Governor Andy Beshear has signed House Bill 551, making Kentucky sports betting legal. The bill passed the Senate earlier that day by a 25-12 vote, despite facing long odds on the last day of the legislative session. The law allows for in-person and online sports betting at Kentucky Speedway and the state’s nine horse racing tracks, with a $500,000 upfront fee and an annual renewal cost of $50,000. Participating tracks can contract with up to three service providers for sports wagering services, giving Kentuckians up to 27 sportsbook options. Service providers will have to pay $50,000 for an initial license and $10,000 a year to renew. The Kentucky Horse Racing Commission will regulate the market.
Under the new law, Kentucky sports betting wagers at race tracks will have an excise tax of 9.75%, while online bets will have a rate of 12.25%. Tax revenue from sports betting will fund state employee pensions, with a small amount set aside for a fund to help people with gambling addictions. Governor Beshear noted that Kentucky was falling behind other states in terms of competitiveness due to the lack of sports betting, which was legal in many surrounding states. He also praised the bipartisan support for the gambling bill, calling it “the most bipartisan bill that was passed this session.”
While the legalization of Kentucky sports betting is expected to bring in revenue for the state, concerns have been raised about the potential for gambling addiction. To address this, a small amount of the tax revenue will be set aside for a fund to help people with gambling addictions. Additionally, the law includes measures to prevent sports betting from being offered to minors, including setting the legal gambling age at 21 and requiring age verification checks for online betting.
Overall, the legalization of sports betting in Kentucky is expected to provide a boost to the state’s economy and bring it in line with many other states that have already legalized sports betting. However, it will be important for the state to carefully monitor the impact of sports betting on its residents, particularly with regards to potential gambling addiction.