(WHAS11) -- One day after unveiling the details of a constitutional amendment to allow expanded gambling primarily at Kentucky racetracks, Governor Steve Beshear indicated on Wednesday that the legislation could be changed.
Needing a 3/5 "super majority" vote in both chambers of the General Assembly in order to be placed on the fall ballot, the measure appeared to be losing support from a key lawmaker, Sen. Dan Seum of Louisville, the Majority Caucus Chairman.
In comments to the Louisville Courier-Journal, and later confirmed by a Senate Republican Leadership spokeswoman, Seum (R) said he could not support the bill as crafted because it would grant each Kentucky racetrack an exclusive right to a casino license within a 60 mile radius of the track. The language, Seum said, would diminish bidding for casino licenses.
"We’re pleased that legislators are thoroughly reviewing a bill that will finally let the people vote on expanded gaming," Beshear said in a statement. "As with all legislation, changes are possible during the process, and it is important that all voices be heard."
"Sen. Seum has historically been a supporter," said Brett Hale, Churchill Downs Incorporated Vice-President, "I think he had some concerns with the language, not necessarily the concept. And, we'll be meeting with him and discussing those concerns with him and hopefully we can resolve those."
The amendment - as introduced on Tuesday - allows up to five casino licenses to be allocated among Kentucky's eight racetracks, including Churchill Downs in Louisville, Keeneland and the Red Mile in Lexington, and five other tracks in each corner of Kentucky.
Two other non-racetrack casinos would be allowed but the amendment protects racetracks from competition by creating 60 mile buffer zones around each racetrack.
"It's our viewpoint that horse racing in Kentucky is a $4 billion industry," Hale said, " and that for this to be successful, expanded gaming in Kentucky, that you have to protect that $4 billion industry first and foremost."
The racing industry is losing support because it asked for too much in the bill it helped write, said Martin Cothran, spokesman for the Family Foundation of Kentucky, a leading opponent of expanded gambling.
"We think they've lost probably about two votes since they introduced the measure," Cothran said, "because now you have the details out there and you start looking at the details on this thing and you start seeing all kinds of problems."
After excluding the protected territory for racetracks, the largest area left behind for up to two stand alone casinos is in southeastern Kentucky.
"This is an area with meth problems, the prescription drug abuse," Cothran said, "Now we're going to hit them with slot machines?"
Though the amendment leaves the door open for a racetrack to operate a casino at a facility separate from the racetrack, Churchill Downs downplayed that idea.
"Our preference would be to have it here at the track," Hale said, "but again that would be up to the legislators in Frankfort."
Enabling legislation would spell out such details, including the tax rate and revenue distribution.
"If you locate a free-standing casino in the same community where we have a current racetrack, that racetrack is going to lose," Beshear said on Tuesday, defending the buffer zones.
In Louisville, one oft-discussed prime real estate spot is the so-called "Water Company Block" bounded by 2nd and 3rd streets to the east and west and Muhammad Ali Blvd and Liberty Street to the south and north.
"It would bring another focus right to the central hub of our downtown business district," said Tim Mulloy a developer and downtown advocate who is not involved with the gambling amendment effort or the water company block property. "And off of that, I would believe like other things that have happened in downtown Louisville, we'd see further development."
The exact location is less important than simply ensuring that a casino comes to Louisville, said Mayor Greg Fischer (D-Louisville).
"Naturally what I'm interested in amongst many things is getting some local support when gaming takes place to make sure that more money flows down to city governments," Fischer said. "Cities are where the action happens."
The legislation is expected to be introduced in a Senate committee next Wednesday.
After two decades of debate, the opening of border casinos in Illinois, Indiana, West Virginia and soon in Ohio, and several stymied attempts since Beshear became governor, this appears to be expanded gambling's last chance.
"The time is now, in our opinion," Hale said, "and we need to act as soon as possible to make sure that we find a long term revenue stream for the state of Kentucky and preserve our racing heritage here in the state."
