Monday Was A Huge Day For Kentucky Sports Betting. Here’s What Happened

Kentucky Sports Betting news
Written By Matthew Bain on July 10, 2023 - Last Updated on July 14, 2023
Live updates Kentucky sports betting regulations
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Kentucky took a major step toward launching its sports betting industry Monday.

The Kentucky Horse Racing Commission approved the set of emergency regulations that will govern the launch of sports betting in Kentucky later this year.

Gov. Andy Beshear was also on hand at the KHRC meeting, at Red Mile in Lexington, to hold a press conference to discuss launch timeline. That timeline? Retail sportsbooks will launch Sept. 7, and online sportsbooks on Sept. 28.

PlayKentucky had the play-by-play from everything that happened Monday — revelations big and small about the soon-to-go-live Kentucky sports betting industry. Here’s a recap of what took place.

Summary of the regulations

As of Monday evening, the KHRC had yet to post the emergency regulations to its website.

However, the commission did touch on aspects of those regulations during Monday’s meeting.

First of all, officials made clear the difference between the emergency regulations and the ordinary regulations — both of which were approved.

The emergency regulations will take effect Tuesday, paving the way for a quick launch. They and the ordinary regulations will be posted on the KHRC’s website for a public comment period, during which residents or industry stakeholders can submit comments on changes they would like to see in the ordinary regulations that will govern the sports betting market longterm.

The KHRC also said its regulations are mainly divvied into two categories: licensing regulations and technical regulations (with responsible gambling parameters included in the latter).

Specifically addressing underage gambling, advertising language

Those responsible gambling parameters will feature ways to help curtail underage gambling, which will be a buzzing topic in Kentucky as it will be an 18-and-over sports betting state.

“Our commitment to ensuring that underage individuals are prohibited from placing or cashing sports wagering tickets remains unflinching,” said Waqas Ahmed, deputy executive director of the KHRC.

The regulations also include specific language regarding a self-exclusion program, as well as “measures to discourage false or misleading advertising,” Amhed said — meaning Kentucky will bar sportsbooks from using words such as free or risk-free in their ads.

License applications can begin Tuesday

With emergency regulations taking effect Tuesday, Kentucky’s racetracks can begin applying for their licenses Tuesday.

“We evaluate factors like regulatory compliance, financial capacity, public interest, qualifications, criminal history, tax law compliance and contracted parties,” Ahmed said regarding vetting in license applications. “Additionally, we have implemented guidelines ensuring precise and timely submission of information from licensees.”

Watch the full Kentucky Horse Racing Commission meeting, Gov. Beshear press conference

https://www.youtube.com/watch?v=nVgc_1tfsHE

1:14 p.m. — Question on 18+ betting

This answer from Gov. Beshear on a question regarding 18-plus betting indicates the governor isn’t exactly thrilled to have open discussions about his state being the largest 18-plus sports betting jurisdiction in the US.

1:03 p.m. — The fastest launch process in US history?

It certainly is the fastest in recent memory, that’s for sure.

1 p.m. — Officially official

The countdown to legal sports betting in Kentucky has officially begun.

12:55 p.m. — License applications start tomorrow

Gov. Beshear, during his press conference at the Red Mile, just said that racetracks can begin applying for their sports betting licenses tomorrow, July 11.

12:50 p.m. — Just 59 days away

Gov. Beshear seems fired up in his press conference. This quick of a turnaround is a major win for his administration.

“This action means that Kentuckians may make their first-ever sports bet in Kentucky 59 days from now,” he said.

Here’s some video of his press conference.

12:44 p.m. — Gov. Beshear will ‘probably’ place first bet

It looks like Gov. Beshear will place the ceremonial first bet on Sept. 7, when the retail industry goes live.

12:35 p.m. — Launch dates announced

KHRC Chairman Jonathan Rabinowitz said retail sports betting in Kentucky will launch Sept. 7. Online sports betting will then launch Sept. 28.

The KHRC also formally approved the regulations, officially paving the public review and license application process to begin.

12:30 p.m. — Breaking down the regulations

“Why everyone’s here,” said Rabinowitz when the agenda turned to sports betting regulations.

