Zoe Sharp
This Thursday, Kentucky’s Governor Andy Beshear shared the latest update and a timeline of key dates concerning the launch of sports betting in the state. Gov. Beshear announced that in-person sports gambling at licensed retail betting shops will officially start at 10 am EDT on September 7. Mobile sports betting is to launch on September 28.
Kentuckians can start registering accounts with approved mobile sports betting apps from August 28 at 6 am EDT and add funds to their pre-registered accounts from September 7 at 6 am EDT. By allowing pre-registration, strains on electronic systems, which can happen when many people try to register at the same time, will be avoided, according to a press release from the governor’s office.
Legal retail sports betting and mobile wagering will kick off on different days because the state opted for a “tiered implementation”. This way, the gambling regulator will be able to test its policies and procedures before the market’s full rollout. Many states that have already regulated sports betting used the tiered approach.
On August 22, the Kentucky Horse Racing Commission (KHRC) is expected to meet in order to determine which retail sportsbooks and mobile apps are eligible for a license to operate in Kentucky. Following the meeting, a list of the approved operators will be released. Kentucky Horse Racing Commission Chairman Jonathan Rabinowitz expressed his excitement about the upcoming opening of the sports betting market and said that the commission was working tirelessly to meet the deadlines.
Kentucky Sports Betting Market: Expectations and Taxes
Earlier this month, the governor revealed the names of the mobile operators and racetracks that have submitted applications for a sports betting license. Among the mobile sports betting operators that have applied for a permit to accept wagers from Kentuckians include Bet365, BetMGM, DraftKings, and FanDuel. Racetracks that receive a sports betting license will be allowed to open retail sports betting shops at their satellite locations. Churchill Downs, Turfway Park, and Oak Grove Gaming and Racing are among the racetracks seeking a sports betting license.
Sports betting is expected to generate $23 million in revenue annually once it is fully implemented. This revenue will go to the Kentucky permanent pension fund, with 2.5% being allocated to the problem gambling assistance account. The bill also provides for a new excise tax on sports wagering. Licensed betting shops will be subject to a 9.75% tax on adjusted gross revenues, while online and smartphone wagers will be taxed at 14.25%.
This July, state lawmakers and Gov. Beshear announced that Kentuckians would soon be able to wager on their favorite sports team. The news followed a KHRC meeting during which all members voted in favor of emergency administrative regulations to govern the sports betting market. The Bluegrass State has been trying to regulate sports betting for years. And on March 31 this year, it reached its goal after Gov. Bashear signed House Bill 551, legalizing sports wagering in the state.