system of wagering," or "mutuel wagering" 13
each means any method of wagering previously or hereafter approved by the racing 14
commission in which one (1) or more patrons wager on a horse race or races, 15
whether live, simulcast, or previously run. Wagers shall be placed in one (1) or 16
more wagering pools, and wagers on different races or sets of races may be pooled 17
together. Patrons may establish odds or payouts, and winning patrons share in 18
amounts wagered including any carryover amounts, plus any amounts provided by 19
an association less any deductions required, as approved by the racing commission 20
and permitted by law. Pools may be paid out incrementally over time as approved 21
by the racing commission; 22
(16) "Principal" means any of the following individuals associated with a partnership, 23
trust, association, limited liability company, or corporation that is licensed to 24
conduct a horse race meeting or an applicant for a license to conduct a horse race 25
meeting: 26
(a) The chairman and all members of the board of directors of a corporation; 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 16 of 52
HB060610.100 - 1000 - XXXX GA
(b) All partners of a partnership and all participating members of a limited 1
liability company; 2
(c) All trustees and trust beneficiaries of an association; 3
(d) The president or chief executive officer and all other officers, managers, and 4
employees who have policy-making or fiduciary responsibility within the 5
organization; 6
(e) All stockholders or other individuals who own, hold, or control, either directly 7
or indirectly, five percent (5%) or more of stock or financial interest in the 8
collective organization; and 9
(f) Any other employee, agent, guardian, personal representative, or lender or 10
holder of indebtedness who has the power to exercise a significant influence 11
over the applicant's or licensee's operation; 12
(17) "Quarter horse" means a horse that is registered with the American Quarter Horse 13
Association of Amarillo, Texas; 14
(18) "Racing commission" means the Kentucky Horse Racing Commission; 15
(19) "Receiving track" means a track where simulcasts are displayed for wagering 16
purposes. A track that submits an application for intertrack wagering shall meet all 17
the regulatory criteria for granting an association license of the same breed as the 18
host track, and shall have a heated and air-conditioned facility that meets all state 19
and local life safety code requirements and seats a number of patrons at least equal 20
to the average daily attendance for intertrack wagering on the requested breed in the 21
county in which the track is located during the immediately preceding calendar year; 22
(20) "Simulcast facility" means any facility approved pursuant to the provisions of KRS 23
230.380 to simulcast live racing and conduct pari-mutuel wagering on live racing; 24
(21) "Simulcasting" means the telecast of live audio and visual signals of horse races for 25
the purpose of pari-mutuel wagering; 26
(22) "Sports wagering" means the placing of wagers on the outcomes of professional 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 17 of 52
HB060610.100 - 1000 - XXXX GA
sports contests and other events in conformance with federal law and as 1
authorized by the racing commission at tracks and online or by smartphone 2
through applications as authorized by this chapter and Section 10 of this Act; 3
(23)[(22)] "Telephone account wagering" means a form of pari-mutuel wagering where 4
an individual may deposit money in an account at a track and may place a wager by 5
direct telephone call or by communication through other electronic media owned by 6
the holder of the account to the track; 7
(24)[(23)] "Thoroughbred race" or "Thoroughbred racing" means a form of horse racing 8
in which each horse participating in the race is a Thoroughbred, (i.e., meeting the 9
requirements of and registered with The Jockey Club of New York) and is mounted 10
by a jockey; and 11
(25)[(24)] "Track" means any association duly licensed by the Kentucky Horse Racing 12
Commission to conduct horse racing and shall include: 13
(a) For facilities in operation as of 2010, the location and physical plant described 14
in the "Commonwealth of Kentucky Initial/Renewal Application for License 15
to Conduct Live Horse Racing, Simulcasting, and Pari-Mutuel Wagering," 16
filed for racing to be conducted in 2010; 17
(b) Real property of an association, if the association received or receives 18
approval from the racing commission after 2010 for a location at which live 19
racing is to be conducted; or 20
(c) One (1) facility or real property that is: 21
1. Owned, leased, or purchased by an association within a sixty (60) mile 22
radius of the association's racetrack but not contiguous to racetrack 23
premises, upon racing commission approval; and 24
2. Not within a sixty (60) mile radius of another licensed track premise 25
where live racing is conducted and not within a forty (40) mile radius of 26
a simulcast facility, unless any affected track or simulcast facility agrees 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 18 of 52
HB060610.100 - 1000 - XXXX GA
in writing to permit a noncontiguous facility within the protected 1
geographic area. 2
SECTION 10. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) The racing commission shall institute a system of sports wagering in 5
conformance with federal law, this chapter, Section 20 of this Act, and 6
administrative regulations promulgated under the authority of Section 12 of this 7
Act. 8
(2) Sports wagering shall not be offered in this state except by: 9
(a) A track, as defined by Section 9 if this Act, that is licensed under this 10
chapter; or 11
(b) An online or smartphone application that shall: 12
1. Only be available to individuals eighteen (18) years of age or older; 13
2. Contain geographical location software to ensure that bets are placed 14
only within the boundaries of the Commonwealth; and 15
3. Include an option for advance deposit account wagering on sports 16
events. 17
(3) A licensed track may contract with no more than one (1) interactive sports 18
wagering technology and service provider at a time to provide services and 19
technology which support the track's operation of sports betting both on the track 20
and over the Internet. 21
(4) A track shall not offer sports wagering until the racing commission has issued a 22
sports wagering license to the track. 23
(5) A track licensed under Section 16 of this Act may offer sports wagering at up to 24
two (2) facilities or real properties that are: 25
(a) Owned, leased, or purchased by a track within a sixty (60) mile radius of the 26
track but not contiguous to the track, upon racing commission approval; 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 19 of 52
HB060610.100 - 1000 - XXXX GA
and 1
(b) Not within a sixty (60) mile radius of another licensed track or premise 2
where sports wagering is conducted, unless any affected track agrees in 3
writing to permit a noncontiguous facility within the protected geographic 4
area. 5
SECTION 11. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 6
READ AS FOLLOWS: 7
Sporting events that may be wagered upon at the discretion of the racing commission 8
include but are not limited to: 9
(1) Professional sporting events sanctioned by nationally recognized organizations, 10
including but not limited to: 11
(a) The National Football League; 12
(b) The National Basketball Association; 13
(c) Major League Baseball; 14
(d) The Professional Golfers' Association; 15
(e) The National Association for Stock Car Auto Racing; 16
(f) Major League Soccer; and 17
(g) Other nationally or internationally recognized organizations sanctioning 18
events in professional sports such as boxing, mixed martial arts, table 19
tennis, cricket, darts, and soccer; 20
(2) College sporting events sanctioned by the National Collegiate Athletic 21
Association, the National Association of Intercollegiate Athletics, or other 22
collegiate athletic body recognized by the commission; 23
(3) International events such as the Olympics and World Cup Soccer, at the 24
discretion of the racing commission; and 25
(4) After consulting with the league or association sanctioning or authorizing the 26
sporting event, actions within a sporting event that do not represent the end result 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 20 of 52
HB060610.100 - 1000 - XXXX GA
of the game, but are integral to the play of the game, including but not limited to: 1
(a) The result of a putt; 2
(b) The result of an at bat; or 3
(c) The result of a field goal attempt. 4
Section 12. KRS 230.215 is amended to read as follows: 5
(1) (a) It is the policy of the Commonwealth of Kentucky, in furtherance of its 6
responsibility to foster and to encourage legitimate occupations and industries 7
in the Commonwealth and to promote and to conserve the public health, 8
safety, and welfare, and it is hereby declared the intent of the Commonwealth 9
to foster and to encourage the horse breeding industry within the 10
Commonwealth and to encourage the improvement of the breeds of horses. 11
(b) Further, it is the policy and intent of the Commonwealth to foster and to 12
