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Sub-national
North America

United States - Kentucky: gambling regulation and licensing

Part of United States

  • Online sports bettingRegulated
  • Online casinoProhibited
  • Online pokerProhibited
  • Lottery and iLotteryMonopoly
  • Horse race bettingRegulated
  • Esports bettingRegulated
  • Daily fantasy sportsPre-regulation
  • Prediction marketsProhibited
  • Social and sweepstakes casinoProhibited
  • Land-based (reference)Regulated
Regulator
Kentucky Horse Racing and Gaming Corporation
Headline tax
14.25% GGR
Licence required
Yes
Last verified
21 Oct 2026

Summary

Kentucky licenses retail and online sports wagering, pari-mutuel horse race betting including advance deposit wagering and historical horse racing, and, under a law in force since 15 July 2026, daily fantasy contests. The regulator is the Kentucky Horse Racing and Gaming Corporation, an independent municipal corporation that replaced the Kentucky Horse Racing Commission on 1 July 2024 and took over charitable gaming on 1 July 2025. The Kentucky Lottery Corporation runs the lottery, including online draw and instant games. Sports wagering was authorised by House Bill 551 (2023 Ky. Acts ch. 147); retail sportsbooks opened on 7 September 2023 and mobile apps on 28 September 2023. Only licensed racetracks can hold a sports wagering licence ($500,000, then $50,000 a year), and each may contract with up to three service providers ($50,000, then $10,000 a year). Eight tracks and ten service providers held active licences in September 2026. The excise tax is 14.25% of adjusted gross revenue online and 9.75% at retail, after winnings and federal excise tax. In fiscal year 2026 (July 2025 to June 2026) licensees reported $3.14 billion wagered and $332.2 million of adjusted gross revenue, 14.5% more than a year earlier. House Bill 904, enacted over the Governor's veto, raised the betting age from 18 to 21, created fantasy contest licensing and fixed-odds horse race betting, banned negative proposition bets on Kentucky college athletes and barred licensees from dealing with prediction markets. House Bill 757 adds a 12% fantasy contest tax and a 14.25% tax on prediction market transaction fees from 1 January 2027. Online casino and poker have no licensing regime. The Attorney General sued Kalshi, Polymarket and three brokers in June 2026, and the United States and the CFTC have sued Kentucky claiming federal preemption.

Common pitfalls

Quoting 18 as the betting age: the statute has required 21 since 15 July 2026, although 809 KAR 10:001 still says 18. Calling the regulator the Kentucky Horse Racing Commission: it was abolished on 1 July 2024. Assuming an app holds the licence: the sports wagering licence belongs to a racetrack, and the app runs as its service provider. Forgetting that adjusted gross revenue is also net of federal excise tax. Treating the fantasy regime as live: licensing regulations are still due and the fantasy tax starts in 2027. Reading the corporation's market report as audited: it is self-reported and labelled approximate. Treating historical horse racing as casino gaming: it is pari-mutuel wagering at licensed tracks.

Key facts

Regulator
Kentucky Horse Racing and Gaming Corporation (KHRGC)
Regulator type
Sub-national body
Headline tax
14.25% GGR
Licence required
Yes
Minimum age
21+
Tax base
Adjusted gross revenue: the total of wagers collected on all sporting events less winnings paid and federal excise taxes paid (KRS 138.552(1)(b)). The rate is 14.25% on wagers placed online or through other approved off-site technology and 9.75% on wagers placed at a licensed track (KRS 138.552(2)(a)); fixed-odds wagers on live horse racing are taxed at the same rates (KRS 138.552(2)(b)). A negative month may be carried forward for up to 12 months; returns and payment are due by the 20th of the following month by electronic funds transfer, and the tax is in lieu of all other state and local taxes on the operation or proceeds of sports wagering (KRS 138.552(5), (7), (10)). Other wagering taxes: 1.5% of amounts wagered on live and historical horse races at a track (KRS 138.510) and 1.5% of amounts wagered by Kentucky residents through advance deposit wagering licensees (KRS 138.513).

How to get a gambling license in Kentucky

The regulator is the Kentucky Horse Racing and Gaming Corporation (KHRGC).

We record 6 licence types for Kentucky.

For the Sports wagering licence (racetrack operator), the application fee is $500,000 (as of 23 Sept 2026) and the annual fee is $50,000 (as of 23 Sept 2026).

Applications
Capped
Time to licence
No statutory decision period was found. A service provider can receive a temporary licence to start operating immediately on satisfying the corporation's requirements and paying the $50,000 fee; it lasts up to one year, during which the permanent licence is granted or denied (KRS 230.814(5), (6)).
Local presence
Servers must be located locally.
Financial guarantee
A reserve of at least the greater of $25,000 and the sum of cashable account balances, pending withdrawals, stakes on unsettled wagers and unpaid winnings, held as cash, cash equivalents, payment processor receivables or reserves, an irrevocable letter of credit or a bond, with a monthly attestation to the corporation (809 KAR 10:006, s.6).
Headline tax
14.25% GGR (see Taxation for the full position)

