Kentucky Online Gambling
In 2023, Kentucky became the 37th state to legalize online sports betting. However, while the arrival of online betting platforms is welcome news for gambling enthusiasts throughout the state, Kentucky still lags behind other jurisdictions in terms of casino regulations. Online casinos aren’t available to KY residents, although gamblers can still enjoy sweepstakes casino sites.
Best Kentucky Gambling Sites
If you want to start gambling for real money in Kentucky, you should join one of these top-rated sites:
Is Online Gambling Legal in Kentucky?
Currently, online gambling is only partially legal in Kentucky. The state legalized online and retail sports betting in 2023, while Kentucky online casino sites remain banned.
Governor Andy Beshear pushed to regulate sports betting throughout his term and signed House Bill 551 on March 31, 2023. However, even before this, betting on horse racing at race tracks was available across the Bluegrass state, which describes itself as the capital of the horse racing world.
Kentucky Gambling History
As the home of the Kentucky Derby and Churchill Downs race track, Kentucky has a long and storied history with gambling. Here are some of the key dates in Kentucky’s gambling history:
May 17, 1875: The very first Kentucky Derby is held at the Louisville Jockey Club on a track later known as Churchill Downs.
March 23, 1906:The Kentucky Horse Racing Commission was founded to regulate the racing of running horses in the Commonwealth.
1908: After previously attempting to end the association between gambling and horse racing, parimutuel betting replaced standard bookmaking.
December 1988: Kentucky Lottery Corp is formed after voters overwhelmingly agreed to approve a state lottery.
July 2010: Historical horse racing machines, also known as instant racing, are approved for use at racetracks.
April 2016: Kentucky becomes just the third state to sell lottery tickets online.
2019: The Kentucky Derby purse increases to $3 million, with officials citing the success of historical horse racing machines as the main reason for the increase.
February 2021: After attempts to clarify the definition of pari-mutuel wagering at horse tracks, the Kentucky General Assembly secures the legality of historical horse racing machines.
March 2023: Gov. Andy Beshear signs HB-551 to legalize sports betting in Kentucky.
September 2023: To mark the arrival of legal betting, Gov. Beshear places the first legal sports wager, staking $20 on a game between two KY college football teams at Churchill Downs.
October 2024: In the first year of legal sports betting, bettors spent more than $2.9 billion on bets, with $2.8 billion of that coming from online sportsbooks.
January 2025: HB 33 is filed to legalize and regulate land-based casinos.
Legal Gambling Options in Kentucky
Kentucky has approved some forms of gambling, although many restrictions remain for those who want to play casino games. Here’s more information on which types of gambling are available to KY residents:
| Type of Gambling | Legal? | When Legalized? |
| Online Casinos | No | N/A |
| Land-Based Casinos | No | N/A |
| Online Poker | No | N/A |
| Land-Based Poker | No | N/A |
| Online Sports Betting | Yes | March 31, 2023 |
| Retail Sports Betting | Yes | March 31, 2023 |
| Daily Fantasy Sports | Yes | N/A |
| Horse Racing | Yes | 1906 |
| Lottery | Yes | December 1988 |
| Charitable Gambling | Yes | 1994 |
Sports Betting
Kentucky has recently legalized sports betting, allowing retail and online sportsbooks to operate. These sites must be licensed and regulated by the Kentucky Horse Racing Commission. As it stands, there are nine approved sports betting operators in KY.
In the first year since Kentucky sports betting was legalized, the state made $43.1 million in tax revenue, significantly higher than the initial projections of $23 million. Much of this revenue goes into the public pension system, while some is also used to fund support for problem gambling.
Although retail and online betting are both legal, most bettors prefer to use online platforms. This is mainly due to convenience and the bonuses and rewards available at online sportsbooks.
Online Casino
Online casino gaming isn’t permitted in Kentucky, and there are no current plans for new legislation. However, after his success in approving sports betting, Gov. Beshear indicated that he would also like legal casino wagering to come to the state.
After placing the first bet at Churchill Downs, Beshear said he hoped to bring Kentucky online casino sites within the next few years. Those who want to play legal real-money casino games must visit land-based locations in neighboring states such as Indiana and Ohio.
Poker
Kentucky currently prohibits both online and real-money poker games. In 2015, the state pursued a civil case against The Stars Group because PokerStars had operated in the state illegally before 2011.
A proposed bill to regulate online poker was introduced in 2019. However, the bill was pushed back to 2020 and eventually failed. In 2023, lawmakers made further attempts to legalize online poker with HB 106. However, this also failed to pass before the end of the regular session.
Daily Fantasy Sports
Daily Fantasy Sports are currently legal in Kentucky, although they’re not technically regulated. Although attempts have been made to create legislation around DFS, mostly in combination with sports betting regulations, all these bills have failed to pass the House.
The latest attempt to regulate the Daily Fantasy Sports industry in Kentucky was HB 106, which included sports betting and online poker legislation. Representatives Derrick Graham, Cherlynn Stevenson, and Rachel Roberts sponsored the Kentucky iGaming bill. It stated that all DFS competitions with over 100 participants must be licensed, and operators would have to submit an annual record of operations. Although the bill failed to pass, future attempts at regulating DFS could still be made.
