Caesars Sportsbook is on its way to the Kentucky sports betting market.

Caesars Entertainment announced agreements with Keeneland and Red Mile Gaming and Racing in Lexington to grant Caesars Sportsbook market access for online sports betting. The agreement also includes plans to open the first brick-and-mortar retail sportsbook location in central Kentucky.

This is the first announced sports betting partnership between an operator and a horse track since Gov. Andy Beshear (D) signed Kentucky’s sports betting bill into law this past March.

Kentucky sports betting by the fall

The agreements have Caesars Sportsbook well positioned to offer sports betting by the state’s planned launch in the fall. Gov. Beshear, Sen. Majority Leader Damon Thayer (R-17) and Kentucky Horse Racing Commission Chairman Jonathan Rabinowitz are key state figures that believe Kentucky sports betting could kick off by football season.

Beginning June 28, the Kentucky Horse Racing Commission has six months to determine regulations and licensing processes for the state. Retail sports betting is expected to begin before the upcoming football season and online sports betting is expected before the year is out, Thayer previously told Saturday Down South.

Subject to regulatory approval from the Kentucky Horse Racing Commission, Caesars will be poised to take advantage of the upcoming launch.

“Keeneland and Red Mile are iconic horse racing venues with an important legacy in the state of Kentucky,” said Eric Hession, President of Caesars Digital, in a press release. “Customers in the region have long enjoyed our world-class Caesars destinations and, most recently, our horse racing wagering app, Caesars Racebook. Working with these historic institutions provides an unmatched opportunity to reach sports and racing fans in the state, and we look forward to working with the Kentucky Horse Racing Commission as we prepare to launch later this year.”

As part of the deal, Caesars Sportsbook will be an official sports betting partner of Keeneland and Red Mile. Caesars will also operate as an on-premise brick-and-mortar sportsbook at Red Mile.

Sports betting bill details

The approved Kentucky sports betting bill legalizes retail sports betting at licensed Kentucky horse tracks, such as Churchill Downs, as well as online sports betting throughout the state. Each licensed horse track (of which there are nine in the state) will be eligible to partner with up to three online sports betting skins, allowing for a maximum of 27 operators in Kentucky.

The 27 maximum operators will allow for a mix of the more established online sports betting operators as well as smaller operators hoping to get into the market.

The bill sets the retail tax rate at 9.75% and the online sports betting tax rate at 14.25% on adjusted gross sports betting revenue.

Here are further details on the proposed bill:

  • Bets on professional sports, eSports, college events, Olympics, and amateur events will be allowed.
  • Residents age 18 and up will be able to participate.
  • 2.5% of sports betting revenue will be earmarked for a problem gaming fund.