encourage the business of legitimate horse racing with pari-mutuel wagering 13
thereon in the Commonwealth on the highest possible plane. Further, it hereby 14
is declared the policy and intent of the Commonwealth that all racing not 15
licensed under this chapter is a public nuisance and may be enjoined as such. 16
(c) Further, it is hereby declared the policy and intent of the Commonwealth that 17
the conduct of horse racing, or the participation in any way in horse racing, or 18
the entrance to or presence where horse racing is conducted, is a privilege and 19
not a personal right; and that this privilege may be granted or denied by the 20
racing commission or its duly approved representatives acting in its behalf. 21
(d) Further, it hereby is declared the policy and intent of the Commonwealth 22
that citizens shall be allowed to enjoy wagering on sporting events in a 23
controlled environment that protects the citizens from cheating and fraud, 24
and that such wagering shall be best controlled and overseen by the 25
Kentucky Horse Racing Commission, which has demonstrated a long and 26
successful history of regulating wagering. 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 21 of 52
HB060610.100 - 1000 - XXXX GA
(2) (a) It is hereby declared the purpose and intent of this chapter in the interest of the 1
public health, safety, and welfare, to vest in the racing commission forceful 2
control of horse racing in the Commonwealth with plenary power to 3
promulgate administrative regulations prescribing conditions under which all 4
legitimate horse racing and wagering thereon is conducted in the 5
Commonwealth so as to encourage the improvement of the breeds of horses in 6
the Commonwealth, to regulate and maintain horse racing at horse race 7
meetings in the Commonwealth of the highest quality and free of any corrupt, 8
incompetent, dishonest, or unprincipled horse racing practices, and to regulate 9
and maintain horse racing at race meetings in the Commonwealth so as to 10
dissipate any cloud of association with the undesirable and maintain the 11
appearance as well as the fact of complete honesty and integrity of horse 12
racing in the Commonwealth. 13
(b) In addition, it is hereby declared the purpose and intent of this chapter to 14
vest in the racing commission exclusive jurisdiction over sports wagering in 15
the Commonwealth, with the exception of fantasy contest wagering under 16
KRS Chapter 239A, with plenary power to promulgate administrative 17
regulations prescribing conditions under which all legitimate sports 18
wagering is to be conducted. 19
(c) In addition to the general powers and duties vested in the racing commission 20
by this chapter, it is the intent hereby to vest in the racing commission the 21
power to eject or exclude from association grounds or any part thereof any 22
person, licensed or unlicensed, whose conduct or reputation is such that his 23
presence on association grounds may, in the opinion of the racing 24
commission, reflect on the honesty and integrity of horse racing or interfere 25
with the orderly conduct of horse racing. 26
Section 13. KRS 230.225 is amended to read as follows: 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 22 of 52
HB060610.100 - 1000 - XXXX GA
(1) The Kentucky Horse Racing Commission is created as an independent agency of 1
state government to regulate the conduct of horse racing and pari-mutuel wagering 2
on horse racing, and sports wagering and related activities within the 3
Commonwealth of Kentucky. The racing commission shall be attached to the Public 4
Protection Cabinet for administrative purposes. 5
(2) (a) The Kentucky Horse Racing Commission shall consist of fifteen (15) 6
members appointed by the Governor, with the secretaries of the Public 7
Protection Cabinet, Tourism, Arts and Heritage Cabinet, and Economic 8
Development Cabinet, or their designees, serving as ex officio nonvoting 9
members. 10
(b) Two (2) members shall have no financial interest in the business or industry 11
regulated. 12
(c) The members of the racing commission shall be appointed to serve for a term 13
of four (4) years, except the initial terms shall be staggered as follows: 14
1. Five (5) members shall serve for a term of four (4) years; 15
2. Five (5) members shall serve for a term of three (3) years; and 16
3. Five (5) members shall serve for a term of two (2) years. 17
(d) Any member appointed to fill a vacancy occurring other than by expiration of 18
a term shall be appointed for the remainder of the unexpired term. 19
(e) In making appointments, the Governor may consider members broadly 20
representative of the Thoroughbred industry and members broadly 21
representative of the standardbred, quarter horse, Appaloosa, or Arabian 22
industries. The Governor may also consider recommendations from the 23
Kentucky Thoroughbred Owners and Breeders, Inc., the Kentucky Division of 24
the Horsemen's Benevolent and Protective Association, the Kentucky Harness 25
Horsemen's Association, and other interested organizations. 26
(3) (a) Members of the racing commission shall receive no compensation for serving 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 23 of 52
HB060610.100 - 1000 - XXXX GA
on the commission, but shall be reimbursed for travel expenses for attending 1
meetings and performing other official functions consistent with the 2
reimbursement policy for state employees established by KRS 45.101 and 3
administrative regulations promulgated thereunder. 4
(b) The Governor shall appoint one (1) member of the racing commission to serve 5
as its chairperson who shall serve at the pleasure of the Governor. 6
(c) The Governor shall further designate a second member to serve as vice chair 7
with authority to act in the absence of the chairperson. 8
(d) Before entering upon the discharge of their duties, all members of the 9
Kentucky Horse Racing Commission shall take the constitutional oath of 10
office. 11
(4) (a) The racing commission shall establish and maintain a general office for the 12
transaction of its business and may in its discretion establish a branch office or 13
offices. 14
(b) The racing commission may hold meetings at any of its offices or at any other 15
place when the convenience of the racing commission requires. 16
(c) All meetings of the racing commission shall be open and public, and all 17
persons shall be permitted to attend meetings. 18
(d) A majority of the voting members of the racing commission shall constitute a 19
quorum for the transaction of its business or exercise of any of its powers. 20
(5) Except as otherwise provided, the racing commission shall be responsible for the 21
following: 22
(a) Developing and implementing programs designed to ensure the safety and 23
well-being of horses, jockeys, and drivers; 24
(b) Developing programs and procedures that will aggressively fulfill its oversight 25
and regulatory role on such matters as medical practices and integrity issues; 26
(c) Recommending tax incentives and implementing incentive programs to ensure 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 24 of 52
HB060610.100 - 1000 - XXXX GA
the strength and growth of the equine industry; 1
(d) Designing and implementing programs that strengthen the ties between 2
Kentucky's horse industry and the state's universities, with the goal of 3
significantly increasing the economic impact of the horse industry on 4
Kentucky's economy, improving research for the purpose of promoting the 5
enhanced health and welfare of the horse, and other related industry issues;[ 6
and] 7
(e) Developing and supporting programs which ensure that Kentucky remains in 8
the forefront of equine research; 9
(f) Developing monitoring programs to ensure the highest integrity of athletic 10
events and sports wagering; and 11
(g) Developing a program to share wagering information with the leagues, 12
associations, and other governing bodies sanctioning sports events upon 13
which wagers may be accepted. The program shall be designed to assist in 14
determining potential problems or questionable wagering activity so the 15
leagues, associations, and the racing commission can monitor wagering 16
activity effectively. 17
Section 14. KRS 230.240 is amended to read as follows: 18
(1) (a) In addition to the employees referred to in KRS 230.230, the executive 19
director of the racing commission may employ, dismiss, or take other 20
personnel action and determine the reasonable compensation of stewards, 21
supervisors of mutuels, veterinarians, inspectors, accountants, security 22
officers, and other employees deemed by the executive director to be essential 23
at or in connection with any horse race meeting and in the best interest of 24
racing, or those deemed by the executive director to be integral to the 25
conduct of sports wagering. 26
(b) Three (3) Thoroughbred stewards shall be employed at each Thoroughbred 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 25 of 52
HB060610.100 - 1000 - XXXX GA
race meeting as follows:[.] 1
1. Two (2) stewards shall be employed and compensated by the 2
Commonwealth, subject to reimbursement by the racing associations 3
pursuant to subsection (3) of this section; and[.] 4
2. One (1) Thoroughbred steward shall be employed and compensated by 5
