The Kentucky Senate has given its approval to sports betting legislation paving the way for an industry launch in late June 2023, becoming the 38th US state to legalize sports betting.
HB 551, introduced by Rep. Michael Meredith, was approved by a House committee last week before passing through the House of Representatives by a vote of 63 to 34. It then made its way to the Senate floor where right up until the final hours of the legislative session there was still some uncertainty over its passage.
However, following some debate, the Senate passed the legislation by a vote of 25-12. The bill will now go to the desk of Gov. Andy Beshear who will sign it into law.
Speaking of the bill, Republican Senate Majority Leader Damon Thayer said:
“We love our sports in the commonwealth and people want to be able to make the choice — of their own free will — to make a wager on a sports event, like almost all of our surrounding states.”
Meanwhile, following the bill’s approval Gov. Beshear, who has advocated for sports betting throughout his term, said on Twitter:
Kentuckians will soon be able to place their bets here, and for the first time, we are going to keep those dollars to support our roads and bridges, schools and communities. ^ AB 2/2
— Governor Andy Beshear (@GovAndyBeshear) March 30, 2023
HB 551 will legalize, regulate and tax sports betting in Kentucky. The industry is expected to generate somewhere in the region of $23 million a year in tax revenue and licensing fees.
Once the bill is signed into law, Kentucky’s horse racing tracks can apply for licenses as sports betting facilities by paying a $500,000 upfront fee and a yearly renewal fee of $50,000. These tracks will be permitted to partner with up to three service providers for sports betting, either on-site or via online platforms and mobile applications. Service providers would need to pay an initial licensing fee of $50,000 and an annual renewal fee of $10,000.
Wagers placed at racing tracks would be subject to excise tax of 9.75% and online wagers subject to a rate of 14.25%.
The Kentucky Horse Racing Commission will regulate all sports wagering operations in the state.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.