Kentucky Advances Sweeping Betting Reforms to Governor’s Desk

The Kentucky legislature has pushed forward House Bill 904, moving the sports betting and prediction markets proposal to Andy Beshear for final consideration.

First introduced in March, the bill consolidates a wide range of updates to the state’s gambling framework, including changes to age limits, the introduction of new betting formats and revisions to taxation within the sports wagering market.

The reforms will not all take effect at once. Some measures will become law immediately upon enactment, while others will be introduced gradually, depending on how quickly operators can adapt their systems and meet compliance requirements.

A key change is the increase in the minimum age for sports betting from 18 to 21, covering both retail and online wagering. Operators will be required to implement strict safeguards to prevent underage access. In contrast, fantasy sports will remain available to those aged 18 and over, creating a clear split within the market.

The bill also takes a firm stance on prediction markets. It defines event contracts and prediction markets while placing strict limits on participation. Licensed sportsbooks, racetracks, fantasy operators and their affiliates would be barred from engaging with or holding any interest in such platforms within the state, with restrictions also extending to associated service providers.

This could have implications for operators such as DraftKings and FanDuel, particularly if they offer prediction market products elsewhere.

Changes to prop betting

The legislation also tightens rules around prop betting. While the market is not being eliminated, a specific category will be restricted.

Under the new rules, operators will not be permitted to offer prop bets on Kentucky college athletes where the outcome depends on the player underperforming or failing to meet a statistical threshold. Other types of prop wagers will remain unaffected, but this carve-out reflects a growing trend in other states.

Horse racing provisions and tax updates

Horse racing is also addressed, with the introduction of fixed-odds betting on live races and a new licensing structure. Tax rates will be set at 9.75% for on-site wagers and 14.25% for online bets, with revenue directed into a purse stabilisation fund.

A minimum wager of $1,000 per race is included, while individual tracks will retain control over betting menus.

If signed into law, the bill would bring significant changes across Kentucky’s gambling landscape. However, the process is time-sensitive. Should the governor choose to veto the bill, lawmakers will have until 15 April to attempt an override.