Kentucky

One of the biggest betting events every year takes place in Kentucky, yet it took until 2023 for the state to legalize sports betting. Long known as a horse racing state, KY now has seven mobile sports betting operators and retail wagering options.

Horse racing has been a staple in Kentucky since the 1800s, when Churchill Downs opened, so residents have long been able to wager on horse and greyhound races. With sports betting legal, bettors can also wager on professional and collegiate sports, including in-state colleges, so residents can bet on their beloved Kentucky Wildcats.

Daily fantasy sports apps are also available in KY for those seeking a sports betting alternative; however, it is essential to note that they are unregulated. The only thing still not available for customers to bet on is politics, a common feature among states with legalized gambling.

Turkey Shoot Parlays: Merging Local Hunting Contests With Fantasy Betting Concepts

Traditions are important in each state, and in Kentucky, rural traditions, such as turkey shoots and archery contests, could quietly become the next big trend in novelty betting. These events, common at fall festivals, VFW halls, and county fairs, are essentially already ready for a transition into betting markets through low-stakes, DFS-style platforms. For daily fantasy contests, participants could draft local marksmen or bet on categories like most bullseyes, shot speed, or just head-to-head battles. 

With thousands of these contests occurring across the state each season, a statewide fantasy league could drive significant engagement. Even if just 5,000 users enter lineups for $10 each weekend during a 10-week fall season, that amounts to $500,000 in handle, with the potential for $75,000–$100,000 in tax revenue. By aligning betting with local culture, rather than just professional sports, Kentucky could unlock a new stream of seasonal profits while maintaining a community-first feel.

Online sports betting in The Bluegrass State

A discussion around sports betting and its legalization has been circulating in Kentucky since 2017. Before PASPA was overturned, the Bluegrass State had a sports betting bill circulating; however, it wasn’t until 2018 that the state created a panel to develop another bill. Several sports betting bills failed to pass during legislative sessions in Kentucky from 2017 to 2023.

The only one to survive was HB 551, created by Michael Meredith and passed on a 25-12 vote in the Senate. After the bill went into effect in June, it only took a little over two months before the first retail bet was placed at Churchill Downs. Online sports betting would go live later in the month, putting the sports betting market right into the hands of Kentucky residents.

With all nine racetracks receiving licenses, there could technically be 27 mobile operators in the state, but for now, there are just eight. Circa Sportsbook was the most recent operator to receive approval for a license, and it officially went live in KY on May 14, 2024.

Outside of Circa, bettors in Kentucky can still access some of the most prominent names on the market, including Bet365, BetMGM, DraftKings, FanDuel, and Caesars. With sports betting still in its infancy in KY, there is a good chance we will see more operators enter the market within the coming years, especially since plenty of online licenses are still available.

Not only will we likely see more mobile betting apps enter the state, but we will also see an increase in retail betting facilities joining the market. Most recently, Sandy’s Gaming and Racing partnered with an online betting app, giving them access to the sports betting market.

All legal KY sports betting apps in 2025 (from newest to oldest):

Top KY betting apps in terms of popularity (2025)

Kentucky's 2025 YTD market shares confirm that DraftKings and FanDuel continue to dominate the online sports betting ecosystem—together commanding 70.68% of the state's total handle (37.06% + 33.62%). That duopoly remains structurally strong, though subtle shifts indicate rising competition.

Among challengers, Bet365 is the standout gainer—up from 8.68% in 2024 to 10.21% YTD 2025—claiming more than one and a half basis points of market share. Fanatics also made substantial inroads, climbing from 3.35% to 5.26%, effectively vaulting into the top five operators in the state.

On the losing side, ESPN Bet posted one of the more significant drops, falling from 3.64% to 2.81%. Caesars also ceded ground, slipping from 4.93% to 4.79%, though less dramatically. DraftKings and FanDuel themselves show slight share erosion (from 39.28% to 37.06% and from 33.96% to 33.62%, respectively), hinting at incremental displacement by aggressive challengers. BetMGM saw a modest decline, drifting from 5.35% to 5.15%.

In conclusion, Kentucky's market remains heavily concentrated in the top two brands, but the gains by Bet365 and Fanatics show that new entrants can still make measurable progress in a high-barrier market.

Sports betting & gambling legislation in KY

Kentucky's legal gambling age is 18. However, most sportsbook operators still require bettors to be at least 21 years old. The state has long had a legal gambling age of 18, which is the necessary age to bet on horse races and participate in any lottery-related activities. However, operators have the option to enforce a minimum gambling age of 21.

Currently, four mobile operators have their legal age set at 21, while three operators, including DraftKings, are keeping it at 18. All mobile sportsbook operators are partnered with racetracks throughout the state, so residents do not need to be present at the location to create an account. Remote registration is fully available in KY.

