Sports Betting in Kentucky: Legalization, Platforms, and What Bettors Need to Know

Legalization of Sports Betting in Kentucky

Sports betting became legal in Kentucky with the passing of House Bill 551 in 2023. Governor Andy Beshear signed the bill into law on March 31, 2023, and the first legal sportsbooks launched on September 7, 2023, for in-person betting, followed by mobile platforms on September 28, 2023. This legislation marked a historic moment for the state, which had long debated the issue but previously lacked a regulatory framework.

Regulatory Oversight and Licensing

The Kentucky Horse Racing Commission (KHRC) is responsible for regulating sports betting in the state. The law allows each of Kentucky’s nine horse racing tracks to partner with up to three online operators, meaning a maximum of 27 sportsbook licenses are available. Operators must pay a $500,000 licensing fee and adhere to strict guidelines covering integrity, responsible gambling, and consumer protection.

Available Platforms and Sportsbooks

As of 2025, several major sportsbooks operate in Kentucky, including:

FanDuel
DraftKings
BetMGM
Caesars Sportsbook
Bet365
Barstool Sportsbook
ESPN BET

These platforms offer both desktop and mobile access, making sports betting widely accessible throughout the state. Bettors can register online, deposit funds, place wagers, and withdraw winnings without visiting a physical location.

In-Person Sports Betting Locations

Kentucky also features retail sportsbooks at its licensed racetracks and affiliated facilities. Some popular venues include:

Churchill Downs (Louisville)
Keeneland (Lexington)
Turfway Park (Florence)
Red Mile Gaming (Lexington)

These locations offer full-service sportsbooks, allowing visitors to place bets on a wide range of sports events while enjoying other amenities.

Popular Sports and Betting Markets

Kentucky sportsbooks cover a comprehensive list of betting markets, including:

NFL, NBA, MLB, NHL
College Football and Basketball (except for in-state teams due to betting restrictions)
Soccer (MLS, Premier League, etc.)
Golf, Tennis, Auto Racing
Combat Sports like UFC and Boxing

Bettors can choose from traditional bet types such as moneylines, point spreads, totals, parlays, and futures, as well as live/in-play betting options.

Age Requirement and Responsible Gambling Measures

To legally place a bet in Kentucky, individuals must be at least 18 years old, unlike most states that require a minimum age of 21. However, platforms may enforce their own age limits, often defaulting to 21 to match industry standards.

The state has also implemented responsible gambling measures including:

Deposit and wager limits
Time-out and self-exclusion options
Links to problem gambling resources like the Kentucky Council on Problem Gambling

Taxation on Winnings

Kentucky residents must pay state income tax on gambling winnings, which is currently set at 5%. Operators are also required to withhold a percentage of large winnings and report them to the IRS. Bettors should maintain detailed records and consult tax professionals to ensure compliance.

Economic and Social Impact

Since its launch, sports betting has generated millions in tax revenue for Kentucky, with funds earmarked for public pensions and responsible gaming programs. The industry has also created job opportunities in both technology and hospitality sectors while giving local horse tracks a new revenue stream.

Future of Sports Betting in Kentucky

The Kentucky sports betting market is expected to expand as more platforms enter the space and the public becomes increasingly engaged. Innovations such as micro-betting, real-time analytics, and loyalty programs are likely to shape the experience moving forward. Additionally, state lawmakers may revisit certain limitations, such as in-state college team wagering, depending on public and stakeholder feedback.

Conclusion

Kentucky has successfully integrated sports betting into its regulatory and economic framework, offering a legal, secure, and accessible environment for bettors. With continued oversight and responsible gambling initiatives, the state is poised to become a competitive player in the national sports betting landscape.