To the Honorable Members of the Kentucky General Assembly,
I am writing on behalf of The Future of Eastern Kentucky (TFEK) to respectfully urge your support for comprehensive reform of Kentucky’s gaming laws and the modernization of KRS statutes that would allow the issuing of full casino-style gaming licenses statewide.
Kentucky has reached a pivotal moment. Our neighboring states have embraced expanded gaming and are collecting billions of dollars annually in revenue that should be circulating here at home—benefiting our people, our schools, our infrastructure, and our pension systems. For Eastern Kentucky in particular, expanded gaming represents a once-in-a-generation opportunity to restore economic vitality and create sustainable jobs where they are most needed.
We are encouraged to see a growing bipartisan coalition of legislators who support expanding legal, regulated gaming in the Commonwealth. Leaders such as:
Rep. Michael Meredith – primary sponsor of the sports wagering legislation that successfully passed and demonstrated Kentucky's ability to regulate gaming responsibly.
Rep. Al Gentry, Rep. Chad Aull, Rep. Kim Banta, Rep. Jared Bauman, Rep. Jonathan Dixon, Rep. Patrick Flannery, Rep. Matthew Koch, Rep. David Osborne, Rep. Ruth Ann Palumbo, Rep. Rachel Roberts, Rep. Cherlynn Stevenson, Rep. Killian Timoney, Rep. Nicolas Wilson, and Rep. Derrick Graham – all of whom supported modernizing Kentucky’s approach to gaming.
Sen. Damon Thayer – a long-time advocate for responsible gaming expansion and regulatory modernization in the Senate.
Rep. Thomas Huff – who recently introduced legislation aimed at legalizing casino-style entertainment and creating a statewide regulatory framework.
These legislators, and others aligned with them, have demonstrated leadership in recognizing that gaming expansion is not simply about entertainment—it is an economic development strategy. It is a tool capable of generating significant new revenue for pension stabilization, education funding, workforce development, infrastructure repair, and local investment, particularly in rural counties.
TFEK strongly believes the next necessary step is the adoption of statewide casino licensing through reformed KRS statutes that:
1. Authorize the issuance of full casino gaming licenses through a transparent, regulated process;
2. Allow every county the option, by local referendum, to participate in casino-based economic development;
3. Establish strong regulatory oversight through an empowered statewide agency such as the Kentucky Horse Racing and Gaming Corporation;
4. Ensure that tax revenues are allocated to pensions, public education, rural development funds, and community revitalization initiatives;
5. Prioritize economically distressed regions, including Eastern Kentucky, for early licensing opportunities and project consideration.
Our organization works daily with families, communities, and local leaders who are desperate for new opportunities. Expanded gaming—with responsible regulation and strong oversight—can help reverse generations of economic decline while keeping Kentucky’s entertainment dollars inside our borders.
We respectfully ask you to stand with the legislators already supportive of gaming modernization and to help move Kentucky toward a more prosperous future. TFEK is prepared to work with all lawmakers, regardless of political affiliation, to advocate for a fair, safe, and modern gaming framework that benefits every community in our Commonwealth.
Thank you for your public service and your continued work on behalf of the people of Kentucky. We hope you will join us in supporting the modernization of KRS statutes and the full legalization of casino-style gaming statewide.
Proposal: Kentucky Revised Statutes – Statewide Casino-Style Gambling Regulation
Title: An Act relating to the regulation of casino-style gambling in the Commonwealth of Kentucky, the establishment of a state gaming authority, and the appropriation of gaming revenues for public funds including retirement systems, educational programs, public safety, and gambling reform initiatives.
Section 1 – Purpose
The purpose of this Act is to:
1. Legalize and regulate casino-style gambling statewide under a uniform statutory framework.
2. Ensure that proceeds from legalized gaming are allocated to the Kentucky Retirement Pension Fund, public educational systems, public safety initiatives, gambling reform programs, and community enrichment programs.
3. Establish mechanisms for oversight, transparency, and enforcement to prevent gambling-related harms.
4. Encourage economic development and generate sustainable revenue streams for the Commonwealth.
Section 2 – Definitions
Amend KRS Chapter 528 to include the following definitions:
1. “Casino-style gambling” – Any gambling activity authorized by this statute, including but not limited to slot machines, electronic gaming devices, table games, poker, and other games of chance offered in licensed gaming facilities.