the racing association hosting the race meeting. 6
(c) Three (3) standardbred judges shall be employed at each standardbred race 7
meeting as follows:[.] 8
1. Two (2) standardbred judges shall be employed and compensated by the 9
Commonwealth, subject to reimbursement by the racing associations 10
pursuant to subsection (3) of this section; and[.] 11
2. One (1) standardbred judge shall be employed and compensated by the 12
racing association hosting the race meeting. 13
(d) The security officers shall be peace officers and conservators of the peace on 14
racing commission property and at all race tracks and grounds in the 15
Commonwealth and shall possess all the common law and statutory powers 16
and privileges now available or hereafter made available to sheriffs, 17
constables, and police officers for the purpose of enforcing all laws relating 18
directly or indirectly to the conduct of horse racing and pari-mutuel wagering 19
thereon, the conduct of sports wagering, or the enforcement of laws relating 20
to the protection of persons or property on premises licensed by the racing 21
commission. 22
(e) The racing commission, for the purpose of maintaining integrity and honesty 23
in racing, shall prescribe by administrative regulation the powers and duties of 24
the persons employed under this section and qualifications necessary to 25
competently perform their duties. In addition, the racing commission shall be 26
responsible for seeing that racing officials employed under the provisions of 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 26 of 52
HB060610.100 - 1000 - XXXX GA
this section have adequate training to perform their duties in a competent 1
manner. 2
(2) (a) The racing commission shall promulgate administrative regulations for 3
effectively preventing the use of improper devices, and restricting or 4
prohibiting the use and administration of drugs or stimulants or other 5
improper acts to horses prior to the horse participating in a race. 6
(b) The racing commission may acquire, operate, and maintain, or contract for the 7
maintenance and operation of, a testing laboratory and related facilities, for 8
the purpose of saliva, urine, or other tests, and to purchase supplies and 9
equipment for and in connection with the laboratory or testing processes. 10
(c) The expense of the laboratory or other testing processes, whether furnished by 11
contract or otherwise, together with all supplies and equipment used in 12
connection therewith, shall be paid by the various associations licensed under 13
this chapter in the manner and in proportions as the racing commission shall 14
by administrative regulation provide. 15
(3) (a) The compensation of the employees referred to in this section shall be paid by 16
the licensee conducting the horse race meeting in connection with which the 17
employees are utilized or employed. 18
(b) The salary of the executive director to the racing commission shall be prorated 19
among and paid by the various associations licensed under this chapter in the 20
manner as the racing commission shall, by administrative regulation, provide. 21
(c) Except for the Thoroughbred steward and the standardbred judge authorized 22
in subsection (1) of this section, the employees referred to in this section shall 23
be deemed employees of the racing commission, and are paid by the licensee 24
or association for convenience only. 25
(4) Each person, as a condition precedent to the privilege of receiving a license under 26
this chapter to conduct a horse race meeting, shall be deemed to have agreed to pay 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 27 of 52
HB060610.100 - 1000 - XXXX GA
expenses and compensation as provided in this section and as may be actually and 1
reasonably incurred. 2
Section 15. KRS 230.260 is amended to read as follows: 3
The racing commission, in the interest of breeding or the improvement of breeds of 4
horses, shall have all powers necessary and proper to carry out fully and effectually the 5
provisions of this chapter including but without limitation the following: 6
(1) The racing commission is vested with jurisdiction and supervision over all horse 7
race meetings and sports wagering in this Commonwealth and over all associations 8
and all persons on association grounds and may eject or exclude therefrom or any 9
part thereof, any person, licensed or unlicensed, whose conduct or reputation is such 10
that his or her presence on association grounds may, in the opinion of the racing 11
commission, negatively reflect on the honesty and integrity of horse racing, or on 12
athletic contests upon which sports wagers have been placed, or interfere with the 13
orderly conduct of horse racing or racing at horse race meetings; provided, however, 14
no persons shall be excluded or ejected from association grounds solely on the 15
ground of race, color, creed, national origin, ancestry, or sex; 16
(2) The racing commission is vested with jurisdiction over any person or entity that 17
offers advance deposit account wagering to Kentucky residents for pari-mutuel 18
wagering on horse racing. Any such person or entity under the jurisdiction of the 19
racing commission shall be licensed by the racing commission, and the racing 20
commission may impose a license fee not to exceed ten thousand dollars ($10,000) 21
annually. The racing commission shall, by administrative regulation promulgated in 22
accordance with KRS Chapter 13A, establish conditions and procedures for the 23
licensing of advance deposit account wagering providers to include but not be 24
limited to: 25
(a) A fee schedule for applications for licensure; and 26
(b) Reporting requirements to include quarterly reporting on: 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 28 of 52
HB060610.100 - 1000 - XXXX GA
1. The amount wagered on Kentucky races; and 1
2. The total amount wagered by Kentuckians; 2
(3) The racing commission is vested with jurisdiction over any totalisator company that 3
provides totalisator services to a racing association located in the Commonwealth. 4
A totalisator company under the jurisdiction of the racing commission shall be 5
licensed by the racing commission, regardless of whether a totalisator company is 6
located in the Commonwealth or operates from a location or locations outside of the 7
Commonwealth, and the racing commission may impose a license fee on a 8
totalisator company. The racing commission shall, by administrative regulation 9
promulgated in accordance with KRS Chapter 13A, establish conditions and 10
procedures for the licensing of totalisator companies, and a fee schedule for 11
applications for licensure; 12
(4) The racing commission is vested with jurisdiction over any manufacturer, 13
wholesaler, distributor, or vendor of any equine drug, medication, therapeutic 14
substance, or metabolic derivative which is purchased by or delivered to a licensee 15
or other person participating in Kentucky horse racing by means of the Internet, 16
mail delivery, in-person delivery, or other means; 17
(5) The racing commission is vested with jurisdiction over any horse training center or 18
facility in the Commonwealth that records official timed workouts for publication; 19
(6) The racing commission may require an applicant for a license under subsections (2) 20
and (3) of this section to submit to a background check of the applicant, or of any 21
individual or organization associated with the applicant. An applicant shall be 22
required to reimburse the racing commission for the cost of any background check 23
conducted; 24
(7) The racing commission, its representatives and employees, may visit, investigate 25
and have free access to the office, track, facilities, or other places of business of any 26
licensee, or any person owning a horse or performing services regulated by this 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 29 of 52
HB060610.100 - 1000 - XXXX GA
chapter on a horse registered to participate in a breeders incentive fund under the 1
jurisdiction of the racing commission; 2
(8) The racing commission shall have full authority to prescribe necessary and 3
reasonable administrative regulations and conditions under which horse racing at a 4
horse race meeting shall be conducted in this state and to fix and regulate the 5
minimum amount of purses, stakes, or awards to be offered for the conduct of any 6
horse race meeting; 7
(9) Applications for licenses shall be made in the form, in the manner, and contain 8
information as the racing commission may, by administrative regulation, require. 9
Fees for all licenses issued under KRS 230.310 shall be prescribed by and paid to 10
the racing commission; 11
(10) The racing commission shall establish by administrative regulation minimum fees 12
for jockeys to be effective in the absence of a contract between an employing owner 13
or trainer and a jockey. The minimum fees shall be no less than those of July 1, 14
1985; 15
(11) The racing commission may refuse to issue or renew a license, revoke or suspend a 16
license, impose probationary conditions on a license, issue a written reprimand or 17
admonishment, impose fines or penalties, deny purse money, require the forfeiture 18
