Author: Anthony Vlahovic
Last Updated: 28 October, 2024
One of the biggest betting events every year takes place in Kentucky, yet it took until 2023 for the state to legalize sports betting. Long known as a horse racing state, KY now has seven mobile sports betting operators and retail wagering options.
Is online sports betting legal in Kentucky? | Yes |
Is in-person sports betting legal? | Yes |
Is daily fantasy sports legal? | Yes |
Is betting on college sports legal? | Yes |
Is horse racing betting legal? | Yes |
Is greyhound betting legal? | No |
Is political betting legal? | No |
Is eSports betting legal? | Yes |
Horse racing has been a staple in Kentucky since the 1800s when Churchill Downs opened, so residents have long been able to wager on horse and greyhound races. With sports betting legal, bettors can also wager on professional and collegiate sports, including in-state colleges, so residents can bet on their beloved Kentucky Wildcats.
Daily fantasy sports apps are also available in KY for those looking for a sports betting alternative, but it is important to note that they are unregulated. The only thing still not available for customers to bet on is politics, which is common among states with legal gambling.
A discussion around sports betting and its legalization has been circulating in Kentucky since 2017. Before PASPA was overturned, the Bluegrass State had a sports betting bill circulate, but it wasn’t until 2018 that the state would create a panel to form another bill. Plenty of sports betting bills died during legislative sessions in Kentucky from 2017 to 2023.
The only one to survive was HB 551, created by Michael Meredith and passed on a 25-12 vote in the Senate. After the bill went into effect in June, it only took a little over two months before the first retail bet was placed at Churchill Downs. Online sports betting would go live later in the month, putting the sports betting market right into the hands of Kentucky residents.
With all nine racetracks receiving licenses, there could technically be 27 mobile operators in the state, but for now, there are just eight. Circa Sportsbook was the most recent operator approved for a license, and they officially went live in KY on May 14, 2024.
Outside of Circa, bettors in Kentucky can still access some of the most prominent names on the market, including Bet365, BetMGM, DraftKings, FanDuel, and Caesars. With sports betting still in its infancy in KY, there is a good chance we see more operators enter the market within the coming years, especially since plenty of online licenses are still available.
Not only will we likely see more mobile betting apps enter the state, but more retail betting facilities will also join the market. Most recently, Sandy’s Gaming and Racing partnered with an online betting app, giving them access to the sports betting market.
Sportsbook app | Launch date |
---|---|
Circa Sports | May 14, 2024 |
ESPN Bet | November 14, 2023 |
Bet365 | September 28, 2023 |
BetMGM | September 28, 2023 |
Caesars Sportsbook | September 28, 2023 |
DraftKings | September 28, 2023 |
Fanatics Sportsbook | September 28, 2023 |
FanDuel | September 28, 2023 |
The legal gambling age in Kentucky is 18. However, most sportsbook operators still require bettors to be at least 21 years old. The state has long had a legal gambling age of 18, which is the required age to bet on horse races and do anything lottery-related, but operators have the choice to enforce a minimum gambling age of 21.
Currently, four mobile operators have their legal age set at 21, while three operators, including DraftKings, are keeping it at 18. While all mobile sportsbook operators are partnered with racetracks all over the state, residents do not need to be on location to create an account, as remote registration is fully available in KY.
The Kentucky Horse Racing Commission enforces all of the aforementioned rules and regulations. Outside of those regulations, one of the biggest things for Kentucky bettors to be aware of is the tax rate, which is currently set at 6% of all winnings.
Gambling legislation could possibly still be discussed in the state moving forward since daily fantasy apps remain unregulated despite some of the big-name operators in that market still offering services in KY. Online casinos and online poker also remain illegal in the state, and it’s unclear how long that will remain the case.
