Kentucky looks to legalized sports betting as pension band-aid

Is regulated sports betting the answer to the impending pension crisis faced by many US state governments? Kentucky Attorney General Andy Beshear would answer that question with a hearty, “Yes, and go ahead and throw daily fantasy sports into the mix,” according to LegalSportsReport.com.
Earlier this month, Beshear wrote a letter the state’s legislative bodies outlining his plan to cover a massive gap between the funds the State of Kentucky has on hand to cover the pensions of retired state workers and the money they’ll actually need to cover those same pensions.
In his letter, Beshear outlined his plan saying, “The solution is not to cut legally promised benefits but to create a new dedicated stream of revenue solely for pensions. The answer is simple – expanded gaming.” It’s a tale as old as governance itself, only it’s been updated to include the twist of sports betting. After all, most states introduce legalized gambling to raise revenue for very specific projects, and Kentucky is no different.
If Beshear’s plan goes into effect, Kentuckians will have to do a whole lot of wagering to cover those state pensions. As of this writing, Kentucky is going to need anywhere between $40 billion to $80 billion to fully fund the retirements of everyone from firefighters to teachers.
Beshear also points out that Kentucky is already losing millions and millions of dollars as Kentuckians trek to neighboring states that offer legal gambling, so why not join the party?
The Governor’s Office, however, isn’t fully convinced. Kentucky Governor Matt Bevin’s spokesman responded to the letter saying, “Funding alone will not solve the problem – Governor Bevin is the only governor to commit to fixing the pension crisis by fully funding the system and calling for necessary reforms.”
So far, there have been no bills introduced to legalize sports betting in Kentucky.