of purse money, or any combination thereof with regard to a licensee or other 19
person participating in Kentucky horse racing for violation of any federal or state 20
statute, regulation, or steward's or racing commission's directive, ruling, or order to 21
preserve the integrity of Kentucky horse racing or to protect the racing public. The 22
racing commission shall, by administrative regulation, establish the criteria for 23
taking the actions described in this subsection; 24
(12) The racing commission may issue subpoenas for the attendance of witnesses before 25
it and for the production of documents, records, papers, books, supplies, devices, 26
equipment, and all other instrumentalities related to pari-mutuel horse racing or 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 30 of 52
HB060610.100 - 1000 - XXXX GA
sports wagering within the Commonwealth. The racing commission may 1
administer oaths to witnesses and require witnesses to testify under oath whenever, 2
in the judgment of the racing commission, it is necessary to do so for the effectual 3
discharge of its duties; 4
(13) The racing commission shall have authority to compel any racing association 5
licensed under this chapter to file with the racing commission at the end of its fiscal 6
year, a balance sheet, showing assets and liabilities, and an earnings statement, 7
together with a list of its stockholders or other persons holding a beneficial interest 8
in the association; and 9
(14) The racing commission shall promulgate administrative regulations establishing 10
safety standards for jockeys, which shall include the use of rib protection 11
equipment. Rib protection equipment shall not be included in a jockey's weight. 12
SECTION 16. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 13
READ AS FOLLOWS: 14
(1) No person shall conduct or offer to conduct sports wagering within the 15
Commonwealth of Kentucky without obtaining a sports wagering license from 16
the racing commission. 17
(2) As a prerequisite to obtaining a sports wagering license, a person shall be 18
licensed as an association under KRS 230.300. 19
(3) In addition to the requirement in subsection (2) of this section, an initial 20
licensing fee of five hundred thousand dollars ($500,000) shall be paid to the 21
racing commission before a license may be issued. 22
(4) An annual renewal fee of fifty thousand dollars ($50,000) shall be required for 23
each sports wagering license. 24
(5) Licensing fees paid under this section shall be deposited into the wagering 25
administration fund established by Section 4 of this Act. 26
Section 17. KRS 230.320 is amended to read as follows: 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 31 of 52
HB060610.100 - 1000 - XXXX GA
(1) Every license granted under this chapter is subject to denial, revocation, or 1
suspension.[, and] 2
(2) Every racing licensee or other person participating in Kentucky horse racing may be 3
assessed an administrative fine and required to forfeit or return a purse, by the 4
racing commission in any case where it has reason to believe that any provision of 5
this chapter, administrative regulation, or condition of the racing commission 6
affecting it has not been complied with or has been broken or violated. The racing 7
commission may deny, revoke, or suspend a license for failure by the licensee or 8
other person participating in Kentucky horse racing to pay an administrative fine 9
imposed upon the licensee by the stewards or the racing commission. The racing 10
commission, in the interest of honesty and integrity of horse racing, may promulgate 11
administrative regulations under which any license may be denied, suspended, or 12
revoked, and under which any licensee or other person participating in Kentucky 13
horse racing may be assessed an administrative fine or required to forfeit or return a 14
purse. 15
(3)[(2)] (a) Following a hearing by the stewards, a person who has been disciplined 16
by a ruling of the stewards may apply to the racing commission for a stay of 17
the ruling, pending action on an appeal by the racing commission. 18
(b) An application for a stay shall be received by the executive director or his 19
designee within ten (10) calendar days of the issuance of the stewards' ruling. 20
(c) An application for a stay shall be in writing and include the following: 21
1. The name, address, telephone number, and signature of the person 22
requesting the stay; 23
2. A statement of the justification for the stay; and 24
3. The period of time for which the stay is requested. 25
(d) On a finding of good cause, the executive director or his designee may grant 26
the stay. The executive director or his designee shall issue a written decision 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 32 of 52
HB060610.100 - 1000 - XXXX GA
granting or denying the request for stay within five (5) calendar days from the 1
time the application for stay is received by the executive director or his 2
designee. If the executive director or his designee fails to timely issue a 3
written decision, then the stay is deemed granted. The executive director or his 4
designee may rescind a stay granted under this subsection for good cause. 5
(e) A person who is denied a stay by the executive director or his designee, or has 6
a previously granted stay rescinded under paragraph (d) of this subsection, 7
may petition the racing commission to overrule the executive director's or 8
designee's denial or rescission of the stay. The petition shall be filed in writing 9
with the chairperson of the racing commission and received by the chairperson 10
within ten (10) calendar days of the mailing of the executive director's or 11
designee's denial of the stay. The petition shall state the name, address, phone 12
number, and signature of the petitioner; a statement of justification of the stay; 13
and the time period for which the stay is requested. The chairperson shall 14
convene a special meeting of the racing commission within ten (10) calendar 15
days of receipt of the petition, and the racing commission shall issue a written 16
final order granting or denying the petition within two (2) calendar days of the 17
special meeting. If the racing commission fails to timely issue a final order on 18
the petition, then the stay is granted. The racing commission may rescind a 19
stay granted under this subsection for good cause. 20
(f) A person who is denied or has a previously granted stay rescinded by the 21
racing commission may file an appeal of the final written order of the racing 22
commission in the Circuit Court of the county in which the cause of action 23
arose. 24
(g) The fact that a stay is granted is not a presumption that the ruling by the 25
stewards is invalid. 26
(4)[(3)] If any racing-associated license is denied, suspended, or revoked, or if any 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 33 of 52
HB060610.100 - 1000 - XXXX GA
licensee or other person participating in Kentucky horse racing is assessed an 1
administrative fine or required to forfeit or return a purse, after a hearing by the 2
stewards or by the racing commission acting on a complaint or by its own volition, 3
the racing commission shall grant the applicant, licensee, or other person the right 4
to appeal the decision, and upon appeal, an administrative hearing shall be 5
conducted in accordance with KRS Chapter 13B. 6
(5)[(4)] The racing commission may at any time order that any case pending before the 7
stewards be immediately transferred to the racing commission for an administrative 8
hearing conducted in accordance with KRS Chapter 13B. 9
(6)[(5)] (a) In an administrative appeal to the racing commission by a licensee or 10
other person participating in Kentucky horse racing, the racing commission 11
may determine in its final order that the appeal is frivolous. If the racing 12
commission finds that an appeal is frivolous: 13
1. This fact shall be considered an aggravating circumstance and may be 14
considered in assessing any penalty against the licensee; and 15
2. The licensee or other person who raised the appeal may be required to 16
reimburse the racing commission for the cost of the investigation of the 17
underlying circumstances of the case and the cost of the adjudication of 18
the appeal. Costs may include but are not limited to fees paid to a 19
hearing officer or court reporter, attorneys'[attorneys] fees, and 20
laboratory expenses. 21
(b) The racing commission shall by administrative regulation prescribe the 22
conditions or factors by which an appeal may be determined to be frivolous. 23
(7)[(6)] Any administrative action authorized in this chapter shall be in addition to any 24
criminal penalties provided in this chapter or under other provisions of law. 25
Section 18. KRS 230.361 is amended to read as follows: 26
(1) (a) The racing commission shall promulgate administrative regulations governing 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 34 of 52
HB060610.100 - 1000 - XXXX GA
and regulating mutuel wagering on horse races under what is known as the pari-1
mutuel system of wagering. 2
(b) The wagering shall be conducted only by a person licensed under this chapter 3
to conduct a race meeting and only upon the licensed premises, and provided 4
