Kentucky Regulatory Authority Indicates Possible July Review and Approval of Gaming Regulations
Kentucky has joined the ranks of states offering legal sports betting, marking a significant expansion in the state's gaming industry. On March 31, Governor Andy Beshear signed House Bill 551 into law, paving the way for sports wagering in the Bluegrass State.
The Kentucky Horse Racing Commission (KHRC) has contracted with Gaming Laboratories International for consulting and training, and plans to add 14 new positions to manage and oversee the new market. The timeline for the implementation of sports betting in Kentucky has been carefully planned, with retail locations opening on September 7, 2023, and mobile applications launching three weeks later on September 28.
The legal framework for sports betting in Kentucky aligns with many other U.S. states, with a minimum age requirement of 21 years old and a variety of bet types available, including money line, spread, over/under, prop bets, and parlays. However, betting on high school sports is not permitted.
Prominent operators like BetMGM, Caesars, DraftKings, and FanDuel have received approvals for their mobile apps, and FanDuel has already partnered with Churchill Downs in Kentucky. Caesars Sportsbook has announced partnerships with Keeneland and Red Mile Gaming & Racing for retail sportsbooks, and each track in Kentucky would get three skins and one brick-and-mortar location.
Comparing Kentucky's sports betting market with those of other states reveals some interesting insights. For instance, Colorado launched its sports betting market in May 2020 with a more decentralized approach, allowing multiple operators to enter the market with fewer restrictions. Indiana, similar to Kentucky, has a mix of retail and online betting options, but it has a more established market with a broader range of operators. Massachusetts, Ohio, and New Jersey all have well-established sports betting markets, each with its unique regulatory environment.
The tax rate for sports betting in Kentucky is set at 14.25%, and 2.5% of tax revenue will be committed to responsible and problem gambling initiatives. The signing of sports betting into law will provide better roads, bridges, and schools for everyone in Kentucky.
It is likely that Barstool Sportsbook, BetMGM, DraftKings, and other major operators will announce partnerships in the coming months. Regulators in the three other states consulted have overseen live wagering for at least three years, providing valuable insights for Kentucky's KHRC.
Kentucky's new law sets the legal age for sports betting at 18, a departure from most states. However, the state's regulatory body has been meeting with "regulators from other states, industry experts, service providers, and licensed associations" to ensure a well-regulated and responsible market.
As the sports betting market continues to evolve in Kentucky, smaller operators like Circa, SuperBook Sports, and Tipico, as well as European entries like bet365 and SBK, are expected to be available in the Kentucky market. The signing of sports betting into law in Kentucky was the second time the Bluegrass State expanded gaming since 2021, after approving historical horse racing in 2021.
The broader context of sports betting legalization and implementation across the U.S. provides insights into the trends and challenges faced by Kentucky. Each state adapts legislation to suit its unique market conditions, and Kentucky's approach is no exception. With a well-planned timeline, a diverse range of operators, and a commitment to responsible gambling, Kentucky's sports betting market is poised for success.
The Kentucky Horse Racing Commission (KHRC) has engaged Gaming Laboratories International for consulting and training, aiming to add 14 new positions to manage the sports betting market. The planned implementation of sports betting in Kentucky will see retail locations open on September 7, 2023, followed by mobile applications on September 28.
Prominent operators like BetMGM, Caesars, DraftKings, and FanDuel have received approvals for their mobile apps in Kentucky, with FanDuel already partnering with Churchill Downs. Caesars Sportsbook has announced retail sportsbook partnerships with Keeneland and Red Mile Gaming & Racing.
Despite setting the legal age for sports betting at 18, the state's regulatory body is meeting with other state regulators, industry experts, and licensed associations to ensure a well-regulated and responsible market. Smaller operators and European entries are expected to join the Kentucky market as it continues to evolve.
