FRANKFORT, Ky. — The Kentucky Senate has voted to legalize sports betting, approving a House bill that enables Kentucky horse tracks to open retail sports books and partner with online betting sites.
Kentucky Gov. Andy Beshear has indicated he would sign the bill if passed.
It’s expected to spark an industry that books more than $2 billion in annual wagers and generates about $23 million in annual tax revenue for Kentucky. It would divert 2.5% of that tax revenue to a new fund to combat problem gaming. The remainder funds gaming regulatory expenses and Kentucky pensions.
The vote means Kentucky will join 36 states and the District of Columbia in legalizing sports betting. It joins four states and D.C. in allowing people to bet on sports at the age of 18, according to the American Gaming Association.
“It’s consistent with all of our other gaming laws in Kentucky,” said the bill’s sponsor Rep. Michael Meredith (R-Oakland). “You can bet at a horse track in Kentucky when you’re 18, you can go to an HHR facility at 18 by statute. Now, several of our HHR facilities have self-regulated to 21 but the statute says 18. And then, you can buy lottery tickets in Kentucky at 18 too. So, it’s consistent with all of our other wagering laws.”
The Kentucky Horse Racing Commission (KHRC) would be in charge of regulating the industry and will have six months to develop the rules that sportsbooks must follow.
Tracks would pay a $500,000 initial license fee and $50,000 for annual renewals. Operators would pay $50,000 initially and $10,000 annually thereafter. Retail sportsbooks would pay a 9.75% tax on revenues, while online operators would face a 14.25% tax rate.
The bill allows each of Kentucky’s nine tracks to partner with up to three online betting partners. Churchill Downs will be the dominant rival, with existing licenses to operate four tracks and four satellite locations that offer HHR, or historical horse racing machines.
Churchill Downs currently bans admission to people under 21 at Turfway Park and Newport Racing & Gaming near Cincinnati. The company did not return an email seeking comment on whether its online partners will allow bets from people under 21.
The General Assembly also voted to pass Senate Bill 47, which would allow access to medical marijuana for people suffering from a series of debilitating illnesses. Read more about the medical marijuana bill here.
