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Kentucky to Welcome Retail and Mobile Sports Wagering in September
By Jeff Osienya Jul 12, 2023 LegalityKentucky Governor Andy Beshear recently okayed emergency regulations to welcome regulated sports wagering within state lines in time for the 2023-2024 NFL season. Here’s a deeper dive into what the new developments mean for the Bluegrass State.After a long wait, retail sports wagering in the Bluegrass State is set to launch on September 7th, and 20 days later, the state’s mobile sports betting is planned to follow suit on September 27th. Retail and mobile sports betting are coming to Kentucky following Governor Andy Beshear’s approval of emergency regulations to govern the activity within state lines.
However, it is vital to note that this move is a temporary solution reached with the upcoming NFL season in mind. The Kentucky Horse Racing Commission developed the said regulations, and as we speak, permanent rules are being formulated to take effect later after the market debut.
Speaking with delight on the state’s impending day with destiny, Governor Beshear said:
Quote“The odds were against us, but we were determined to get sports betting passed in Kentucky, and we got it done. I want to see any freed-up dollars going to support public education, economic development, disaster recovery, and other necessary projects…Bringing sports wagering to the state gives Kentuckians a much-anticipated new form of entertainment. It also brings money to the state to support pensions, freeing up money that can be used to build a better Kentucky.”
Governor Bashear’s office spearheaded the push to have the emergency regulations ready as they raced time to align the launch of sports betting with the start of the new NFL season. The KHRC Chairman Jonathan Rabinowitz also remarked:
Quote“The conversations we had with regulators and industry experts laid the groundwork for these clear and responsible regulations. The KHRC has a long history of pari-mutuel wagering integrity and is uniquely positioned to protect Kentucky bettors. Wagering integrity was the top priority of these regulations. We also considered the importance of flexibility to meet the changing demands of the industry.”
Highlights of House Bill 551
On the last day of March, Gov Bashear signed House Bill 551 into law to officially legalize online and retail sports betting in Kentucky. Bashear’s approval of HB 551 came a week after lawmakers overwhelmingly okayed it on a 26-13 vote, satisfying the state’s two-thirds majority rule required to wave on any measure to the Governor’s desk. Public Protection Cabinet Secretary Ray Perry shared a few comments about the process, saying:
Quote“We have worked hard to deliver sports wagering to Kentuckians with regulations to protect bettors. Kentuckians can be sure that their bets are safe, and their money is protected, and there is effective oversight and enforcement if the law is not followed.”
House Bill 551 allows for the eligibility of the state’s nine racetracks to offer on-site sports wagering. Each racetrack can also partner with three online casino operators to offer internet gambling. Consequently, up to 27 licenses may be issued by the Kentucky Horse Racing Commission.
Regarding the pertinent issue of taxation, the bill establishes a two-tier system. Online operators will be taxed 14.25% of their gross gaming revenue, while retail brick-and-mortar casinos will be taxed 14.25% of their retail offerings. Further, to receive a license from the regulator, racetrack operators will need to part with a cool sum of $500,000, while online operators will have to pay $50,000 to partner with horse tracks.
Meanwhile, it is worth noting that HB 551 does not feature tribal provisions for the State’s two tribal nations – the Southern Cherokee Nation of Kentucky and the Ridgetop Shawnee Tribe of Indians. This is because the tribes mentioned earlier are recognized by the U.S. Department of Interior and are thus accommodated by federal, tribal gaming provisions under the 1998 Indian Gaming Regulatory Act.
Big Sharks Are Circling for A Share of the Kentucky Market
As widely expected, the Kentucky sports betting scene is attracting the interest of some of the biggest names in the sports betting industry. Caesars Sportsbook was the first bigwig to throw its hat in the ring after announcing partnerships with Keeneland and Red Mile Gaming & Racing in Lexington. The collaborations will grant the industry giant access to the Kentucky online sports betting market, with plans to develop the first retail sportsbook location in central Kentucky. The deal will also make Caesars the official sports betting partner of Keeneland and Red Mile.
FanDuel has also confirmed that they will be entering the Kentucky sports betting scene alongside Churchill Downs. That said, the global giant is yet to commit on a specific date that it will be making moves to enter the Kentucky sports betting market. There are also expectations in the industry that DraftKings Kentucky will join the list of potential market suitors. Betr, Barstool, WynnBET, Bet365, and Betr are some of the other industry stakeholders that have been backed to enter the Kentucky sports wagering frame.
The Dawn of Sports Wagering in KY is Here
The introduction of sports betting in the state is poised to create thousands of jobs for Kentuckians. Additionally, the boost in revenue is expected to be significant and will contribute heavily to the state’s economy. Analysts in the know predict that the state could hit $23 million in annual revenues from sports wagering upon market maturity. The said proceeds are quite an impressive amount that could be channeled toward different pertinent issues and sectors in the state.
As things stand, KHRC commenced the licensing process on July 11th in readiness for the momentous day that sports betting will premiere in the state. As eager sports enthusiasts in Kentucky await the start of the NFL, they can also look forward to wagering on their favorite NFL teams and players.
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