Licence fees in Kentucky

Licence typeApplication feeAnnual feeTerm
Sports wagering licence (racetrack operator)Initial fee of $500,000 before a licence may be issued and an annual renewal fee of $50,000, paid to the corporation (KRS 230.811(3), (4), (6)).$500,000 (as of 23 Sept 2026)$50,000 (as of 23 Sept 2026)Annual; active licences on the register expire on 31 December 2026
Sports wagering service provider licenceNon-refundable $50,000 application fee and $10,000 annual renewal fee, deposited in the sports wagering administration fund (KRS 230.814(2), (4), (7); 809 KAR 1:002, s.3).$50,000 (as of 23 Sept 2026)$10,000 (as of 23 Sept 2026)Annual; a temporary licence may last up to one year while the permanent application is decided
Supplemental fixed-odds wagering licenceInitial fee of $2,500 and annual renewal fee of $2,500 (KRS 230.811(5)).$2,500 (as of 15 Jul 2026)$2,500 (as of 15 Jul 2026)Annual
Fantasy contest service provider licence$15,000 initial and $10,000 renewal; $7,500 and $5,000 for a provider already licensed as a sports wagering service provider; $5,000 and $1,000 for a provider with under $50,000 a year of adjusted gross fantasy contest receipts (KRS 230.846(1)).$15,000 (as of 15 Jul 2026)$10,000 (as of 15 Jul 2026)1 year (KRS 230.846(3))

Built from the record on this page, last verified 21 Oct 2026. The Licensing and Taxation sections carry the full detail and sources.

Licensing

Licence required
Yes
Application window
Capped
Local establishment required
Not yet verified
Local server required
Yes
Active licences
8 (as of 23 Sept 2026)
Typical time to licence
No statutory decision period was found. A service provider can receive a temporary licence to start operating immediately on satisfying the corporation's requirements and paying the $50,000 fee; it lasts up to one year, during which the permanent licence is granted or denied (KRS 230.814(5), (6)).
Bank guarantee or bond
A reserve of at least the greater of $25,000 and the sum of cashable account balances, pending withdrawals, stakes on unsettled wagers and unpaid winnings, held as cash, cash equivalents, payment processor receivables or reserves, an irrevocable letter of credit or a bond, with a monthly attestation to the corporation (809 KAR 10:006, s.6).
Notable licensees
Churchill Downs Racetrack (operator), Turfway Park (operator), Kentucky Downs (operator), Ellis Park (operator), Oak Grove Racing, Gaming & Hotel (operator), The Red Mile (operator), Cumberland Run (operator), Sandy's Racing and Gaming (operator), FanDuel (Betfair Interactive US), DraftKings (Crown KY Gaming), BetMGM, Caesars (American Wagering), bet365 (Hillside (Kentucky)), Fanatics (FBG Enterprises Opco), theScore Bet (Penn Sports Interactive), Circa Sports Kentucky, Prime Sports KY (Out The Gate), Kambi (Sports Information Services)
Certification requirements
Before operating and annually, the sports wagering system must be certified by a corporation-approved independent testing laboratory to GLI-33 or an equivalent standard; for a temporary licence a certification from another US jurisdiction may be used. Integrations with other licensees' servers must also be certified (809 KAR 10:003). Geolocation must confine wagers to people in Kentucky (KRS 230.805(3)(g)).
Barriers to entry
A sports wagering licence can only be held by a racetrack licensed to run horse race meetings in Kentucky, and each track may contract with no more than three service providers at a time, whose platforms must carry the track's or the provider's brand (KRS 230.805(4), 230.811(2)). An online brand therefore needs a partner track. On 23 September 2026 the register showed eight active operator licences, ten active service provider licences and one pending. Servers used to accept or pay wagers must be in Kentucky.

Licence types

  • Sports wagering licence (racetrack operator)

    Scope
    Retail sportsbook at the track or approved facility and online wagering, directly or through up to three contracted service providers. Only an association licensed to run horse race meetings under KRS 230.300 may hold it.
    Term
    Annual; active licences on the register expire on 31 December 2026
    Application fee
    $500,000 as of 23 Sept 2026
    Annual fee
    $50,000 as of 23 Sept 2026
    Fee basis
    Initial fee of $500,000 before a licence may be issued and an annual renewal fee of $50,000, paid to the corporation (KRS 230.811(3), (4), (6)).
    Renewal terms
    Renewed annually on payment of the renewal fee; the corporation may suspend, revoke or decline to renew for unpaid tax (KRS 138.552(9)).

  • Sports wagering service provider licence

    Scope
    Businesses that conduct or manage sports wagering for a licensed track, at the track, a simulcast facility or online under the track's or their own brand (KRS 230.210(44), 230.805(4)).
    Term
    Annual; a temporary licence may last up to one year while the permanent application is decided
    Application fee
    $50,000 as of 23 Sept 2026
    Annual fee
    $10,000 as of 23 Sept 2026
    Fee basis
    Non-refundable $50,000 application fee and $10,000 annual renewal fee, deposited in the sports wagering administration fund (KRS 230.814(2), (4), (7); 809 KAR 1:002, s.3).
    Renewal terms
    Renewed annually. A temporary licence can become an annual licence once investigations are complete and the applicant or its group is licensed in at least three other US gaming jurisdictions (809 KAR 1:002, s.5).

  • Supplemental fixed-odds wagering licence

    Scope
    Fixed-odds wagering on horse racing by a track or association, with or without a service provider, with a mandatory minimum bet limit of at least $1,000 per race (KRS 230.805(7)).
    Term
    Annual
    Application fee
    $2,500 as of 15 Jul 2026
    Annual fee
    $2,500 as of 15 Jul 2026
    Fee basis
    Initial fee of $2,500 and annual renewal fee of $2,500 (KRS 230.811(5)).

