Kentucky Governor Beshear recently announced that nearly $250 million has been wagered in Kentucky since the launch of sports betting. This is great news for the state and its residents as it means more money is staying within the commonwealth and improving the quality of life for families.
Kentucky’s sports betting market opened in two stages, with retail sports betting becoming available on September 7th, followed by online sports betting on September 28th.
The road to legal sports wagering in Kentucky has been a long and challenging one, but thanks to the signing of House Bill 551 by Governor Beshear in April of this year, sports betting was authorized in the Bluegrass state. The bill allowed nine racetracks to offer on-site retail sports betting, with each track having the opportunity to partner with up to three online operators. A total of 27 licenses were issued as a result.
Leading operators such as Bet365, FanDuel, BetMGM, Caesars, Circa, DraftKings, and Penn Sports Interactive applied for mobile sports betting licenses. All seven operators were ultimately approved. In addition, Fanatics and Kambi also received license approval, although Kambi’s license is limited to retail wagering only.
In terms of taxation, online operators in Kentucky are subject to a 14.25% tax on their gross gambling revenue, while retail operators are taxed at a rate of 9.75%. Racetracks must pay $500,000 for a license, while online operators paid $50,000 to partner with racetracks.
Here is a summary of the partnerships between online operators and racetracks in Kentucky:
| Online Operator | Racetrack Partner | Additional Betting Option |
|---|---|---|
| BetMGM | Sandy’s Racing and Gaming | Retail Betting |
| Bet365 | Sandy’s Racing and Gaming | None |
| DraftKings | Cumberland Run | Retail and Mobile Betting |
| DraftKings | The Mint in Cumberland | Mobile Betting |
| Caesars | The Red Mile | None |
| Penn Sports Interactive | Ellis Park | Mobile Betting |
