In a significant development for the sports betting landscape, Governor Andy Beshear has announced the approval of temporary licenses for sports wagering operators and service providers by the Kentucky Horse Racing Commission (KHRC). The decision paves the way for retail locations to commence sports betting operations starting September 7, with the temporary licenses set to undergo continuous review for up to one year.
Authorized Venues and Operators
Churchill Downs Incorporated (CDI) stands at the forefront of this endeavor, operating race and sportsbook facilities at key locations, including:
Churchill Downs, Louisville
Derby City Gaming, Louisville
Ellis Park, Henderson
Newport Racing and Gaming, Newport
Oak Grove Gaming and Racing, Oak Grove
Turfway Park, Florence
Additional licensed venues encompass The Red Mile in Lexington and The Mint Gaming Halls in Cumberland Run and Cumberland, situated in Corbin and Williamsburg, respectively.
Upcoming Expansion and Mobile Applications
The KHRC’s forward-thinking approach extends beyond current operations, with future expansions in the pipeline, including Derby City Gaming in downtown Louisville, Ellis Park in Owensboro, and Sandy’s Gaming and Racing in Ashland.
Moreover, the commission has granted temporary licenses to nine service providers, with eight set to operate mobile applications in Kentucky. Notable names in this space include bet365 Sportsbook & Racebook, BetMGM, Caesars Sportsbook, DraftKings, FanDuel, and more. Kambi, a renowned provider, is poised to serve in a pivotal role.
Revenue Projections and Taxation Framework
Anticipated to contribute significantly to the state’s revenue, regulated sports betting is forecasted to generate an estimated $23 million annually upon full implementation. The generated revenue is earmarked to support sports wagering oversight and the Kentucky permanent pension fund. Furthermore, 2.5% of the revenue will be directed toward the problem gambling assistance account operated by the Cabinet for Health and Family Services.
House Bill 551 has laid the foundation for a taxation framework, imposing a 9.75% excise tax on the adjusted gross revenues from wagers made at licensed facilities and a 14.25% tax on online or smartphone wagers.
Launch Timeline and User Registration
The phased launch of regulated sports betting in Kentucky follows a carefully crafted timeline:
August 28: Commencement of player registration for online accounts.
September 7: Deposits into pre-registered mobile accounts allowed exclusively through approved mobile applications, along with in-person betting at licensed retail facilities.
September 28: Approved mobile applications become operational for accepting wagers.
As Kentucky ventures into the realm of legalized sports betting, the landscape is poised for transformation. The KHRC’s strategic approvals, operator partnerships, and comprehensive taxation framework set the stage for a dynamic and responsible sports wagering ecosystem. With an eye on revenue generation, user experience, and problem gambling assistance, Kentucky positions itself as a state at the forefront of the evolving sports betting landscape. The journey begins on September 7, marking a significant milestone for sports enthusiasts and industry stakeholders alike.