Kentucky pencils in September sports betting launch with accelerated timeline

Officials in Kentucky have confirmed a timeline for legalized sports betting to begin in the state from September, with a staggered launch for both retail and online sports betting.

Members of the Kentucky Horse Racing Commission (KHRC) met on Monday (July 10) and voted to approve emergency regulations to govern sports betting, with a proviso that retail sports betting will begin in the Bluegrass State from September 7 and online betting from September 28.

The staggered approach is designed to ensure that operators have time to ensure proper adherence to technical standards before launching.

This leaves just 59 days to conduct a licensing process and select operators, a timeframe which if achieved would make it the quickest state to launch regulated sports betting, ahead of Iowa, which launched in 94 days, and Kansas, which launched in September 2022, just 115 days after legalizing.

The KHRC revealed a “methodically crafted” plan for the implementation of betting in the state, confirming the solicitation of opinions from individual stakeholders as well as external jurisdictions.

It also committed to a comprehensive approach to license applicant suitability, with factors including regulatory compliance, finance, previous history in other jurisdictions, and public interest under scrutiny as part of the process.

Prohibitions on underage gambling, anti-money laundering, and anti-match-fixing were also revealed by the regulator in the meeting, as well as self-exclusion programs and enforcement measures centred around marketing and advertising.

“The commission stands prepared to fulfil its responsibility of regulating and overseeing sports wagering in the Commonwealth,” the KHRC said in the meeting.

“We intend to ensure it is to the benefit of the local industry and the public, remaining steadfast in our commitment to the principles of fairness, integrity, and responsibility,” it added.

Different types of licenses are available in the state, with a tiered fee system based on the type of license applied for.

These include Kentucky’s racetrack operators, who are required to pay an initial license fee of $500,000 with a $50,000 renewal fee, and sports betting operators, who will be required to pay a $50,000 initial license fee and a $10,000 renewal fee.

Each racetrack operator can partner with up to three mobile operators, with Caesars Sportsbook having already partnered with racetrack operators at Keeneland and Red Mile.

The KHRC has confirmed that it is recruiting 14 additional members of staff to cope with the extra demand during the licensing process. Fiscal estimates released by the KHRC suggest that the state could generate as much as $23m in taxation revenue annually from sports betting.

Speaking at a press conference after the Monday meeting, Kentucky Governor Andy Beshear, who has been pro-betting since the earliest days of the legislation, suggested that the state could surpass the $23m total.

“When you look back at the last Super Bowl and how much was bet nationwide and how much we lost out on, that’s why I am confident we will exceed initial revenue estimates,” Beshear said.

“When you look at how many people go for the first round of the NCAA Tournament to Las Vegas and other places, now there will be an option to stay here and have much of that entertainment experience here,” he added.

Addressing regulation specifically, Beshear continued: “We’re not reinventing anything. There are so many examples out there we’ve watched in these last couple of years. We’ve had a number of prime examples of how to get it done.

“There was significant communication between the various companies that are going to be a part [of this],” Beshear said.

“[It’s] what we’ve seen from other states in terms of best practices and getting people signed up and finding out where the different challenges are.

“I’ve been for sports betting since I began running. I believe we can do this responsibly. I believe this administration and general assembly can get it done. I’ll be proud to make that first bet,” Beshear concluded.