Kentucky lawmakers have a sense of urgency in implementing legal sports betting in the state.
Gov. Andy Beshear has vowed to expedite the lengthy process of authorizing retail sportsbooks and online sports betting sites in the Bluegrass State after House Bill 551, which legalizes sports wagering, passed in the Kentucky legislature on March 30 by a 25-12 margin.
The bill — introduced in February — was then signed into law by Gov. Beshear a day later on March 31. Kentucky, which became the 38th jurisdiction in the U.S. to legalize sports wagering in some capacity, aims to have its sports betting procedures in place for the upcoming NFL season.
“The people are really excited about this,” said Beshear at a news conference last week. “So, we want to get it up and going as quickly as we can but also to do it right.”
Bill breakdown
HB 551 will have sports betting in Kentucky offered by the state’s nine-horse racing tracks with wagering regulated by the Kentucky Horse Racing Commission. Each track in the Bluegrass State is authorized to partner with up to three sports betting sites for a maximum of 27 operators.
The betting platforms will be required to tax online wagers at a 14.25% rate, while bets placed at retail sportsbooks will have a tax rate of 9.75%. Kentucky is projected to generate $23 million in annual revenue from betting, according to Rep. Michael Meredith — HB 551’s chief sponsor.
Kentucky’s ability to benefit from the additional revenue stream in time for the upcoming NFL season will depend on the state’s Horse Racing Commission, which has been given six months to establish the regulatory framework for sports betting. The commission will only be able to create the framework once the legislation goes into effect, which is in roughly three months.
The latest for the Kentucky Horse Racing Commission to finish the framework is January 2024.
Time is of the essence
The NFL season begins on September 7, meaning that Kentucky lawmakers and their systems will have to move quickly to make wagering on America’s most popular professional sports league a reality for the state’s residents.
There is a chance for that to happen due to Kentucky’s horse racing tracks already having a working relationship with the state’s Horse Racing Commission. The familiarity could speed up the implementation process of betting in sports betting in Kentucky.
The Kentucky Horse Racing Commission is scheduled to meet on April 18, and sports betting is expected to be a topic of discussion. Kentuckians will be hopeful for a step in the right direction as sports fans in neighboring states reap the benefits of both online and retail sports betting.
