In a sweeping overhaul of the state’s gaming framework, the Kentucky legislature has passed House Bill 904 (HB 904) and sent it to Governor Andy Beshear.
House Bill 904, which moved forward on April 1, introduces significant changes to betting ages, prediction markets, and collegiate prop betting, aimed at modernizing and tightening the state’s sports wagering market.
Betting Age Raised and Prediction Markets Restricted
The most immediate change for consumers is the raising of the legal sports betting age from 18 to 21 for both retail and mobile platforms. Fantasy contests, however, will remain accessible at age 18.
The bill also takes a remarkably restrictive stance on prediction markets. Licensed racetracks, sportsbooks, and their affiliates are strictly prohibited from participating in or holding interests in prediction platforms within the state. This move creates a significant hurdle for operators like DraftKings and FanDuel who have recently integrated event contracts into their national offerings.
Protection for Student-Athletes
HB 904 introduces a “carve-out” for collegiate prop bets. Operators are now barred from offering “negative” prop bets on Kentucky college athletes—specifically wagers that depend on a player falling short of a statistic or benchmark.
Fixed-Odds Horse Racing and Fiscal Deadlines
The bill introduces fixed-odds wagering on live horse races with tax rates set at 9.75% for on-site and 14.25% for online bets. All proceeds are earmarked for a purse stabilization fund.
The clock is now ticking for Governor Beshear. If he chooses to veto the bill, Kentucky lawmakers have until April 15 to attempt an override. Industry observers expect a signature, which would trigger a gradual rollout of these new compliance measures throughout 2026.