Lottery
In November 1988, lottery gaming was legalized in Kentucky after a vote passed with 60% of voters in favor. The following month, the Kentucky Lottery Corp was founded, and the first tickets went on sale in April 1989. On the first day, $5 million in lottery tickets were sold.
Today, the Kentucky Lottery is available to any resident aged 18 and over and offers a variety of draw games and instant play games. The lottery is also available online, though users have to register in person to purchase a ticket.
Retail Sportsbooks
When Gov. Beshear signed HB 551 in March 2023, it legalized online and retail sports betting. This means that in-person betting is also permitted in KY at licensed locations. Most of these sportsbooks are based at racetracks, including the famous Churchill Downs.
Although pari-mutuel horse race betting has been available at KY racetracks since 1908, these places now offer regular sports betting on a variety of sports.
In addition to sports betting, racetracks in KY are permitted to host historical horse racing machines. These share some similarities with slot machines, allowing players to bet on and win instant money. However, because these machines use historical horse races rather than random number generators, they are legally recognized as pari-mutuel horse race betting.
Land-Based Casinos
Under current legislation, land-based casinos are illegal in Kentucky. However, a recently filed bill could change that. HB 33 was filed for the 2025 session and would create a framework for legal riverboat and land-based casinos.
Under the proposed bill, filed by state Representative Thomas Huff, communities would decide whether or not casinos could open nearby. Casinos could only open in one of the 30 KY counties with a population of at least 30,000 residents, and 25% of the voting population would need to sign a petition to allow it.
The proposed bill would allow residents to vote on casinos and impose strict taxes and regulations to keep casino revenues down. Casinos would be subject to a 21% tax on all revenue, and patrons would need to pay $3 just to enter.
Sweepstakes Casinos
Although real-money online casino gaming isn’t legal in Kentucky, sweepstake casinos are available to players across the state. Rather than using real money, these sites allow you to play with virtual currencies. However, it’s possible to cash in winnings for real prizes if you get lucky. A variety of sweepstakes sites are available, and these sites will remain popular for as long as online casinos aren’t permitted.
How are Gambling Sites Regulated in Kentucky?
Gambling in Kentucky is licensed and regulated by the Kentucky Lottery or the Kentucky Horse Racing Commission (KHRC). The Kentucky Lottery regulates lottery games, while the Horse Racing Commission handles all other areas. Sportsbooks must apply for a license from the KHRC to operate legally within the Bluegrass State.
Operators must be licensed as racetracks to apply for a license from the KHRC. Each racetrack can partner with up to three service providers to offer mobile betting within the state. Each license costs the operators an initial $500,000, with an annual renewal fee of $50,000.
The KHRC was founded in 1906 and was responsible for banning regular betting and introducing pari-mutuel wagering instead. Today, it ensures that betting operators act fairly and responsibly. This includes carrying out age checks to prevent anyone under the age of 18 from placing bets.
All licensed sportsbooks must also pay their share of taxes to the state, 9.75% of gross revenue for retail sportsbooks and 14.25% for online betting sites. This revenue boosts the state and is mostly reinvested into the state’s pension fund, with some also used to support problem gambling charities and organizations.
When the KHRC was given the power to license and regulate online betting in KY, it also approved a Sports Wagering Advisory Council. This council advises the commission on Kentucky sports betting, including any changes that might be needed.
Responsible Gambling in Kentucky
While gambling can be an enjoyable pastime and even a way to win money, it can’t be relied on as a source of income. In addition, it’s essential to ensure you’re gambling responsibly and not betting more than you can afford to lose.
Gambling always comes with risk, and doing so responsibly helps to minimize that risk while still having fun. You should take care never to bet more than you can afford to lose, and consider taking a break if you find gambling upsetting or stressful.
Problem gambling can develop for some people, leading to addiction and financial issues. Thankfully, legal Kentucky online gambling sites are required to offer support and responsible gambling tools to make it easier to stay in control.
You can use deposit limits, time outs, and spending limits to control how much time and money you spend gambling. If you find it difficult to stop, all licensed sites should also offer a self-exclusion option, which allows you to close your account and prevents you from making a new one.
If you need further help, the Kentucky Council on Problem Gambling offers free advice and support. You can phone their trained counselors toll-free, 24/7, for information and to be referred to organizations such as Gamblers Anonymous.
FAQs
Is online gambling legal in Kentucky?
Online sports betting is legal in Kentucky, although online casinos are still restricted. For now, those wanting to play casino games can only do so at social and sweepstake sites.
Can I bet on sports in Kentucky?
Yes, real-money sports betting is permitted in Kentucky. Those who are at least 18 years old and live in the state can bet at licensed retail and online sportsbooks.
Does Kentucky have any online casinos?
No, Kentucky has no real money online casinos, although sweepstake casinos are available.
Is DFS legal in Kentucky?
Yes, Kentuckians can participate in DFS contests using various fantasy sports apps.
Are Kentucky online gambling sites safe?
Using online sportsbooks in Kentucky is completely safe if the platform is licensed and regulated. Look for the Kentucky Horse Racing Commission license.
Do I have to pay taxes on gambling winnings in Kentucky?
Yes, all gambling winnings are taxed and classed as income in Kentucky. Sportsbooks typically withhold 24% of wins over $5,000 to pay taxes.
