When all was said and done, the win for Kentucky sports betting wasn’t even a photo finish.

Gov. Andy Beshear (D) this morning signed Rep. Michael Meredith’s (R-19) sports betting bill,  HB 551, into law, making Kentucky the 37th state to legalize sports betting.

The bill was approved just last night by the Kentucky Senate by a vote of 25-12, eclipsing the necessary three-fifths majority to be approved.

Gov. Beshear wastes no time in signing

Nearly every single state surrounding Kentucky offers sports betting, Beshear said, and it was time to bring the industry to the Bluegrass state.

“For years I believed it was time for Kentucky to join so many other states and pass sports betting…This industry will bring new jobs, tourism, and growth. I am proud today that I am going to sign it into law,” he said.

Meredith’s bill will legalize 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.

His law gives the Kentucky Horse Racing Commission the regulatory power over sports betting in the state and the authority to award licenses. Tracks will pay an initial fee of $500,000 for a license and an annual renewal fee of $50,000 to the Kentucky Horse Racing Commission. Sports betting operators partnered with tracks will be required to pay a $50,000 fee for a license and an annual $10,000 renewal fee.

The law will go into effect on June 28, 2023. The Kentucky Horse Racing Commission then has six months to determine regulations and licensing processes for the state. Once these regulations are completed, the state’s nine racetracks can begin applying for sports betting licenses.

This puts Kentucky’s sports betting start date squarely at the tail end of 2023 or the very start of 2024.

$23 million a year for sports betting?

Fiscal estimates show legalized sports betting could lead to $23 million annually for Kentucky, but those estimates are likely low, said Sen. Majority Leader Damon Thayer (R-17) during the bill’s vote.

“Mr. President, we are a sports-crazy state. We love our sports in the Commonwealth and people want to make a choice of their own free will to make a wager on a sports event like almost all of our surrounding states,” he said.

Kentucky lawmakers shared anecdotes of support for sports betting from their constituents during yesterday’s vote. Sen. Brandon Smith (R-30) said it was not his personal preference to legalize sports betting, but the district he serves supports the issue and he supports his constituents.

“It’s my duty to carry out the wishes of the people I serve.”

Sen. Karen Berg (D-26) said it’s not her duty to tell her constituents what to do with their money, their bodies, or their decisions as a political leader in the state.

“I wasn’t elected to be the morality police. I wasn’t elected to be the person who has the power to tell my constituents what they can and can’t do.”

Kentucky sports betting bill details

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.