Kentucky’s temporary licences allow sports betting operators and service providers to operate for up to one year. These licences are subject to continuous review during this period. The licences for sports wagering operators and service providers were approved at a meeting on August 22. Kentucky is set to launch regulated retail sports betting on September 7, followed by online betting on September 28. Pre-registration for online accounts will open next week.
The following online operators have secured service provider licences: Bet365, BetMGM, Caesars, Circa, DraftKings, FanDuel, Penn Sports Interactive, and Fanatics (which was not on the original list). Additionally, the Kentucky Horse Racing Commission (KHRC) issued a service provider licence to Kambi for retail operations.
Racetracks and their satellite facilities in Kentucky have also obtained licences. These include Churchill Downs and Derby City Gaming in Louisville, Ellis Park in Henderson, The Mint Gaming Hall Cumberland Run in Corbin, The Mint Gaming Hall Cumberland in Williamsburg, Newport Racing and Gaming in Newport, Oak Grove Gaming and Racing in Oak Grove, The Red Mile in Lexington, and Turfway Park in Florence.
Furthermore, licences were awarded to three upcoming facilities: Derby City Gaming in Louisville, Ellis Park in Owensboro, and Sandy’s Gaming and Racing in Ashland.
The meeting also revealed partnerships between online operators and land-based venues in Kentucky. Each racetrack can partner with up to three online operators. For example, Bet365 and BetMGM will partner with Sandy’s Racing and Gaming to offer mobile betting. Caesars will provide both retail and mobile betting in partnership with The Red Mile. Betfair will offer mobile-only betting with Turfway Park. Penn Sports Interactive (soon to be ESPN Bet) will partner with Ellis Park for mobile betting. Circa will exclusively partner with Cumberland Run for mobile betting. DraftKings will partner with Cumberland Run in Corbin for retail betting and both Cumberland Run and The Mint in Cumberland for mobile betting. Lastly, Kambi will provide retail-only betting services for Churchill Downs’ Ellis Park, Turfway Park, and Oak Grove.
The KHRC has also approved a new Sports Wagering Advisory Council, consisting of various members who will advise the commission on sports betting. The online tax rate in Kentucky is set at 14.25% of gross gambling revenue, while the retail tax rate is set at 9.75%. A licence costs $500,000 for a racetrack and $50,000 for an online operator to partner. However, it’s worth noting that the bill does not include any tribal provisions, meaning that the state’s two tribes, the Southern Cherokee Nation of Kentucky and the Ridgetop Shawnee Tribe of Indians, are not eligible for licences under the federal enabling law for tribal gaming, the 1988 Indian Gaming Regulatory Act.
