Kentucky May Soon Force Out Sportsbooks Offering Predictions

The Bluegrass State may be about to take its fight against prediction markets to a whole new level.

The Kentucky House passed HB 904 by a vote of 64-19 on Wednesday. The bill proposes a ban on sportsbooks' involvement with prediction platforms in the US. Operators would be banned from offering predictions in the state for the first year. After that, those offering the controversial platforms anywhere in the US will also be banned in Kentucky’s sports betting market.

Three of the state’s eight live online sportsbook operators currently offer prediction platforms. That includes DraftKings and FanDuel, which have accounted for roughly 73% of the state’s $6.85 billion all-time sports betting handle. Fanatics is the third operator, though they have struggled to gain much traction in Kentucky.

While Kentucky hopes the bill will shift operators away from the prediction industry, it would open the market up to massive risk. The exit of its two biggest operators would lead to a significant drop in tax revenue. It would also allow them to offer their prediction platforms in the state, keeping some of their customers from returning to the legal market.

The bill would also raise the minimum betting age from 18 to 21, meaning a group of bettors would suddenly be unable to place wagers. With prediction platforms setting their minimum age at 18, the state could be ushering those young bettors towards the controversial industry.

The bill will now head to the desk of Governor Andy Beshear for his review.

Bill Would Also Limit College Player Props

Another key change proposed in the 150-page bill is a ban on player props involving in-state college athletes. Specifically, it would ban any wagers involving a negative outcome, including with statistics.

“A sports wagering licensee or service provider shall not offer or accept any proposition bets on an individual performance statistic on athletes participating in collegiate sporting events for a collegiate team located in Kentucky if the successful outcome of the wager is contingent upon the athlete failing to meet a specified statistical threshold or experiencing a negative performance outcome.” HB 904 reads.

Kentucky is a rare market where college sports are more popular than the pros. The state lacks a pro team, but the University of Kentucky and University of Louisville both have massive fan bases. That makes college player props very popular among bettors, meaning many will be upset if the bill is signed into law.