- Kentucky HB 904 would raise the sports betting age to 21.
- Sportsbooks and horse betting windows would be required to accept wagers up to $1,000.
- Fantasy sports in Kentucky would undergo licensing and be taxed at 12%.
- The bill also sets guidelines for the future regulation of prediction markets in Kentucky.
FRANKFORT, Ky. – With a 24-13 vote of approval from the Senate on Wednesday, Kentucky is on the verge of seeing changes in laws for sports betting, horse racing, prediction markets, and fantasy sports from one bill.
Introduced by Representative Michael Meredith, Kentucky House Bill 904 has undergone six amendments that have tightened the rules outside of the original plan to raise the sports betting age to 21.
Sports Betting + Horse Racing
For high rollers, an amendment on the House Floor was a massive change. Now, legal Kentucky sportsbooks would have to accept any wager (or deposit) up to $1,000, unless they had already wagered $5,000 that day or if the payout would exceed $1 million.
However, the ability to use a credit card for sports betting (or any other type of gambling) would be prohibited. Looking to prevent the books from limiting sharps, the same was added for horse racing betting within the state.
Another part of the focus was on college sports betting. Rules changes would prevent bettors from taking the under on any college athlete’s props.
A later amendment also added a registry for those who owe child support that is shared with gambling apps. This would likely lead to gamblers being restricted or having their winnings garnished.
Prediction Markets Under KY HB 904
Kentucky is taking its stand against prediction markets by blocking sportsbooks from allowing partnerships with them. However, they aren’t looking to ban the concept entirely, as legislators are leaving the door open to tax prediction market apps in the future.
Should it become federally compliant, event contract websites would be taxed at 14.25%.
Fantasy Sports + Charitable Gaming
While some daily fantasy sports apps run the line of being a sportsbook, Kentucky is looking to keep them separate. With a dedicated Fantasy Contest Administration Fund, they would look to collect a 12% tax on fantasy operators, who would need a license to operate.
As far as charitable gaming, the original wording of KY HB 904 attempted to make the minimum age to play 21. However, it was reverted back to 18 with a House committee amendment.
Only the governor’s approval is left before the measure becomes law. If passed, the gambling rules could see some major changes before this year’s Kentucky Derby and for sportsbooks moving forward.
