Twenty years ago the topic of casinos at the race tracks was first placed before the legislature. In the last eleven years nine bills have actually been filed. Politicians now say that the issue needs to be decided “once and for all by the people.” Since we actually have a representative form of government, and not a referendum form like Maine and other states, it seems that Kentuckians have decided this issue “once and for all” eight times previously through our representatives. Only the foolish believe that if the casinos are defeated that they will go away. “Once and for all” means until next year.
The sponsor said “At the end of the day, I trust the people of Kentucky.” (Gregory A. Hall, “Gov. Steve Beshear unveils gambling amendment,: The Courier-Journal, February 15, 2012) The real question is whether the people can trust the legislators. They are asking for a blank check worth hundreds of millions, to be disbursed however they see fit. We can be sure it will not be directed toward the unglamorous task of closing the budget gap (which is quite adjustable) or funding the state retirement program.
This amendment is welfare for the wealthy. The horse tracks in Kentucky are the playthings of the very wealthy. The tracks are an investment that they hope will pay off immensely. Since the legislature has already given several tax breaks as consolation prizes when the tracks lost the casino issue, the tracks can count on a low 28-35% tax rate. No 50% rate like Illinois or 55% rate like Pennsylvania, just a bargain rate. Kentucky would be sold cheaply if this succeeds.
There is little recognition of the social costs. Except for the increased welfare costs and lost revenues from closed businesses in the casino neighborhoods, the cost of casinos is absorbed by families whose members gamble. Poverty will increase in a poverty stricken state.
Section 2 of the bill, which contains the amendment wording, includes the grocery list of admirable causes on which to spend the money, including the aid to the wealthy track owners and an indirect trickle (comparatively) for horse owners and breeders.
If our legislators let us down, and pass this, it will not be the people who decide, but the DOLLARS.
Written by Ivan Zabilka, Research Consultant to The Family Foundation









