Kentucky legislators are contemplating a novel piece of legislation that would make sports wagering, fantasy sports, and online poker legal within the state.
The proposed legislation, put forward by fifteen lawmakers and dubbed House Bill 175, would permit Kentucky racetracks and athletic facilities to provide in-person, online, and mobile sports betting, with bettors required to establish an account at the venue beforehand.
Sports betting permits would carry an initial cost of one million dollars, along with an annual renewal fee of fifty thousand dollars.
The tax rate levied on sports betting would fluctuate based on the method employed by bettors to place their wagers, with all taxes collected on a monthly basis. In-person wagers would be subject to a tax of ten and a quarter percent of adjusted gross revenue derived from sports betting, while online or mobile bets would be taxed at fourteen and a quarter percent.
Should the bill be approved, the Kentucky Horse Racing Commission would assume responsibility for regulating the state’s sports betting market, encompassing both land-based and digital platforms.
Fantasy sports licenses would come at a cost of five thousand dollars for operators, accompanied by annual renewal fees equivalent to six percent of the preceding year’s adjusted gross revenue or a fixed fee of five thousand dollars.
This regulation doesn’t explicitly define the tax percentage for fantasy sports competitions, but it does necessitate all operators who meet the state’s requirements to enroll by January 15, 2020.
Concerning online poker, individuals aged 18 or older will be able to participate in games, which differs from the 21-year-old age restriction proposed or adopted in other states. Poker can be played through computers and mobile devices.
The cost of obtaining an online poker permit is $250,000, with an annual renewal charge of $10,000. Operators will face a 6.75% tax rate on net poker earnings, payable monthly.
Concerning which poker games are legal to offer in Kentucky, the bill defines poker as: “including, but not limited to, five-card draw, seven-card stud, and Texas Hold’em.”
The bill has now been sent to the Kentucky House Licensing, Occupations, and Administrative Regulations Committee for further review. The state’s current legislative session ends on March 29.
Kentucky has a complex history with online gambling, having fought a lengthy legal battle with PokerStars, which was fined $870 million for illegal activities in the state between October 2006 and April 2011.
However, the Kentucky Court of Appeals recently reversed the decision, stating that it would “lead to unreasonable and unfair outcomes.”
Image: Andreas Faessler
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