  • Fantasy contest service provider licence

    Scope
    Offering paid-entry fantasy contests to people located in Kentucky (KRS 230.836).
    Term
    1 year (KRS 230.846(3))
    Application fee
    $15,000 as of 15 Jul 2026
    Annual fee
    $10,000 as of 15 Jul 2026
    Fee basis
    $15,000 initial and $10,000 renewal; $7,500 and $5,000 for a provider already licensed as a sports wagering service provider; $5,000 and $1,000 for a provider with under $50,000 a year of adjusted gross fantasy contest receipts (KRS 230.846(1)).
    Renewal terms
    Renewal process to be set by regulation; a lapsed licence without an extension request requires a new initial application (KRS 230.846(3)). Regulations are due within 180 days of 15 July 2026.

  • Advance deposit account wagering licence

    Scope
    Account-based pari-mutuel wagering offered to Kentucky residents (KRS 230.260(2)).
    Fee basis
    The corporation may impose a licence fee of up to $10,000 a year; the licensee also pays excise tax of 1.5% of amounts wagered by Kentucky residents (KRS 230.260(2), 138.513).

  • Occupational licences (key employee, information services provider, race and sportsbook employee)

    Scope
    Individuals working in a licensed sports wagering facility, supervising or able to affect the outcome of wagering, or able to deploy code to critical system components.
    Term
    Annual
    Fee basis
    Key employee $1,500; information services provider $5,000; race and sportsbook employee $150; renewal at the same amount (809 KAR 1:003, s.3).
    Renewal terms
    Renewed annually.

Taxation

Headline GGR tax
14.25% GGR
Effective date
29 Jun 2023
Player winnings tax
Gambling winnings are subject to Kentucky individual income tax at a flat rate: 4% for tax years 2024 and 2025 and 3.5% for tax years beginning on or after 1 January 2026 (KRS 141.020(2)(e), (f)); lottery prizes are expressly subject to Kentucky income tax (KRS 154A.110(1)). Winnings are also federal taxable income, with losses deductible only by itemising, up to the winnings reported.
Withholding mechanism
Payers issue federal Form W-2G for reportable winnings (IRS Topic 419). No Kentucky withholding rule for sports wagering winnings was found in the sources read.
Tax base
Adjusted gross revenue: the total of wagers collected on all sporting events less winnings paid and federal excise taxes paid (KRS 138.552(1)(b)). The rate is 14.25% on wagers placed online or through other approved off-site technology and 9.75% on wagers placed at a licensed track (KRS 138.552(2)(a)); fixed-odds wagers on live horse racing are taxed at the same rates (KRS 138.552(2)(b)). A negative month may be carried forward for up to 12 months; returns and payment are due by the 20th of the following month by electronic funds transfer, and the tax is in lieu of all other state and local taxes on the operation or proceeds of sports wagering (KRS 138.552(5), (7), (10)). Other wagering taxes: 1.5% of amounts wagered on live and historical horse races at a track (KRS 138.510) and 1.5% of amounts wagered by Kentucky residents through advance deposit wagering licensees (KRS 138.513).

Scheduled changes

  • 12% of adjusted gross fantasy contest receipts from 1 Jan 2027
    Enacted

    Fantasy contest tax on fantasy contest service providers

  • 14.25% of transaction fees from 1 Jan 2027
    Enacted

    Prediction market excise tax on prediction market operators

Earmarked levies

  • Sports wagering administration fund: 100% of the sports wagering excise tax and licence fees: 10% to the corporation, 2.5% to the problem gambling assistance account, remainder to the Kentucky permanent pension fund (Kentucky Horse Racing and Gaming Corporation (administration), Kentucky problem gambling assistance account (Division of Behavioral Health) and the Kentucky permanent pension fund (KRS 42.205))
  • Purse stabilization fund: 100% of the excise tax on fixed-odds wagers on horse racing (Held by the corporation for at least 18 months after 15 July 2026; up to 10% may then be used to supplement purses at live meets (KRS 230.850))

