The Kentucky Senate on March 29 passed the pari-mutuel tax modernization bill by a 33-1 vote with one pass. The bill would equalize tax rates on all bets and eliminate the use of split ratios for payouts starting Aug.
HB 607 sets a tax rate of 1.5% on all pari-mutuel bets, down from 3.5% on live bets and 3% on simulcast bets made in Kentucky on out-of-state races. Eliminating the crash would require tracks to pay for the nearest coin and not the nearest 10 for a $1 bet.
Some horsemen have expressed concern that pre-stake staking platforms could reduce premium player payouts due to the tax hike on ADW betting.
Thoroughbred Idea Foundation CEO Pat Cummings celebrated the passage in a tweet, writing, “Your legal winnings will be paid in full… an American first.” Cummings also thanked the bill’s sponsor, Representative Adam Koenig (R-Erlanger) for spearheading the effort.
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The Kentucky Equine Education Program praised the passage of HB 607. KEEP in a statement said, “The resulting Act could strike a delicate balance between increasing revenue for the state, while at the same time not being self-sufficient. intends to raise tax rates in a way that will harm the economic success of the industry.”
The bill is now returning to the Kentucky House of Representatives for assent, according to a tweet from the Kentucky Riders’ Protection and Benevolence Association. The House of Representatives passed the bill on March 21.
HB 607, parimutuel tax modernization bill, passed #KySenate 33-1 w 1 turn – seamlessly herded by @SenatorSchickel & @Damon Thayer.
Back to House to agree, but @repkoenigYour bill can be transferred to the wire from here. KY will be the first to eliminate disruption in computing payments pic.twitter.com/5uXuWJJJHu– KyHBPA (@KyHBPA) March 29, 2022
