Legal Status
Sports betting is not legal in the state of Kentucky.
Legislative Progress
While Kentucky has traditionally been a conservative state, there has been interest in sports betting since the Supreme Court overturned PASPA in 2018. Shortly after the landmark decision, legislators formed a bipartisan group to study the concept and develop legislation.
It looked like Kentucky was going to pass sports betting legislation in 2020. House Bill 137 had the support of Governor Andy Beshear, made it out of committee in January and passed in the House. But the bill died without sufficient support from Republicans in the Senate.
Legislators made another effort in 2021. But with only a 30-day window to get something passed, it was doomed from the start.
Legislators will likely try again in 2022.
Casino Participation
There are casinos in Kentucky, but the gaming options within them are limited. There has not been a serious effort to involve them in sports betting. At this time, except for possibly getting involved in retail sports betting, there is no reason to believe they will.
Role of the Lottery
Kentucky does have a state lottery, but there is no reason to believe it will be involved in a future sports betting industry in Kentucky.
Professional Sports Team Involvement
Kentucky is known for horse racing and college basketball but does not have an NFL, MLB, NBA or NHL team in-state.
Licensing
The bill that came close to passing in 2020 called for seven online sports betting licenses tethered to the state’s horse racing tracks and the Kentucky Speedway. With the amount of resistance that exists in the state, it is unlikely the number of licenses gets any higher than that.
Online bets would have been taxed at 14.25 percent, while retail sports bets would have been taxed at a rate of 10.25 percent.
Expected Live Date
Even though there is significant support for sports betting in the state, the resistance makes it hard to estimate when a potential launch could take place. The earliest the necessary legislation can get passed is 2022.
If the process goes smoothly, there is a good chance sports betting could launch in time for the 2022 NFL season. But with the struggles that have taken place already, it is hard to see legislation get passed without a fight.
That means, if it does, it will likely be later in the year, which will push off a potential launch date to sometime in 2023.
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