Are online casinos legal in Kentucky? | No |
Are retail casinos legal? | No |
Are social sportsbooks legal? | Yes |
Are sweepstakes/social casinos legal? | Yes |
Is online poker legal? | No |
Is the lottery legal? | Yes |
The launch date of sports betting in Kentucky? | Online: September 28, 2023 (Retail: Sept. 7, 2023.) |
How many legal sports betting apps are there in KY? | 8 |
How many legal retail betting sites are there in KY? | +10 |
Is remote registration allowed? | Yes |
Legal age for sports betting in Kentucky? | 18+ |
Kentucky's tax rate for betting/gambling winnings | 6% |
Who regulates sports betting in Kentucky? | Kentucky Horse Racing Commission |
October 28, 2024: In the midst of a losing streak, the Kentucky Wildcats will head to Tennessee this weekend where they are (+16) point underdogs.
October 22, 2024: After their loss to Florida, the Kentucky Wildcats will return home to host Auburn as (-2.5) point favorites.
October 15, 2024: Fresh off a loss to Vanderbilt, the Kentucky Wildcats will head on the road to Florida, where they are favored by (-1) over the Gators.
October 8, 2024: Coming off a bye week, the Kentucky Wildcats will host Vanderbilt off their upset over Alabama. The Wildcats are currently favored by (-13.5).
September 27, 2024: Official practice for college basketball has gotten underway, and the Kentucky Wildcats are currently (+3000) to win the National Championship.
September 24, 2024: Still searching for their first SEC win, the Kentucky Wildcats will head on the road to Ole Miss, where they are (+17.5) point underdogs.
September 18, 2024: Coming off a game in which they were one point away from upsetting #1 Georgia, the Kentucky Wildcats will host the Ohio Bobcats as (-20) point favorites.
September 10, 2024: After losing their first SEC game of the season as outright favorites, the Kentucky Wildcats will host the Georgia Bulldogs in week three as (+24) point home underdogs.
September 2, 2024: Following their week one win, the Kentucky Wildcats will play their first SEC game against South Carolina. The Wildcats are currently (-10) point favorites on DK.
August 28, 2024: The Kentucky Wildcats will kick off their 2024 football season with a home game against Southern Mississippi, in which they are (-28) point favorites.
August 7, 2024: The University of Kentucky's football program was forced to vacate 10 wins from 2021 due to infractions committed by the program. Kentucky's swim team was also punished in that same investigation.
Most states that have legalized sports betting have had online operators partner with casinos, but in Kentucky, they use their racetracks as retail locations to partner with. There are nine racetracks across KY, most of which have incredibly rich histories. All nine of these tracks received their sports betting licenses once HB 551 was passed, but their gambling experience was already well established.
Since the state sports betting bill is still fresh, the retail sportsbook aspect of most of these racetracks is still being developed.
Race tracks / Racinos | Location |
---|---|
Sandy’s Racing and Gaming | 10775 US-60, Ashland |
Red Mile Racetrack | 1200 Red Mile Rd, Lexington |
Cumberland Run (Lexington) | 128 East Reynolds Rd. Lexington |
Cumberland Run (Corbin) | 777 Winners Lane, Corbin |
Cumberland Run (Williamsburg) | 244 Penny Ln, Williamsburg |
Churchill Downs | 700 Central Ave, Louisville |
Turfway Park | 7500 Turfway Rd, Florence |
Derby City Gaming | 4520 Poplar Level Road, Louisville |
Derby City Gaming Downtown | 401 W Market Street, Louisville |
Oak Grove | 777 Winners Way, Oak Grove |
Ellis Park Race Track | 3300 US Highway 41 N, Henderson |
Newport Racing & Gaming | 1723 Monmouth St, Newport |
By legalizing sports betting, Kentucky joined a growing region of surrounding states that offer their residents at least some form of sports wagering. Prior to their bill being passed, KY residents could have traveled close by to Indiana, Ohio, West Virginia, Virginia, Tennessee, and Illinois to place a legal sports wager.
The number of sportsbooks available in each state, along with the exact regulations, varies, so in order to find out more about these surrounding states, you can click on them in the chart below.