The regulations have been separated into two main areas: licensing regulations and technical regulations (responsible gambling measures are included in these.)

Rabinowitz announced there would be nine retail operator license holders. It was originally believed the Kentucky Speedway would be eligible for sports betting licenses, in addition to the nine horse racetracks. However, the KHRC confirmed that only entities affiliated with horse racing associations are eligible. Venues can offer sports betting at their racetracks or affiliated historical horse racing facilities and simulcast facilities (like Churchill Downs’ Derby City Gaming).

That means there are a total of 14 eligible venues.

The KHRC has written a set of emergency regulations and ordinary regulations for sports betting. It will file the emergency regulations today in order to launch the industry as soon as possible. However, the ordinary regulations will go through a public review period in the coming weeks.

The KHRC also said its commitment to preventing underage gambling “remains unflinching” — this will be an especially hot topic in Kentucky, which will be the largest US jurisdiction where 18 is the legal sports betting age.

The KHRC also specifically mentioned its regulations included “measures to discourage false or misleading advertising” — that’s very likely referencing barring sportsbooks from using terms such as free or risk-free in their ads.

12:20 p.m. — And so it begins!

The Kentucky Horse Racing Commission meeting to approve sports betting regulations has started.

The first two agenda items deal with topics involving Ellis Park. After those, we’ll get to the regulations.

12 p.m. — A look inside the meeting room at the Red Mile

We’re just 15 minute from the meeting where Kentucky officials will review and approve sports betting regulations to launch the industry some time later in 2023.

Those are some big ol’ binders.

11:30 a.m. — How to watch the KY sports betting regulations meeting

The agenda for the meeting, which takes place soon at Red Mile in Lexington, lists two items involving Ellis Entertainment, LLC, the owner of Ellis Park. Then, the big one: Item No. 3 — “Regulations Regarding Sports Wagering.”

The meeting will be streamed at this link.

Confirmed KY sportsbooks so far

Entering Monday’s meeting, two sportsbooks had publicly confirmed partnerships that secure them a place in the Kentucky market: Caesars Kentucky (via Keeneland and Red Mile) and FanDuel Kentucky (via Churchill Downs). We also know Churchill Downs Inc. — which owns Churchill Downs, Ellis Park, Turfway Park, Oak Grove, and Newport Racing & Gaming — has likely locked in partnerships with other operators already.

While details of those deals aren’t publicly known, top candidates for partners could be DraftKings Kentucky or Bet365 Kentucky.

Sandy’s Racing & Gaming, the new historical horse racing and off-track betting facility in Ashland that will open its retail sportsbook in October, told PlayKentucky it is close to announcing its partner — and that it has hoped to land a deal with one of “the big four” companies. So, perhaps BetMGM Kentucky?

What isn’t up to the KHRC to decide?

HB 551, the bill legalizing sports betting in Kentucky, left a lot up to the KHRC.

However, it did set in stone several key aspects of the state’s industry:

  • The legal age limit is 18.
  • Retail sportsbooks will be taxed at 9.75%. Online sportsbooks will be taxed at 14.25%.
  • The license application fee is $500,000.
  • Credit cards are allowed for deposits.
  • No restrictions on college sports betting
  • Esports betting is allowed.
  • Pension fund receives 97.5% of tax revenue. The other 2.5% goes to a new responsible gambling fund.
  • Sportsbooks must launch by Dec. 28, 2023.
  • There are 40 licenses available — 10 retail for each of the eligible venues, and up to three online for each venue.
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Written by
Matthew Bain

Matthew Bain started as a Content Manager for PlayKentucky and other Catena Media sites in 2022. He covered the launch of Massachusetts sports betting and the Prop 26 vs. Prop 27 battle in California. Before that, he spent six years as a sports reporter and then deputy sports editor for the Des Moines Register, during which time he won nine statewide journalism awards, including the Genevieve Mauck Stoufer Outstanding Young Iowa Journalists Award. As deputy sports editor, Matthew oversaw the Register's recruiting coverage while also innovating the outlet's high school sports coverage. Matthew graduated from San Diego State and grew up in California, but he's somehow a Boston Celtics fan. Long story.

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