online sports betting ky
Kentucky Sports Betting Law
Legalization and Regulation
Kentucky joined the ranks of states with legalized sports betting when Governor Andy Beshear signed House Bill 551 into law on March 31, 2023. This landmark legislation marked a turning point for sports enthusiasts in the Bluegrass State, paving the way for both online and retail sports betting.
The Kentucky Horse Racing Commission (KHRC) has been entrusted with the responsibility of regulating this newly established industry. Their duties include issuing licenses to operators, ensuring compliance with the law, and establishing comprehensive regulations to govern sports betting activities within the state.
Timeline for Implementation
Kentucky wasted no time in setting a swift timeline for the implementation of its newly minted sports betting market. Lawmakers, eager to capitalize on the upcoming football season, aimed for a launch before the NFL kicked off.
True to their word, retail sportsbooks at licensed horse racing facilities opened their doors to eager bettors on September 7, 2023, coinciding with the start of the NFL season. This allowed Kentucky residents to place in-person wagers at designated locations throughout the state.
Mobile sports betting followed shortly after, with online platforms officially launching on September 28, 2023. This two-step rollout strategy prioritized a timely introduction of sports betting while providing adequate time for operators to finalize their mobile platforms and ensure a smooth user experience.
Kentucky Sports Betting Options
Retail Sportsbooks
Kentucky’s sports betting law permits the state’s nine horse racing tracks to operate retail sportsbooks. Each licensed racetrack can partner with up to three online sportsbook operators, providing a potential for diverse betting options. As of September 7, 2023, several retail sportsbooks have opened their doors, coinciding with the start of the NFL season. Churchill Downs Racetrack, a landmark in Kentucky horse racing, is among the venues offering sports betting. Other facilities include Derby City Gaming in Louisville, Ellis Park in Henderson, Keeneland in Lexington, The Red Mile in Lexington, and Turfway Park in Florence. These locations offer a traditional sportsbook experience where bettors can place wagers in person.
Mobile Sports Betting
Kentucky’s sports betting landscape expanded significantly on September 28, 2023, with the launch of mobile sports betting. This allows residents and visitors within state lines to place bets using smartphones or other mobile devices. Several major national sportsbook operators, including DraftKings, FanDuel, BetMGM, Caesars Sportsbook, and Bet365, have secured licenses to operate in Kentucky. These platforms offer a wide array of betting options, covering popular sports like football, basketball, baseball, and hockey, as well as niche sports and esports. Mobile sports betting provides Kentucky residents with a convenient and accessible way to engage in legal sports wagering.
Kentucky Sports Betting Taxes and Revenue
Tax Rates and Licensing Fees
Kentucky’s sports betting law establishes specific tax rates and licensing fees for both retail and online sports betting operations. Retail sportsbooks will be subject to a 9.75% tax rate on their adjusted gross revenue, which is calculated by subtracting the amount paid out in winnings from the total amount wagered. On the other hand, online sports betting platforms will face a higher tax rate of 14.25% on their adjusted gross revenue.
In addition to the tax rates, Kentucky will also collect licensing fees from sports betting operators. Racetracks interested in offering sports betting at their facilities will be required to pay a $500,000 initial licensing fee and a $50,000 annual renewal fee. For online sports betting operators, the initial licensing fee is set at $50,000, with a $10,000 annual renewal fee.
Revenue Allocation
Kentucky’s sports betting law outlines a clear plan for allocating the revenue generated from sports wagering. The majority of the tax revenue collected from both retail and online sports betting will be directed towards the state’s permanent pension fund. This allocation aims to address the state’s significant pension liabilities and ensure the long-term financial stability of the retirement system for teachers and state employees.
Furthermore, a portion of the sports betting revenue will be dedicated to the Kentucky Problem Gambling Assistance Account. This allocation reflects the state’s commitment to promoting responsible gambling practices and providing support services to individuals who may be struggling with gambling addiction. By directing funds to this account, Kentucky aims to mitigate any potential negative consequences associated with the expansion of gambling.