By
Jerry Smith
Staff Writer Updated: 01/22/2025
Jerry’s greatest advantage is his extensive experience on the casino floor. His time as a casino manager taught him everything about what makes a player tick. Besides being a skilled poker player, he has deep knowledge of all live table games and gambling regulations in the US.
New Kentucky Casino Bill
Following the momentum of recent legislation, a Kentucky House representative has filed a bill to legalize land-based casinos and fantasy sports. If approved, Kentucky counties can vote on building casinos with operators bidding for licenses. Check out our article to learn more about this proposal.
Kentucky has a long history of gambling, dating back to the 19th century. Citizens would place pari-mutuel bets on the Kentucky Derby, and some organizations even held lotteries to fund public roads and schools. However, all forms of gambling except pari-mutuel would be banned in 1891. Here is a timeline with some of the most important events:
Kentucky has become more permissive with its gambling options, although the industry has had to face many challenges. While historical horse racing machines were permitted in 2010 and defined as pari-mutuel wagering in 2018 by the Franklin Circuit Court, the Kentucky Supreme Court overruled that decision. It would take until 2021 for Gov. Andy Beshear to redefine pari-mutuel betting and permit HHR machines.
Gov. Beshear was also responsible for legalizing sports betting in Kentucky. While there were many attempts to legalize sports betting in previous years, the Senate took until March 2023 to approve a bill. The governor even placed the first official bet, a parlay on college football.
The next target appears to be legalizing land-based casinos with House Bill 33. While you can play historical horse racing machines, their results are based on previous horse races and are not fully RNG. The Kentucky Horse Racing and Gaming Corporation would begin regulating land-based and riverboat casinos if the bill is passed.
According to the bill proposed by House Representative Thomas Huff, any county with at least 30,000 residents can hold a referendum (through a petition or a referendum ordinance) to approve the construction of a casino. Counties with fewer residents would have to join other small counties to form a coalition and reach the threshold.
Meanwhile, those with horse racing facilities can hold a referendum regardless of their size, provided the casino games are added to the established tracks. Once a casino is approved, operators must start bidding to earn a license. Here are the minimum bidding fees for the available casino licenses:
The one with the most significant offer four days after the 60-day deadline ends will win. Preferential treatment is applied to horse racing and HHR facilities if they exceed the highest bid within two days after the bidding period ends, and any proposed amenities can be added.
If the bill is passed, any casino must pay a 21% tax on their revenue. Additionally, there is a proposal that customers should pay $3 to enter the casino. While this may significantly affect the operator’s revenue and desire to work in Kentucky, the state has some plans for the funds.
We’ve still got a long way to go until 2049, but we’re making progress.
-Ryan Barrow, execute director at Kentucky Public Pensions Authority.
The Kentucky pension system is underfunded, with only 24.8% in 2024. While this number is an increase from 2023’s 22.2%, thanks to sports betting revenue, the state is looking for more sources. Aside from funding the pensions, the state plans to pay off any related pension deficits by 2049.
While the bill is still being discussed, Kentucky lawmakers seem interested in legalizing other gambling options. Alongside casinos, the HB33 also has provisions for fantasy sports betting. It would be allowed for players over 18, casinos would need to pay $5,000 for a license, and no college sports would be allowed. We hope the bill will be passed in the future.
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