2. “Licensed gaming facility” – Any location authorized by the Kentucky Gaming Authority (KGA) to operate casino-style gambling.
3. “Kentucky Gaming Authority (KGA)” – The independent regulatory body responsible for licensing, oversight, and enforcement of all casino-style gambling operations in the Commonwealth.
4. “Gaming revenue” – All gross revenue derived from casino-style gambling operations, including but not limited to gaming operations, licensing fees, fines, and penalties.
5. “Gambling reform programs” – Programs designed to reduce gambling addiction, provide counseling, fund educational outreach, and support research on responsible gaming practices.
Section 3 – Establishment of Kentucky Gaming Authority
Create a new KRS statute establishing the Kentucky Gaming Authority with the following powers:
1. Issue licenses for casino-style gambling facilities statewide.
2. Inspect, audit, and enforce compliance of licensed gaming facilities.
3. Establish rules and regulations consistent with this statute and necessary KARs to ensure the integrity of gaming operations.
4. Collect licensing fees, fines, and gaming taxes.
5. Submit annual reports to the Governor and the General Assembly detailing operations, revenue collections, and fund allocations.
Section 4 – Licensing of Casino Facilities
1. All casino facilities must obtain a license from the KGA.
2. Licensing requirements include:
Proof of financial stability.
Security and compliance plans.
Commitment to responsible gaming programs.
3. Licenses may be revoked or suspended for violations of law, regulations, or license terms.
Section 5 – Allocation of Gaming Revenues
Gross gaming revenue shall be allocated as follows:
Fund / Program Percentage of Revenue Purpose
Kentucky Retirement Pension Fund 35% To fund teachers’ and state employees’ retirement plans
Public Education Fund 25% To support K-12 and higher education programs statewide
Public Safety and Special Fund for Firefighters & Police 15% To assist in departmental funding, expansion, and training for law enforcement and fire services
Gambling Reform Programs 10% To fund counseling, prevention, and research programs
Mineral Severance-Style Fund 10% To support economic development and infrastructure projects
Administrative Costs / KGA Operations 5% To cover regulatory, enforcement, and administrative expenses
The Special Fund for Firefighters and Police shall be administered by the Department of Public Safety, allowing grants for training, equipment, and departmental expansion.
Section 6 – Regulatory Oversight and Compliance
1. All licensed casino operators must submit monthly and annual financial reports to the KGA.
2. KGA may audit, inspect, and impose fines or penalties for non-compliance.
3. Any violation of statutory or regulatory obligations may result in license suspension, revocation, and/or criminal prosecution.
4. The KGA shall promulgate KARs specifying detailed operational, technical, and safety requirements for casino-style gambling.
Section 7 – Responsible Gaming and Problem Gambling Programs
1. Licensed gaming facilities shall contribute to gambling reform programs, including addiction counseling, research, and public education.
2. The KGA shall maintain a registry of individuals voluntarily excluded from gambling facilities.
3. The KGA shall report annually on responsible gaming initiatives and effectiveness of gambling reform programs.
Section 8 – Amendments to Existing Statutes
1. Amend KRS 528.010 to exempt licensed casino facilities from general prohibitions against gambling devices.
2. Repeal conflicting provisions in KRS or KAR that prohibit or restrict licensed casino-style gambling.
3. All new KARs promulgated under this statute shall be consistent with the goals of transparent oversight and public benefit.
Section 9 – Severability
If any section, clause, or provision of this Act is held invalid, the remaining provisions shall remain in full force and effect.
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Section 10 – Effective Date
This Act shall take effect July 1, 2026, to allow sufficient time for KGA establishment, licensing, and regulatory framework implementation.
Summary:
This proposal establishes a comprehensive legal framework for casino-style gambling in Kentucky, creates a state regulatory authority, and directs proceeds to retirement funds, education, public safety, gambling reform, and infrastructure. It balances economic development with social responsibility and transparency.
Sincerely,
Ray Ratliff
The Future of Eastern Kentucky (TFEK)
www.TFEK.org
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