further that only pari-mutuel wagering on simulcasting shall be allowed at 5
simulcast facilities. 6
(c) The pari-mutuel system of wagering shall be operated only by a totalizator or 7
other mechanical equipment approved by the racing commission. The racing 8
commission shall not require any particular make of equipment. 9
(2) The racing commission shall promulgate administrative regulations governing 10
and regulating sports wagering. The wagering shall be conducted only by persons 11
licensed under this chapter. 12
(3) The operation of a pari-mutuel system for betting, or the conduct of sports 13
wagering, where authorized by law shall not constitute grounds for the revocation 14
or suspension of any license issued and held under KRS 242.1238 and 243.265. 15
(4)[(3)] All reported but unclaimed pari-mutuel or sports wagering winning tickets 16
held in this state by any person or association operating a pari-mutuel, sports 17
wagering, or similar system of betting conducted through a licensed association[ 18
at horse race meetings] shall be presumed abandoned if not claimed by the person 19
entitled to them within one (1) year from the time the ticket became payable. 20
(5)[(4)] The racing commission may issue a license to conduct pari-mutuel wagering 21
on steeple chases or other racing over jumps; if all proceeds from the wagering, 22
after expenses are deducted, is used for charitable purposes. If the dates requested 23
for such a license have been granted to a track within a forty (40) mile radius of the 24
race site, the racing commission shall not issue a license until it has received written 25
approval from the affected track. Pari-mutuel wagering licensed and approved under 26
this subsection shall be limited to four (4) days per year. All racing and wagering 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 35 of 52
HB060610.100 - 1000 - XXXX GA
authorized by this subsection shall be conducted in accordance with applicable 1
administrative regulations promulgated by the racing commission. 2
Section 19. KRS 230.3615 is amended to read as follows: 3
(1) The commission, including the tax levied in KRS 138.510, deducted from the gross 4
amount wagered on horse racing by the association which operates a race track 5
under the jurisdiction of the Kentucky Horse Racing Commission and conducts the 6
Thoroughbred racing at which betting is conducted through a pari-mutuel or other 7
similar system, in races where the patron is required to select one (1) horse, and the 8
breaks, which breaks shall be made and calculated to the dime, shall not be more 9
than sixteen percent (16%) at the discretion of those tracks averaging over one 10
million two hundred thousand dollars ($1,200,000) in on-track pari-mutuel handle 11
per day of live racing conducted by the association. The commission at those tracks 12
averaging one million two hundred thousand dollars ($1,200,000) or less in on-track 13
pari-mutuel handle per day of live racing conducted by the association, at the 14
discretion of such track, shall not be more than seventeen and one-half percent 15
(17.5%) in races where the patron is required to select one (1) horse, and the breaks, 16
which breaks shall be made and calculated to the dime. 17
(2) The commission at those tracks averaging over one million two hundred thousand 18
dollars ($1,200,000) in on track pari-mutuel handle per day of live racing conducted 19
by the association, including the tax levied in KRS 138.510, deducted from the 20
gross amount wagered by the person, corporation, or association which operates a 21
race track under the jurisdiction of the Kentucky Horse Racing Commission and 22
conducts Thoroughbred racing at which betting is conducted through a pari-mutuel 23
or other similar system shall not exceed nineteen percent (19%) of the gross handle 24
in races where the patron is required to select two (2) or more horses, and the 25
breaks, which breaks shall be made and calculated to the dime. The commission, at 26
those tracks averaging one million two hundred thousand dollars ($1,200,000) or 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 36 of 52
HB060610.100 - 1000 - XXXX GA
less in on track pari-mutuel handle per day of live racing conducted by the 1
association, including the tax levied in KRS 138.510, deducted from the gross 2
amount wagered by the association which operates a race track under the 3
jurisdiction of the Kentucky Horse Racing Commission and conducts Thoroughbred 4
racing at which betting is conducted through a pari-mutuel or other similar system 5
shall not exceed twenty-two percent (22%) of the gross handle in races where the 6
patron is required to select two (2) or more horses, and the breaks, which breaks 7
shall be made and calculated to the dime. 8
(3) The minimum pari-mutuel wager to be accepted by any licensed association shall 9
be ten cents ($0.10). The minimum pay-off on a one dollar ($1) pari-mutuel wager 10
shall be one dollar and ten cents ($1.10); but, in the event of a minus pool, the 11
minimum pay-off for a one dollar ($1) pari-mutuel wager shall be one dollar and 12
five cents ($1.05). 13
(4) Each association conducting Thoroughbred racing and averaging one million two 14
hundred thousand dollars ($1,200,000) or less in on-track pari-mutuel handle per 15
day of live racing conducted by the association shall pay to the racing commission 16
all moneys allocated to the Thoroughbred backside improvement fund in an 17
amount equal to one-half of one percent (0.5%) of its on-track pari-mutuel wagers. 18
SECTION 20. A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 19
READ AS FOLLOWS: 20
(1) As used in this section, "adjusted gross revenue" means the total sum of bets 21
collected by a sports wagering licensee, less winnings paid to participants in the 22
contest. 23
(2) A tax is imposed on persons licensed to conduct sports wagering under KRS 24
Chapter 230 at a rate of: 25
(a) Nine and three-quarters percent (9.75%) on the adjusted gross revenue on 26
wagers placed at the licensed track; or 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 37 of 52
HB060610.100 - 1000 - XXXX GA
(b) Fourteen and one-quarter percent (14.25%) on the adjusted gross revenue 1
on wagers placed online or via smartphone or other off-site technology 2
approved by the Kentucky Horse Racing Commission; 3
and shall be appropriated to the wagering administration fund established in 4
Section 4 of this Act and appropriated for the purposes established in that section. 5
(3) The Department of Revenue shall enforce the provisions of and collect the taxes 6
and penalties imposed in this section, and in doing so it shall have the general 7
powers and duties granted it in KRS Chapters 131 and 135, including the power 8
to enforce, by an action in the Franklin Circuit Court, the collection of the taxes, 9
penalties, and other payments imposed or required by this section. 10
(4) The tax imposed by this section is due and payable to the department monthly 11
and shall be remitted on or before the twentieth day of the next succeeding 12
calendar month. 13
(5) (a) Payment shall be accompanied by a return form which the department shall 14
prescribe. 15
(b) The return form shall report, at a minimum: 16
1. The total handle; 17
2. Prizes paid; 18
3. Adjusted gross revenue; and 19
4. Wagering tax due. 20
(6) Wagering taxes due and payable in accordance with this section shall be paid via 21
electronic funds transfer. Sports wagering licensees shall provide the department 22
with all protocol documentation and electronic funds transfer data necessary to 23
facilitate the timely transfer of funds. 24
(7) Any person who violates any provision of this section shall be subject to the 25
uniform civil penalties imposed pursuant to KRS 131.180 and interest at the tax 26
interest rate as defined in KRS 131.010(6). 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 38 of 52
HB060610.100 - 1000 - XXXX GA
(8) The Kentucky Horse Racing Commission may suspend, revoke, or decline to 1
renew a license upon the licensee’s failure to timely submit payment of taxes due 2
under this section or the administrative regulations promulgated by the 3
department thereto. 4
Section 21. KRS 230.362 is amended to read as follows: 5
Any person holding unclaimed pari-mutuel or sports wagering winning tickets presumed 6
abandoned under the provisions of KRS 230.361 shall file annually, on or before 7
September 1 of each year, with the office of the racing commission a list of and the 8
amounts represented by unclaimed pari-mutuel or sports wagering tickets held by such 9
person as of July 1, and other information as the racing commission may require for the 10
administration of KRS 230.361 to 230.373. The report shall be made in duplicate; the 11
original shall be retained by the racing commission and the copy shall be mailed to the 12
sheriff of the county where the unclaimed pari-mutuel or sports wagering tickets are 13
held. It shall be the duty of the sheriff to post for not less than twenty (20) consecutive 14
days a copy of the report on the courthouse door or the courthouse bulletin board, and to 15
publish the copy in the manner set forth by KRS Chapter 424. The cost of the publication 16
