Kentucky legislators have passed House Bill 904, a comprehensive gambling legislation that raises the minimum age for sports betting to 21 and enhances the supervision of fantasy contests and various regulated gaming activities, forwarding the bill to Governor Andy Beshear for review.

<p><strong>The measure received Senate approval with a 24-13 vote after a unanimous Senate committee endorsement,</strong> and it garnered House support with a vote of 64-19. Legislators have the option to override any veto during the <strong>final days of the legislative session.</strong></p>

<p><strong>This bill increases the legal gambling age for sports betting from 18 to 21,</strong> while permitting fantasy contests and horse race betting for individuals aged 18 and older. Additionally, it <strong>sets the minimum age for charitable gaming at 21.</strong></p>

<p><strong>Beyond age restrictions,</strong> <strong>the legislation will legalize, regulate, and impose taxes on fantasy betting contests for the first time under the Kentucky Horse Racing</strong> and Gaming Corporation. It will also enable racetracks to provide fixed-odds betting alongside traditional parimutuel wagering.</p>

<p><strong>The bill introduces regulations for prediction markets, defined as platforms for users to “buy, sell, or exchange event contracts,” but does not outright ban</strong> these markets due to federal jurisdiction issues. Licensed operators, including racetracks, would be prohibited from facilitating such bets, and <strong>wagers on election outcomes would be prohibited.</strong></p>

<p>State Representative Michael Meredith stated that federal regulations <strong>restrict the state's capacity to impose limitations on prediction markets.</strong></p>

<p>“The only platform where underage betting will be present is in the prediction market domain, as <strong>they are not bound by federal restrictions,” Meredith remarked.</strong></p>

<p><strong>The bill also places restrictions on proposition bets related to college athletes, prohibiting wagers linked to negative performance outcomes,</strong> while allowing bets based on positive statistical achievements.</p>

<p>Additional stipulations mandate operators <strong>to validate users’ identities and locations using geolocation technology and to implement procedures aimed at preventing fraud,</strong> abuse, and money laundering. Athletes, coaches, referees, and other insiders would be excluded from <strong>participating in contests related to their sports.</strong></p>

<p><strong>The measure additionally restricts individuals who are behind on child support payments from placing bets,</strong> requiring operators to verify a catalog of arrears.</p>

<p><strong>Lawmakers have outlined a tiered licensing structure, with initial fees ranging from $7,500 to $15,000 and annual renewal costs between $5,000 and $10,000.</strong> Fixed-odds horse racing bets would face taxation of 9.75% in person and 14.25% online, with revenues allocated to <strong>regulation, problem gambling services, the state pension system</strong>, and a purse stabilization fund.</p>

<p>This legislation emerges as Kentucky’s betting market is on the rise, with <strong>betting activity surging 54% year-over-year in February 2025. An NCAA study revealed that 58% of individuals aged 18 to 22</strong> participated in sports betting, emphasizing that “state legality and age limitations present minimal hindrance, with almost identical engagement rates in regions where <strong>betting is legal versus those where it is not.</strong>”</p>

<p>Despite the growth, <strong>several lawmakers expressed apprehensions regarding the societal ramifications of gambling.</strong> State Senator Chris McDaniel described sports betting as “a genie ... out of a bottle.”</p>

<p><strong>“I now tell my sons that if they download one of these apps ... You’re a sucker. If we are to talk about a wealth transfer </strong>from the least affluent... Unfortunately, it has evolved into this,” McDaniel articulated, noting, <strong>“Honestly, it has altered the way I watch sports, as I feel like I am viewing a gambling</strong> show while watching a baseball game. ... This bill integrates numerous challenging issues, <strong>including constitutional concerns and the progression of gaming.</strong></p>

<p><strong>The Senate discussions also raised fears that restrictions on prediction markets could impact the broadcast of the Kentucky Derby,</strong> an essential economic driver. Senate Democratic leader Gerald <strong>Neal cautioned that limiting broadcasts would be akin to “shooting oneself in the foot economically.”</strong></p>

<p>Opposition groups expressed that the bill might worsen gambling-related issues. David Walls from The Family Foundation stated it would "create <strong>further harms for Kentucky families.”</strong></p>

<p><strong>Walls mentioned, “This bill is unconstitutional, detrimental for horse racing, </strong>and harmful for families... We appreciate the increase in the age limit to 21, <strong>but the reality is, age restrictions are ineffective without proper verification of that fact.”</strong></p>

<p><strong>The legislation contains a provision affecting the thoroughbred industry,</strong> preventing The Jockey Club from capping the number of mares bred to a single stallion.</p>