• HB 175 would legalize sports betting, daily fantasy sports contests, and online poker in Kentucky.
• The bill does not have supermajority support, which is required for passage during this year’s session.

FRANKFORT, Ky. – Kentucky was considered to be on the fast-track to sports betting, a leader amongst the states comprising the so-called “second wave” of sports wagering legalization. Unfortunately, HB 175 no longer has adequate support this term, and it has been shelved until 2020.

Rep. Adam Koenig (R), primary sponsor of the bill, indicates that the primary hurdle for the bill was this congressional session’s requirement that the law for Kentucky sports betting be passed with a supermajority of votes.

In Kentucky, a three-fifths (60%) supermajority is required for any bill that would establish new sources of tax revenue or raise taxes. This applies to odd-numbered years only. As such, in 2020, HB 175 – and/or other bills like it – will be able to be passed with a simple majority (51%).

Given that the bill would likely pass under those terms this year, there is ample reason to assume that sports betting legalization would have no trouble passing in the next legislative session.

Koenig told Insider Louisville of the decision to shelve the bill until next year.

“We will regroup and reload with a better plan to win the hearts and minds of the public next year. We will only need a simple majority, and it will be a budget year where that $20-48 million will look a lot more important.”

In the meantime, here’s a look at what’s in HB 175. The main thrust of the proposal’s content shouldn’t change much (if at all) in the meantime.

HB 175 – Kentucky’s Sports Betting Legalization Bill

Though sports wagering is the most popular gambling platform right now, HB 175 addresses other aspects of gaming as well. These include considerations for daily fantasy sports (DFS) and the establishment of various gambling-related government agencies and funds. Also included is the establishment of regulated, legal, online-based poker.

Sports Betting Highlights In HB 175

• Sports wagering will be overseen by the Kentucky Horse Racing Commission (KHRC)* http://khrc.ky.gov/Pages/default.aspx * .
• Online sports wagering is allowed, provided participants use authorized apps or Internet accounts and register in-person at the physical bookmaker’s venue.
• The legal sports wagering age will be set at 18 years old.
• No professional or amateur game that is being played inside the state of Kentucky will be allowed to have odds offered.
• NCAA games may be wagered on, though Kentucky books may not include odds for teams from the state.
• Oscars/entertainment betting is allowed at the discretion of the KHRC.
• There is no “integrity fee” allotment to sporting leagues, though the law would establish “monitoring programs to ensure the highest integrity of athletic events and sports wagering.”
• The bill nominally allows sports wagering at “professional sports venues”.
• Sports betting tax rates are set at 10.25% for in-person adjusted gross revenues and 14.25% for online/app-based adjusted gross revenue.
• Initial operator license fees are set at $1 million, and annual renewal fees are set at $50,000.

Daily Fantasy Sports Highlights In HB 175

• DFS operators have until January 15, 2020, to register with the state.
• The KHRC will also oversee DFS operations, though these are not classified as “sports betting” by the state.
• Fantasy operators who have fewer than 100 participants within any calendar year are exempt from registration/regulation requirements.
• The legal age to participate in DFS contests is 18 years old.
• DFS operators must pay a $5000 registration fee and must play annual renewal fees of either 6% of adjusted gross revenues or $5000, whichever is greater.

Online Poker Highlights In HB 175

• The Kentucky Lottery Corporation will oversee the legal online poker industry.
• The initial online poker operator license is set at $250,000. Annual renewal of this license costs $10,000.
• Net online poker revenue will be taxed at 6.75%.
• The legal age to play online poker in Kentucky is 18 years old.