shall be paid by the racing commission. The sheriff shall immediately certify in writing to 17
the racing commission the dates when the list was posted and published. The list shall be 18
posted and published as required on or before October 1 of the year when it is made, and 19
such posting and publishing shall be constructive notice to all holders of pari-mutuel and 20
sports wagering tickets which have remained unclaimed for a period of one (1) year from 21
the time the ticket became payable. 22
Section 22. KRS 230.363 is amended to read as follows: 23
Any person who has made a report of unclaimed pari-mutuel or sports wagering tickets 24
to the racing commission as required by KRS 230.362 shall, between November 1 and 25
November 15 of each year, turn over to the racing commission the sum represented by the 26
unclaimed pari-mutuel or sports wagering tickets so reported; but if the person making 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 39 of 52
HB060610.100 - 1000 - XXXX GA
the report or the owner of the unclaimed pari-mutuel or sports wagering ticket certifies to 1
the racing commission by sworn statement that any or all of the statutory conditions 2
necessary to create a presumption of abandonment no longer exists or never did exist, or 3
shall certify existence of any fact or circumstance in which there is substantial evidence to 4
rebut such presumption, then, the person reporting the unclaimed pari-mutuel or sports 5
wagering tickets or holding the sum represented by the unclaimed pari-mutuel or sports 6
wagering tickets as reported shall not be required to turn over said sum to the racing 7
commission except upon order of court. If the holder of any unclaimed pari-mutuel or 8
sports wagering ticket files an action in court claiming the sum which has been reported 9
under the provisions of KRS 230.362, the person reporting or holding the sum 10
represented by said unclaimed pari-mutuel or sports wagering ticket shall be under no 11
duty while any such action is pending to turn over said sum to the racing commission, but 12
shall have the duty of notifying the racing commission of the pendency of such action. 13
Section 23. KRS 230.364 is amended to read as follows: 14
Any person holding an unclaimed pari-mutuel or sports wagering ticket or any person 15
holding the sum represented by an unclaimed pari-mutuel or sports wagering ticket, or 16
any claimant thereto shall have the right to a judicial determination of his rights under 17
KRS 230.361 to 230.373 and nothing therein shall be construed otherwise; and the racing 18
commission may institute an action to recover the sum represented by the unclaimed pari-19
mutuel or sports wagering tickets which are presumed abandoned whether said sum has 20
been reported or not and may include in one (1) petition the sum represented by all the 21
unclaimed pari-mutuel or sports wagering tickets as defined herein within the 22
jurisdiction of the court in which the action is brought. 23
Section 24. KRS 230.365 is amended to read as follows: 24
Any person who pays the sum represented by the unclaimed pari-mutuel or sports 25
wagering tickets to the racing commission under KRS 230.363 is relieved of all liability 26
for the value of said unclaimed pari-mutuel or sports wagering tickets for any claim 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 40 of 52
HB060610.100 - 1000 - XXXX GA
made in respect of said unclaimed pari-mutuel or sports wagering tickets. 1
Section 25. KRS 230.366 is amended to read as follows: 2
Any person claiming an interest in any unclaimed pari-mutuel or sports wagering ticket 3
which has been paid or surrendered to the racing commission in accordance with KRS 4
230.361 to 230.373 may file his claim to it at any time after it was paid to the racing 5
commission. 6
Section 26. KRS 230.369 is amended to read as follows: 7
The racing commission, through its employees, may examine all records of any person 8
where there is reason to believe that there has been or is a failure to report unclaimed 9
pari-mutuel or sports wagering tickets. 10
Section 27. KRS 230.371 is amended to read as follows: 11
The racing commission may require the production of reports or the surrender of sums 12
represented by unclaimed pari-mutuel or sports wagering tickets as provided in KRS 13
230.361 to 230.373 by civil equity action, including, but not limited to, an action in the 14
nature of a bill of discovery, in which case the defendant shall pay a penalty equal to ten 15
percent (10%) of all amounts that he is ultimately required to surrender. The racing 16
commission shall follow the procedures provided by the Rules of Civil Procedure. 17
Section 28. KRS 230.372 is amended to read as follows: 18
Any payments made to any persons claiming an interest in an unclaimed pari-mutuel or 19
sports wagering ticket, and any necessary expense including, but not limited to, 20
administrative costs, advertising costs, court costs and attorney's fees, required to be paid 21
by the racing commission in administering or enforcing the provisions of KRS 230.361 to 22
230.373 shall be deducted from sums received by the racing commission prior to payment 23
to the Kentucky Racing Health and Welfare Fund. 24
Section 29. KRS 230.373 is amended to read as follows: 25
Any holder of unclaimed pari-mutuel or sports wagering tickets affected by KRS 26
230.361 to 230.373 under disability shall have five (5) years after the disability is 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 41 of 52
HB060610.100 - 1000 - XXXX GA
removed in which to take any action or procedure or make any defense allowed to one sui 1
juris. 2
Section 30. KRS 230.374 is amended to read as follows: 3
All sums reported and paid to the racing commission under the provisions of KRS 4
230.361 to 230.373, with the exception of funds paid on sports wagering tickets and 5
under KRS 230.398, shall be paid by the racing commission to the Kentucky Racing 6
Health and Welfare Fund, Inc., a nonprofit charitable corporation, organized for the 7
benefit, aid, assistance, and relief of Thoroughbred owners, trainers, jockeys, valets, 8
exercise riders, grooms, stable attendants, pari-mutuel clerks, and other Thoroughbred 9
racing personnel employed in connection with racing, and their spouses and children, who 10
can demonstrate their need for financial assistance connected with death, illness, or off-11
the-job injury and are not otherwise covered by union health and welfare plans, workers' 12
compensation, Social Security, public welfare, or any type of health, medical, death, or 13
accident insurance. These sums shall be paid on or before December 31 in each year, 14
however, no payments shall be made by the racing commission to the Kentucky Racing 15
Health and Welfare Fund, Inc., unless the racing commission and the Auditor of Public 16
Accounts are satisfied that the fund is in all respects being operated for the charitable and 17
benevolent purposes as set forth in this section and that no part of the funds paid to the 18
fund by the racing commission or any net earnings of the fund inure to the benefit of any 19
private individual, director, officer, or member of the fund or any of the persons who 20
turned over sums to the racing commission representing unclaimed pari-mutuel tickets. 21
Section 31. KRS 230.750 is amended to read as follows: 22
The commission, including the tax levied in KRS 138.510, deducted from the gross 23
amount wagered by the person, corporation, or association which operates a harness horse 24
track under the jurisdiction of the racing commission at which betting is conducted 25
through a pari-mutuel or other similar system shall not exceed eighteen percent (18%) of 26
the gross amount handled on straight pari-mutuel wagering pools and twenty-five percent 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 42 of 52
HB060610.100 - 1000 - XXXX GA
(25%) of the gross amount handled on multiple pari-mutuel wagering pools, plus the 1
breaks, which shall be made and calculated to the dime. Multiple pari-mutuel wagering 2
pools shall include daily double, perfecta, double perfecta, quinella, double quinella, 3
trifecta, and other types of exotic betting. An amount equal to three percent (3%) of the 4
total amount wagered on pari-mutuel racing and included in the commission of a 5
harness host track shall be allocated by the harness host track in the following manner. 6
Two percent (2%) shall be allocated to the host for capital improvements, promotions, 7
including advertising, or purses, as the host track shall elect. Three-quarters of one 8
percent (3/4 of 1%) shall be allocated to overnight purses. One-quarter of one percent (1/4 9
of 1%) shall be allocated to the Kentucky standardbred development fund. This allocation 10
shall be made after deduction from the commission of the pari-mutuel tax but prior to any 11
other deduction, allocation or division of the commission. 12
SECTION 32. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 13
READ AS FOLLOWS: 14
(1) A person shall not place a sports wager on a game or event in which he or she is 15
a participant. 16
(2) As used in this section, "participant" includes: 17
(a) Players; 18
(b) Coaches; 19
(c) Referees, umpires, judges, or other officials involved in enforcing the rules 20
