Kentucky Gov. Andy Beshear says sports betting revenue exceeds expectations
Sports betting is taking off quickly in Kentucky.
Sports betting marks the first major expansion of the state's gambling industry in decades—the Kentucky General Assembly passed a law in 2021 to solidify the legality of the Historic Horse Racing Machine (HHR). In March, the state's Republican-dominated Legislature sent a sports betting bill to Gov. Andy Beshear (D), who quickly signed the gambling expansion measure into law.
After establishing applicable regulations, the Kentucky Horse Racing Commission (KHRC) reviewed the application, issued the license, and on-site sports betting began on September 7. Online sportsbooks will be open to accept bets starting September 28.
Beshear said interest in sports betting across the country is so high it's at its highest level since the rise of internet gambling. Democrats believe Kentucky will "significantly exceed" the state's pre-market annual tax benefit forecast of $23 million.
“This is an incredible start and if it continues, our sports betting revenue will significantly exceed the projected $23 million,” Beshear said. “These tax dollars will support sports betting regulation, establish a Problem Gambling Fund, and primarily help our Kentucky pension system.”
A sports betting license in Kentucky costs $500,000. Gross sports betting sales are subject to a 9.75% tax on bets accepted in person. Online sports betting has a significantly higher tax rate of 14.25%.
Sports Betting Debuts
Kentuckians 18 and older can bet in person at 13 retail Sports Betting Locations and online through 7 online sportsbooks. Online platforms include bet365, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel and ESPN Bet. Circa Sportsbook is preparing to launch in Kentucky in the coming weeks.
According to the KHRC, most sports betting in the state is online betting. This is a familiar theme because in states with retail and online sports betting, the vast majority of transactions (or total wagers) are conducted over the Internet by remote bettors within the state's borders.
Sportsbooks have accepted more than $656 million in wagers since sports betting launched in Kentucky in early September. Of that amount, just under $27 million was bet at brick-and-mortar sportsbooks.
Facing the Critics
Both chambers of the Kentucky Legislature have been controlled by Republicans since 2017, with the Senate having been red since 2000.
Conservative lawmakers are reluctant to consider casino expansion plans because they fear more gambling will negatively impact families struggling with addiction, financial problems and crime. Some of these gambling critics believe that sports betting will also be a social evil.
Beshear countered these sports betting critics, however, saying the majority of new bets in the state are already being processed through offshore sportsbooks, local bookmakers or neighboring states.
“Remember, before we legalized sports betting, that money was going to other states or the betting was illegal,” the governor said.
David Walls, executive director of the Kentucky Family Foundation, which lobbies state lawmakers to support biblical values, said sports betting is a "predatory" industry.
"The expansion of predatory gambling is a disaster for Kentuckians, especially children and vulnerable populations. Despite its purported economic benefits, state-sponsored gambling is an economic cancer that has historically caused at least as much social harm Three times the benefit,” Walls said.
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Source: www.casino.org