The Kentucky Horse Racing Commission enforces all of the aforementioned rules and regulations. Outside of those regulations, one of the biggest things for Kentucky bettors to be aware of is the tax rate, which is currently set at 6% of all winnings.

Gambling legislation could still be discussed in the state moving forward, as daily fantasy apps remain unregulated, despite some big-name operators in that market still offering services in Kentucky. Online casinos and online poker remain illegal in the state, and it’s unclear how long this will continue to be the case.

Hot brown showdown wagers: Louisville’s signature dish in culinary cook-off betting

In the heart of Louisville, the legendary Hot Brown isn’t just a dish; it’s a symbol of the city. This cheesy turkey-and-bacon masterpiece holds a lot of importance to the locals, but it could also hold importance to bettors. A "Hot Brown Showdown," a citywide culinary competition where local restaurants put their signature spins on the dish before panels of judges. With a wagering twist, guests and viewers would be able to place bets on categories like “Best Classic Hot Brown,” or they could wager on a possible eating contest like the Nathan’s Hot Dog contest. 

With a structured judging system, the event could be customized for novelty prop betting. If Kentucky's sports betting laws were expanded to include novelty bets like culinary competitions, events like these could generate thousands in seasonal wagers and new tax revenue, all while enhancing the local restaurant scene and food tourism. 

More than just food, it’s a tradition and a unique opportunity for Kentucky to promote its culinary heritage, all while appealing to a whole new demographic of bettors.

How wagering on whiskey barrels could boost Kentucky’s betting scene

Kentucky’s bourbon industry is well-known around the country, but could it also become an avenue for unconventional betting? With each barrel aging in unique ways due to storage conditions, wood qualities, and more, some bourbon enthusiasts argue that predicting which barrels will warrant the smoothest, best-tasting spirit is an art form and one that could be transformed into a competition. 

The premise of the competition would not be friendly wagers among friends during a tasting but instead a betting market where distillery visitors or online bettors could wager on which barrels will achieve the highest scores in expert tastings or fetch the highest prices at auction. Some distilleries already offer bourbon lotteries for rare releases, so why not take it a step further? If Kentucky regulators ever greenlight such a concept, bourbon betting could become a new niche in the state’s already rich gambling culture and be the perfect market for a small in-state sportsbook to offer in order to stand out from the well-known apps operating in KY.

Most recent updates from the KY sports betting scene

• October 14, 2025: In arguably their biggest conference game of the year, the Louisville Cardinals will head on the road to Miami to play the first-place Hurricanes as (+13.5) underdogs.

• September 29, 2025: Coming off a comeback win over Pitt, the Louisville Cardinals will now host Virginia as (-7) favorites.

• September 22, 2025: Heading into their second SEC game, the Kentucky Wildcats will go on the road to South Carolina, where they are (+6.5) underdogs.

• September 19, 2025: In their last nonconference game until the final week of the season, the Louisville Cardinals are set to host Bowling Green as (-26.5) favorites.

• September 8, 2025: The Kentucky Wildcats suffered a close loss to Ole Miss in Week Two, and they will now host Eastern Michigan as (-24.5) favorites in Week Three.

• September 1, 2025: Looking for their second win and to beat Ole Miss for the second straight season, the Wildcats are (+10) underdogs to the Rebels.

• August 26, 2025: The Kentucky Wildcats will officially be starting transfer quarterback Zach Calzada. The Wildcats are favored by (-9.5) over Toledo in Week One.

• August 20, 2025: College football gets underway this weekend with Week Zero, and the Western Kentucky Hilltoppers sit as (-10) favorites over Sam Houston with the point total set at 61.5.

• August 11, 2025: After opening as (-11.5) favorites for their season opener against Toledo, the Kentucky Wildcats are now (-8.5) favorites with less than 20 days until the game.

In-person sports betting sites and locations

Most states that have legalized sports betting have online operators partner with casinos; however, in Kentucky, they utilize their racetracks as retail locations for partnerships. There are nine racetracks across KY, most of which have incredibly rich histories. All nine of these tracks received their sports betting licenses once HB 551 was passed, but their gambling experience was already well established.

Since the state sports betting bill is still fresh, the retail sportsbook aspect of most of these racetracks is still being developed.

Betting on ghost horses – Could Churchill Downs ever host a virtual derby of legendary racehorses?

Horse racing fanatics can only dream of a matchup that would see the likes of Secretariat run against Man o’ War. With advancements in AI simulation, that dream could potentially become “virtual” reality. Churchill Downs could someday host a "Virtual Derby of Legends," where past Kentucky Derby champions compete in a simulated race based on real-world performance data.

This concept is not as far-fetched as it may sound. Sportsbooks already provide virtual horse racing, utilizing AI to generate races with random outcomes. Instead of fictional horses, though, Churchill Downs could present a statistically driven event, incorporating historical speeds and jockey strategies to craft realistic virtual matchups of the game's greats.