Compliance

Minimum age
21+
National self-exclusion
Kentucky Horse Racing and Gaming Corporation comprehensive self-exclusion list (sports wagering; fantasy contests to be incorporated) (mandatory)
KYC timing
Identity must be verified before the patron can wager, deposit or withdraw (KRS 230.805(3)(b)2.; 809 KAR 10:004, s.2(4)); re-verification is immediate on suspicion of compromise.
AML regime
Internal controls approved by the corporation must include an anti-money laundering programme with staff training, a responsible individual, automated monitoring and periodic independent testing (809 KAR 10:006, s.10), controls for wagers and payouts above $10,000 and for structuring across a 24-hour cycle, and procedures for reporting fraud and suspicious conduct.
AML supervisor
Kentucky Horse Racing and Gaming Corporation, through approval and audit of internal controls
Deposit limits
Operators must offer daily, weekly and monthly deposit limits; decreases take effect immediately or at the indicated point, increases only after the current period ends (809 KAR 10:004, s.8).
Session limits
No mandatory session limit was found. Players must be able to take a break from wagering of at least 72 hours through the website or app (809 KAR 10:004, s.9).
Source of funds thresholds
Internal controls must cover wagers and payouts above $10,000 and multiple wagers from one patron within 24 hours (809 KAR 10:006).
Data localisation
Servers used to transmit information for accepting or paying out wagers placed by patrons in Kentucky must be kept in the state (KRS 230.805(3)(g)).
KYC requirements
Accounts only for natural persons, one per operator or service provider. The operator collects full legal name, date of birth, a physical address (not a PO box), phone number, email, a unique username and the Social Security number or its last four digits (or a passport or taxpayer number for a non-citizen), verifies them electronically through a licensed information services provider with an exact match on last name, date of birth and ID number, and confirms ownership of the identity by knowledge-based questions, phone or email match, or government photo ID (KRS 230.805(3)(c); 809 KAR 10:004, ss.1 and 2). Since 15 July 2026 online operators must also refuse accounts to, and suspend within five business days, anyone on the Attorney General's child support arrearage registry (KRS 230.262).
Stake limits
Operators must offer daily, weekly and monthly wager limits (809 KAR 10:004, s.8(2)).
Mandatory player messaging
A toll-free number for a corporation-approved problem gambling organisation on the website, app and premises, approved disclosures on the dangers of problem gambling, and notice that underage gambling is a criminal offence; the responsible gaming programme must be independently reviewed at least every five years (809 KAR 10:007, s.2). Fantasy contest providers must show a problem gambling assistance statement on their platforms and in all advertising (KRS 230.848(1)). The corporation publicises 1-800-GAMBLER.
Reporting obligations
Monthly tax returns to the Department of Revenue by the 20th (KRS 138.552); newly collected self-exclusion information to the corporation at least weekly (809 KAR 10:007, s.1(6)); a monthly reserve attestation (809 KAR 10:006, s.6); licensee reports to the corporation attested under penalty of perjury (KRS 230.225(16)); and monthly cross-checks against the child support arrearage registry (KRS 230.262). The corporation reports the sports wagering administration fund quarterly to the Legislative Research Commission (KRS 230.817).
Game content restrictions
Only events and wager types approved in the Sports Wagering Catalog. No wagers on injuries or penalties, officiating decisions, disciplinary proceedings, youth or school sports, events whose outcome is already known, or dog or horse races as sports wagers (809 KAR 10:002, s.1(4)); elections are excluded from the definition of sporting event (KRS 230.210(40)). Since 15 July 2026 no proposition bets on Kentucky college athletes that win if the athlete fails to meet a threshold or performs negatively (KRS 230.805(8)). Players must not use technology that obscures their location (809 KAR 10:004, s.1(4)).

Minimum age by vertical

  • Online sports betting: 21+
  • Esports betting: 21+
  • Daily fantasy sports: 18+
  • Lottery and iLottery: 18+

Advertising

Advertising permitted
Yes
Affiliate rules
No affiliate or marketing partner licence was found in KRS Chapter 230 or 809 KAR. The licensee is accountable for advertising it allows or participates in (809 KAR 10:007, s.3(1)) and for violations by its employees or agents (809 KAR 10:008, s.1(1)).
Bonus advertising rules
Promotion rules must be full, accurate, concise and transparent, stating dates, rules of play, prize value, eligibility, wagering and redemption requirements, eligible events and cancellation terms. Promotions may not be called free or risk-free if the patron must incur a loss or risk their own money, and restricted credits must be cancellable (809 KAR 10:002, s.9).
Mandatory warnings
No prescribed advertising wording was found. The responsible gaming programme requires a toll-free problem gambling helpline number on the website, app and premises (809 KAR 10:007, s.2(1)(a)).
Penalties for breach
Breach of Chapter 230 or 809 KAR allows the corporation to deny, suspend or revoke a licence, impose conditions, reprimand, or fine up to $50,000 (809 KAR 10:008, s.2; 810 KAR 8:030, s.10(1)(d)).

Restrictions

  • A licensee must not allow, conduct or participate in false or misleading advertising or marketing about its sports wagering operations (809 KAR 10:007, s.3(1)).
  • Claims about winnings must be accurate and capable of substantiation; an advertisement is misleading if it states average winnings without equally prominent average net winnings of all patrons (809 KAR 10:007, s.3(2)).
  • No advertising or marketing at elementary, middle or high school activities; mass media advertising not specifically directed at those schools is excluded (809 KAR 10:007, s.3(3)).
  • A suspended account holder, including one on a break from wagering, must be removed from all advertising and marketing distribution lists (809 KAR 10:004, s.10(3)(g)).
  • Fantasy contest providers must carry a problem gambling assistance statement on all marketing materials and advertisements (KRS 230.848(1)).
  • Licensed tracks, sports wagering and fantasy licensees may not contract with a service provider that advertises, operates or is affiliated with a sports prediction market in Kentucky (KRS 230.805(9)(c)).

Payments

Credit card ban
No
Crypto stance
Not yet verified
Permitted methods
Cash and cash equivalents, Credit cards, Debit cards, Automated clearing house and other electronic funds transfers, Promotional or bonus credit, Winnings, Other forms of payment authorised by the corporation
Withdrawal timeframe rules
Withdrawal requests must be honoured within five business days, or 14 days for payment by cheque, unless the licensee believes in good faith that the account holder engaged in fraud or a violation, in which case it must suspend the account, notify the holder and update them every tenth business day (809 KAR 10:004, s.6(4)). Accounts with no log-in for two years may be closed; the holder must be told by email and certified mail within two weeks and has at least six months to withdraw (s.12).

