Kentucky's breakthrough into the world of online sports betting is officially underway as of 28 September, three weeks after the official launch of the retail operations.
The introduction of mobile sports betting has been eagerly anticipated by both operators and bettors alike since Governor Andy Beshear signed the Kentucky sports betting bill into law back in March.
Licences and Regulatory History
Kentucky has previously granted eight mobile sportsbook licenses, and seven operators went live on the very first day. The operators now offering their services in the Bluegrass State include Fanatics, BetMGM, bet365, FanDuel, Caesars, Penn Entertainment, and DraftKings. Circa Sports, the eighth operator granted a Kentucky sports betting license, is expected to join the fray soon.
Kentucky has officially become the 37th state in the United States to legalise sports betting, opening the door for the launch of up to 10 retail sportsbooks and potentially 30 mobile sports betting apps in the state. The Kentucky Horse Racing Commission will oversee and regulate these platforms.
Retail sports betting made its debut in the state on 7 September, right on time to create the buzz of excitement among sports enthusiasts ahead of the kick-off of the new NFL season.
Sports Betting in Kentucky and State Finances
The launch of online sports betting in Kentucky is set to energise the state's gambling scene further, providing both revenue and entertainment opportunities for residents and operators alike.
Kentucky’s taxation in the online sports betting sector involves a 14.25% tax on gross gaming revenue (GGR). Operators are also required to pay a $500,000 license fee, along with an annual renewal fee of $50,000. Sportsbook operators in Kentucky must form partnerships with local horse racing tracks, further fostering the state’s idea of collaboration within the industry.
The introduction of sports betting in Kentucky aims to keep tax dollars within the state's borders, given its proximity to several states where sports betting is already legal. According to Governor Beshear's office, this initiative is expected to generate an annual revenue of approximately $23 million. The additional revenue will not only support the regular reviews of sports wagering but also contribute to the Kentucky permanent pension fund.
