The Commonwealth of Kentucky is contemplating a new statute that would authorize online wagering on sporting events, poker, and fantasy competitions. The proposed legislation, presented by Representatives Derek Graham, Shelia Stevenson, and Rachel Roberts, would modify existing regulations and establish new provisions pertaining to online gambling.
This proposed law would permit online operators to provide sports betting services and would enable racetracks to collaborate with online brands. Each racetrack would be limited to partnering with a single online operator, who would furnish the gambling platform. Racetracks would also be permitted to offer sports betting at two distinct locations within a 60-mile radius of the racetrack.
The legislation specifies that wagering would be authorized on prominent sports leagues such as the NFL, NBA, MLB, PGA, NASCAR, MLS, and NCAA, in addition to other nationally recognized sporting events.
The application fee for a sports betting license would be a substantial $500,000, with an annual renewal fee of $50,000. A 9% tax would be imposed on revenue generated from these activities.
The course will be assessed at a rate of 75% each month, while web-based wagering will be assessed at 14.25%.
Participants, trainers, and officials, along with their immediate relatives, are prohibited from placing bets on sporting events within the state.
Internet poker and virtual sporting events will be permitted.
The legislation also permits online poker.
To secure a permit, operators must show the effective use of location-tracking software to ensure that online poker is limited to Kentucky. Applicants must also show that they can verify age to make sure that players under the age of 18 cannot wager on the platform.
A permit fee of $250,000 and an annual renewal fee of $10,000 must be paid. A 6.75% tax is imposed monthly on all charges levied on players, including rake.
The legislation also introduces provisions to permit fantasy sports, establishing a licensing process for operators with more than 100 participants. Operators below this threshold do not need to obtain a permit.
Companies need to pay a $5,000 application fee to secure a permit, as well as a 6% annual renewal fee based on the previous year’s income or $5,000, whichever is greater.
There are no limitations on the digital platforms used by operators to host fantasy competitions.
Fantasy license holders must submit annual records to a certified financial expert to ensure compliance with the law (if passed).
The provider will shoulder these expenses and is required to keep daily operational logs, preserving them for a minimum of six years.
To secure any gaming permit in Kentucky, no associate, member, executive, administrator, director, or stockholder can have a criminal history within the state. If an individual is discovered to have a criminal history after the application is approved, the permit could be rescinded or temporarily halted.
This is not the initial attempt by the Kentucky legislature to introduce a sports betting proposal.
In March 2022, Kentucky House Bill 606 cleared the House but failed to advance through the Senate committee.
The proposal was withdrawn prior to a Senate vote due to insufficient confidence in securing the necessary votes for passage.
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