The Kentucky Horse Racing Commission approved emergency regulations Monday that set a rollout date for retail sports gambling in the state on Sept. 7 with mobile sports gambling beginning on Sept. 28.
At a KHRC meeting at the Red Mile in Lexington, Jennifer Wolsing, counsel for the KHRC, said that emergency regulations would be filed Monday with “ordinary” regulations being submitted for a public review process.
Retail sports betting includes in-person sports betting at “brick and mortar” locations around the state, whether at licensed racetracks or gaming facilities such as the Red Mile. Mobile sports betting is conducted by using applications on smartphones, etc.
“We expect most tracks, if not all tracks running today, to be operational on (Sept 7),” said Kentucky Gov. Andy Beshear in a press conference after Monday’s meeting.
Licensed facilities include Thoroughbred tracks Churchill Downs in Louisville, Keeneland in Lexington, Kentucky Downs in Franklin, Ellis Park in Henderson and Turfway Park in Florence, as well as harness racing tracks Red Mile in Lexington and Oak Grove near Fort Campbell. Harness racing track Cumberland Run in Corbin and quarter horse racing track Sandy Ridge in Ashland have not yet opened.
The three-week difference between the start of retail sports betting and the start of online or mobile sports betting provides additional time for operators to meet the technical regulations of the state’s laws.
“(It’s) what we’ve seen from other states in terms of best practices and getting people signed up and finding out where the different challenges are,” Beshear said.
The Kentucky legislature approved HB 551 in March that made Kentucky the 37th state to approve legalized sports betting. Under the bill, which took effect March 28, the KHRC was given six months to finalize rules and regulations for sports wagering.
The commission passed the “emergency regulations” Monday to meet the goal of having wagering ready by the start of the NFL season, which begins Sept. 7.
Wagering will be allowed on both professional and college sports for those 18 and older.
Each track approved by the KHRC can apply for a wagering license beginning Tuesday. Tracks must pay an initial $500,000 license fee with a $50,000 renewal. Sports betting operators must pay a $50,000 initial fee with a $10,000 renewal. Each track can partner with up to three mobile operators.
Keeneland and Red Mile have partnered with Caesars Sportsbook for their sports wagering platform. A retail sportsbook site will be located at Red Mile. Keeneland and Red Mile are partners on the gaming hall located at Red Mile.
The state is estimated to make $23 million annually in tax revenue from wagering and fees.
“I anticipate over time it will grow from that,” Beshear said.
Why the push to get sports betting up and running by the start of football season?
“When you look back at the last Super Bowl and how much was bet nationwide and how much we lost out on, that’s why I am confident we will exceed initial revenue estimates,” Beshear said. “When you look at how many people go for the first round of the NCAA Tournament to Las Vegas and other places, now there will be an option to stay here and have much of that entertainment experience here.”
Rep. Mike Meredith, who sponsored HB 551, said Kentucky’s legal betting age of 18 — many states limit betting to 21 and older — was consistent with state laws concerning pari-mutuel wagering on horse racing and participating in the Kentucky Lottery.
The governor was asked if the state was moving too quickly to implement sports betting.
“We’re not re-inventing anything,” Beshear said. “There are so many examples out there we’ve watched in these last couple of years. We’ve had a number of prime examples of how to get it done. There was significant communication between the various companies that are going to be a part (of this).”
Beshear said he anticipates making the first bet on Sept. 7.
“I will be excited to make the first bet in the commonwealth of Kentucky,” he said. “I’ve been for sports betting since I began running. I believe we can do this responsibly. I believe this administration and general assembly can get it done. I’ll be proud to make that first bet.”
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