Kentucky

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.

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. Now, 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.

For those looking for a sports betting alternative, daily fantasy sports apps are also available in KY, but it is important to note that they are unregulated. The only thing that is still not available for customers to bet on is politics, which is common among states with legal gambling.

Online sports betting in The Bluegrass State

A discussion around sports betting and its legalization has been circulating in Kentucky since 2017. Prior to PASPA being 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, which was 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, this means there could technically be 27 mobile operators in the state, but for right now, there are just eight. Circa Sportsbook was the most recent operator to be 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 there are still plenty of online licenses 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 was able to partner with an online betting app, giving them access to the sports betting market.

All legal KY sports betting apps in 2024 (from newest to oldest):

Sports betting & gambling legislation in KY

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.

All of the aforementioned rules and regulations are enforced by the Kentucky Horse Racing Commission. 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.

Most recent updates from the KY sports betting scene

• May 14, 2024: Circa Sportsbook has officially launched a mobile betting app in KY, as they become the 8th sportsbook to join the market thanks to their partnership with Cumberland Run.

• May 7, 2024: The ESPN Bet Sportsbook has partnered with the PGA Tour to become the official sponsor of the PGA Championship, which will take place in Louisville, Kentucky, on May 16, 2024. Scottie Scheffler is the current favorite to win at (+320).

• May 4, 2024: In an amazing photo finish, Mystik Dan wins the 2024 Kentucky Derby. Prior to the race, he had the third-best odds to win the race at (+2000).

• April 12, 2024: The University of Kentucky has hired Mark Pope as its new head basketball coach. Pope once played at the school and has spent the last few years as the head coach at BYU.

• April 8, 2024: John Calipari, the longtime head coach of the Kentucky Wildcats basketball program, has stepped down from his position after 15 seasons.

• February 18, 2024: According to the Kentucky Horse Racing Commission, the state received over $1 million in wagers on the Super Bowl alone. These wagers came from over 200,000 bettors in the state

• December 11, 2023: The governor and state regulator report that the initial two months of sports gambling have generated $8 million in tax revenue for the state, surpassing initial expectations

• November 14, 2023: ESPN Bet officially launches in Kentucky. The PENN National product is partnered with Ellis Entertainment.

In-person sports betting sites and locations

A majority of 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 with 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 built up.

Sports betting in neighboring states

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 in order 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.

Sports betting revenue impact on Kentucky's economy

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.

Top 3 sportsbooks in the state in February 2024:

1. DraftKings: Handle: $78.85m, Revenue: $8.3m

2. FanDuel: Handle: $66m, Revenue: $7.7m

3. Caesars Sportsbook: Handle: $17m, Revenue: $2.1m

Kentucky sports betting record months:

• Sports betting handle: October 2023 ($279,834,932)

• Revenue: October 2023 ($52,879,664)

• Tax income: October 2023 ($7,535,352)

KY sports betting revenue in 2024