Kentucky lawmakers have permitted Home Invoice 904, a wide-ranging playing measure that will elevate the minimal age for sports activities betting to 21 whereas increasing oversight of fantasy contests and different regulated gaming actions, sending the laws to Governor Andy Beshear for consideration.
The laws cleared the Senate by a 24-13 vote after earlier passing a Senate committee unanimously and profitable Home concurrence 64-19. Lawmakers might override a veto once they reconvene for the ultimate days of the legislative session.
The invoice will increase the authorized age for sports activities wagering from 18 to 21 however retains fantasy contests and horse race betting open to these 18 and older. It additionally raises the age for charitable gaming to 21.
Along with age modifications, the measure would legalize, regulate and tax fantasy betting contests for the primary time below the Kentucky Horse Racing and Gaming Company, whereas permitting racetracks to supply fixed-odds wagering alongside conventional parimutuel betting.
The laws introduces oversight of prediction markets, outlined as platforms the place customers can “purchase, promote, or alternate occasion contracts,” however stops in need of banning them outright as a result of federal jurisdiction. Licensed operators, together with racetracks, can be barred from providing such wagers, and betting on the end result of elections can be prohibited.
State Consultant Michael Meredith stated federal guidelines restrict how far the state can go in limiting prediction markets.
“The one place you will notice underage betting is within the prediction market area, as a result of they don’t have these restrictions within the federal area,” Meredith stated.
The invoice additionally units limits on proposition bets involving faculty athletes, banning wagers tied to adverse efficiency outcomes whereas permitting bets on optimistic statistical achievements.
Extra provisions require operators to confirm customers’ identities and places utilizing geolocation instruments and to “implement procedures to stop fraud, abuse, and cash laundering.” Athletes, coaches, referees and different insiders can be barred from taking part in contests involving their sports activities.
The measure additional blocks people who’re behind on baby help funds from putting bets, requiring operators to verify a registry of arrears.
Lawmakers included a tiered licensing system with upfront charges starting from $7,500 to $15,000 and annual renewals between $5,000 and $10,000. Fastened-odds horse racing wagers can be taxed at 9.75% in individual and 14.25% on-line, with proceeds supporting regulation, drawback playing companies, the state pension system and a handbag stabilization fund.
The invoice comes as Kentucky’s betting market continues to increase, with wagering exercise rising 54% year-on-year in February 2025. An NCAA survey discovered 58% of individuals aged 18 to 22 had engaged in sports activities betting, noting that “State legality and age restrictions don’t pose a lot issue, as areas the place betting is authorized versus these the place it’s unlawful have practically the identical fee of engagement.”
Regardless of the expansion, a number of lawmakers voiced considerations in regards to the social affect of playing. State Senator Chris McDaniel described sports activities betting as “a genie … out of a bottle.”
“I now inform my sons that in case you obtain certainly one of these apps … You’re a sucker. If you wish to speak about a wealth switch from those that can least afford it … Sadly, it’s change into this,” McDaniel stated, including, “Truthfully, it’s made me dislike watching sports activities the best way that I used to, as a result of I really feel like I’m watching a playing present whereas a baseball sport is happening. … This invoice combines plenty of very, very tough decisions, the query of constitutionality, the query of the evolution of gaming.”
Debate within the Senate additionally touched on considerations that restrictions tied to prediction markets might have an effect on the published of the Kentucky Derby, a key financial driver. Senate Democratic chief Gerald Neal warned that limiting broadcasts can be “Like sticking a gun up your individual head, economically.”
Opposition teams argued the invoice might exacerbate gambling-related harms. David Partitions of the The Household Basis would result in “additional harms on Kentucky households.”
Partitions stated the invoice “is unconstitutional, a foul deal for horse racing and dangerous for households… We’re grateful for elevating the age restrict to 21, however the actuality is age limits imply nothing if no significant verification of that reality.”
The laws additionally features a provision affecting the thoroughbred trade, barring The Jockey Membership from limiting the variety of mares bred to a single stallion.
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