of the game; 21
(d) Spouses and close family members of persons included in paragraphs (a) to 22
(c) of this subsection; 23
(e) Owners or shareholders of professional sports teams who might have 24
influence over players and coaches through the ability to hire or fire; and 25
(f) Employees of companies supplying technology or services related to sports 26
wagering to a track. 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 43 of 52
HB060610.100 - 1000 - XXXX GA
(3) A person is guilty of tampering with the outcome of a sporting event when the 1
person interacts with a player, coach, referee, or other participant with the intent 2
to persuade the participant to act in a way that would: 3
(a) Alter the outcome of the sporting event; or 4
(b) Alter actions within the sporting event upon which people might place 5
sports wagers. 6
Section 33. KRS 230.990 is amended to read as follows: 7
(1) Any person who violates KRS 230.070 or KRS 230.080(3) shall be guilty of a Class 8
D felony. 9
(2) Any person who violates KRS 230.090 shall be guilty of a Class A misdemeanor. 10
(3) Any person who violates KRS 230.680 shall be guilty of a Class A misdemeanor. 11
(4) Any person who refuses to make any report or to turn over sums as required by 12
KRS 230.361 to 230.373 shall be guilty of a Class A misdemeanor. 13
(5) Any person failing to appear before the racing commission at the time and place 14
specified in the summons issued pursuant to KRS 230.260(12), or refusing to 15
testify, shall be guilty of a Class B misdemeanor. False swearing on the part of any 16
witness shall be deemed perjury and punished as such. 17
(6) (a) A person is guilty of tampering with or interfering with a horse race when, 18
with the intent to influence the outcome of a horse race, he uses any device, 19
material, or substance not approved by the Kentucky Horse Racing 20
Commission on or in any participant involved in or eligible to compete in a 21
horse race to be viewed by the public. 22
(b) Any person who, while outside the Commonwealth and with intent to 23
influence the outcome of a horse race contested within the Commonwealth, 24
tampers with or interferes with any equine participant involved in or eligible 25
to compete in a horse race in the Commonwealth is guilty of tampering with 26
or interfering with a horse race. 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 44 of 52
HB060610.100 - 1000 - XXXX GA
(c) Tampering with or interfering with a horse race is a Class C felony. 1
(7) Any participant who wagers on a sporting event in violation of Section 32 of this 2
Act is guilty of a Class A misdemeanor. 3
(8) Any person tampering with the outcome of a sporting event in violation of 4
Section 32 of this Act is guilty of a Class C felony. 5
Section 34. KRS 243.500 is amended to read as follows: 6
Any license may be revoked or suspended for the following causes: 7
(1) Conviction of the licensee or the licensee's agent, servant, or employee for selling 8
any illegal alcoholic beverages on the licensed premises. 9
(2) Making any false, material statements in an application or renewal application for a 10
license or supplemental license. 11
(3) Conviction of the licensee or any of the licensee's agents, servants, or employees of: 12
(a) Two (2) violations of the terms and provisions of KRS Chapters 241 to 244, 13
or any act regulating the manufacture, sale, and transportation of alcoholic 14
beverages within two (2) consecutive years; 15
(b) Two (2) misdemeanors directly or indirectly attributable to the use of 16
alcoholic beverages within two (2 ) consecutive years; or 17
(c) Any felony. 18
(4) Failure or default of a licensee to pay an excise tax or any part of the tax or any 19
penalties imposed by or under the provisions of any statutes, ordinances, or Acts of 20
Congress relative to taxation, or for a violation of any related administrative 21
regulations promulgated by the Department of Revenue. 22
(5) Revocation of any license or permit provided in KRS 243.060, 243.070, 243.600, 23
and 243.610, or granted under any Act of Congress relative to the regulation of the 24
manufacture, sale, and transportation of alcoholic beverages. 25
(6) Setting up, conducting, operating, or keeping, on the licensed premises, any 26
gambling game, device, machine, contrivance, lottery, gift enterprise, handbook, or 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 45 of 52
HB060610.100 - 1000 - XXXX GA
facility for betting or transmitting bets on horse races; or permitting to be set up, 1
conducted, operated, kept, or engaged in, on the licensed premises, any gambling 2
game, device, machine, contrivance, lottery, gift enterprise, handbook, or facility. 3
This subsection shall not apply to: 4
(a) The sale of lottery tickets sold under the provisions of KRS Chapter 154A; 5
(b) The operation of a pari-mutuel system for betting, or the operation of sports 6
wagering, where authorized by law; 7
(c) The conduct of charitable gaming by a charitable organization licensed or 8
permitted under KRS Chapter 238;[ or] 9
(d) Special temporary raffles of alcoholic beverages under KRS 243.036; or 10
(e) The conduct of fantasy contests or online poker licensed under KRS 11
Chapter 239A. 12
(7) Conviction of the licensee, the licensee's agents, servants, or employees for: 13
(a) The trafficking or possession upon the licensed premises of controlled or 14
illegal substances described in KRS Chapter 218A, including synthetic drugs; 15
(b) Knowingly permitting the trafficking or possession by patrons upon the 16
licensed premises of controlled or illegal substances described in KRS 17
Chapter 218A, including synthetic drugs; or 18
(c) Knowingly receiving stolen property upon the licensed premises. 19
(8) Failure to comply with the terms of a final order of the board. 20
Section 35. KRS 525.090 is amended to read as follows: 21
(1) A person is guilty of loitering when he or she: 22
(a) Loiters or remains in a public place for the purpose of gambling with cards, 23
dice, or other gambling paraphernalia, except that the provisions of this 24
section shall not apply if the person is participating in charitable gaming 25
defined by KRS 238.505, or is engaged in sports wagering licensed under 26
KRS Chapter 230 or fantasy contests or online poker authorized under KRS 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 46 of 52
HB060610.100 - 1000 - XXXX GA
Chapter 239A;[ or] 1
(b) Loiters or remains in a public place for the purpose of unlawfully using a 2
controlled substance;[ or] 3
(c) Loiters or remains in or about a school, college or university building or 4
grounds, not having any reason or relationship involving custody of or 5
responsibility for a pupil or student or any other specific legitimate reason for 6
being there and not having written permission from anyone authorized to grant 7
the same; or 8
(d) Loiters or remains in any transportation facility, unless specifically authorized 9
to do so, for the purpose of soliciting or engaging in any business, trade or 10
commercial transactions involving the sale of merchandise or services. 11
(2) Loitering is a violation. 12
Section 36. KRS 528.010 is amended to read as follows: 13
The following definitions apply in this chapter unless the context otherwise requires: 14
(1) "Advancing gambling activity" -- A person "advances gambling activity" when, 15
acting other than as a player, he engages in conduct that materially aids any form of 16
gambling activity not authorized under KRS Chapter 230 or 239A. The conduct 17
shall include, but is not limited to, conduct directed toward the establishment of the 18
particular game, contest, scheme, device, or activity involved; toward the 19
acquisition or maintenance of premises, paraphernalia, equipment, or apparatus 20
therefor; toward the solicitation or inducement of persons to participate therein; 21
toward the actual conduct of the playing phases thereof; toward the arrangement of 22
any of its financial or recording phases or toward any other phase of its operation. A 23
person who gambles at a social game of chance on equal terms with other 24
participants does not otherwise advance gambling activity by performing acts, 25
without remuneration or fee, directed toward the arrangement or facilitation of the 26
game as inviting persons to play, permitting the use of premises therefor and 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 47 of 52
HB060610.100 - 1000 - XXXX GA
supplying equipment used therein; 1
(2) "Bookmaking" means advancing gambling activity by unlawfully accepting bets 2
upon the outcome of future contingent events from members of the public as a 3
business not authorized under KRS Chapter 230 or 239A; 4
(3) "Charitable gaming" means games of chance conducted by charitable organizations 5
licensed and regulated under the provisions of KRS Chapter 238; 6
(4) (a) "Gambling" means staking or risking something of value upon the outcome of 7
a contest, game, gaming scheme, or gaming device which is based upon an 8
element of chance, in accord with an agreement or understanding that 9
someone will receive something of value in the event of a certain outcome. A 10
contest or game in which eligibility to participate is determined by chance and 11
