The Kentucky sports betting legislation, House Bill 904, has made its way through the state Senate with a narrow vote of 24-13, despite some complications. The bill, which aims to modernize various aspects of Kentucky's gambling laws, received a second vote shortly after its initial passage due to an amendment issue. An hour later, the House approved the Senate's revisions with a 64-19 vote, sending the bill to Governor Andy Beshear for his approval.
As the General Assembly prepares to recess, lawmakers will have the opportunity to override any potential vetoes from the governor during their final days in Frankfort on April 14-15. With Republicans holding a significant majority in both chambers, the likelihood of an override is high.
House Bill 904, introduced by Representatives Michael Meredith and Matthew Koch, proposes several changes, including raising the minimum age for sports betting accounts from 18 to 21, banning prop bets on in-state college athletes, and establishing a regulatory framework for fantasy sports. Additionally, it introduces fixed-odds horse racing in Kentucky.
Meredith noted that the bill has undergone numerous revisions since the legislative session began in January, with various components being integrated over time. One significant aspect of the bill addresses prediction markets, proposing that they be taxed similarly to online sports betting operators at a rate of 14.25% of adjusted gross revenue. However, the bill also includes restrictions that would prevent Kentucky-licensed racetracks and sportsbooks from offering federally regulated online exchanges, which could have significant implications for operators like FanDuel and DraftKings.
During Senate discussions, confusion arose regarding the language surrounding prediction markets. Senate Minority Leader Gerald Neal raised concerns about whether Churchill Downs could broadcast the Kentucky Derby if a network collaborated with a prediction market. Initial responses indicated uncertainty, highlighting the complexities of the bill's provisions.