Lawmakers are continuing their efforts to implement legal sports betting in The Bluegrass State.
The state’s Horse Racing Commission, which will regulate sports betting in Kentucky, according to House Bill 551, met on Tuesday to discuss the process of drafting regulations.
HB 551, which legalizes both online sports betting sites and retail wagering in Kentucky, was passed in the state’s legislature on March 30 by a 25-12 margin. The bill — introduced in February — was signed into law a day later by Gov. Andy Beshear, who wants sports betting for the upcoming NFL season.
“The Commission is excited for the opportunity afforded to it and are and will work tirelessly to craft clear, responsible, and thorough regulations for sports wagering in the Commonwealth said,” said chairman Jonathan Rabinowitz during Tuesday’s meeting.
Here is the official statement from KHRC Chairman Rabinowitz from today's meeting regarding Kentucky sports betting: pic.twitter.com/sSayap9ka0
— Steve Bittenbender (@CasinoOrgSteveB) April 18, 2023
The KHRC has already begun drafting regulations for sports betting in Kentucky and it has started meeting with officials in neighboring states. The commission has also begun working with licensed associations in the state and potential operators that are seeking market access.
The KHRC hasn’t set a deadline for regulations to be put in place but the commission has been given six months to establish the framework. It will only be able to create the framework once HB 551 goes into effect, which is in roughly three months. As a result of the stipulations, the latest for the commission to finish the framework of sports betting in Kentucky is January 2024.
The 2023 NFL season begins September 7 with the Kansas City Chiefs hosting a yet-to-be-named opponent.
How Sports Betting Will Work
According to HB 551, sports betting in Kentucky will be offered by the state’s nine-horse racing tracks. Each track in the Bluegrass State is authorized to partner with up to three online sports betting sites for a maximum of 27 operators. The betting platforms are 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 sports betting, according to Rep. Michael Meredith — HB 551’s chief sponsor.
