Kentucky Explores Retail Casinos with House Bill 33

Kentucky’s gambling landscape may soon see a transformative shift as Representative Thomas Huff introduces House Bill 33 (HB 33), a legislative proposal aimed at legalizing retail casinos across the state. If enacted, this landmark bill would allow voters in select counties to decide on the introduction of casino gaming, overseen by the Kentucky Horse Racing and Gaming Corporation (KHRGC). This marks a significant development for Kentucky, a state already renowned for its horse racing heritage, as it considers expanding into retail casino gaming.

A Framework for Casino Gaming

HB 33 proposes the establishment of three distinct types of casinos: full, limited, and riverboat casinos. Counties with populations of 30,000 or more—or neighboring counties with a combined population exceeding that threshold—would be eligible to hold referendums on casino gaming. Successful votes would pave the way for these counties to host land-based or riverboat casinos offering both electronic gaming machines and table games like blackjack, roulette, and poker.

Smaller counties, with populations under 30,000, can still participate if they house a licensed racing association facility. These locations would qualify for limited casino licenses, permitting the operation of electronic gaming machines only. This flexible framework aims to balance regional economic opportunities with local population dynamics, fostering inclusivity in the state’s gaming expansion.

Kentucky’s Evolving Gambling Industry

Kentucky’s gambling history is deeply tied to horse racing, a tradition dating back over a century. However, the state has cautiously expanded its gaming landscape in recent years. Historical Horse Racing (HHR) machines debuted in 2021, followed by legalized sports betting in 2023. The KHRGC was established in 2024 to oversee these developments and regulate the burgeoning industry.

Despite these steps, prior efforts to broaden gambling—such as legalizing online poker and daily fantasy sports in 2022—did not gain traction. HB 33 marks a notable pivot, extending beyond sports betting and horse racing into the realm of retail casino gaming. This proposal reflects Kentucky’s willingness to diversify its gaming industry while maintaining a regulated approach.

Economic and Regulatory Implications

The proposed legislation includes a 21% tax on casinos’ gross gaming revenue and licensing fees ranging from $450,000 to $750,000, depending on the type of casino. These measures position HB 33 as both a regulatory framework and a revenue-generating initiative. Local economies could benefit from increased tourism, job creation, and an infusion of tax revenues.

Counties that opt into the program will collaborate with the KHRGC to solicit bids for casino licenses, ensuring a competitive and transparent process. The regulatory oversight provided by the KHRGC will safeguard the fairness and integrity of all gambling activities, reinforcing public trust in the system.

Potential for Future Expansion

While HB 33 focuses on retail casinos, it could lay the groundwork for broader gambling discussions in Kentucky, including the potential for online casino gaming. Should retail casinos prove successful, they may ignite interest in expanding the state’s iGaming offerings, although such changes would require substantial legislative and public support.

The Path Forward

HB 33 is currently in its early stages, requiring approval from multiple legislative committees before advancing to the House, Senate, and ultimately the governor’s desk. Even if the bill becomes law, local voter decisions will determine whether counties host retail casinos, making community input a pivotal part of the process.

If enacted, HB 33 could reshape Kentucky’s gambling industry, establishing the state as a contender in the retail casino market while honoring its horse racing legacy. The bill represents a significant opportunity for economic growth and regulatory evolution, with potential implications that extend well beyond the gaming floor. Whether it spurs a new entertainment era or sparks debates about online gaming, HB 33 underscores Kentucky’s growing engagement with the gambling industry.

This turning point reflects not only a bold legislative move but also the potential to redefine Kentucky’s identity within the broader U.S. gambling landscape.