A bill to allow sports betting, daily fantasy sports and online poker has been passed in Kentucky. The bill has passed the state house and is now assigned to a Senate committee.
The Senate will review the bill after the House previously rejected it due to an amendment that would mandate a $1,000 daily loss limit. Another mandate, that made it clear that the tax was applied to revenue, not stakes, was approved and the bill was approved with a 58-30 vote.
What does the bill say?
The Kentucky House Bill 606 will allow online casino and betting operators to offer services such as online and in-person sports wagering, fantasy sports contests, and online poker. However, it only permits wagering at licensed racetracks, professional sports venues, or via a mobile app, and in-person registration in order to use them will be mandatory. Venues and racetracks will also only be able to partner with only one online betting service at a time.
From 2024, this registration requirement will then be lifted, and from then on, any player aged 18 or over will have the ability to download an app anywhere.
As for the money, sports betting licensees will have to pay a 9.75% tax rate from retail bets, based on their adjusted gross revenue, and there will be a tax rate of 14.25% for online bets.
What does this mean for the iGaming industry?
This is sure to give the iGaming industry a new landscape to explore. Any one of the options of sports betting, fantasy sports, and online poker would offer a lucrative avenue, never mind all of them.
And it will be good news for the state itself. Since the legalization of online gambling in New Jersey, the state has gained massively from the tax revenue of online gambling and kept the gambling industry afloat following the closure of Atlantic City due to lockdowns.
