Proposed Kentucky Sports Betting Legislation Places Regulatory Authority with Racing Commission
Kentucky Lawmakers Push for Legalization of Sports Wagering: Rep. Michael Meredith's HB 551 Takes Center Stage
In a renewed bid to legalize sports wagering, Republican state Rep. Michael Meredith has filed House Bill 551 (HB 551) this week, designating the Kentucky Horse Racing Commission as the regulatory body for such activities. This marks the fifth consecutive year that a sports wagering bill has been introduced in the statehouse, and optimism is running high that this year could see passage.
Unlike previous bills, HB 551 has omitted the legalization of online poker and daily fantasy sports, a move aimed at increasing the bill's chances of becoming law. The lack of these provisions has been a contentious issue in the state Senate, which could potentially streamline the legislative process this time around.
The bill boasts bipartisan support, with six Democrats and five Republicans signing on as co-sponsors. Meanwhile, HB 106, a bill filed in January that includes language to legalize online poker and daily fantasy sports, is backed exclusively by Democrats. The House currently has just 20 Democratic seats out of 100.
HB 551 restricts wagering to sporting events only, as confirmed by Rep. Meredith in an interview with LEX18News. The bill's focus on sports wagering specifically sets it apart from HB 106, which might increase its chances of gaining traction in the statehouse.
The 2022 bill, sponsored by Rep. Adam Koenig, made progress out of the House for the first time but did not receive a Senate vote. For several years, Democratic Governor Andy Beshear has publicly supported the legalization of sports wagering in Kentucky, expressing his stance during his 2019 gubernatorial campaign and reiterating it as he seeks reelection.
As neighboring states like Ohio have entered the sports wagering market, pressure is mounting on Kentucky to follow suit. Residents of Kentucky have easy access to nearby states for sports wagering, with options available in Ohio, Illinois, Indiana, Virginia, West Virginia, and Tennessee. All these states offer remote registration for mobile and online sports wagering.
HB 551's key provisions include maintaining consistent tax rates from previous bills, allowing retail sports wagering at the state's nine racetracks, and testing the waters with in-person registration for mobile sports betting during the first 12 months of legal wagering. The bill also enables operators to carry over negative adjusted gross revenue for up to 12 months and deduct the 0.25% federal excise tax when calculating adjusted gross revenue.
The bill sets licensing fees for tracks and online operators, allows users to wager on in-state college teams, and outlines the regulatory role for the Kentucky Horse Racing Commission, making it an uncommon regulatory body for sports wagering in the United States. Only Arkansas currently regulates sports wagering through a horse racing body, having launched mobile wagering in February 2022.
HB 551 sets the legal age for sports wagering at 18, consistent with other forms of betting in Kentucky such as horse racing and lottery offerings, but differing from the age 21 minimum in many states. The bill also imposes penalties for those who engage in insider betting and restricts family members of players from wagering.
With the filing of HB 551, the journey towards legalizing sports wagering in Kentucky continues. The bill demonstrates a concerted effort by lawmakers to create a regulated and accessible sports betting market, with Kentucky's horse racing heritage playing a prominent role in the proposed regulations.
- Initiated by Rep. Michael Meredith, an attempt to legalize sports wagering in Kentucky has been renewed with the filing of House Bill 551 (HB 551), designating the Kentucky Horse Racing Commission as the regulatory body.
- In a twist from previous bills, HB 551 does not include the legalization of online poker and daily fantasy sports, in an effort to improve its chances of becoming law.
- The bill has garnered bipartisan support, with co-sponsors from both Republicans and Democrats, unlike HB 106, which is backed exclusively by Democrats.
- As neighboring states like Ohio have entered the sports wagering market, there is increasing pressure on Kentucky to follow suit, with options for sports wagering available in several nearby states.
