Kentucky lawmakers have approved House Bill 904, a wide-ranging gambling measure that would raise the minimum age for sports betting to 21 while expanding oversight of fantasy contests and other regulated gaming activities, sending the legislation to Governor Andy Beshear for consideration.
The legislation cleared the Senate by a 24-13 vote after earlier passing a Senate committee unanimously and winning House concurrence 64-19. Lawmakers could override a veto when they reconvene for the final days of the legislative session.
The bill increases the legal age for sports wagering from 18 to 21 but keeps fantasy contests and horse race betting open to those 18 and older. It also raises the age for charitable gaming to 21.
In addition to age changes, the measure would legalize, regulate and tax fantasy betting contests for the first time under the Kentucky Horse Racing and Gaming Corporation, while allowing racetracks to offer fixed-odds wagering alongside traditional parimutuel betting.
The legislation introduces oversight of prediction markets, defined as platforms where users can “buy, sell, or exchange event contracts,” but stops short of banning them outright due to federal jurisdiction. Licensed operators, including racetracks, would be barred from offering such wagers, and betting on the outcome of elections would be prohibited.
State Representative Michael Meredith said federal rules limit how far the state can go in restricting prediction markets.
“The only place you will see underage betting is in the prediction market space, because they don’t have those restrictions in the federal space,” Meredith said.
The bill also sets limits on proposition bets involving college athletes, banning wagers tied to negative performance outcomes while allowing bets on positive statistical achievements.
Additional provisions require operators to verify users’ identities and locations using geolocation tools and to “implement procedures to prevent fraud, abuse, and money laundering.” Athletes, coaches, referees and other insiders would be barred from participating in contests involving their sports.
The measure further blocks individuals who are behind on child support payments from placing bets, requiring operators to check a registry of arrears.
Lawmakers included a tiered licensing system with upfront fees ranging from $7,500 to $15,000 and annual renewals between $5,000 and $10,000. Fixed-odds horse racing wagers would be taxed at 9.75% in person and 14.25% online, with proceeds supporting regulation, problem gambling services, the state pension system and a purse stabilization fund.
The bill comes as Kentucky’s betting market continues to expand, with wagering activity rising 54% year-on-year in February 2025. An NCAA survey found 58% of people aged 18 to 22 had engaged in sports betting, noting that “State legality and age restrictions do not pose much difficulty, as areas where betting is legal versus those where it is illegal have nearly the same rate of engagement.”
Despite the growth, several lawmakers voiced concerns about the social impact of gambling. State Senator Chris McDaniel described sports betting as “a genie … out of a bottle.”
“I now tell my sons that if you download one of these apps … You’re a sucker. If you want to talk about a wealth transfer from those who can least afford it … Unfortunately, it’s become this,” McDaniel said, adding, “Honestly, it’s made me dislike watching sports the way that I used to, because I feel like I’m watching a gambling show while a baseball game is going on. … This bill combines a lot of very, very difficult choices, the question of constitutionality, the question of the evolution of gaming.”
Debate in the Senate also touched on concerns that restrictions tied to prediction markets could affect the broadcast of the Kentucky Derby, a key economic driver. Senate Democratic leader Gerald Neal warned that limiting broadcasts would be “Like sticking a gun up your own head, economically.”
Opposition groups argued the bill could exacerbate gambling-related harms. David Walls of the The Family Foundation would lead to “further harms on Kentucky families.”
Walls said the bill “is unconstitutional, a bad deal for horse racing and bad for families… We’re grateful for raising the age limit to 21, but the reality is age limits mean nothing if no meaningful verification of that fact.”
The legislation also includes a provision affecting the thoroughbred industry, barring The Jockey Club from limiting the number of mares bred to a single stallion.