Enforcement

ISP blocking
Not yet verified
DNS blocking
Not yet verified
Payment blocking
Not yet verified
App store takedowns
Not yet verified
Administrative penalties
The corporation may deny, suspend or revoke a licence, impose licensure conditions such as restitution, issue a reprimand, or fine up to $50,000, with appeal to an administrative hearing within 20 days (809 KAR 10:008; 810 KAR 8:030, s.10(1)(d)). Unpaid sports wagering tax attracts the uniform civil penalties of KRS 131.180 and can lead to licence suspension or revocation (KRS 138.552(8), (9)). Knowingly serving a person on the child support registry exposes an online operator to suspension or revocation (KRS 230.262(6)). Operating a gambling device unlawfully carries a civil penalty of up to $25,000 per device (KRS 528.100).
Criminal penalties
Promoting gambling in the first degree (bookmaking with three or more people taking over $500 a day, or setting up a gambling device): Class D felony; second degree: Class A misdemeanour (KRS 528.020, 528.030); permitting gambling: Class B misdemeanour (KRS 528.070). A participant wagering on their own event, or a restricted participant entering a fantasy contest: Class A misdemeanour; tampering with a sporting event or fantasy contest: Class C felony (KRS 230.990(7), (8)).
Operator liability
A licensee is responsible for sports wagering offered through its service providers and suppliers, whose servers form part of its system (809 KAR 10:003), and may be disciplined for violations by its employees or agents (809 KAR 10:008, s.1(1)). Corporate officers and managers are personally liable for unpaid fantasy contest and prediction market taxes (KRS 138.507).
Player liability
A player has a defence to prosecution under KRS Chapter 528 (KRS 528.010(10)). Unauthorised gambling contracts are void, and losses of $5 or more can be recovered from the winner within five years, or by any other person for treble the amount after six months (KRS 372.020, 372.040). Sports participants who bet on their own events commit a Class A misdemeanour (KRS 230.820, 230.990(7)).

Notable actions

  • KalshiEX LLC and affiliates, Robinhood Markets and Robinhood Derivatives, Webull Corporation and Coinbase Financial Markets (Franklin Circuit Court No. 26-CI-00689)17 Jun 2026

    Attorney General suit alleging unlicensed sports wagering through event contracts, under the Consumer Protection Act, the loss recovery provisions of KRS Chapter 372 and KRS 528.100; removed to federal court on 19 June 2026, remand motion pending

  • QCX LLC and affiliates (Polymarket) (Franklin Circuit Court No. 26-CI-00696)17 Jun 2026

    Attorney General suit under the Consumer Protection Act (two counts), the Loss Recovery Act (KRS 372.005 et seq.) and KRS 528.100 (illegal gambling devices). Polymarket removed it to the Eastern District of Kentucky the next day, 18 June 2026 (No. 3:26-cv-00047). On 14 October 2026 Magistrate Judge Edward B. Atkins recommended that the Commonwealth's motion to remand to Franklin Circuit Court be granted and its request for costs and fees denied; particularised objections are due within 14 days of service, and District Judge Claria Horn Boom decides.

  • VGW Holdings U.S. Inc. and affiliates (Chumba Casino, LuckyLand Slots, LuckyLand Casino, Global Poker) (Franklin Circuit Court No. 26-CI-00697)17 Jun 2026

    Attorney General suit alleging illegal online gambling through dual-currency sweepstakes casinos, under KRS 528.100, the Consumer Protection Act and the loss recovery statute (KRS 372.040); outcome not checked

Market data

Figures on this record are drawn from official regulator data.

Online GGR
$324,345,566 as of 30 Jun 2026
Reporting year
2026
Year-on-year growth
13.9%
Licensed operators
8

GGR by vertical

  • Online sports betting: $324,345,566 as of 30 Jun 2026

Timeline

  1. 31 Mar 2023

    Governor signs House Bill 551 legalising sports wagering (2023 Ky. Acts ch. 147)

  2. 10 Jul 2023

    Emergency sports wagering regulations signed

  3. 22 Aug 2023

    Racing commission approves temporary licences for sports wagering operators and service providers

  4. 31 Aug 2023

    First Sports Wagering Catalog released

  5. 7 Sept 2023

    Retail sportsbooks open

  6. 28 Sept 2023

    Mobile sports wagering opens

  7. 2 Apr 2024

    Ordinary sports wagering regulations (809 KAR 1 and 10) take effect

  8. 1 Jul 2024

    Kentucky Horse Racing and Gaming Corporation replaces the Kentucky Horse Racing Commission

  9. 1 Jul 2025

    Charitable gaming transferred to the corporation

  10. 14 Apr 2026

    General Assembly overrides the Governor's veto of House Bill 904 and his line-item vetoes of House Bill 757

  11. 17 Jun 2026

    Attorney General sues Kalshi, Polymarket, Robinhood, Coinbase and Webull in Franklin Circuit Court

  12. 23 Jun 2026

    United States and CFTC sue Kentucky claiming federal preemption of its prediction market measures

  13. 30 Jun 2026

    Fiscal year 2026 closes with $3.14 billion wagered and $332.2 million adjusted gross revenue reported

  14. 15 Jul 2026

    House Bill 904 in force: betting age 21, fantasy contest licensing, fixed-odds horse race wagering

