DraftKings, FanDuel Force Changes to Kentucky Betting Bill

It looks like the Kentucky online sports betting market won’t see the dramatic changes lawmakers hoped for.

FanDuel and DraftKings have poured their political resources into limiting HB 904 in Kentucky, and it paid off. The bill proposed a massive overhaul of Kentucky’s sports betting market. It included raising the minimum betting age to 21, new regulations for operators, and forcing out sportsbooks that offer prediction markets. 

While the first two parts of the effort remain intact, the pair of industry-leading sportsbooks managed to get the third dropped from the bill. FanDuel and DraftKings both offer prediction markets, including sports contracts, in states where mobile betting remains illegal. 

The Kentucky bill would have forced the industry giants to forfeit their sports betting licenses in the state unless they shut down their prediction platforms. It was a drastic step for the state, considering that the pair of sportsbooks owns over 70% of its market share. 

Most of HB 904’s proposed responsible gambling regulations remain, but DraftKings and FanDuel did manage to eliminate a requirement for sportsbooks to accept wagers up to $1,000. This would have ended operators' ability to limit winning bettors, a critical tool the industry argues for. 

Kentucky Governor Andy Beshear now has the bill, which he is expected to sign into law.

Some Big Changes Still Coming

While the most drastic proposals from HB 904 are gone, there are still several significant changes coming to Kentucky’s sports betting market. 

The most notable change would be raising the betting age from 18 to 21. While this brings the state in line with most of its peers, the change will leave a group of young bettors unable to place wagers. That could lead them to prediction platforms and keep them from returning to the regulated market, even after turning 21.

Another significant change would be a ban on college player prop bets involving in-state athletes. Kentucky’s sports fanbase is mostly focused on college football and basketball, but the controversial wager is also leading to a spike in the harassment of those athletes.

The bill will also implement additional requirements for when and how sportsbooks check in with bettors who are showing signs of problem gambling.