Spending to lobby Kentucky legislature hit all-time high in 2023, spurred by gambling bills

FRANKFORT, Ky. — Gambling interests drove lobbying spending in Frankfort to a record level in 2023.

More than 800 corporations, associations and other groups reported spending $24.7 million to influence the Kentucky General Assembly last year, according to data posted Thursday on the Legislative Ethics Commission‘s website.

That breaks the prior record of $22.4 million spent to lobby the 2022 General Assembly.

The record is noteworthy because Kentucky lawmakers convened for only a short legislative session of 30 days in 2023. In 2022 the legislature was in session for 60 days.

A review of the ethics commission’s website shows that the main reason lobbying spending was up last year was gambling legislation.

Primarily a bill to ban so-called “gray machines” appears to have churned the most lobbying spending in 2023.

A group that called itself Kentucky Merchants and Amusement Coalition, which opposed the gray machine ban, reported spending $483,324 — more than any other group — on lobbying state lawmakers last year.

The machines at issue are video games with cash payouts and could be found at clubs, bars and gas stations throughout the state. Their proponents refer to them as “games of skill.”

A group that called itself Kentuckians Against Illegal Gambling, which pushed for banning the machines, reported spending the third-most of any group — $348,763.

The vast majority of the money spent by both groups was for broadcast advertising that aired during the 2023 session while the bill was under consideration.

In the end, the ban on gray machines passed and now is being challenged in court.

In addition to those two groups, myriad other gambling interests spent big on lobbying last year. Pace-O-Matic, the Georgia company that makes the gray machines, reported spending $110,150 on lobbying last year.

And race tracks that successfully pushed for banning gray machines and legalizing sports betting spent big on lobbying: Churchill Downs reported $128,090 in lobbying spending; Keeneland, $112,226;  The Red Mile, $89,930; Revolutionary Racing, $81,174; ECL Entertainment, $45,000.

As usual, major business associations, health care interests, electric utilities and energy interests all were among the top lobbying spenders last year.

The Kentucky Chamber of Commerce, the statewide association lobbying for businesses reported spending the second-most — $440,030 — for the year.

 Its counterpart in Louisville, Greater Louisville Inc., reported spending $113,427.

Health care entities among the top 20 lobbying spenders were: Kentucky Hospital Association, $265,093; Kentucky Medical Association, $169,420; HCA Healthcare, $142,400; Humana, $123,635; Elevance Health, $122,693; LifePoint Health, $118,480

Utilities among the top 20 were: LG&E and KU Energy, $164,407; East Kentucky Power Cooperative, $118,242; and Duke Energy, $115,819.

The American Civil Liberties Union, which opposed anti-LGBTQ legislation that was enacted in last year’s session, spent $192,084, putting it  among the top 10 in lobbying spending. Other groups in the top 10: tobacco giant Altria, of Richmond, Virginia, $191,598; Kentucky Retail Federation, $168,985; and Kentucky Distillers Association, $168,281.

Other data posted on the commission website show Patrick Jennings was paid the most of any lobbyist in 2023 — $854,258. Bob Babbage, the former Kentucky secretary of state and auditor who has been the top-paid lobbyist many years, was second at $756,283.

The commission’s website shows that 20 lobbyists made more than $322,000 last year for their work trying to influence lawmakers. (By comparison, Gov. Andy Beshear’s annual salary is $174,216.)

Groups that spent the most lobbying in 2023

There are 829 companies, associations and other groups registered to lobby the Kentucky General Assembly. Each must report its lobbying expenses to the Legislative Ethics Commission. According to year-end information posted Thursday on the commission’s website, here are the 20 groups that reported spending the most money to influence the Kentucky General Assembly in 2023:

