Kentucky set for sports betting debate as new bill filed in house

Sports betting legalization will figure on the legislative agenda in Kentucky after a bill which would allow for both mobile and retail sports betting was pre-filed in the state’s legislature.

House bill (HB) 106, sponsored by representatives Cherylnn Stevenson, Derrick Graham and Rachel Roberts, would allow for online sports betting, poker and daily fantasy sports gaming in the Bluegrass State.

Under the bill, local racetracks in the state would be able to partner with mobile sportsbook operators, with a limit of one online operator skin per location.

Mobile operators would then be responsible for running both the online skin and the retail sportsbook at the property. External retail sportsbooks would be allowed in other locations that are within 60 miles of the racetrack concerned but not physically attached.

HB106 allows for betting on all major professional and college sports, with no restrictions placed on betting. Prospective operators would be required to pay a $500,000 application fee for a license, with an additional $50,000 fee payable annually should that license be awarded.

The bill would impose a tax of 9.75% on gross gaming revenue (GGR) at all retail locations as well as a GGR tax of 14.25% on all online bets placed in the state.

Among those indicating they would support the passage of legislation authorizing sports betting in the state was Governor Andy Beshear, who called for legalization in his annual State of the Commonwealth address.

Governor Beshear also urges Kentucky lawmakers to legalize medical marijuana and sports betting. @LEX18News pic.twitter.com/e1ywFukxZa

— Karolina Buczek (@Karolina_Buczek) January 5, 2023

Senate majority leader Damon Thayer also indicated his support in a Tweet ahead of interviews with local news outlets regarding proposals.

Preview: I am for sports betting. https://t.co/RhaOEZnghH

— damon thayer (@damon_thayer) January 5, 2023

HB106 will first be debated in the house, before passing to the Senate and then to Governor Beshear for approval.

The bill mirrors HB606, which was introduced in March 2022, but ultimately failed to gain the required votes to pass during the legislative session.

Sports betting is currently live in almost all the states surrounding Kentucky, with the exception of Missouri, where legislation has also been filed to legalize the vertical during the 2023 legislative session.

Kentucky has six racetracks, including the Churchill Downs site in Louisville which plays host the annual Kentucky Derby race. There are also two land-based casinos in the Bluegrass State.

The state hit the headlines in 2021 when authorities sued Flutter Entertainment for $1.3bn for operating online poker illegally via its PokerStars brand between 2007 and 2011.

Flutter later agreed an out of court settlement with the state totaling $300m.