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 looking for a sports betting alternative, but it is important to note that they are unregulated. The only thing still not available for customers to bet on is politics, which is common among states with legal 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 and not 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 circulate, but it wasn’t until 2018 that the state would create a panel to form another bill. Plenty of sports betting bills died 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 approved for a license, and they 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 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 more retail betting facilities will also join 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):

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 required age to bet on horse races and do anything lottery-related, but operators have the choice 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 on 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 possibly still be discussed in the state moving forward since daily fantasy apps remain unregulated despite some of the big-name operators in that market still offering services in KY. Online casinos and online poker also remain illegal in the state, and it’s unclear how long that will remain 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

• March 17, 2025: The Kentucky Wildcats will be a #3 seed in the NCAA Tournament and are (+100) to reach the Sweet 16.

• March 10, 2025: Entering the SEC Tournament, the Kentucky Wildcats have the fifth-best odds to win the title at (+1900).

• February 24, 2025: With a 21-6 record and four games remaining in the regular season, the Louisville Cardinals are (+2200) to reach the Final Four.

• February 18, 2025: Coming off a loss to Texas, the Kentucky Wildcats are (+900) to reach the Final Four and (+4000) to win the National Championship.

• February 3, 2025: After losing to John Calipari in his return, the Kentucky Wildcats are still (+650) to reach the Final Four, which is the 8th best odds in the country.

• January 30, 2025: Following their strong start to SEC conference play, the Kentucky Wildcats are (+900) on DraftKings to be a #1 seed in the SEC Tournament.

• January 24, 2025: Following a College World Series appearance last season, the Kentucky Wildcats are (+2500) to win the College World Series in 2025.

• January 14, 2025: With a 12-5 record heading into the middle of January, the Louisville Cardinals are currently (-300) to make the NCAA Tournament.

• January 9, 2025: With nearly a year of legal sports betting, Kentucky introduces a fund to combat gambling addiction, directing tax revenue toward public awareness and professional training.

In-person sports betting sites and locations

Most states that have legalized sports betting have had online operators partner with casinos, but in Kentucky, they use their racetracks as retail locations to partner with. 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.

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 (February 2025)

• Total betting handle: $224,733,399

  • Online betting handle: $218,983,652

  • Retail betting handle: $5,749,747

• Total winnings paid to players: $194,859,444

  • Hold: 13.29%

  • Online winnings: $189,581,607

  • Retail winnings: $5,277,837

• Gross revenue: $29,873,955

• Total adjusted (taxable) revenue: $29,335,475

  • Online sportsbooks' adjusted revenue: $28,877,213

  • Retail adjusted revenue: $458,262

• Total tax revenue for the state: $4,152,286

  • Tax income from online wagering: $4,115,598

  • Tax income from retail betting: $36,688

Reported by the Kentucky Horse Racing Commission.

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

1. DraftKings: Handle: $80.7m, Adjusted revenue: $11.9m

2. FanDuel: Handle: $74.0m, Revenue: $11.5m

3. Bet365: Handle: $24.0m, Revenue: $2.0m

4. BetMGM: Handle: $11.3m, Revenue: $1.1m

5. Caesars: Handle: $10.8m, Revenue: $795,336

6. Fanatics Sportsbook: Handle: $10.2m, Revenue: $1.0m

7. ESPN Bet: Handle: $5.7m, Revenue: $545,069

8. Circa: Handle: $2.4m, Revenue: -$4,175

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.