The Kentucky Horse Racing and Gaming Corporation has downsized its sports-betting enforcement team a month before March Madness, reshaping how Kentucky regulates the gambling industry. The downsizing resulted in the firing of all 10 people who worked for the agency when the first sports bets were placed in September 2023, leaving the gaming division with only three managers and one gaming compliance officer.
The corporation declined to comment on the firings or explain how it plans to regulate the industry with fewer enforcement employees, stating that it fulfills its statutory and regulatory obligations. Kentucky’s “light touch” regulatory approach has raised concerns about the potential for predatory behavior by sports books, with critics pointing out that the state has significantly fewer gambling enforcement employees compared to neighboring states like Indiana.
The downsizing of the enforcement team follows the passage of Senate Bill 299, which put the Kentucky Horse Racing and Gaming Corporation in charge of regulating horse racing, sports betting, and charitable gaming. The corporation is undergoing a transition to operate as a standalone entity, with plans to hire more employees in the future to oversee various aspects of the gambling industry. Concerns have been raised about gaps in the regulatory approach and the lack of responsible gaming staff, as well as the need for a centralized self-exclusion system to address problem gambling.
