Published on: April 7, 2026, 09:57h.
Updated on: April 7, 2026, 09:57h.
- Kentucky’s sports betting age limit is set to change to 21+
- Fixed-odds betting on live horse racing is also on the horizon
- DraftKings and FanDuel are key players in the Kentucky sports betting landscape
Significant transformations are anticipated in Kentucky’s sports wagering sector following the passage of House Bill 904 by state legislators to Governor Andy Beshear’s (D) desk.
HB904, known as the Wagering Consumer Protection Act, aims to revamp the landscape of sports betting in the Bluegrass State.
A pivotal aspect of this legislation is aligning Kentucky with most states by raising the minimum betting age to 21. Previously, Kentucky was unique in permitting individuals aged 18 and older to engage in both in-person and online sports betting.
If Governor Beshear endorses HB904, prop bets focused on college athletes and those dependent on the performance of individual players will be prohibited.
Although raising the minimum betting age and banning college prop bets may impact sportsbook revenues, leading operators like DraftKings and FanDuel successfully advocated against a stipulation in HB904 that mandated sportsbooks to accept wagers up to $1,000 on most betting lines. This amendment aimed to deter sportsbooks from limiting bets, a common grievance among seasoned bettors in various regions, including Kentucky.
DraftKings and FanDuel Preserve Their Prediction Markets
Another element of HB904 that faced backlash aimed at jeopardizing the sports betting licenses of DraftKings and FanDuel. An earlier draft of the bill proposed that Kentucky sportsbooks could not also operate a federally regulated prediction market.
Both DraftKings and FanDuel currently operate prediction markets nationwide. Given the importance of these markets to their business model, the provision posed a threat to their ongoing sports betting operations in Kentucky.
In addition, House Bill 757, also awaiting the governor’s approval, aims to impose a 14.25% tax on transaction fees associated with prediction markets in Kentucky, aligning it with the tax rate for online sportsbooks.
During Kentucky’s fiscal year 2025, the state’s eight online sportsbooks processed over $2.72 billion in bets, retaining $284.7 million in revenue. DraftKings demonstrated remarkable performance with gross revenue of approximately $115.3 million, while FanDuel closely followed with $111.7 million, making them the dominant forces in the market.
Fixed-Odds Betting on Horse Racing
As a forefront player in the U.S. horse racing industry, Kentucky, home to Churchill Downs and the famous Kentucky Derby, is poised to see the introduction of fixed-odds betting as indicated by HB904.
In contrast to parimutuel betting, where odds fluctuate based on participant pools until the race begins, fixed-odds wagering allows bettors to bet against the track, mirroring traditional sports betting practices. This approach grants bettors certainty and profit assurances that remain unaffected by subsequent betting trends.
HB904 proposes a 15% tax on the gross revenue generated via fixed-odds betting associated with live horse racing. Many racing venues advocate for fixed-odds betting as a modern approach that appeals to younger, sports-oriented bettors eager to secure their odds.