Kentucky sports betting has moved beyond the racetracks into a full-fledged betting market with some of the best sportsbooks in the US available.

It’s still early days, but the progress is impressive. You’ll find seven legal operators, generous welcome offers, and betting on everything from college hoops to the NFL. Read on as I detail the timeline, promos, tax rates, and expert picks to help you bet smarter in the Bluegrass State.

Kentucky Overview

After years of sticking to the tracks, Kentucky finally made the leap to full sports betting in 2023. Lawmakers passed HB 551 in March, and both retail and online sportsbooks launched by September. That put Kentucky ahead of several Southern neighbors still considering legalization and paved the way for top national sportsbooks to expand their reach into the Bluegrass State. You can now bet online and in person, and all your favorite teams, including college and pro, are fair game.

Seven online sportsbooks are live across the state, and there’s no need to register in person. As long as you’re above 18 years of age and within the state’s borders, you’re good to go. Kentucky sportsbooks are fully regulated by the Kentucky Horse Racing Commission, and operators pay a 14.25% tax on online bets and 9.75% on retail bets, with a portion of that funding the state’s pension system.

Timeline

Curious to see how Kentucky went from racetrack wagers to fully licensed sportsbook apps? I’ve rounded up the major events that have shaped online sports betting in Kentucky:

• March 2023: House Bill 551 was passed, legalizing online and retail sports betting in Kentucky
• June 2023: Gov. Andy Beshear signs the bill into law
• September 7, 2023: Retail sportsbooks go live across the state, and Gov. Beshear places the first legal bet at Churchill Downs
• September 28, 2023: Online sports betting goes live with all major apps launching on day one.
• September 2024: One year later, the total handle went above $800 million, and over $15 million in tax revenue was generated.
• August 2025: Handle Milestone Kentucky reported $193.1 million in monthly handle, with sports betting outpacing horse racing by 17x

Online betting in Kentucky: A detailed breakdown

Now that I’ve looked at how Kentucky got here, let me walk you through what online sports betting actually looks like in the state. In this section, I’ll cover everything from licensing and taxes to promotions and what the future might hold.

Licensing, Tax, and Oversight

Kentucky sports betting is regulated by the Kentucky Horse Racing Commission (KHRC), which oversees both online and in-person sportsbooks. The law allows up to 27 online sportsbooks, with each of the state’s nine horse racing tracks permitted to partner with up to three operators.

At launch in September 2023, the KHRC issued licenses to brands like DraftKings, FanDuel, BetMGM & Caesars. The cost of a license is $500,000, with an annual renewal fee of $50,000. Online sportsbooks are taxed at 14.25% of adjusted gross revenue, while retail sportsbooks are taxed at 9.75%. All tax revenue is funneled into the state’s pension fund and problem gambling assistance services.

Sports and market coverage in Kentucky

College basketball dominates the sports betting scene in Kentucky, and that’s no surprise considering the presence of the Kentucky Wildcats and Louisville Cardinals. The NFL is also very popular, even though Kentucky doesn’t have its own team. Most fans follow the Cincinnati Bengals, Tennessee Titans, or Indianapolis Colts due to proximity.

I found it particularly interesting that Kentucky allows betting on in-state college teams, including prop bets, which is restricted in many states. This has been a major boost to engagement. When it comes to pro teams, sportsbooks like FanDuel and Caesars are in partnerships with the NFL and NBA, with their national promotions extending to Kentucky customers.

Promos in Kentucky

Kentucky sportsbooks all offer the usual welcome offers I’ve seen in other states. The best sportsbook promotions consist of bonus bets like “bet $5 and get $200 in bonus bets” and similar promotions.

Ongoing promos in Kentucky include profit boosts for same-game parlays, daily odds boosts, and special promos tied to major league games. VIP programs are also mainstays here; you can pick up loyalty points with operators like BetMGM, and these contribute to progress through the tiers and better rewards. Some of the benefits of the VIP programs are birthday bonuses, VIP hosts, exclusive events, and invite-only contests for high-stakes bettors.

The future of sports betting in Kentucky

In its first year, Kentucky sportsbooks generated over $800 million in handle and more than $15 million in tax revenue. These figures are expected to increase as more people join in.

Right now, there aren’t any big legislative changes on the table, but I’m keeping an eye on potential entries from operators still waiting to partner with eligible tracks. I could also see expanded bet types or improvements to responsible gaming tools rolled out by the KHRC.

Verdict + pros and cons:

Kentucky’s sports betting market is doing great with a firm legal structure and some of the best sports betting apps I’ve used. It may not be a massive scene when compared to others like Ohio sports betting, but a major advantage here is that it allows bets on in-state colleges.

Online Vs. Retail betting in Kentucky

Retail and mobile sports betting both launched in Kentucky in September 2023, but it didn’t take long for online sportsbooks to take the lead. Most of the state’s betting handle now comes from mobile apps. While retail betting is available at select racetracks, it plays a smaller role compared to the fast-growing online scene.

Expert picks: Kentucky’s best online sportsbooks

It’s fair to say Kentucky bettors have access to one of the best operator lineups in the country. Below are the top six sportsbooks available in the state.

Kentucky Vs. Its Neighbors

Just like what I did when reviewing South Carolina sports betting sites, here’s a quick comparison to help you see how Kentucky stacks up against its neighbors.

Kentucky taxes sports betting at 9.75% for retail and 14.25% for online bets, with seven online sportsbooks currently live. Kentucky recently reported $193.1 million in monthly handle for August 2025. Let’s take a look at how the neighboring states measure up:

Responsible Gambling in Kentucky

Responsible gambling is taken seriously in Kentucky. Each licensed operator is required to include responsible gaming tools for self-exclusion, deposit limits, and timeouts, and I noticed most of them also link directly to support resources right from their app menus.

Expert Verdict

Kentucky may still be fairly new in the online sports betting world, but it’s proving to be one of the most exciting states to bet from. I’ve seen a good lineup of top-tier sportsbooks with nifty apps, generous promos, and sought-after features like fast deposit and withdrawal times. There’s plenty to look forward to. For your NFL Sundays, marquee matchups, or local college action, sports betting in Kentucky is legit and safe.

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FAQ: Kentucky Sports Betting

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