• Kentucky Merchants and Amusement Coalition, Lexington, gambling, $483,324
• Kentucky Chamber of Commerce, Frankfort, business association, $444,030
• Kentuckians Against Illegal Gambling, Louisville, gambling, $348,763
• Kentucky Hospital Assn., Louisville, hospitals, $265,093
• American Civil Liberties Union of Kentucky, Louisville, $192,084
• Altria Client Services, Richmond, Virginia, tobacco products, $191,598
• Kentucky Medical Assn., Louisville, doctors, $169,420
• Kentucky Retail Federation, Louisville, retail stores, $168,985
• Kentucky Distllers’ Assn., Frankfort, distillers, $168,281
• LG&E and KU Energy, Louisville, utility, $164,407
• HCA Healthcare, Nashville, health care, $142,400
• Kentucky Association of Counties, Frankfort, county governments, $140,782
• Kentucky League of Cities, Lexington, city governments, $139,553
• Churchill Downs, Louisville, gambling, $128,090
• Humana Inc., Louisville, health insurance, $123,635
• Elevance Health, Cincinnati, health insurance, $122,693
• LifePoint Health, Brentwood, Tennessee, hospital, $118,480
• East Kentucky Power Cooperattive, Winchester, utility, $118,242
• Duke Energy, Cincinnati, utility, $115,819
• Greater Louisville Inc., Louisville, business association, $113,427

Top-paid lobbyists in 2023

There are 673 people registered to lobby the Kentucky General Assembly. The groups that employ them must report how much they pay their lobbyists to the Legislative Ethics Commission. According to year-end information posted Thursday on the commission’s website, here are the 20 lobbyists who were paid the most to lobby the General Assembly in 2023. Each of these 20 is a contract lobbyist who works for numerous clients.

Along with the name and amount the lobbyist was paid in 2023 are the names of three of their more prominent clients.

• Patrick Jennings: $854,258 — Clients include Kentucky Hospital Assn., CSX Corp., and AT&T
• Bob Babbage: $756,283 — Clients include MC Global Holdings, Tyler Kentucky, Underdog Fantasy
• Stephen Huffman: $754,000 — Clients include Revolutionary Racing, The Red Mile, IGT
• Ronald Pryor: $717,900 — Clients include HCA Healthcare, LifePoint Health, Kentucky Hospital Assn.
• John McCarthy: $681,993 — Clients include Churchill Downs, Kentucky Optometric Assn., Kentucky Financial Services Assn.
• Sean Cutter: $607,167 — Clients include RAI Services, Expedia Group, Autonomous Vehicle Industry
• Kelley Abell: $581,665 — Clients include BrightSpring Health, Dish Network, Kentucky Assn. of Adult Day Centers
• Jason Bentley: $547,684 — Clients include RAI Services, Kentucky Distillers’ Assn., LG&E and KU Energy
• Chris Nolan: $541,648 — Clients include Mucor, Kentucky Distillers’ Assn., Diversified Energy
• Katherine Hall: $491,417 — Clients include Kentucky Assn. of Health Care Facilities, New Venture Fund, AT&T
• Laura Owens: $468,000 — Clients include Uber, Powerhouse Kentucky, Baptist Health
• James Higdon: $466,968 — Clients include Merck Sharp & Dohne, Humana, RAI Services
• Mike Biagi: $430,550 — Clients include Kentucky Credit Union League, Wellcare Health, Appalachian Regional Healthcare
• John Cooper: $415,852 — Clients include Toyota, Kentucky Medical Assn., Kentucky Bankers Assn.
• Jason Underwood: $413,450 — Clients include Airhub, Caesar’s Digital, United Healthcare
• Amy Wickliffe: $402,049 — Clients include Pfizer, Churchill Downs, Gilead Sciences
• Trey Grayson: $375,703 — Clients include Academic Partnerships LLC, Lancaster Colony Group, Wellpath
• Steve Robertson: $362,927 — Clients include Academic Partnerships LLC, Kentucky County Clerks Assn., Wellpath
• Marc Wilson: $328,146 — Clients include Community Choice Financial, Mountain Comprehensive Care, Cincinnati Bell
• Karen Thomas-Lentz: $322,542 — Clients include EPIC Pharmacies, Swisher International, Kentucky Liquor Retailers

This article is republished under a Creative Commons license from Kentucky Lantern, which is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Kentucky Lantern maintains editorial independence. Contact Editor Jamie Lucke for questions: info@kentuckylantern.com. Follow Kentucky Lantern on Facebook and Twitter.