Governor Signs Kentucky Sports Betting Bill into Law
The State Senate passed the Kentucky sports betting bill two weeks after the House approved it. However, Governor Andy Beshear did not wait a day to sign HB 551 into law. Thus, the legislation goes into effect on June 28. Also, the law requires the state to launch the market within six months.
According to pay per head sportsbook sources, insiders expected the House to pass the bill. However, they estimated that the legislation would face challenges in the Senate. Instead, the House passed the sports betting bill with a vote of 63-34. Also, the Senate voted 25-12 in favor of the bill.
The new law allows players to wager on college and professional sports online and in-person at horse tracks. Also, a horse racing track can contract with a maximum of three sportsbook operators. Churchill Downs will likely be the first to launch a sportsbook in Kentucky. It does not have to start betting software development. Instead, it will sign a partnership deal with a sports betting company.
Kentucky Sports Betting Bill
The tax rate for offline betting is 9.25 percent, whereas the rate for internet betting is 14.25 percent. Michael Meredith, the bill's proponent, claims that Kentucky may anticipate receiving $23 million in yearly tax income from sports betting.
Although the demand for professional sports in Kentucky is low, the state is home to the University of Kentucky Wildcats basketball team, a No. 6 seed in the NCAA Tournament this year.
Given that the Wildcats have made more trips in the NCAA Tournament's March Madness than any other team, the yearly tournament is anticipated to be a significant revenue generator for the state (60). Unfortunately for fans, they were not available for wagering this year. However, they will likely be in 2019.
According to a political news forum, the Kentucky Derby, one of the most prestigious horse races in American history, is held annually in Kentucky. This new law expands the range of legal wagers on horses and other sports at the Derby, contributing to the event's substantial financial success. Churchill Downs, the site of the Kentucky Derby, has introduced the DK Horse App in cooperation with DraftKings, and it should work nicely with the state's legalized sports betting.