  15. 14 Oct 2026

    Magistrate judge recommends sending the Attorney General's Polymarket suit back to Franklin Circuit Court

Outlook

In the CFTC's preemption suit the federal court cancelled the 9 October 2026 argument and ordered supplemental briefs by 23 October on the Sixth Circuit's 25 September ruling that Ohio and Tennessee may apply their gambling laws to Kalshi, with argument to be reset; on 14 October 2026 a magistrate judge recommended that the Attorney General's Polymarket suit be remanded to Franklin Circuit Court, with objections due within 14 days of service, and the remand motion in the Kalshi case is pending; together they decide whether Kentucky can keep sports event contracts out of the state. The corporation must adopt fantasy contest regulations by about 11 January 2027, after which existing providers have 90 days to apply. The 12% fantasy contest tax and the 14.25% prediction market tax start on 1 January 2027. The fixed-odds tax is held in the purse stabilization fund for 18 months, with a status report due by 30 November 2027. The sports wagering regulations still refer to an age of 18 and have not yet been updated to the statutory 21.

Frequently asked questions

What is the sports betting tax rate in Kentucky?
14.25% of adjusted gross revenue for online wagers and 9.75% for wagers placed at a licensed track. Adjusted gross revenue is wagers collected less winnings paid and federal excise tax. Fixed-odds wagers on horse racing are taxed at the same rates.
Who can hold a sports wagering licence?
Only a racetrack licensed to run horse race meetings, for an initial $500,000 and $50,000 a year. Each track may contract with up to three service providers, which pay $50,000 and then $10,000 a year. In September 2026 eight tracks and ten service providers held active licences.
What is the minimum age?
Since 15 July 2026 it is 21 for sports wagering, up from 18. The fantasy contest statute sets 18, and the lottery sells online to players aged 18 or over.
Are online casino and poker legal?
No. No statute authorises them, and advancing or profiting from unlawful gambling is an offence under KRS Chapter 528. Players have a defence to prosecution.
What is Kentucky's position on prediction markets?
The Attorney General sued Kalshi, Polymarket and three brokers in June 2026, alleging unlicensed sports wagering. Licensees may not deal with prediction markets, and a 14.25% tax on transaction fees starts in 2027. The United States and the CFTC have sued Kentucky claiming federal preemption; the case is pending.
How large is the market?
In fiscal year 2026 (July 2025 to June 2026) licensees reported $3.14 billion wagered and $332.2 million of adjusted gross revenue, of which $324.3 million was online. Online revenue rose 13.9% on the previous year.
How much does a gambling licence cost in Kentucky?
For the Sports wagering licence (racetrack operator), the application fee is $500,000 (as of 23 Sept 2026) and the annual fee is $50,000 (as of 23 Sept 2026). For the Sports wagering service provider licence, the application fee is $50,000 (as of 23 Sept 2026) and the annual fee is $10,000 (as of 23 Sept 2026). For the Supplemental fixed-odds wagering licence, the application fee is $2,500 (as of 15 Jul 2026) and the annual fee is $2,500 (as of 15 Jul 2026). The Licensing section lists all 6 licence types recorded for Kentucky. Last verified 21 Oct 2026.
Who regulates gambling in Kentucky?
The Kentucky Horse Racing and Gaming Corporation (KHRGC) regulates gambling in Kentucky. Other authorities with a role include Kentucky Department of Revenue and Office of the Attorney General.
How long does it take to get a gambling licence in Kentucky?
No statutory decision period was found. A service provider can receive a temporary licence to start operating immediately on satisfying the corporation's requirements and paying the $50,000 fee; it lasts up to one year, during which the permanent licence is granted or denied (KRS 230.814(5), (6)). Last verified 21 Oct 2026.

iGT 25 companies with ties to Kentucky

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Glossary and directory

iGT coverage of United States - Kentucky

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Prediction Markets

Kalshi, Polymarket and Crypto.com Sue Three More States Before They Can Be Sued

Kalshi has sued Missouri, Polymarket has sued Louisiana and Crypto.com's exchange has sued Utah, all in federal court and none of them yet the target of a state lawsuit. The filings are a race for the forum, because once a state sues first in its own courts, pre-emption becomes a defence rather than a route into federal court.

Sources

Source tiers. Tier 1: the law, official gazette, licence register or regulator itself. Tier 2: other official sources such as ministries, parliaments, courts and statistics agencies. Only tier 1 and tier 2 sources can support a fact on their own.

  1. Kentucky Horse Racing and Gaming Corporation: home page and remit

    Kentucky Horse Racing and Gaming Corporation

    Tier 1Accessed 23 Sept 2026
  2. Sports Wagering: launch dates, licensing, market report and problem gambling resources

    Kentucky Horse Racing and Gaming Corporation

    Tier 1Accessed 23 Sept 2026
  3. Sports Wagering Regulations: emergency regulations of 10 July 2023 and ordinary regulations effective 2 April 2024

    Kentucky Horse Racing and Gaming Corporation

    Tier 1Accessed 23 Sept 2026
  4. Sports Wagering Frequently Asked Questions (updated 24 July 2023)

    Kentucky Horse Racing and Gaming Corporation

    Written by the former Kentucky Horse Racing Commission before the 2024 to 2026 amendments; it is used only for the launch structure (nine tracks, up to three mobile platforms each), which the statute still reflects.

