Kentucky legislators are deliberating on a new statute that would permit sports wagering, fantasy sports, and online poker within the state.
The proposed legislation, presented by fifteen lawmakers, is recognized as House Bill 175. It would authorize Kentucky racetracks and sporting arenas to provide in-person, online, and mobile sports betting. Participants would be required to establish an account at the venue initially.
The initial cost for a sports betting permit would be one million dollars, along with an annual renewal fee of fifty thousand dollars.
The tax rate for sports betting would fluctuate based on how individuals place their wagers, with all taxes paid on a monthly basis. The tax rate for in-person bets would be 10.25% of the adjusted gross revenue from sports betting, whereas the rate for online or mobile bets would be 14.25%.
Should the bill be approved, the Kentucky Horse Racing Commission would oversee the state’s sports betting market, encompassing land-based, online, and mobile platforms.
The cost for a fantasy sports license would be five thousand dollars, with an annual renewal fee of 6% of the preceding year’s adjusted gross revenue or a fixed fee of five thousand dollars.
This legislation doesn’t explicitly detail the tax percentage for fantasy sports, but it does mandate that all operators complying with state regulations must register by January 15, 2020.
For internet poker, individuals 18 years or older can participate, which is distinct from the 21-year-old age limit suggested or enacted by other states. Poker can be played on desktop computers and mobile devices.
The licensing fee for online poker is $250,000, with an annual renewal fee of $10,000. Operators will face a 6.75% tax rate on net poker earnings, paid monthly.
Regarding which poker games are permissible to offer online in Kentucky, the law defines poker games as: “including but not limited to five-card draw, seven-card stud, and Texas Hold’em.”
The legislation has now been sent to the Kentucky House Licensing, Occupations, and Administrative Regulations Committee for further review. The state’s current legislative session concludes on March 29.
Kentucky has a complex history with internet gambling, having fought a protracted legal dispute with PokerStars, which was fined $870 million for operating illegally in the state between October 2006 and April 2011.
However, the Kentucky Court of Appeals recently reversed that ruling, stating it would “lead to absurd and unjust outcomes.”
Image: Andreas Faessler
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