Kentucky bill expands prediction markets oversight and raises age

Kentucky lawmakers are shifting ahead with a wide-ranging gaming invoice that may reshape how betting works throughout the state, from fantasy sports activities to rising prediction markets. The proposal bundles a number of modifications into one framework whereas giving regulators broader authority to supervise the business.

House Bill 904 cleared the Home in March and is now below evaluation within the Senate. If it passes, the Kentucky Horse Racing and Gaming Company would tackle expanded management over a number of types of wagering. The invoice additionally formally defines a “prediction market” as a platform the place customers can “purchase, promote, or alternate occasion contracts” tied to future outcomes, bringing these platforms below state oversight for the primary time.

The laws adjusts age necessities as nicely. Fantasy contests would stay open to individuals 18 and older, however the minimal age for charitable gaming would enhance to 21.

Kentucky invoice expands oversight of prediction markets and raises betting age

Lawmakers are additionally setting clearer guidelines for fantasy sports activities operators. Corporations would wish state licenses and can be required to confirm customers’ identities and areas. The invoice mandates geolocation instruments to verify that gamers are bodily in accredited jurisdictions earlier than they will enter contests.

Operators should additionally “implement procedures to stop fraud, abuse, and cash laundering” whereas monitoring for suspicious exercise like collusion or unauthorized accounts. Any confirmed violations tied to match-fixing or different unlawful conduct must be reported to regulators.

Sure teams can be barred from taking part. Athletes, coaches, referees, and others with inside information wouldn’t be allowed to enter contests linked to their sports activities. The invoice additionally explicitly bans makes an attempt to control outcomes.

The measure introduces a tiered licensing system, with charges starting from $7,500 to $15,000 upfront and annual renewals between $5,000 and $10,000. These funds would help regulation, downside playing providers, and the state pension system. Further income would circulate into a brand new “purse stabilization fund” backed by taxes on fixed-odds horse racing bets.

The push comes as Kentucky’s playing market continues to develop. Reporting from 2025 reveals wagering activity in the state jumped 54% in February in comparison with the identical month final yr.

On the similar time, different states are taking a much more cautious strategy to newer betting fashions. Lawmakers in Minnesota are weighing a invoice that may criminalize certain prediction market activity, whereas Hawaii has launched laws that may ban those platforms outright.

Kentucky’s proposal as a substitute targets regulation slightly than prohibition, whereas additionally tightening enforcement. One provision would block people who owe at the least $1,000 in unpaid little one help from opening or sustaining betting accounts.

Tax charges would even be standardized, with fixed-odds horse racing wagers taxed at 9.75% in particular person and 14.25% on-line, matching current sports activities betting charges. The invoice stays below Senate consideration.

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