In a significant development, Kentucky's sports betting regulations are set to undergo a comprehensive revision, effective in 90 days. This follows a decisive vote by lawmakers to override Governor Andy Beshear's veto on Tuesday, paving the way for new age restrictions, betting regulations, and changes in oversight.
The newly passed House Bill 904 introduces several modifications across various sectors, including sports betting, horse racing, and fantasy sports. One of the key changes is the increase of the minimum age for sports betting from 18 to 21, which will impact access to both physical and online sportsbooks throughout the state. This adjustment aligns Kentucky's laws with those of many other states in the U.S.
Additionally, the legislation prohibits specific college-related proposition bets involving in-state athletes, especially those linked to negative performance outcomes. It also restricts operators from offering prediction markets or forming partnerships with trading platforms like Kalshi and Polymarket.
The ban on prediction markets will affect operators in sports betting, fantasy sports, and horse racing. Companies such as DraftKings, FanDuel, and Fanatics, which had plans to launch these platforms in late 2025, will now be unable to do so in Kentucky, even though they do not currently operate prediction markets in any jurisdictions where they hold sportsbook licenses.
The veto override was passed with overwhelming support, with the Senate voting 67-7 and the House 26-5, as the Republican-majority legislature sought to overturn one of several vetoes issued by Beshear during a recent recess. Reports from Fox56 News indicate that most of the 32 bills he rejected were ultimately overridden.
Moreover, the new law establishes formal oversight for daily fantasy sports, mandating that operators like Underdog Fantasy and PrizePicks secure licenses. It also permits fixed-odds wagering on horse racing, moving beyond the traditional pari-mutuel system that has characterized the industry.
Notably, a provision in the legislation introduces a “minimum bet limit,” which is defined as “the amount a bettor can win, not how much can be staked or collected.”
Governor Beshear had vetoed the bill just a day prior, expressing concerns about a clause that would allow regulatory bodies to implement both emergency and standard rules without his consent. He argued that such a provision would undermine the Governor's constitutional responsibilities and enable agencies to impose regulations on Kentuckians without executive oversight.
Lawmakers had anticipated a potential veto when they approved the bill earlier in the month, preparing to override it before the end of the legislative session.