Kentucky Bill Aims to Protect Its Sports Betting Market

Big changes may be coming for the Kentucky sports betting market.

The Kentucky House is considering HB 904, which proposes several changes to the market’s current framework. While much of the bill focuses on fixed-odds wagering on horse racing, there are three crucial changes proposed.

The first is raising the minimum gambling age from 18 to 21. The state is just one of six US markets that allow bettors as young as 18 to engage in sports betting. Studies have shown that bettors younger than 21 are at a higher risk for problem gambling, which has lifelong consequences.

The second proposed change would be a ban on college player prop bets. NCAA President Charlie Baker has been leading a push for states to enact these bans to protect athletes, but Kentucky has held off on making a change. The state’s lack of pro sports teams means college sports are far more popular, creating a higher demand for the controversial bet type.

Buried in the text of the massive House bill is the third and most explosive proposal. It would allow the state to ban sportsbook operators who also offer prediction markets anywhere in the US. With the state’s top three sportsbooks all offering prediction platforms in the US, the bill is setting up a showdown.

HB 904 passed the House Licensing, Occupations, and Administrative Regulations Committee unanimously and is now waiting for a full vote on the House floor.

Sportsbook Leaders Forced to Make a Choice

Representatives from DraftKings, FanDuel, and Fanatics, all of which offer prediction platforms, testified before lawmakers during a hearing on the bill. During those discussions, they shared that they would sacrifice those licenses if necessary. With states having no authority over prediction markets, operators would still be able to offer sports betting in those states, but at a far lower cost.

While the threats seem to come from a position of strength, operators would be taking a massive gamble by choosing predictions over sports betting. The new industry is growing increasingly unpopular and has seen losses pile up as its legal fight for survival drags on. 

If the three sportsbook leaders turn their backs on regulated markets, there is no guarantee they’ll be welcomed back if their prediction platforms become illegal or if states are granted regulatory authority.