{"data":{"id":"us-ky/krs-230.225","jurisdiction":"us-ky","citation":"KRS 230.225","heading":"Kentucky Horse Racing and Gaming Corporation -- Board of directors --","body":"Annual audit -- Annual report -- Office -- Meetings -- Responsibilities --\nOperations -- Limitations -- Enforcement -- Administrative regulations.\n(1) There is he reby created and established the Kentucky Horse Racing and Gaming\nCorporation to regulate all forms of live horse racing, pari -mutuel wagering, sports\nwagering, fantasy contests, fixed -odds wagering, breed integrity and development,\nand on and after July 1 , 2025, charitable gaming, in the Commonwealth, exclusive\nof the state lottery established under KRS Chapter 154A. It shall be an independent,\nde jure municipal corporation and political subdivision of the Commonwealth of\nKentucky which shall be a public b ody corporate and politic. The corporation shall\nbe deemed a public agency within the meaning of KRS 61.805 and 61.870. The\ncorporation shall be managed in such a manner that enables the people of the\nCommonwealth to benefit from its actions and to enjoy t he best possible racing and\ngaming experiences. The General Assembly hereby recognizes that the operations\nof racing and gaming are unique activities for state government and that a corporate\nstructure will best enable racing and gaming to be managed in a businesslike\nmanner. It is the intent of the General Assembly that the Kentucky Horse Racing\nand Gaming Corporation shall be accountable to the Governor, the General\nAssembly, and the people of the Commonwealth.\n(2) (a) 1. The Auditor of Public Accounts sh all perform an audit of the\ncorporation once every four (4) years, a copy of which shall be sent to\nthe Governor and the Legislative Research Commission.\n2. A different auditing entity that is qualified to evaluate municipal\ncorporations shall conduct an a nnual audit of the corporation once each\nyear in every year when the Auditor of Public Accounts does not\nperform an audit. A copy of this audit shall be sent to the Governor and\nLegislative Research Commission.\n3. This first audit conducted under this subs ection shall cover fiscal year\n2024-2025.\n(b) The corporation shall submit a written annual report to the Governor and the\nLegislative Research Commission on or before October 1 of each year. The\ncorporation shall file any additional reports requested by t he Governor or the\nLegislative Research Commission. The annual report shall include the\nfollowing information:\n1. The receipts and disbursements of the corporation; and\n2. Actions taken by the corporation.\n(c) The corporation may submit any additional information and recommendations\nthat the corporation considers useful or that the Governor or the Legislative\nResearch Commission requests.\n(3) The Kentucky Horse Racing and Gaming Corporation shall be administered  by a\nboard of directors to regulate the conduct of:\n(a) Live horse racing;\n(b) Pari-mutuel wagering;\n(c) Sports wagering;\n(d) Fantasy contests;\n(e) Charitable gaming;\n(f) Breed integrity and development; and\n(g) Related activities within the Commonwealth of Kentucky.\n(4) (a) The corporation shall establish and maintain a general office for the\ntransaction of its business and may, in its discretion, establish a branch office\nor offices.\n(b) The corporation may hold meetings at any of its offices or at any o ther place\nat its convenience.\n(c) A majority of the voting members of the corporation shall constitute a quorum\nfor the transaction of its business or exercise of any of its powers.\n(5) Except as otherwise provided, the corporation shall be responsible fo r the\nfollowing:\n(a) Developing and implementing programs designed to ensure the safety and\nwell-being of horses, jockeys, and drivers;\n(b) Developing programs and procedures that will fulfill its oversight and\nregulatory role on such matters as medical practices and integrity issues;\n(c) Recommending tax incentives and implementing incentive programs to ensure\nthe strength and growth of the equine industry;\n(d) Designing and implementing programs that strengthen the ties between\nKentucky's horse industry a nd the state's universities, with the goal of\nsignificantly increasing the economic impact of the horse industry on\nKentucky's economy, improving research for the purpose of promoting the\nenhanced health and welfare of the horse, and other related industry issues;\n(e) Developing and supporting programs which ensure that Kentucky remains in\nthe forefront of equine research;\n(f) Designing and implementing programs that support and ensure breed integrity\nand development;\n(g) Developing monitoring programs to e nsure the highest integrity of sporting\nevents and sports wagering;\n(h) Developing a program to share wagering information with sports governing\nbodies upon which sports wagering may be conducted. The program shall be\ndesigned to assist the corporation in determining potential problems or\nquestionable activity and provide reports to sports governing bodies\neffectively;\n(i) Developing and implementing programs to ensure the highest integrity of\nfantasy contests;\n(j) Developing programs and procedures that wi ll fulfill its oversight and\nregulatory role to ensure the highest integrity in charitable gaming;\n(k) Developing programs and procedures that will provide oversight and\nregulation for all current forms of gaming and wagering;\n(l) Annually evaluating the allocation and use of funds among the purposes listed\nin KRS 230.3612 from unredeemed pari-mutuel vouchers; and\n(m) Ensuring that the correct responsibilities are assigned to each of its offices as\nestablished in KRS 230.232.\n(6) (a) The corporation shall conduct all procurements in accordance with procedures\nwhich are not inconsistent with the provisions of KRS Chapter  45A and this\nchapter; provided, however, that this chapter shall control if and to the extent\nthat any provision in this chapter is expressly inconsistent with any provision\nof KRS Chapter 45A.\n(b) The corporation may promulgate administrative regulations  establishing its\nprocurement procedures. If the corporation elects to promulgate\nadministrative regulations establishing its procurement procedures rather than\nconduct procurements in accordance with KRS Chapter 45A, the corporation\nmay include sections o f KRS Chapter 45A as part of its administrative\nregulations.