#473 - Girl Power
General Yeah. So Virginia has now passed what it means to pass to legalize other forms of gaming whether it's casinos were sports betting. I think Virginia's really already pretty far down that Road Kentucky has approached this issue before it got some traction not have the governor sports betting at least had the governor's backing and it hasn't quite got gotten You know across the finish line to use of a metaphor there but I think that one of the reality of what Kobe has done for state governments in general, it's created budget shortfalls among other things and they're going to need to look to the alternative sources of tax revenues to try to make up for shortfalls and so whether it's Casino Gaming or sports wagering or adding mobile sports wagering in states where that. It currently exists I think those are things that are all on the table for states were where they don't have them now because. They won't be a panacea in terms of tax revenues. They're not going to bring in you know billions of dollars to state coffers, but they can bring in significant tax revenues, and especially if you're talking about the lights like Kentucky, which is bordered by states. In Indiana. Wagering is legal mobile sports wagering legal in Tennessee is legal and they'll be live soon probably before the end of this year, Ohio is one of the states that's most likely to pass something legalized. I think you're surrounded by these forms gaming activities and you see your world states. Crossing state lines to bet in other states and letting those tax revenues go to other states it's GonNa form a real incentive for a state like Kentucky to legalize this. So you know I'll be really interested to see and how that plays out in Kentucky in another state. So there are similarly situated and Oh, by the way, it's been reported that Kentucky inns wagered over two billion dollars on historical racing in the state's fiscal year that concluded at the end of June. So how much do alternative forms of revenue like historical racing impact, the viability of the thoroughbred industry I mean clearly in Kentucky, it was it was a huge factor in in the viability of that industry right and and every state handled this a little bit differently. You get states that just give outright budget subsidies to the industry other states that have legalized commercial casinos that obviously the state's tax those casinos and allocate a portion of those tax revenues to the thoroughbred industry. Justin go about this differently but you know state like Kentucky where you see you. A, as you point out what the revenues were that that came from this activity, and as importantly, you know I don't want to neglect mentioning the jobs that this created as well. It's to be really important. I think there's going to be a lot of political pressure there as there should be to to maintain the viability of the of the. Industry and the jobs that go along with it, and so is that is modifying the law, which is what the the Kentucky Supreme Court essentially pretty much said outright, they said this a job for the legislature if you want to allow whether it's these types of historical horse racing machines if you want to allow foregone class three slot machines at these race. Tracks you can absolutely do that. You just need to do it, and so whether it's modifying the law to to do that whether it's going beyond that and allowing for whether it's commercial casinos sports betting or detracts to have you know sports bet be able to have sports betting on site I think those things are all on the table and we Look at what's currently going on with the pandemic, the effective penalty tax revenues, and just the effect that it's had on commerce and employment within you know every State Kentucky's no exceptions I. Think it's I would be surprised. That will say if this doesn't facility additional movement on the part of legislator in Kentucky and elsewhere to help fuel some additional Economic. Evan Davis is the Managing Director of the Sports Wagering Group at seventy six capital sports advisory. Thank you so much for helping us out with this. Pleasure thanks so much for having me. Thanks once again to Evan Davis and Ken mcpeek. I can't decide whether racing continuing on the way it is, is tone deaf or a retreat from the real world social issues that we hear about at the top of every new show in many other sports have been unfurled but racing simply plods along with post parades engaged breaks is status quo the respite people want, and if it is, what does that say about racing's demographics not something in the real world that should flaunt Customers priorities change, and if you don't see it coming, you'll be on the outside looking in blockbuster and polaroid didn't sense those new priorities. Those companies are now in the scrap Bin, it may not seem like racing's customers are driving social change but either their makeup will change on the sport must to or racing keeps on doing what it does like blockbuster, and those would be new fans bid the sport a do. 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