Kentucky Gambling Laws
3/20/2022 admin
FRANKFORT, Ky. (AP) — Kentucky took the first step to legalizing sports betting on Wednesday as a legislative committee strongly endorsed a bill that one estimate says would bring in at least $20 million a year in new taxes.
- As a legendary state for pari-mutuel betting, Kentucky gambling lawsare more relaxed than some, but there are still a few important items to note. For the most part, Kentucky state laws happen to fall right in line with Federal law, which dictates that the act of gambling is not illegal for any US residents, only its facilitation.
- Kentucky Revised Statutes 372.010 Gambling transactions void. Every contract, conveyance, transfer or assurance for the consideration, in whole or in part, of money, property or other thing won, lost or bet in any game, sport, pastime or wager, or for the consideration of money, property or other thing lent or advanced for the purpose of.
- Kentucky Gambling & Lottery Laws Not all states allow gambling or run an official state lottery, although an increasing number of states are doing so as a way to raise revenue. The state of Kentucky, famous for its history of thoroughbred racing, has a robust system in place for wagering on horse races and harness racing.
Feb 27, 2021 Saturday marks the 56th running of the Southwest Stakes (G3) at Oaklawn Park after a nearly two-week delay due to winter storm Uri, which blanketed the southeast From Texas to North Florida with frigid temperatures, ice, and snow for about 10 days. The race had been postponed three times, but still.
Kentucky seems to be in a race with its neighbors to make sports betting legal following a U.S. Supreme Court decision last year that struck down a federal law that had banned the industry in much of the country. West Virginia has already legalized sports betting, and state officials in Tennessee, Ohio and Illinois are considering it.
If they are going to do it, Kentucky lawmakers have an economic incentive to do it quickly. An analysis by the firm Commonwealth Economics found the state could generate as much as $48 million a year in taxes if Kentucky legalizes sports betting while most of its neighbors do not. But if all the other states have sports betting, Kentucky’s revenue projections drop to $20 million a year.
The proposal approved Wednesday by the Kentucky House Licensing, Occupations and Administrative Regulations Committee would spend some of that new money on regulating the new industry and setting up a program to help people with gambling addiction problems. But most of the money would be go to the state’s public pension systems, which are estimated to be at least $39 billion short of the money needed to pay benefits over the next three decades.
Wednesday, the Republican-dominated committee approved the bill without a single “no” vote, while Democratic Rep. Dennis Keene voted “pass.” But the bill will need significant support to make it out of the state legislature before it adjourns for the year on March 29. Last year, state lawmakers approved a two-year spending plan that does not expire until June 30, 2020. Because the new bill would raise and spend money, it would require at least 60 votes from the 100-seat House of Representatives to pass.
“I don’t know yet, to be honest,” Republican state Rep. Adam Koenig said when asked if the House had enough votes to pass the bill.
Republicans control 61 of the 100 seats. But the caucus is divided on the issue, with some lawmakers morally opposed to gambling of any kind.
“I think there are a lot of Republicans who are against it,” said Republican Rep. Chris Fugate, who is a pastor. “I hope it fails.”
Kentucky Gaming License Regulations
The Family Foundation, a conservative advocacy group, has argued the bill would violate the state Constitution. Executive Director Kent Ostrander noted in an interview that all of that money for the gambling industry and state coffers would come from Kentucky families because businesses, corporations and nonprofits can’t gamble.
“The state should cause families to thrive, not prey on them for revenue,” Ostrander said.
House bill 175 would make it legal for people in Kentucky to bet on sports, but they would have to do it in person at one of the state’s horse racing tracks or the Kentucky Speedway, which hosts a NASCAR race each year. People could place wagers on their phones, but they would have to travel to one of the tracks in person to download the app. Koenig said the app would monitor locations to make sure people don’t place bets outside of the state lines.
People in Kentucky could bet on college sports, but they could not wager on games that include teams from Kentucky schools. That would include the beloved basketball teams at the University of Kentucky and University of Louisville.
The proposal would require bookmakers to pay a 9.75 percent tax on its revenue, which does not include money paid to people who win. The tax rate would be 14.25 percent for wagers made online. The proposal would also legalize fantasy sports gambling and internet poker.
“My biggest issues are we’re not going far enough on expanded gaming,” Democratic state Rep. Al Gentry said.
Kentucky Gambling Tax Laws
- Casino Gambling: Not Legal
- Poker: Not Legal
- Horse Racing Betting: Legal
- Dog Racing Betting: Not Legal
- Lottery: Legal
- Daily Fantasy Sports: Not Specified
- Charitable Gaming: Legal
- Social Gambling: Legal
- Online Gambling: Not Specified
In most cases, Kentucky gambling law is strict. The state’s history as the epicenter of thoroughbred breeding and racing means that wagering on horse races is generally exempt from the tough anti-gaming laws in place in the Bluegrass State.
Kentucky allows its citizens a few traditional American ways to gamble. The state runs its own popular lottery system and Kentucky residents are allowed to buy tickets for multi-state drawings as well. Kentucky just moved to allow online lottery sales, which is seen as a huge step in the direction of expanded access to regulated gaming. Charitable games are provided for, and rules for private games make it clear what the state expects of citizens in private betting pools.
But the one thing that’s missing in Kentucky is legal access to traditional casino gambling. Kentucky residents have to travel to nearby states to get their fix of table games, slot machines, and other Vegas classics.
We look at existing Kentucky law and examine why the state is so dead-set against casino gambling, below.
Recent efforts to legalize casino gambling in Kentucky were met with consternation by the state’s highest house of Congress. That happened in both 2010 and 2012. Part of the reason for the state’s dragging its feet is the large amount of revenue they already earn from horse race betting. Check out some key facts about Kentucky’s gambling industry below.
- Age Requirements: 18 for horse race betting
- Approximate Annual Gambling Revenue: $839 million
- Approximate Annual Gambling Taxes: $310 million
- Number of Commercial Casinos: 0
- Number of Racinos: 0
- Number of Tribal Casinos: 0
- Casino Regulatory Body: Kentucky Horse Racing Authority
- Lottery National Rankings: 20th
You’ve got some knowledge about the state’s betting business under your belt. You’re ready to read our analysis of Kentucky’s notoriously-tough gambling laws. Pay close attention to the specific and at times archaic wording of the state’s restrictions on betting. As is often the case, Kentucky’s gaming laws depend on old interpretations and definitions, and should the state decide to relax existing betting laws, they’d also have to deal with existing language in the penal code that doesn’t jibe with the modern gambling industry.