Kentucky is looking to pass a comprehensive bill that would allow it to quickly join the rest of the US states that allow sports betting on their territory. The state has chosen a one-in-all approach whereby House Bill 606 wants to push for daily fantasy sports, sports betting, and online poker legislation in one swoop fell in which it introduces all of the often divisive issues and regulate them once and for all.
Big Step Forward for Kentucky
Kentucky is known as the state which successfully settled a decade-long case with PokerStars. As a result, the now Flutter Entertainment-owned company agreed to pay $300 million to the Commonwealth of Kentucky. But instead of chasing down “rogue operators,” Kentucky is far keener on regulating those industries. This may happen before long as HB 606 is now hoping to create the framework for both in-person and online betting and gambling.
However, the bill also wants to see the activity limited in the remit of several establishments, including professional sports venues or licensed racetracks. Alternatively, Kentuckians may turn to their mobile apps, but not until after they have completed an in-person registration at an authorized venue.
Kentucky, though, is clever enough to know that in-person registrations are not always in the best of consumers, and the measure is expected to be nixed in 2024 if all goes well. Anyone aged 18 would be able to download a gambling app in Kentucky and participate.
Taxation and General Rules
As to the taxation language, this may yet change, but the bill presently expects to see a 9.75% tax rate applied to all retail bets. Online properties will fetch a higher rate of taxation at 14.25%. The bill already saw a few amendments applied to it, one of which concerned a $1,000 loss limit over 24 hours of play. However, this amendment was rejected.
Another bill concerned a clarification that online tax would apply to revenue, and not the total amount wagered – an important differentiation. This bill is just the latest attempt to bring betting and various aspects of the gambling experience up to speed in Kentucky. A previous attempt was spearheaded through Senate Bill 213 which ultimately stalled in the Licensing and Occupations Committee, although there could be more movement there as well. Hopes are Kentucky would make movement on regulating sports gambling this year.