Kentucky Lawmakers Sign Off on Sports Betting Bill

Rich Strike with Sonny Leon as we look at the Kentucky Derby odds — Rich Strike with Sonny Leon up wins the 148th running of the Kentucky Derby at Churchill Downs on May 07, 2022 in Louisville, Kentucky. Photo by Jamie Squire/Getty Images via AFP.

In-state betting will finally be allowed for one of the most popular sports events in the U.S.

The Kentucky state Senate has approved a bill in the final hours of its 30-day 2023 session that will introduce comprehensive mobile and retail legal sports betting to the state.

Kentucky is on the brink of becoming the 37th state in America to legalize sports betting with the passage of House Bill 551 by a narrow 25-12 vote. The bill now awaits Governor Andy Beshear’s signature to become law.

What the bill entails

HB 551 opens the door for nine racetracks in Kentucky to operate retail sportsbooks on-site, as well as the opportunity to partner with up to three online operators. This could result in a total of 27 sports betting licenses being issued in the state.

HB 551 details that the regulation of sports betting in Kentucky will be overseen by the Kentucky Horse Racing Commission (KHRC).

The tax rate for legal sports betting in Kentucky will be 9.75% for retail operations and 14.25% for online operators. Licenses for tracks will cost $500,000 each, with operators contributing $50,000. Annual renewal fees will be $50,000 for tracks and $10,000 for operators working with them.

Who wins?

The long-awaited approval of sports betting for residents of Kentucky is a positive development for all parties involved. Those who enjoy betting in the state will now have access to a legal and regulated platform for sports wagering, as well as the added excitement of being able to participate in events like the Kentucky Derby.

During a debate on the possibility of legal sports betting in his state, Republican Senate Majority Leader Damon Thayer expressed support by stating, “The people of our commonwealth have a passion for sports and should have the freedom to choose to place bets on sporting events, as many of our neighboring states already allow.”

Kentucky’s sports teams will benefit from increased exposure through a legal sports betting platform, even though the state currently only has two soccer teams as its professional sports franchises.

There is currently a debate surrounding whether the horse racing community in Kentucky will benefit from legal sports betting.

One of the key benefits of the sports betting industry in Kentucky is the significant boost it will provide to the state’s tax revenue. It is projected to bring in $23 million from a combination of sports betting revenues and licensing fees. These funds will be allocated towards regulatory costs, problem gambling programs, and the public pension system in the state.

The next steps in Kentucky

Governor Andy Beshear is set to receive the bill and is anticipated to officially legalize sports betting in the coming days. Beshear has been a vocal advocate for legalizing sports betting in order to enhance Kentucky’s longstanding horse racing heritage.

The law will be implemented in 90 days, after which the Kentucky Horse Racing Commission (KHRC) will begin setting guidelines for the upcoming platform and accepting applications from potential operators.

It is anticipated that the two processes will be sped up, leading to the legalization of sports betting in Kentucky by the end of 2023. The objective, like other jurisdictions, is to have it available before the start of the NFL season, which is a crucial time for sportsbooks in the U.S. Unfortunately, fans will have to wait until after this year’s Kentucky Derby in May for legal sports betting to be available.

Possible sports betting companies looking to expand into Kentucky include DraftKings, which recently introduced its DK Horse App, as well as FanDuel, BetMGM, and Caesars, among others.

Top Underscoreg Betting Sites for Kentucky residents featuring the best promotions and sports betting apps available in the U.S.

Written By:
Perry Sandra

Perry Sandra and betting go hand-in-hand. Both are characterized by “odds”. Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn’t found a sport yet that can’t contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.