(AsiaGameHub) –   Kentucky’s governor has rejected a bill outlining a series of sports betting regulatory changes, pointing to problematic language that would grant unconstitutional authority to the Kentucky Lottery Corporation and the Kentucky Horse Racing and Gaming Commission.

HB 904 Fails to Cross the Finish Line

House Bill 904 was a sports betting proposal that advanced rapidly through the House and Senate, building considerable support. Introduced last month, the measure put forward multiple adjustments to the regulatory structure of the Bluegrass State.

The legislation would have increased the legal age for sports betting participation to 21, up from the current 18. Furthermore, it would have banned licensed sportsbooks from offering proposition bets on college athletes from Kentucky institutions, aligning with a wider movement against such wagers in college sports.

Other proposed changes forbade licensed sports betting operators from conducting prediction market operations within the state.

House Bill 904 also aimed to mandate that the state’s horseracing tracks modernize their pari-mutuel wagering systems and implement fixed-odds betting. Consistent with Kentucky’s general stance against prediction markets, the bill also prohibited tracks from partnering with event contract operators.

The bill additionally proposed modifications to charitable gambling regulations and created a pathway for launching regulated daily fantasy sports.

The Bill Was Not Aligned with the Kentucky Constitution

Despite earning robust approval from both legislative chambers, HB 904 was vetoed after reaching Gov. Andy Beshear’s desk. In a statement, Beshear linked his veto to a section related to regulatory organization, which would have conferred additional powers upon the Kentucky Lottery Corporation and the Kentucky Horse Racing and Gaming Commission.

This section stipulated that the two agencies could enact “emergency and ordinary administrative regulations without the Governor’s review and signature.”

Beshear contended that this provision conflicts with the Kentucky Constitution, which designates the governor as the chief executive of the branch. This role includes the duty to review all emergency filings. Consequently, had it become law, HB 904 would have impeded the Kentucky governor from fulfilling these constitutional responsibilities.