Early Friday morning in the State Capitol, Governor Andy Beshear signed into law Senate Bill 47 and House Bill 551 — which respectively allows Kentuckians access to medical marijuana and legalized sports betting.
In regards to cannabis, the bill establishes full regulations and structure for dispensaries, cultivators, practitioners, processors and products — as well as the issuing of identification cards to patients and caregivers. It also creates an authorization process for doctors to recommend the use of medical cannabis, and also galvanizes a cannabis business license application process and its requirements.
Rep. Jason Nemes, of Louisville, had long carried the water on this measure — despite originally being against marijuana and its medical uses.
While SB 47 doesn’t officially take effect until January 1, 2025, Beshear’s executive order on medical marijuana remains in place. This allows those suffering from certain medical conditions, including cancer, multiple sclerosis, PTSD, muscular dystrophy, terminal illnesses and more, to have access.
HB 551, meanwhile, won’t come into effect until the Kentucky Horse Racing Commission absorbs regulatory power over sports betting in the Commonwealth, and thusly awards licenses to businesses.
Tracks will pay an initial fee of $500,000 to the Kentucky Horse Racing Commission for a license, as well as an annual renewal fee of $50,000. Any sports betting operators partnered with tracks will be required to pay a $50,000 fee for a license and an annual $10,000 renewal fee.
The bill sets the retail tax rate at 9.75% and the online sports betting tax rate at 14.25%, based on adjusted gross sports betting revenue.
It further allows bets on professional sports, eSports, college events, Olympics, and amateur events, and residents aged 18 and older will be able to participate. Also, 2.5% of sports betting revenue will be earmarked for a problem gaming fund.
Beshear, like many officials, agreed it was time to stop sending gambling to other states.
Rep. Michael Meredith, of Bowling Green, was the primary backer for the bill, and he noted a 25-12 vote doesn’t come to be without bi-partisan support in the final hours of the Kentucky General Assembly short session.
Annual revenue for sports betting in Kentucky is expected to be in the $20-to-$25 million range.
