Kentucky House Speaker Greg Stumbo: Horse tracks could hold pension solution

FRANKFORT, Ky. (AP) -- House Speaker Greg Stumbo says horse racing tracks could generate up to $30 million a year in tax revenue for the state's financially troubled pension system by installing slot-like machines and then taxing the proceeds.

In Kentucky, actual slot machines are banned, but two horse tracks in the state have installed slot-like machines, called instant racing machines, that allow people to wager on the outcomes of past horse races.

Stumbo said he believes instant racing could generate wagers totaling $1 billion a year if expanded to additional tracks. Taxing those wages could be a boon for the pension system.

Stumbo has also proposed raising the state's cigarette tax from 60 cents to $1 a pack in a move he said could generate $100 million a year for the pension system.