The Bluegrass State made it all happen in 2023.
Not only did Kentucky lawmakers pass a bill to legalize sports betting in March, but state regulators put in the necessary parameters to launch online and retail sportsbooks by September to take advantage of the heavily wagered football season.
It completed a process that began in 2020 when Kentucky legislators introduced the first sports betting bill. In a state that’s been synonymous with horse racing for decades, it was only a matter of time.
Gov. Andy Beshear made getting sports betting legal part of his financial boom agenda for the Bluegrass State in 2023.
How Kentucky got here
After the Kentucky Senate failed to pass a sports betting bill on the final legislative day of 2022, lawmakers made another run in early 2023, introducing House Bill 551 in February. After expectedly clearing the House, the Senate passed the bill on March 30 by a vote of 25-11. A day later, Beshear signed the bill into law, making Kentucky the 37th U.S. jurisdiction to add sports betting, intending to launch late in the year or early 2024.
“After years of urging lawmakers to legalize sports betting, we finally did it!” Beshear posted on social media. “Kentuckians will soon be able to place their bets here, and for the first time, we are going to keep those dollars to support our roads and bridges, schools and communities.”
Going live
The Kentucky Horse Racing Commission (KHRC), which has plenty of experience in the wagering industry, was put in charge of governing sports betting. As Caesars became the first sportsbook to partner with a horse racing track and others followed, the KHRC approved rules and took operator applications.
Eventually, seven initial sportsbooks were approved: FanDuel, DraftKings, BetMGM, bet365, Caesars, Circa, and PENN Entertainment.
Retail sportsbooks launched at nine different locations on Sept. 7 with Beshear placing the first legal sports bet in Kentucky history.
Online sports betting went live at 6 a.m. on Sept. 27, and tax revenue and operator profits were off and running.
See also: Sports Betting in Massachusetts in 2023
Instant success
Kentucky sports betting got off to a strong start as more than $4.5 million was wagered at brick-and-mortar sportsbooks in the first two weeks.
Geocomply Solutions, a sports-betting app tracking company, found there were two million geolocation checks on the first day, and Beshear said online wagering generated over $50 million in bets during the first week.
Kentuckians wagered more than $656 million in the first two months with over $310 million coming from October and the last few days of September. Online sportsbooks claimed nearly $630 million of the total among wagered.
Handle and revenue from specific operators have yet to be released.
See also: 10 Predictions, Bold and Otherwise, About Sports Betting in 2024
Raking in revenue
Behind a 14.25% mobile rate and a 9.75% retail rate, Kentucky sportsbooks have already helped the Bluegrass State bring in $8 million in tax revenue.
“This is an incredible start, and if this trend holds true, we will significantly exceed the $23 million in projected revenue from sports wagering,” Beshear said.
Bluegrass State officials can likely count on filling their coffers in the final month of 2023 and beyond. Regulators have already approved nine sportsbook operators for 2024 after giving them a temporary license in 2023.
The original seven along with ESPN BET, which went live in November, and Kambi, which has a license to work with retail sportsbooks, are all set. Circa, however, has yet to launch in Kentucky.
The Bluegrass State can accept as many as 27 providers, but at this time, there is no movement to add operators heading into 2024.