Bettors could place wagers on dream races featuring past Derby heroes, and data analytics could offer insights into which legendary steed might be the first to cross the finish line. Certainly, such an idea would need legislative approval, but it could reinvent off-season horse betting, keeping fans engaged throughout the year.

Sports betting in neighboring states

By legalizing sports betting, Kentucky joined a growing region of surrounding states that offer their residents at least some form of sports wagering. Prior to their bill being passed, KY residents could have traveled close by to Indiana, Ohio, West Virginia, Virginia, Tennessee, and Illinois to place a legal sports wager.

The number of sportsbooks available in each state, along with the exact regulations, varies, so in order to find out more about these surrounding states, you can click on them in the chart below.

Sports betting revenue impact on Kentucky's economy

Sports betting legislation is still very fresh in the Bluegrass State, so we don't have a complete picture of what the numbers will look like consistently. However, the over $2.6 billion worth of bets placed, close to $300 million in sportsbook revenue, and over $39 million in tax income from the first full year (2024) of legal sports betting create a nice baseline for future growth for the whole KY market.

After the March 2025 betting revenue report, Kentucky has now seen over $4 billion worth of real money wagers placed, which is also more than a solid number considering legal sports wagering has existed in the state for such a short time.

The licensing fee for operators in the state is still unknown, but the state's tax rate varies depending on whether the business is an online operator or retail. All online operators have a tax rate of 14.25%, while retail has a 9.75% tax rate on revenue.

When new states open their doors to legal sports betting, they typically see continual monthly growth in numbers until they hit a plateau. Since more operators are still joining the market, Kentucky’s earning potential is still unknown, but there is undoubtedly a lot of potential already shining through.

Kentucky sports betting record months:

• Sports betting handle: November 2024 ($301,740,758)

• Revenue: October 2023 ($54,341,931)

• Tax income: October 2023 ($7,616,625)

• Biggest monthly mobile handle to date by a single KY sportsbook app:

  • FanDuel (Oct. 2023): $116,023,142

• Biggest recorded monthly revenue from online wagering:

  • FanDuel (Oct. 2023): $20,162,25

Latest KY sports betting revenue report breakdown (August 2025)

• Total betting handle: $193,089,076

  • Online betting handle: $187,547,183

  • Retail betting handle: $5,541,893

• Total winnings paid to players: $170,509,526

  • Hold: 11.69%

  • Online winnings: $165,725,253

  • Retail winnings: $4,784,273

• Gross revenue: $22,579,550

• Total adjusted (taxable) revenue: $22,111,665

  • Online sportsbooks' adjusted revenue: $21,367,435

  • Retail adjusted revenue: $744,230

• Total tax revenue for the state: $3,106,417

  • Tax income from online wagering: $3,036,041

  • Tax income from retail betting: $70,376

Reported by the Kentucky Horse Racing Commission.

The most popular online sportsbook apps in the state in August 2025:

1. DraftKings: Handle: $71.4m, Adjusted revenue: $7.9m

2. FanDuel: Handle: $60.2m, Revenue: $8.2m

3. Bet365: Handle: $20.4m, Revenue: $1.6m

4. Caesars: Handle: $9.68m, Revenue: $972,206

5. BetMGM: Handle: $9.67m, Revenue: $740,443

6. Fanatics Sportsbook: Handle: $8.9m, Revenue: $1.2m

7. ESPN Bet: Handle: $5.5m, Revenue: $598,876

8. Circa: Handle: $1.3m, Revenue: $61,884

9. Prime Sportsbook: Handle: $430,170, Revenue: $7,917

The current KY betting app market shares (August 2025 report)

Kentucky online sports betting market shares - For the whole 2024 year

Recent revenue report data - Compared to the previous year (YoY)

KY sports betting revenue in 2025

You can find a complete and up-to-date breakdown of the 2025 KY sports betting revenue data in the table below. In addition to the exact handle, revenue, and tax income figures, the table also shows the month-over-month percentage (in brackets), indicating how such numbers have changed compared to the previous month.

2024 revenue data

Yearly revenue totals

Kentucky Derby fashion bets: A profitable twist on tradition

At the Kentucky Derby, hats are more than fashion, they’re a cultural spectacle. But what if this legendary tradition became a high-revenue novelty betting market? With Kentucky’s sports betting handle projected to surpass $2 billion annually, even receiving just 0.25% of that from fashion-based prop bets, such as “Most Creative Hat” or “Best Celebrity Look,” could generate $5 million in additional wagers.

At the current 9.75% tax rate on sports betting revenue, this would result in nearly $500,000 in new tax income from these hat-forward markets. Structured judging and social media engagement already exist, meaning integration into sportsbook platforms could be seamless if sportsbooks were interested. 

These low-risk micro-markets not only create engagement and tourism but also provide a unique revenue stream the state can count on outside of the heaps of revenue they see from the Kentucky Derby alone.