A fresh legislative proposal has been presented in Kentucky that would authorize online sports wagering, poker, and paid fantasy competitions. The proposal, known as House Bill 106, was submitted on January 5th, 2023, by Representatives Derek Graham, Shelia Stevenson, and Rachel Roberts.
If approved, the bill would permit online operators to provide sports betting services and allow racetracks to collaborate with these online entities. Each racetrack would be limited to partnering with a single online operator, which would supply both the track and online wagering systems.
Racetracks would also be permitted to offer sports betting at two distinct locations within a 60-mile radius of the racetrack they own or lease. These locations would not be part of the racetrack property.
Sports eligible for wagering include the NFL, NBA, MLB, PGA, NASCAR, MLS, NCAA, NAIA, and other nationally or internationally recognized sporting events.
An application for a sports betting license would necessitate a $500,000 fee, along with a $50,000 annual renewal fee. A 9% tax would be imposed on revenue.
The course will be assessed at a rate of 75% per month, while internet wagering will be assessed at 14.25%.
Participants, trainers, and officials, along with their immediate relatives, are prohibited from participating in sports wagering within the state.
The legislation will also make internet poker legal. Internet poker and simulated sports will be legalized.
To secure a permit, operators must demonstrate they effectively utilize geolocation software to ensure internet poker is restricted to Kentucky. Applicants must also demonstrate they can verify age to ensure individuals under 18 cannot wager on the platform.
A $250,000 licensing charge and a $10,000 annual renewal charge must be paid. All charges levied on players (including commissions) will be assessed at 6.75% per month.
The legislation also introduces legalized simulated sports competitions, establishing a licensing process for operators with over one hundred participants. Operators below this threshold do not require a permit.
Businesses need to pay a $5,000 application charge to obtain a permit, with an annual renewal charge of 6% of the previous year’s earnings or $5,000, whichever is greater.
There are no limitations on the digital platforms operators utilize to host simulated contests.
Simulated license holders must submit annual records to a certified public accountant to ensure compliance with the law (if passed).
The supplier will shoulder these expenses and is also obligated to keep daily operational records for a minimum of six years.
To acquire any gaming permit in Kentucky, associates, members, executives, administrators, directors, or stockholders must not have been found guilty of a criminal offense within the state. If an individual is discovered to have committed a crime after the application is accepted, the permit may be rescinded or temporarily halted.
Previous Efforts to Enact Sports Betting Laws
This is not the initial instance where a sports betting proposal has been presented in the Kentucky legislative body.
In March of 2022, Kentucky House Bill 606 cleared the House but was unable to progress through the Senate Committee.
The bill was rejected before a Senate vote due to a lack of assurance in securing the necessary votes to pass the legislation.
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