Kentucky Sports Betting Undergoes Major Overhaul

Ever since March 2023, when Kentucky first legalized sports wagers, Kentucky sports betting has been a haven for college students. Those days are now over, and sports betting in Kentucky will soon look very different.

Kentucky legislators overrode Gov. Andy Beshear’s veto of House Bill 904, which drastically changes the way sports betting in the Bluegrass State will work. The most obvious change is raising the legal betting age in Kentucky from 18 to 21, bringing the state in line with most other states. Only Montana, New Hampshire, Rhode Island and Wyoming now allow bets from patrons younger than 21.

The rest of the changes could completely reshape Kentucky sports betting. The new law introduces fixed-odds wagering to horse racing, a major part of betting in Kentucky. It also bans prop bets on any college sport involving a Kentucky-based school. This has been gaining traction in other states, many of whom want to protect college students from harassment by bettors.

The final change could be the biggest of all: banning sportsbook operators from operating a prediction market anywhere else in Kentucky in order to do business in the Bluegrass State. In practice, that could lead to members of the Sports Betting Alliance pulling out of Kentucky entirely.

How Could Banning Prediction Markets Impact Kentucky Sports Betting?

This provision is a first-in-the-nation attempt to rein in prediction markets. Other states have tried to go after sites such as Polymarket and Kalshi, claiming that what they’re doing is a form of sports betting. Currently, those sites are similar to sweepstakes casinos in that they aren’t regulated by the states.

Their rise has led DraftKings, FanDuel and Fanatics Sportsbooks to look at opening prediction markets of their own. By separating the two, Kentucky is attempting to force prediction markets out of its borders. However, the language could force out the two largest sportsbooks in the nation.

Between them, FanDuel and DraftKings command about 68% of the national market share. Under the terms of HB 904, they’d either have to give up on prediction markets or surrender their gaming license in Kentucky. They could also take the fight to the courts, or aim to settle with the state for an exemption or a re-write of the law.

If FanDuel and DraftKings pull out of Kentucky, BetMGM and Caesars would likely dominate the Bluegrass State. Both of the traditional names in betting have taken a firm line against prediction markets, and would be unaffected by this legislation.

How Will Sports Betting in Kentucky Change?

Most likely, Kentucky sports bettors have placed their last prop bets on Kentucky and Louisville athletics.

The new law takes effect 90 days from the date of enactment, setting a July 13 effective date. Football won’t return to action until August, and basketball concluded earlier this month. With college baseball not attracting much action, prop bets on in-state Kentucky teams have likely concluded.

The 2026 Kentucky Derby will not be affected, as it runs in May. The 2027 Derby will mark the first one run with fixed-odds wagering as an option. Traditionally, horse racing odds vary until the race begins, with bettors receiving the odds at the time of the race. Fixed-odds wagering allows a bettor to lock in their odds whenever they bet, similar to other sports.

How Will Bettors Under 21 Be Affected?

It depends on the sportsbook and its decisions. Bettors between 18 and 21 have been able to legally bet in Kentucky using FanDuel, DraftKings, bet365 and Circa sportsbooks. These sportsbooks have until July 13 to eliminate access to Kentucky sports betting for those under 21.

They could do so before that date. For now, sports betting in Kentucky remains legal for customers 18 to 20 through the 90-day review period.