The Kentucky Horse Racing Commission July 10 approved emergency regulations for sports betting in the state. Shortly after it unanimously passed those regulations, Gov. Andy Beshear signed off on them, bringing the state one step closer to being able to place bets this football season.
Beshear’s signature moves Kentucky closer to the goal of having sports betting up and running in time for the upcoming National Football League season. Gov. Beshear said sports betting will begin in the state in 59 days—with retail locations opening as soon as Sept. 7 and betting through mobile apps beginning Sept. 28.
Beshear said the difference in launch dates is because it provides more time for mobile/online operators to get in line with state requirements.
Kentucky passed House Bill 551 in March, which gave the KHRC six months to approve regulations. With Beshear’s desire to have sports betting operational in time for the NFL season, it placed the KHRC under a time crunch.
“I believe that we’re not inventing the wheel, and thus we’re not reinventing it either,” Beshear said. “There are so many examples out there that have launched in these last couple of years. We have a number of prime examples on how to get it done.”
Sign up for BloodHorse Daily
Jennifer Wolsing, general counsel for the KHRC, said that emergency regulations would take effect the day they are approved while ordinary regulations would be submitted for a public review The KHRC meeting, which was a special session held at the Red Mile in Lexington Monday, gave commissioners the chance to get clarification on how the regulating of sports betting, which the KHRC will oversee, will function.
“The biggest criteria foremost that you need to have before you can apply is that it needs to be a racing association. And that’s where the nine licenses come into play,” said KHRC deputy executive director Waqas Ahmed.
There will be nine licenses granted and tracks will be able to maintain a brick-and-mortar sportsbook. There are provisions for extensions that would need KHRC approval. Additionally, simulcast facilities that are established by the tracks after receiving approval would also have the ability to receive in-person bets.
Churchill Downs, Keeneland, Ellis Park, Ellis Park Owensboro, Turfway Park, Red Mile, Kentucky Downs as well as Derby City Gaming, Derby City Gaming Downtown, Mint Gaming Hall in Bowling Green, Mint Gaming Hall in Williamsburg, Newport Racing and Gaming, Oak Grove Gaming and Racing, Sandy’s Gaming and Racing and Cumberland Run can begin the application process July 11. Each facility can partner with up to three platforms for mobile wagering.
“We expect the tracks that are completed and completely renovated to be open on the seventh but in the end, each of the tracks will have to go through the process; will have to secure the license. But we anticipate that that will happen certainly for the ones that are up and operating,” Beshear said.
Beshear noted the state should make about $23 million annually in tax revenue.
“I anticipate over time it will grow from that,” Beshear said.
The physical locations will have a tax rate of 9.7% and online sportsbooks will be taxed at 14.25%. There is also an initial $500,000 fee for the license and a $50,000 renewal fee. For the mobile operators, the initial fee is $50,000 with $10,000 the cost for renewal.