the ultimate winner is determined by skill shall not be considered to be 12
gambling. 13
(b) Gambling shall not mean charitable gaming which is licensed and regulated 14
under[ the provisions of] KRS Chapter 238, fantasy contest or online poker 15
wagering authorized under KRS Chapter 239A, or activities licensed under 16
KRS Chapter 230; 17
(5) "Gambling device" means: 18
(a) Any so-called slot machine or any other machine or mechanical device an 19
essential part of which is a drum or reel with insignia thereon, and which 20
when operated may deliver, as a result of the application of an element of 21
chance, any money or property, or by the operation of which a person may 22
become entitled to receive, as the result of the application of an element of 23
chance, any money or property; 24
(b) Any mechanical or electronic device permanently located in a business 25
establishment, including a private club, that is offered or made available to a 26
person to play or participate in a simulated gambling program in return for 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 48 of 52
HB060610.100 - 1000 - XXXX GA
direct or indirect consideration, including but not limited to consideration paid 1
for Internet access or computer time, or a sweepstakes entry, which when 2
operated may deliver as a result of the application of an element of chance, 3
any money or property, or by the operation of which a person may become 4
entitled to receive, as the result of the application of an element of chance, any 5
money or property; or 6
(c) Any other machine or any mechanical or other device, including but not 7
limited to roulette wheels, gambling tables and similar devices, designed and 8
manufactured primarily for use in connection with gambling and which when 9
operated may deliver, as the result of the application of an element of chance, 10
any money or property, or by the operation of which a person may become 11
entitled to receive, as the result of the application of an element of chance, any 12
money or property; 13
(d) But, the following shall not be considered gambling devices within this 14
definition: 15
1. Devices dispensing or selling combination or French pools on licensed, 16
regular racetracks during races on said tracks; 17
2. Devices dispensing or selling combination or French pools on historical 18
races at licensed, regular racetracks as lawfully authorized by the 19
Kentucky Horse Racing Commission; 20
3. Electro-mechanical pinball machines specially designed, constructed, set 21
up, and kept to be played for amusement only. Any pinball machine 22
shall be made to receive and react only to the deposit of coins during the 23
course of a game. The ultimate and only award given directly or 24
indirectly to any player for the attainment of a winning score or 25
combination on any pinball machine shall be the right to play one (1) or 26
more additional games immediately on the same device at no further 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 49 of 52
HB060610.100 - 1000 - XXXX GA
cost. The maximum number of free games that can be won, registered, 1
or accumulated at one (1) time in operation of any pinball machine shall 2
not exceed thirty (30) free games. Any pinball machine shall be made to 3
discharge accumulated free games only by reactivating the playing 4
mechanism once for each game released. Any pinball machine shall be 5
made and kept with no meter or system to preserve a record of free 6
games played, awarded, or discharged. Nonetheless, a pinball machine 7
shall be a gambling device if a person gives or promises to give money, 8
tokens, merchandise, premiums, or property of any kind for scores, 9
combinations, or free games obtained in playing the pinball machine in 10
which the person has an interest as owner, operator, keeper, or 11
otherwise;[ or] 12
4. Devices used in the conduct of charitable gaming; 13
5. Devices used in the conduct of fantasy contest or online poker 14
wagering authorized under KRS Chapter 239A; or 15
6. Devices used in the conduct of sports wagering licensed under KRS 16
Chapter 230; 17
(6) "Lottery and gift enterprise" means: 18
(a) A gambling scheme in which: 19
1. The players pay or agree to pay something of value for chances, 20
represented and differentiated by numbers or by combinations of 21
numbers or by some other media, one (1) or more of which are to be 22
designated the winning ones; and 23
2. The ultimate winner is to be determined by a drawing or by some other 24
method based upon the element of chance; and 25
3. The holders of the winning chances are to receive something of value; 26
and 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 50 of 52
HB060610.100 - 1000 - XXXX GA
(b) A gift enterprise or referral sales plan which meets the elements of a lottery 1
listed in paragraph (a) of this subsection is to be considered a lottery under 2
this chapter; 3
(7) "Mutuel" or "the numbers games" means a form of lottery in which the winning 4
chances or plays are not determined upon the basis of a drawing or other act on the 5
part of persons conducting or connected with the scheme, but upon the basis of the 6
outcome or outcomes of a future contingent event or events otherwise unrelated to 7
the particular scheme; 8
(8) "Player" means a person who engages in any form of gambling solely as a 9
contestant or bettor, without receiving or becoming entitled to receive any profit 10
therefrom other than personal gambling winnings, and without otherwise rendering 11
any material assistance to the establishment, conduct, or operation of the particular 12
gambling activity. A person who engages in "bookmaking" as defined in subsection 13
(2) of this section is not a "player." The status of a "player" shall be a defense to any 14
prosecution under this chapter; 15
(9) "Profiting from gambling activity" -- A person "profits from gambling activity" 16
when, other than as a player, he or she accepts or receives or agrees to accept or 17
receive money or other property pursuant to an agreement or understanding with 18
any person whereby he or she participates or is to participate in the proceeds of 19
gambling activity not authorized by KRS Chapter 230 or 239A; 20
(10) "Simulated gambling program" means any method not authorized under KRS 21
Chapter 230 or 239A, which is intended to be used by a person playing, 22
participating, or interacting with an electronic device that may, through the 23
application of an element of chance, either deliver money or property or an 24
entitlement to receive money or property; and 25
(11) "Something of value" means any money or property, any token, object, or article 26
exchangeable for money or property, or any form of credit or promise directly or 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 51 of 52
HB060610.100 - 1000 - XXXX GA
indirectly contemplating transfer of money or property or of any interest therein, or 1
involving extension of a service, entertainment, or a privilege of playing at a game 2
or scheme without charge. 3
Section 37. KRS 528.020 is amended to read as follows: 4
(1) A person is guilty of promoting gambling in the first degree when he or she 5
knowingly advances or profits from unlawful gambling activity not authorized by 6
KRS Chapter 230 or 239A by: 7
(a) Engaging in bookmaking to the extent that he or she employs or utilizes three 8
or more persons in a bookmaking activity and receives or accepts in any one 9
day bets totaling more than $500; or 10
(b) Receiving in connection with a lottery or mutuel scheme or enterprise: 11
1. Money or written records from a person other than a player whose 12
chances or plays are represented by such money or records; or 13
2. More than $500 in any one day of money played in the scheme or 14
enterprise; or 15
(c) Setting up and operating a gambling device. 16
(2) Promoting gambling in the first degree is a Class D felony. 17
Section 38. KRS 528.070 is amended to read as follows: 18
(1) A person is guilty of permitting gambling when, having possession or control of 19
premises which he knows are being used to advance gambling activity not 20
authorized under KRS Chapter 230 or 239A, he fails to halt or abate or attempt to 21
halt or abate such use within a reasonable period of time. 22
(2) Permitting gambling is a Class B misdemeanor. 23
Section 39. KRS 528.080 is amended to read as follows: 24
(1) A person is guilty of possession of a gambling device when, with knowledge of the 25
character thereof, he manufactures, sells, transports, places or possesses a gambling 26
device or conducts or negotiates any transaction affecting or designed to affect 27 UNOFFICIAL COPY 22 RS HB 606/GA
Page 52 of 52
HB060610.100 - 1000 - XXXX GA
ownership, custody or use of any gambling device not authorized under KRS 1
Chapter 230 or 239A, believing that it is to be used in the advancement of unlawful 2
gambling activity. 3
(2) Possession of a gambling device is a Class A misdemeanor. 4
Section 40. If any provision of this Act or the application thereof to any person 5
or circumstance is held invalid, the invalidity shall not affect other provisions or 6
applications of the Act that can be given effect without the invalid provision or 7
application, and to this end the provisions of this Act are severable. 8