Kentucky will consider authorizing retail casino gaming thanks to a bill filed by state Rep. Thomas Huff. The same bill would also regulate fantasy sports in the state, including daily fantasy contests.
House Bill 33, introduced on Tuesday, would allow Kentucky counties to hold a local referendum on casino gaming if passed. It also establishes a framework for the Kentucky Horse Racing and Gaming Corporation (KHRGC) to regulate riverboat and land-based casinos, as well as fantasy sports.
The bill is now with the House’s Committee on Committees. From there it will likely progress to the Committee on Licensing, Occupations, & Administrative Regulations, which has handled previous gambling legislation, including the successful sports betting effort of 2023.
The Bluegrass State currently offers horse racing, retail sports betting, and online sports betting. The latter two launched in 2023, with retail kicking off on Sept. 7 and online sports betting going live on Sept. 28.
While there are no casinos in the state, race tracks typically offer historical horse racing (HHR) machines instead of traditional slots.
An HHR cabinet looks and feels much like a slot machine for users, but the results depend on historical race outcomes.
Legislation requires that residents vote on casinos
If successful, HB33 stipulates that only a county with a population of 30,000 or higher is eligible to hold a local option election to approve casino gaming.
However, it allows two or more smaller counties with a combined population of 30,000 plus to authorize a casino. In either case, 25% of the population must sign a petition supporting a casino vote.
The bill also includes an exception for counties that already host a racing facility. No petition or population minimum applies, but residents must still vote. Additionally, the casino must be a “limited” offering rather than a full or riverboat casino.
According to the bill, a limited casino will only offer electronic gaming machines (EGMs) from a race track facility. Otherwise, riverboat and “full” casinos can offer EGMs and table games “including but not limited to blackjack, poker, and roulette.”
The only apparent difference is whether they set up on a riverboat or dry land.
Once authorized, bidding will open
When a county approves a casino, the bidding process for an operator will open to the public.
The bill prescribes that initial licensing fees for each casino type be, at a minimum,:
- $450,000 (Limited)
- $550,000 (Riverboat)
- $750,000 (Full)
In addition, if passed, Kentucky casinos would pay a 21% tax rate on gross gaming revenue (GGR), which equals the difference between the money wagered and the amount won.
Riverboat and full casinos will also pay a $3 admission fee for every guest entering. However, the cost “may be passed on to casino patrons through an admissions fee.”
Age-wise, unlike horse racing and sports betting, which serve bettors 18-plus, casino goers must be 21 or older. For this reason, racing facilities would need to restrict casino areas to 21-plus, as with HHR offerings.
Fantasy sports rules say no to college sports
In addition to casinos, HB33 allows peer-to-peer and against-the-house fantasy wagering for players 18 and over. However, the contest must clearly state the prize offering upfront.
Licensing-wise, operators will pay the greater of 6% of revenue or $5000.
Notably, the bill does not allow operators to base the outcome of fantasy wagers on the performance of a single athlete or team. It also forbids contests based on college sports.
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