Kentucky introduces Wagering Consumer Protection Act
Table of contents
- Kentucky’s legislature overrode Governor Andy Beshear’s veto of House Bill 904 on April 14, with the House voting 67-7 and the Senate voting 26-5.
- The new law raises the minimum sports betting age from 18 to 21, restricts certain college player prop bets, legalizes fixed-odds horse racing wagering, and establishes a licensing framework for daily fantasy sports.
- The Wagering Consumer Protection Act becomes effective 90 days after enactment on April 14 and bars licensed sportsbooks and tracks from partnering with prediction market platforms in Kentucky.
Kentucky’s legislature has enacted sweeping gambling reforms after overriding Governor Andy Beshear’s veto of House Bill 904 on April 14, delivering one of the most comprehensive revisions to the state’s wagering laws since sports betting launched in 2023.
The Wagering Consumer Protection Act raises the legal sports betting age to 21, authorizes fixed-odds wagering on horse racing, adds new rules for fantasy contests, and places restrictions on prediction market partnerships. The law becomes effective 90 days after enactment.
Age and prop restrictions
Kentucky had been one of the few states to allow sports betting at 18. Bettors must now be 21 to place wagers through Kentucky’s licensed online sportsbooks or at retail betting outlets, bringing the state in line with the majority of US sports betting jurisdictions. The minimum age for horse racing wagering remains unchanged.
House Bill 904 also tightens the rules around college athlete prop bets. The bill bars sports betting apps and sites from offering wagers on individual performance stats for athletes on Kentucky-based college teams when the bet wins only if the player falls short of a stat line or has another negative outcome. Sponsors said the restriction was introduced to reduce harassment directed at student-athletes.
A notable consumer protection provision also features in the legislation. The law requires licensed sportsbooks to accept wagers that meet a minimum hold or minimum bet threshold, up to $1,000, to reduce the risk of operators discouraging or restricting successful bettors.
Horse racing and DFS
Fixed-odds wagering on live horse racing is now authorized at Kentucky tracks for the first time alongside the traditional pari-mutuel system. Fixed-odds wagers will be subject to an excise tax, with revenue directed to a new purse stabilization fund.
The legislation also establishes a formal legal framework for daily fantasy sports within Kentucky. All daily fantasy contests must involve at least two human participants competing against one another, and operators are prohibited from offering single-player fantasy contests against the house.
Licensing fees and regulatory expectations for DFS operators are set out in the bill.
Prediction market ban
The law takes a clear position on prediction markets. Kentucky-licensed racing, sports wagering, and fantasy licensees are barred from participating in or contracting with prediction market platforms that operate within Kentucky.
The restriction also covers relationships with service providers tied to those platforms, and applies to named platforms such as Kalshi and Polymarket.
Rep. Michael Meredith, the bill’s primary sponsor, acknowledged during committee that Kentucky does not currently have a clear ability to regulate prediction markets at the state level. He added, however, that room exists in the language for the Kentucky Horse Racing and Gaming Corporation to establish a regulatory model if federal rules or court interpretations shift.
Governor’s veto overridden
Governor Andy Beshear vetoed HB 904 on April 13. His objection centered not on the gambling provisions themselves but on language exempting the Kentucky Lottery Corporation and the Kentucky Horse Racing and Gaming Corporation from requiring his signature to promulgate administrative regulations.
He wrote that such a provision would “prevent the Governor from carrying out his constitutional duties, and allow boards and agencies to impose rules on Kentuckians without executive oversight.”
Lawmakers returned the following day. The House voted 67-7 to override the veto, and the Senate followed 26-5. The bill had originally passed the Senate 24-13 and the House 64-19 on April 1.
With the 90-day implementation clock running from April 14, operators licensed in Kentucky will need to audit their product offerings across sports betting age verification, college prop markets, fantasy contest structures, and any commercial relationships with prediction market platforms.
The law also signals that state-level resistance to federally regulated prediction market operators is not limited to the courts, as legislatures move to codify restrictions through statute.
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