    Tier 1Accessed 23 Sept 2026Published 24 Jul 2023
  5. Sports Wagering Licensee Search: sports wagering operators, service providers and independent testing laboratories (queried 23 September 2026)

    Kentucky Horse Racing and Gaming Corporation

    Tier 1Accessed 23 Sept 2026
  6. Race Tracks and County Fairs: licensed racetracks and historical horse racing facilities

    Kentucky Horse Racing and Gaming Corporation

    Tier 1Accessed 23 Sept 2026
  7. Staff Directory

    Kentucky Horse Racing and Gaming Corporation

    Tier 1Accessed 23 Sept 2026
  8. Sports Wagering Catalog (updated 21 July 2026)

    Kentucky Horse Racing and Gaming Corporation

    Tier 1Accessed 23 Sept 2026Published 21 Jul 2026
  9. Sports Wagering Market Report: monthly and fiscal year reports (FY 2025, FY 2026 and July 2026 views read; last published 14 September 2026)

    Kentucky Horse Racing and Gaming Corporation

    The corporation publishes these as self-reported licensee figures, labels revenue "Approximate AGR" and says they are subject to change; the Department of Revenue holds the tax data. Figures were read from the rendered report.

    Tier 2Accessed 23 Sept 2026Published 14 Sept 2026
  10. Sports Wagering Licenses Approved at Meeting of the KHRC (temporary licences for operators and service providers)

    Kentucky Horse Racing and Gaming Corporation

    Tier 2Accessed 23 Sept 2026Published 22 Aug 2023
  11. Gov. Beshear: Sports Wagering Catalog Released, Opening Day in One Week

    Kentucky Horse Racing and Gaming Corporation

    Tier 2Accessed 23 Sept 2026Published 31 Aug 2023
  12. House Bill 551 (2023 Regular Session), 2023 Ky. Acts ch. 147, an act relating to wagering

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026Published 31 Mar 2023
  13. 23RS HB 551 bill record (signed by the Governor 31 March 2023, Acts ch. 147)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  14. 26RS HB 904 bill record, an act relating to gaming (Wagering Consumer Protection Act), Acts ch. 184: vetoed 13 April 2026, veto overridden 14 April 2026

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  15. 26RS HB 757 bill record, an act relating to revenue measures, Acts ch. 161: line-item vetoes overridden 14 April 2026

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  16. 25RS HB 566 bill record, an act relating to the Kentucky Horse Racing and Gaming Corporation, Acts ch. 124

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  17. KRS 230.210, Definitions for chapter (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  18. KRS 230.215, Legislative purpose; jurisdiction over sports wagering, fantasy contests, fixed-odds wagering and charitable gaming (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  19. KRS 230.225, Kentucky Horse Racing and Gaming Corporation: creation, audit, responsibilities, enforcement (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  20. KRS 230.227, Board of directors: membership, appointment and terms (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  21. KRS 230.232, Internal corporate offices, including the Office of Charitable Gaming (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  22. KRS 230.260, Authority and jurisdiction of the corporation, advance deposit wagering licensing, self-exclusion list (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  23. KRS 230.262, Child support arrearage registry and duties of licensed online gaming operators (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  24. KRS 230.805, System of sports wagering, service providers, account registration, fixed-odds wagering, collegiate proposition bets, prediction markets (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  25. KRS 230.808, Sporting events that may be wagered upon (effective 1 July 2024)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  26. KRS 230.811, Sports wagering licence and supplemental fixed-odds licence: prerequisites and fees (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  27. KRS 230.814, Service provider licence: fee, suitability factors, temporary licence (effective 1 July 2024)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  28. KRS 230.817, Sports wagering administration fund (effective 27 March 2025)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  29. KRS 230.820, Participants prohibited from wagering; tampering with a sporting event (effective 1 July 2024)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  30. KRS 230.826, Kentucky problem gambling assistance account (effective 29 June 2023)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  31. KRS 230.830, Operation and regulation of fantasy contests (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  32. KRS 230.832, Duties of fantasy contest service providers (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  33. KRS 230.836, Fantasy contest service provider licensure (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  34. KRS 230.846, Fantasy contest licence fees and terms (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  35. KRS 230.848, Fantasy contests: voluntary self-exclusion and problem gambling statement (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  36. KRS 230.850, Purse stabilization fund (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  37. KRS 230.990, Penalties (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  38. KRS 138.552, Taxes on sports wagering and fixed-odds wagering licensees (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  39. KRS 138.505, Fantasy contest tax (effective 1 January 2027)

    Kentucky General Assembly, Legislative Research Commission

    Defines a fantasy contest participant as a person aged 21 or older, while KRS 230.830(4) sets a minimum participation age of 18.

