Kentucky Gov. Vetoes Sweeping Sports Betting Legislation

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Kentucky Gov. Andy Beshear is trying to shoot down a sweeping effort to overhaul gambling law in his state.

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Key Takeaways

• Andy Beshear vetoed House Bill 904, which proposed major changes to Kentucky’s gambling laws including sports betting and prediction market restrictions.
• The veto was not about gambling policy but about the bill allowing state agencies to bypass the governor’s oversight when issuing regulations.
• Kentucky lawmakers now have a short window to attempt to override the veto using a legislative majority.

Beshear vetoed House Bill 904 on Monday, rejecting legislation that would allow fixed-odds wagering on horse racing, ban betting the “Under” on Kentucky college player props, and restrict sports wagering operators from dabbling in prediction markets in the state, among other things.

However, the governor’s publicly stated reasons for the veto did not mention any of that.

Instead, Beshear cited the fact that H.B. 904 would allow two executive agencies, the Kentucky Lottery Corporation and Kentucky Horse Racing and Gaming Corporation, “to file emergency and ordinary administrative regulations without the Governor 's review and signature.”

“Under the Kentucky Constitution, the Governor is the Chief Magistrate of the Executive Branch and has a duty to ensure all laws are faithfully executed, including by agencies carrying out the law through regulation,” Beshear wrote. “In that role, the Governor reviews proposed emergency regulations to ensure they are necessary and meet legal requirements for emergency filing. Authorizing an agency to file an emergency regulation in this manner would prevent the Governor from carrying out his constitutional duties and allow boards and agencies to impose rules on Kentuckians without executive oversight, including boards whose decisions impact public safety.”

State lawmakers now have two days with which to try to undo Beshear's veto of the big Kentucky sports betting bill. Whether they actually do so remains to be seen, but they could do so with the same majority in the legislature they used to pass H.B. 904 in the first place.

More to come.

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