State | Online sports betting | Retail sports betting | DFS | Horse Race betting |
---|---|---|---|---|
Virginia | Legal | Legal | Legal | Legal |
Tennessee | Legal | Illegal | Legal | Legal |
Ohio | Legal | Legal | Legal | Legal |
Missouri | Illegal | Legal | Legal | Illegal |
Indiana | Legal | Legal | Legal | Legal |
Illinois | Legal | Legal | Legal | Legal |
West Virginia | Legal | Legal | Legal | Legal |
Sports betting legislation is still very fresh in the Bluegrass State, so we don’t have a complete picture of what their numbers will look like on a consistent basis. However, in their second month of legalization, they managed a little over $290 in handle and $7 million in tax income.
The licensing fee for operators in the state is still unknown, but the state's tax rate varies depending on whether the business is an online operator or retail. All online operators have a tax rate of 14.25%, while retail has a 9.75% tax rate on revenue.
When new states open their doors to legal sports betting, they typically see continual monthly growth in numbers until they hit a plateau. Since more operators are still joining the market, Kentucky’s earning potential is still unknown, but there is undoubtedly a lot of potential already shining through.
Kentucky sports betting record months:
Sports betting handle: October 2023 ($295,088,668)
Revenue: October 2023 ($54,341,931)
Tax income: October 2023 ($7,616,625)
Total betting handle: $151,409,422
Winnings Paid to Players: $139,265,593
Hold: 8.02%
Gross revenue: $12,143,829
Adjusted (taxable) revenue: $11,775,362
Tax revenue for the state: $1,666,257
Reported by the Kentucky Horse Racing Commission.
DraftKings: Handle: $56.7m, Revenue: $4.9m
FanDuel: Handle: $45.2m, Revenue: $3.8m
Bet365: Handle: $16.3m, Revenue: $832,618
BetMGM: Handle: $8.8m, Revenue: $910,784
Caesars: Handle: $6.8m, Revenue: $413,059
Report | Total handle | Gross revenue | Taxes |
---|---|---|---|
August 2024 | $151,409,422 | $12,143,829 | $1,666,257 |
August 2023 | N/A | N/A | N/A |
YoY change | N/A | N/A | N/A |
Month | Handle (MoM) | Revenue (MoM) | Tax income |
---|---|---|---|
Aug. 2024 | $151,409,422 (17.13%) | $12,143,829 (-21.30%) | $1,666,257 |
Jul. 2024 | $129,270,003 (-14.00%) | $15,431,178 (-2.13%) | $2,134,874 |
Jun. 2024 | $150,313,713 (-17.12%) | $15,766,953 (-27.02%) | $2,169,705 |
May 2024 | $181,351,571 (-3.19%) | $21,603,056 (-7.03%) | $2,985,052 |
Apr. 2024 | $187,319,033 (-26.90%) | $23,237,278 (5.11%) | $3,223,744 |
Mar. 2024 | $256,246,090 (22.97%) | $22,107,012 (0.66%) | $3,036,739 |
Feb. 2024 | $208,375,602 (-18.95%) | $21,961,415 (-44.05%) | $3,028,968 |
Jan. 2024 | $257,108,230 (-2.63%) | $39,250,214 (20.20%) | $5,365,294 |
2024 Total YTD | $1,521,393,664 | $171,500,935 | $23,610,633 |
Year | Handle (YoY) | Revenue (YoY) | Tax income |
---|---|---|---|
2024 YTD | $1,521,393,664 | $171,500,935 | $23,610,633 |
2023 | $892,370,163 | $112,118,421 | $15,545,112 |
TOTALS | $2,262,354,405 | $271,475,527 | $37,489,488 |
Currently, sports bettors in Kentucky have access to nine mobile betting apps and eight retail betting facilities. These apps do not include the daily fantasy apps and racebooks that are also legal in the state.
Legal sports betting is still in its infancy in Kentucky, but in the few months it has been legal, the state has made over $117 million in revenue.
The Kentucky Wildcats are one of the most popular teams in the state. Their famous basketball team has been upset in the first round of the NCAA Tournament twice since 2022—first to 15-seed St. Peter’s and most recently to Oakland.
The University of Kentucky Wildcats and Louisville Cardinals have the biggest rivalry in the state, no matter what sport they are playing.