Ad Disclosure
New Kentucky sports betting bill would authorize up to 27 operators for nine tracks
Published:
A state lawmaker has filed a new Kentucky sports betting bill that he believes gives the Bluegrass State its best chance to legalize sports betting in this abbreviated 2023 legislative session.
Rep. Michael Meredith (R-19) filed HB 551 yesterday, which aims to legalize retail and online sports betting for the state’s nine horse tracks.
It’s a streamlined bill that does not include legalized poker or fantasy sports.
“It removes online poker and fantasy contests, which seem to be a problem over in the senate and in discussions from last year. We focused the bill solely on sports wagering,” Meredith said in an interview with LEX18.
The sports betting bill has been filed. Rep. Michael Meredith, the primary sponsor, tells @LEX18News the bill would only legalize wagering on sporting events.
Online poker and fantasy have been removed to give the bill a better shot at becoming law. pic.twitter.com/AI94uOv4Yh
— Karolina Buczek (@Karolina_Buczek) February 22, 2023
Kentucky sports betting hopes up again
Meredith’s bill seeks to legalize retail sports betting at licensed Kentucky horse tracks, such as Churchill Downs, as well as online sports betting throughout the state. Each licensed horse track (of which there are nine in the state) will be eligible to partner with up to three online sports betting skins, allowing for a maximum of 27 operators in Kentucky.
The proposed law gives the Kentucky Horse Racing Commission the regulatory power over sports betting in the state and the authority to award licenses.
Tracks would pay an initial fee of $500,000 for a license and an annual renewal fee of $50,000 to the Kentucky Horse Racing Commission. Sports betting operators partnered with tracks will be required to pay a $50,000 fee for a license and an annual $10,000 renewal fee.
While Meredith seems hopeful that his bill has the support in the state legislature to pass, it faces an uphill journey this year. Kentucky odd-year sessions are limited to just 30 days and require a three-fifths majority for bills to be passed.
The bill sets the retail tax rate at 9.75% and the online sports betting tax rate at 14.25% on adjusted gross sports betting revenue.
Here are further details on the proposed bill:
- Bets on professional sports, eSports, college events, Olympics, and amateur events will be allowed.
- Residents age 18 and up will be able to participate.
- An in-person online sports betting account registration requirement will be in place for 12-months after the bill becomes law.
2022 sports betting came close
It’s the second year in a row a Kentucky lawmaker has attempted to push a sports betting bill through the legislature. Last year, Rep. Adam Koenig’s (R-Erlanger) bill, HB 606, remained in the Senate Committee on Economic Development until final day of the state’s session, but never received a hearing or a vote on the Senate floor.
Koenig’s sports betting bill was approved by the Kentucky House of Representatives by a vote of 58-30 last March, but similar to this year the approval in the Senate will be the biggest challenge.
Koenig’s bill was similar to Meredith’s, allowing for online and retail sports betting in the state and proposing identical tax rates. Koenig’s bill only allowed track to partner with one online sports betting operator compared with three in Meredith’s proposed law.
Robert is an expert on sports betting in the United States, specifically the legalization process and regulation surrounding the industry.
