Gambling laws in Kentucky do not yet extend to legal sports betting, however, its apparent that the state’s legislators have taken it upon themselves to change that since sports betting became legal in the USA in May of 2018.
As in many other states, sports betting taxes appear to be the major hurdle for Kentucky’s lawmakers to overcome before the sports betting legalization can occur.
In the twin state government bills of late 2017/early 2018, BR 155 and House Bill 536 have both sought Kentucky gambling laws to allow sports betting, a $250,000 licensing fee for operators, appoint the Kentucky Horse Racing Commission as the government agency in charge of regulating sports betting and set up a 20% tax on the betting handle.
However, given that a gambling friendly state like Nevada has 5% tax for operators or New Jersey who has a 13% tax on Operators, state legislators have wisely foreseen that a 20% state will make it impossible for any operator (state-backed or otherwise) to turn a profit.
The debate over sports betting has continued for much of the four years since PASPA was overturned by the Supreme Court. It looked like the state was going to finally pass a bill in 2022, but an effort from the state Senate died on the final day of the legislative session. Kentucky Governor Andy Beshear said he is in favor of the initiatives but that there are just a few legislators standing in the way of a bill making it to his desk. Given how close the state got to legalizing sports betting in 2022 and the desire from everyone to get a deal done, it feels safe to assume a bill will be signed some time in 2023 that will legalize sports betting and regulate DFS in the state
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