House Bill 241 is similar to House Bill 137, filed by Koenig in the 2020 legislative session, in that its core aim is to legalise online sports wagering, but the new legislation also sets out proposals to regulate online poker and fantasy sports.
The sports betting aspect of the bill - sponsored by a total of 17 Representatives, including Koenig - would permit wagering online, mobile and at approved sports venues in the state, with consumers able to bet on professional and collegiate contests.
If passed into law, the bill would name the Kentucky Horse Racing Commission as an independent agency to regulate the conduct of horse racing, pari-mutuel wagering on horse racing and sports betting in the state.
In terms of fees, sports betting licences would cost an initial US$500,000, plus an annual renewal fee of US$50,000, with the Commission to oversee the licensing process.
Licensed operators would face a 9.75% tax on adjusted gross revenue on wagers placed at the track or professional sporting venues, as well as a further 0.5% to raise funds for the new Thoroughbred and Standardbred development funds that would be established under the bill.
Licensees operating online, on mobile or via other off-site technology would face a 14.25% levy on adjusted gross revenue from bets taken via these platforms.
The bill intends for the regulated Kentucky sports betting market to launch on January 1, 2023.
Meanwhile, operators seeking a new fantasy league licence would need to pay an initial US$5,000 registration fee, plus a renewal fee of 6% of their adjusted gross revenue or US$5,000.
Tax information for fantasy league operations was not disclosed, but the bill note that any operator which applies for a licence and is approved would be able to commence activities in the state from January 15, 2022.
In terms of online poker, operators in this market would face an initial licensing fee of US$250,000. Licences would run for one year, renewable for a further fee of US$10,000.
Operators would also need to pay tax at a rate of 6.75% of net poker revenue on a monthly basis. The bill did not make clear when online poker would become regulated in Kentucky.
Source: iGB North America
