HB 551 filed to legalize wagering on sporting events, allow access to online betting accounts
After working with stakeholders, Representative Michael Meredith filed HB 551, legislation that would legalize betting on sporting events.
“Kentucky residents today place these bets either with illegal, unregulated offshore gambling establishments, bookmakers, or by driving across state lines. As a result, the Commonwealth receives no benefit and bears all the costs,” Meredith said. “Statistics show that more than half of our state’s population supports the legalization of sports betting. It’s time to ask ourselves if it really is in the best interest of the people of Kentucky to prevent adults from legally placing a bet.”
HB 551 aims to legalize and regulate gambling at live sporting events. If passed, consumers would have access to online betting accounts similar to that in six out of seven neighboring states, including Illinois, Indiana, Ohio, Tennessee, Virginia and West Virginia.
The provisions of HB 551 would require online gambling operators to affiliate with a Kentucky horse racing track and give the Kentucky Horse Racing Commission (KHRC) regulatory responsibility for gambling businesses. Sports betting may be provided through a licensed sports betting establishment or online through a website or mobile app.
All revenue generated through licenses would be allocated to the newly created Sports Betting Management Fund. The fund would cover all administrative costs associated with provider licensing and regulation, with the remaining money earmarked to meet multibillion-dollar liabilities within Kentucky’s public pensions.
Meredith’s proposal would set initial royalties at $500,000 for tracks and $50,000 for gaming providers, while annual renewals would be $50,000 for tracks and $10,000 for gaming providers.
“Clearly the cost of doing business here has to cover the cost of administering this program. However, we felt strongly that this was an opportunity to put the proceeds to good use,” added Meredith.
If passed, the law would allow wagering on professional and amateur sporting events, college sports, international sporting events such as the Olympic Games or the World Cup, electronic sports, and competitive video game events. However, a sporting organization or governing body might require betting on events to be restricted or capped.
HB 551 would not legalize online poker or fantasy sports. In addition, the measure sets the minimum age for sports betting at 18, which aligns with the age limit used for other forms of legalized gambling, including betting on horse racing and purchasing Kentucky lottery tickets.
For more information on this legislation, visit legislature.ky.gov.
House of the Republican faction