The Kentucky legislature moved House Bill 904 (HB 904) forward on 1 April, sending the sports betting and prediction markets reform bill to Gov. Andy Beshear for final approval.
The measure was only just presented in March and pulls together a broad set of changes to the state’s gaming framework.
It touches on everything from minimum age requirements to the introduction of additional gaming formats, along with a reduction in the sports gaming share.
However, not all changes will be implemented at the same time. There are changes that will come into force as soon as the legislation is enacted, while others will be rolled out gradually.
This will depend on the rate at which operators can make changes and become compliant.
The most direct shift is the betting age. Sports wagering moves to 21, up from 18, for both in-person and online. Licensees must deploy controls to block underage access across retail sportsbooks and mobile platforms.
However, the minimum age for fantasy contests stays at 18, creating a clear divide between products inside the same broader market.
Prediction markets are addressed head-on. The bill defines both event contracts and prediction markets, then draws a line around them.
Kentucky’s approach is restrictive. Licensed racetracks, sportsbooks, fantasy operators, and their affiliates cannot participate in, partner with, or hold interests in those platforms within the state.
The same applies to connected service providers.
In theory, this would mean that any licensed sportsbooks that offer prediction markets, including DraftKings and FanDuel, would not be allowed to continue operating in Kentucky.
Prop bet options to shrink with HB 904
There is also movement on prop betting, though not a blanket ban. The bill defines prop bets as wagers tied to individual player statistics. It then removes a specific category from the market.
Operators cannot offer prop bets on Kentucky college athletes where the outcome depends on the player falling short of a benchmark or producing a negative result. Other prop bets remain available, but this slice is carved out, similar to initiatives in other states.
Horse racing gets its own addition. The bill introduces fixed-odds wagering on live races, alongside a new licensing layer. Tax rates are set at 9.75% for on-site bets and 14.25% for online wagers.
Proceeds feed into a purse stabilisation fund. There is also a minimum wager threshold of at least $1,000 per race, with betting menus left to host tracks.
If the bill is signed by Gov. Beshear, Kentucky’s gambling structure will shift in several places at once.
However, pressure is mounting for a final result in the current legislative session. Should the governor decide to veto the bill, lawmakers would only have until 15 April to try to override him.
