Kentucky Legislature Passes Landmark Gambling Overhaul Bill, Sending Legislation to Governor for Signature

(AsiaGameHub) –   Kentucky lawmakers have approved HB 904, the Wagering Consumer Protection Act, and forwarded the legislation to Gov. Andy Beshear, setting the stage for a major overhaul of the state’s sports betting, fantasy competition, and horse racing sectors. 

A key change in the bill raises the minimum age for sports betting to 21 while establishing the minimum age for fantasy contests at 18. 

The bill also expands the state’s regulatory framework and targets prediction markets directly. Under the legislation, an “event contract” is defined as a transaction linked to the outcome of a future event, and a “prediction market” is a platform where consumers can trade based on those outcomes. 

These definitions include a restriction that bars Kentucky-licensed racetracks, fantasy operators, and their affiliates from participating in or contracting with platforms offering event contracts within the commonwealth.

The measure introduces new rules for fixed-odds wagering on live horse racing, creates a licensing structure for fantasy contest providers, and strengthens responsible gaming provisions—including requiring the Kentucky Horse Racing and Gaming Corporation to establish a self-exclusion list for problem gamblers.

The bill further solidifies Kentucky’s horse racing regulator as the state’s central gaming watchdog. It grants the corporation expanded authority over sports wagering, fantasy contests, and fixed-odds wagering, while mandating new regulations on licensing, geolocation, integrity monitoring, audits, and enforcement.

Governor Beshear is expected to sign the measure into law, completing a multi-year effort to refine Kentucky’s wagering statutes.

Fixed-Odds Betting, Fantasy Contests, and New Mandates

Among the changes HB 904 makes to Kentucky’s gaming laws, it adds new rules for fixed-odds wagering on live horse racing. Under the bill, fixed-odds wagers placed at a licensed track will be taxed at 9.75%, while online wagers will face a 14.25% tax—with revenue directed to a new purse stabilization fund.

The measure also sets a mandatory minimum bet limit of at least $1,000 per race, with the betting menu determined by the host track.

For sports betting, the bill bans certain prop bets on individual athletes from Kentucky college teams when the winning outcome depends on a player failing to meet a statistical threshold or posting a negative performance.

Another provision in the bill addresses child support enforcement for online gaming accounts. It requires operators to check applicants against a child support registry, deny account creation to those on the list, and suspend existing accounts if they are later flagged.

Fantasy Contests, Integrity Regulations, and Additional Changes

The bill revises several other parts of Kentucky’s gaming law by establishing a comprehensive licensing and compliance regime for fantasy contest operators, including geolocation requirements, criminal background checks, annual compliance reviews, anti-fraud safeguards, and self-exclusion measures.

To strengthen integrity protections, the bill requires fantasy contest operators to collaborate with regulators and law enforcement on investigations involving suspicious conduct tied to underlying sporting events—including match-fixing and other illegal activity.