\n(c) Major procurements for personal service contracts shall not be subject to the\nrequirements of KRS 45A.695(2)(b) due to the unique operational activities\nconducted for state government by the corporation. The corporation's\nprocurement procedures or administrative regulations shall be designed to\nprovide for the purchase of supplies, equipment, services, and construction\nitems that provide the greatest long -term benefit to the state and the grea test\nintegrity for the corporation and the public.\n(d) In its bidding and negotiation processes, the corporation may do its own\nbidding and procurement, or may utilize the services of the Finance and\nAdministration Cabinet, or a combination thereof. The pr esident of the\ncorporation may, in lieu of the secretary of the Finance and Administration\nCabinet, declare an emergency for purchasing purposes.\n(7) Corporation records shall be open and subject to public inspection in accordance\nwith KRS 61.870 to 61.884 unless:\n(a) A record is exempted from inspection under KRS 61.878;\n(b) A record involves a trade secret or other legally protected intellectual property\nor confidential proprietary information of the corporation or of an applicant,\nlicensee, individual, o r entity having submitted information of such character\nto the corporation, in which case, the portion of the record relating to these\nsubjects may be closed; or\n(c) The disclosure of the record could impair or adversely affect the operational\nsecurity of the corporation in the regulation of matters within its jurisdiction\nor could impair or adversely impact the operational security of applicants or\nlicensees.\n(8) Meetings of the corporation through its board of directors shall be open to the\npublic in acco rdance with KRS 61.800 to 61.850 unless the exceptions set forth in\nKRS 61.810 apply or the meeting addresses trade secrets, confidential or\nproprietary information, or operational security issues as described in subsection\n(7)(c) of this section. If this is the case, the corporation may meet in closed session\nand shall follow the procedures set forth in KRS 61.815.\n(9) The corporation may participate in all state agency price contracts to the same\nextent as agencies of the Commonwealth in accordance with KRS 45A.050(3).\n(10) (a) The corporation is hereby authorized to accept and expend such moneys as\nmay be appropriated by the General Assembly or such moneys as may be\nreceived from any source for effectuating its purposes, including without\nlimitation the payment of the initial expenses of administration and operation\nof the corporation.\n(b) After the transfer to the corporation of any funds appropriated in fiscal year\n2024-2025 and fiscal year 2025 -2026 for the administration of this chapter\nand KRS Chapter 238, the corporation shall be self-sustaining and self-funded\nand moneys in the state general fund shall not be used or obligated to pay the\nexpenses of the corporation.\n(11) On July 1, 2024:\n(a) The Kentucky Horse Racing and Gaming Corporation shall assu me all\nresponsibilities of the Kentucky Horse Racing Commission;\n(b) The Kentucky Horse Racing Commission shall be abolished and all\nemployees of the Kentucky Horse Racing Commission are transferred to the\ncorporation; and\n(c) All personnel, equipment, and funding shall be transferred from the Kentucky\nHorse Racing Commission to the Kentucky Horse Racing and Gaming\nCorporation.\n(12) On July 1, 2025:\n(a) The office regulating charitable gaming in the Kentucky Horse Racing and\nGaming Corporation shall assume all responsibilities of the Department of\nCharitable Gaming;\n(b) The Department of Charitable Gaming shall be abolished and all employees\nof the Department of Charitable Gaming are transferred to the corporation;\nand\n(c) All personnel, equipment, and fundi ng shall be transferred from the\nDepartment of Charitable Gaming to the Kentucky Horse Racing and Gaming\nCorporation.\n(13) Notwithstanding any other law to the contrary, nothing in this chapter or KRS\nChapter 238 shall authorize the corporation to:\n(a) Regulate or control horse sales;\n(b) Require the licensure of horse breeders in their capacity as breeders;\n(c) Prohibit or restrict any approved, either by statute or administrative\nregulation, game or charitable gaming activity in use in the Commonwealth as\nof July 1, 2025, without action by the Kentucky General Assembly; or\n(d) Exercise jurisdiction over matters within the exclusive national authority of\nentities designated by the laws of the United States of America.\n(14) This section shall not prohibit th e corporation from denying, suspending, or\nrevoking a license, imposing probationary conditions on a license, issuing a written\nreprimand or warning, imposing fines or penalties, issuing cease and desist orders,\nor any combination thereof with regard to an y licensee or person participating in\ncharitable gaming in Kentucky for a violation of any federal or state statute, KRS\nChapter 238, or any administrative regulation promulgated by the corporation\npursuant to this chapter or KRS Chapter 238.\n(15) The Attorney General has concurrent jurisdiction with the Commonwealth's\nattorneys and county attorneys of this state for the enforcement and prosecution of\noffenses under this chapter and KRS Chapter 238.\n(16) (a) A licensee required to submit a report to  the corporation under this chapter or\nKRS Chapter 238 shall submit with the report an attestation that the report is\ntrue, correct, and complete to the best of the applicant's knowledge and belief\nunder penalty of perjury.\n(b) Any information or data in t he report provided to the corporation that is\nsubstantially misleading or containing materially false information shall be\nunder penalty of refusal, suspension, or revocation of the license by the\ncorporation.","path":["KRS Chapter 230"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58103","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:46Z","sha256":"486e6e022f34c7295a4f8c7b606b639b73bc34d2ed36e1f7587efc2c7bc9761c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-230.220","next":"us-ky/krs-230.227"},"notice":"GroundRules: Original legal text. Not legal advice."}