Kentucky is on the verge of making sweeping changes to the state’s gaming laws, including a new age requirement to place sports bets, keeping current operators from launching prediction markets, and player prop bet protections.
Key Takeaways
- Kentucky’s gaming bill was passed by the Senate, received concurrence from the House, and is headed to the governor for consideration.
- Lawmakers can override a governor's veto.
- The legislation would change the sports betting age requirement from 18 to 21.
The Senate passed House Bill 904 on Wednesday by a vote of 24-13. The House concurred, 64-19, sending the legislation to Gov. Andy Beshear’s desk for consideration and puting the Bluegrass State one step away from increasing the legal age to place sports bets from 18 years old to 21.
State lawmakers matched the Kentucky sports betting age requirement with the horse racing wagering one when sportsbooks went live in 2023. Of the 39 states that offer legal sports betting, the Bluegrass State is currently one of a handful that allow individuals under 21 to place wagers.
Should Beshear veto the bill, legislators can override that decision later this month.
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Prediction changes
HB 904 also prohibits “any operator conducting horse racing, sports wagering, or fantasy contests from participating in or contracting with any prediction market that operates within Kentucky.”
The initial language wanted to punish sportsbooks that were already operating sport event contract trading in other states, but lawmakers backed off of that clause and decided to only keep current sports betting operators from offering them in the Bluegrass State.
FanDuel, DraftKings, and Fanatics are three Kentucky-licensed sportsbooks that branched out into prediction markets in late 2025. However, none of them have launched sports contract trading exchanges in states where they operate regulated sports betting.
Kentucky lawmakers aren’t trying to ban all prediction market operations, though. House Bill 757 would implement a 14.25% tax on trading exchanges like Kalshi and Polymarket, which don’t operate sportsbooks.
Other amendments
HB 904 is also looking to protect in-state college players. Under an amendment in the legislation, sportsbooks wouldn’t be allowed to offer under bets on player props like points and rebounds.
The NCAA has dealt with a recent betting scandal where players were paid by a group of bettors to manipulate their stats or fix games. NCAA president Charlie Baker has been calling for state regulators and lawmakers to ban college player props for two years.
The pending legislation also allows horse racing wagering operators to apply for a license to offer fixed odds, not just pari-mutuel odds. The new legislation will require daily fantasy sports operators like Underdog and PrizePicks to become licensed operators to do business in Kentucky.
