Kentucky Enjoys Strong Start to Legal Sports Betting

The Kentucky sports betting industry is surpassing expectations.

Kentucky’s legal retail sports betting platform has been operational for just over three months since its launch on Sept. 7, with sports betting apps going live about 10 weeks later on Sept. 28.

Legislators in Kentucky who previously advocated for the legalization of sports betting are now realizing that their initial revenue estimates may need to be adjusted higher.

Having this problem is a positive situation.

Gov. Andy Beshear expressed optimism about the impressive beginning of sports wagering revenue, stating that if the trend continues, they will surpass the projected $23 million. He mentioned that the tax dollars generated will be used to support the regulation of sports wagering, create a fund for problem gambling, and mainly benefit Kentucky’s pension systems.

$656 million bet so far

At his weekly press conference, Gov. Andy Beshear highlighted the success of Kentucky’s legal sports betting platform since its launch in September, noting that many people have been utilizing the state’s top sportsbook promotions in the initial months.

Although official figures have not been disclosed, Beshear revealed that in the first two months of legal sports betting in Kentucky, a total of $656 million has been wagered. This amounts to approximately $65.2 million being spent on sports betting in Kentucky each day, with an estimated 500,000 betting accounts being created in the state.

Kentucky’s top sportsbooks have been leading the way, with over $629.5 million of the total $656 million in bets coming from the state’s best sports betting apps. Retail providers in Kentucky have contributed around $26.9 million to the overall handle.

bet365, BetMGM, Caesars Underscoreg, DraftKings, Fanatics, FanDuel, and ESPN BET have all proven to be top choices among residents of Kentucky.

Tax revenues impressive

Due to the substantial amount of legal sports betting in Kentucky, tax revenues at both the state and local levels have increased by $8 million since the introduction of retail and mobile sports betting.

Kentucky betting sites are required to pay a $500,000 licensing fee by state regulators in order to operate in the state. The platform’s gross revenues are subject to a 9.75% tax rate, while online sportsbooks are taxed at a rate of 14.25%.

Governor Beshear has highlighted that tax revenue will be directed towards locally-based programs that will positively impact the residents of the state. This tax revenue will now be retained within the state, as opposed to being sent to other states or used for illegal betting activities.

The Governor shared “unofficial” numbers on Friday, but the official revenue reports for the Kentucky Horse Racing Commission (KHRC) will begin to be released this week.

More to come

Many legal sports betting licenses are still available in Kentucky, making it an appealing market for providers looking to enter the state’s sports betting industry.

Circa Sports, based in Las Vegas, is planning to launch an online sports betting platform and a retail location in Kentucky during the second quarter of the company’s fiscal 2024. A specific launch date for Circa Sports in Kentucky has not yet been announced.

Circa currently operates in Colorado, Illinois, Iowa, and Nevada.