    Tier 1Accessed 23 Sept 2026
  40. KRS 138.506, Prediction market tax (effective 1 January 2027)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  41. KRS 138.507, Liability for fantasy contest and prediction market taxes (effective 1 January 2027)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  42. KRS 138.510, Taxes on pari-mutuel wagering on live and historical horse racing

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  43. KRS 138.513, Tax on advance deposit account wagering licensees (effective 15 July 2024)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  44. KRS 528.010, Gambling offences: definitions (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  45. KRS 528.020, Promoting gambling in the first degree

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  46. KRS 528.030, Promoting gambling in the second degree

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  47. KRS 528.070, Permitting gambling (effective 15 July 2026)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  48. KRS 528.100, Forfeiture, civil penalty and action in equity (effective 29 June 2023)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  49. KRS 372.005, Chapter 372 not applicable to legal gambling transactions

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  50. KRS 372.020, Recovery of gambling losses from winner

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  51. KRS 372.040, Suit by third person where loser does not sue (treble recovery)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  52. KRS 141.020, Levy of income tax on individuals (effective 27 June 2025)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  53. KRS 154A.110, Lottery prizes taxable; withholdings from prizes

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  54. KRS 154A.020, State lottery created; administration by the Kentucky Lottery Corporation

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  55. 809 KAR 10:001, Definitions (sports wagering)

    Kentucky General Assembly, Legislative Research Commission

    The regulation still defines an underage person as under 18 (809 KAR 10:001, s.1(63)); the statute has required 21 since 15 July 2026 (KRS 230.805(3)(b)3., 2026 Ky. Acts ch. 184), and the statute prevails.

    Tier 1Accessed 23 Sept 2026
  56. 809 KAR 10:002, Standards for sports wagering

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  57. 809 KAR 10:003, Technical requirements and oversight

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  58. 809 KAR 10:004, Sports wagering accounts

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  59. 809 KAR 10:006, Audit and internal control standards

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  60. 809 KAR 10:007, Responsible gaming and advertising (effective 2 April 2024, technical amendment 1 July 2024)

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  61. 809 KAR 10:008, Disciplinary actions and hearings

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  62. 809 KAR 1:002, Service provider licensing

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  63. 809 KAR 1:003, Occupational licenses

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  64. 810 KAR 8:030, Disciplinary measures and penalties

    Kentucky General Assembly, Legislative Research Commission

    Tier 1Accessed 23 Sept 2026
  65. Sports Wagering Excise Tax

    Kentucky Department of Revenue

    Tier 1Accessed 23 Sept 2026
  66. Individual Income Tax

    Kentucky Department of Revenue

    The page gives a rate of 4%, which applies to tax years 2024 and 2025; KRS 141.020(2)(f) sets 3.5% for tax years beginning on or after 1 January 2026.

    Tier 1Accessed 23 Sept 2026
  67. Topic no. 419, Gambling income and losses (last reviewed 11 June 2026)

    Internal Revenue Service

    Tier 1Accessed 23 Sept 2026Published 11 Jun 2026
  68. Kentucky Lottery FAQ: online play requirements (Internet Archive copy of 30 December 2025)

    Kentucky Lottery Corporation

    kylottery.com timed out from this machine on 23 September 2026, so the official page was read from its Internet Archive snapshot of 30 December 2025.

    Tier 1Accessed 23 Sept 2026
  69. United States and Commodity Futures Trading Commission v. Commonwealth of Kentucky et al., No. 3:26-cv-00049 (E.D. Ky.), Complaint for declaratory and injunctive relief, filed 23 June 2026

    US District Court for the Eastern District of Kentucky (docket and filings as mirrored by CourtListener RECAP)

    Tier 2Accessed 23 Sept 2026Published 23 Jun 2026
  70. United States v. Commonwealth of Kentucky, No. 3:26-cv-00049 (E.D. Ky.), docket to September 2026

    US District Court for the Eastern District of Kentucky (docket and filings as mirrored by CourtListener RECAP)

    Tier 2Accessed 23 Sept 2026
  71. Commonwealth of Kentucky ex rel. Attorney General Russell Coleman v. KalshiEX LLC et al., Franklin Circuit Court No. 26-CI-00689, Complaint (exhibit to the notice of removal)

    US District Court for the Eastern District of Kentucky (docket and filings as mirrored by CourtListener RECAP)

    Tier 2Accessed 23 Sept 2026Published 17 Jun 2026
  72. Commonwealth of Kentucky v. KalshiEX LLC, No. 3:26-cv-00048 (E.D. Ky.), removed from Franklin Circuit Court, docket to September 2026

    US District Court for the Eastern District of Kentucky (docket and filings as mirrored by CourtListener RECAP)

    Tier 2Accessed 23 Sept 2026
  73. Commonwealth of Kentucky's Motion to Remand, No. 3:26-cv-00048 (E.D. Ky.), 20 July 2026

    US District Court for the Eastern District of Kentucky (docket and filings as mirrored by CourtListener RECAP)

    Tier 2Accessed 23 Sept 2026Published 20 Jul 2026
  74. KalshiEX LLC v. Schuler; KalshiEX LLC v. Orgel, Nos. 26-3196/5235 (6th Cir. 25 September 2026), opinion

    United States Court of Appeals for the Sixth Circuit

    Tier 1Accessed 14 Oct 2026Published 25 Sept 2026
  75. Commonwealth of Kentucky v. QCX LLC, No. 3:26-cv-00047-CHB-EBA (E.D. Ky.), Report and Recommendation on the motion to remand, 14 October 2026

    US District Court for the Eastern District of Kentucky (as mirrored by CourtListener RECAP)

    Tier 2Accessed 19 Oct 2026Published 14 Oct 2026
  76. Commonwealth of Kentucky ex rel. Attorney General Russell Coleman v. VGW Holdings U.S. Inc. et al., Franklin Circuit Court No. 26-CI-00697, Complaint, 17 June 2026

    Office of the Attorney General of Kentucky

    Tier 1Accessed 21 Oct 2026Published 17 Jun 2026

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