The House of Representatives has approved a bill that will legalize mobile and retail sports betting in Kentucky.
HB 606 was approved by a vote of 58-30 and has now been sent to the Senate for final approval. If, as expected, the bill garners enough support from senators, it will then go to the desk of State Governor Andy Beshear to be signed into law. There would likely be no issues here as the governor has previously supported gaming expansion in the state.
The year’s legislative session ends on April 15th meaning that senators will to discuss the bill and vote on it as soon as possible. However, this will be the first bill of its kind to make it through to the senate and it’s likely that it will first need to go through a committee process before any vote can be held.
The bill in its current form would allow existing Kentucky racetracks to partner with one online sports betting provider to launch a mobile sportsbook app. It would also allow each racetrack to open two retails sportsbooks on its property.
According to the legislation, any person aged 18 or over would be allowed to place bets at a retail sportsbook or through an online sports betting app. Bets on both collegiate and professional sporting events would be allowed.
The bill’s sponsor Rep. Adam Koenig spoke in support of the proposed legislation telling the house:
“I believe, Mr. Speaker, that the people of Kentucky deserve the opportunity to do something they enjoy with the protection and regulations of their governments.”
He added that the state could expect to benefit significantly from a regulated market giving a rough estimate as to how much gambling operators will pay in sports betting taxes:
“Given how many states have overdone their projections, exceeded their projections, I think 22 and a half million is probably a minimum,”
Republican Representative Jonathan Dixon spoke to local press about the loss of tax dollars to neighboring states such as Indiana where sports betting is legal.
“Being a border community to a state that allows sports wagering, our people are simply driving across the bridge and placing their bets. Which means that tax revenue is collected in Indiana, not Kentucky and used to pave their roads and educate their children.”
The bill, if approved, will set a 9.75% tax rate for online bets and a 14.25% rate on in-person wagers.
Image credit: Bradjward / CC BY-NC 2.0
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.