Opinion ID: 1165659
Heading Depth: 1
Heading Rank: 6

Heading: Kentucky

Text: Kentucky Constitution, § 226, reads: Lotteries and gift enterprises are forbidden, and no privileges shall be granted for such purposes, and none shall be exercised, and no schemes for similar purposes shall be allowed. The General Assembly shall enforce this section by proper penalties. All lottery privileges or charters heretofore granted are revoked. In Commonwealth v. Kentucky Jockey Club, 238 Ky. 739, 38 S.W.2d 987, the Kentucky Court of Appeals upheld a statute permitting the pari-mutuel system of betting on horse races. In so doing, the Court discussed conditions prior to or at the time of the adoption of the constitution, and noted particularly the historical absence of any decision holding that wagering on horse racing constituted a lottery, as follows: It did not occur to any one during that period that betting on races, elections, or similar forms of wagering constituted a lottery. Indeed, the contention that betting on horse races by the pari mutuel system constitutes a lottery is of recent origin in this state. For nearly half a century the General Assembly and the Court of Appeals have proceeded upon the general understanding that the whole subject of betting and gaming was within the power of the Legislature to prohibit, regulate, or classify, prohibiting in part and permitting in part, according to its view of the public policy to be enforced.    It might be fairly argued that the weight of authority is to the effect that lotteries do not embrace betting upon horse races by the pari mutuel system. 17 R.C.L. § 16, p. 1230; Reilly v. Gray, 77 Hun 402, 28 N.Y.S. 811; People [ex rel. Lawrence] v. Fallon, 4 App. Div. 82, 39 N.Y.S. 865, affirmed 152 N.Y. 12, 46 N.E. 296, 37 L.R.A. 227, 57 Am.St.Rep. 492; Utah State Fair Ass'n v. Green, 68 Utah, 251, 249 P. 1016; People v. Reilly, 50 Mich. 384, 15 N.W. 520, 45 Am.Rep. 47.          We are unable, in the face of the facts recited, to declare that the section of the Constitution condemning lotteries was understood by the people who adopted it as itself outlawing betting upon horse races, by the pari mutuel system, or the other forms of betting. It was then understood, and has been the accepted opinion, that the subjects of betting and gaming were within the absolute control of the police power, possessed by the Legislature. It is the duty and function of the Legislature to discern and correct evils, and evils within that power are not limited to some definite injury to public safety or morals, but embrace the removal of obstacles to a greater public welfare.