- Legal States
Melanie Porter January 6, 2023 3 min read
Kentucky Sends Online Betting, Poker, and Fantasy Sports Bill to Senate House
Kentucky has introduced a new bill to allow poker, online betting, and fantasy sports competitions in the Senate House
House Bill 106 was introduced in the current legislative session on January 5. The bill received support from Kentucky State Representative in Lexington’s 88th District, Cherlynn Stevenson, Newport’s State Representative Rachel Roberts, and Derrick Graham, a dedicated House Representative since 2003.
The Bill Could Bring 26 New Amendments
If it would be given the green light, the new bill would introduce 26 new amendments to the current legislation. It would also enact 13 fresh sections in relation to poker, online sports, poker, and betting on fantasy sports. As a result, operators would be able to provide sports betting offerings on their online platforms.
At the same time, licensed racing tracks would be allowed to work together with online brands. A single track would only be allowed to partner with one online operator. Together, they would generate betting systems dedicated to tracking wagering and online betting. Racing tracks could also provide sportsbooks at two distinct locations owned or leased at a distance of up to 60 miles from the racing grounds. This condition would only apply provided the locations would not be directly tied to the track’s land.
$500,000 Licensing Application Fee
Operators interested in offering sports betting services for sports like NASCAR, the NBA, the NFL, the MLB, or the PGA to name a few would need to cover a $500,000 license application fee. The operators would also need to cover a yearly license renewal fee set at $50,000.
According to the new bill, race tracks would also need to pay a 9.75% revenue tax every month, and a revenue tax of 14.25% on all online sports bets. Players, referees, coaches, and their close family members would be completely forbidden to place bets on sports in Kentucky.
Gambling Operators Would Pay a $250,000 License Fee
Operators looking to embrace online Poker and fantasy sports bets would have to show proof of using efficient geotracking software. The software would be used to make sure that all online pokers are located inside the state. Another requirement refers to operators proving they can verify the ages of all players in an attempt to prevent underaged players under 18 from wagering.
Operators would also need to cover a $250,000 license fee along with a yearly license renewal fee set at $10,000. As for revenue taxes, a 6.75% monthly tax on all fees charged to players, rake included, would be introduced by the new bill.
Only sports fantasy operators with over 100 participants would be required to obtain a license for a $5000 application fee. Licensed operators would also java to cover a renewal fee set at 6% of the operators’ revenue from the previous year or $5000, depending on which amount would be greater. Online fantasy sports platforms would not be subject to any set of restrictions.
However, holders of licenses for fantasy sports competitions will have to submit yearly records to public certified accountants to make sure they are complying with the legislation. Last March, House Bill 606 received the green light in the Senate House but did not do as well in the Senate Committee.
After finishing her master's in publishing and writing, Melanie began her career as an online editor for a large gaming blog and has now transitioned over towards the iGaming industry. She helps to ensure that our news pieces are written to the highest standard possible under the guidance of senior management.
Industry January 6, 2023