Kentucky’s sports betting market demonstrated robust financial health in November 2025, with revenue climbing significantly despite a slight month-over-month dip in total wagering volume.
Data from the Kentucky Horse Racing and Gaming Corporation highlights a maturing market where operator efficiency and mobile accessibility are driving profitability.
Revenue and Handle Breakdown
Sports betting revenue for November reached $45.9 million, marking a 27.7% year-on-year increase from the $35.9 million generated in November 2024. This surge occurred even as the total betting handle (amount wagered) saw a minor contraction of 1.9% from October, settling at $333.6 million.
The primary driver for this revenue spike was an exceptionally high hold rate, the percentage of money sportsbooks retain after paying out winning bets. Operators achieved a hold of roughly 13.8%, a sharp increase from previous months. This efficiency allowed sportsbooks to generate nearly 68% more revenue compared to October ($27.3 million), despite the lower betting volume.
Mobile Betting Dominance
Digital platforms continue to be the engine of Kentucky’s sports betting economy.
- Mobile Handle: Online wagers accounted for $324.4 million of the total handle, representing over 97% of all bets placed in the state.
- Mobile Revenue: Online operators generated $44.8 million in revenue, leaving retail locations with just over $1 million from a handle of $9.2 million.
Top Operators
The market remains top-heavy, with two major operators capturing the lion’s share of the action:
- DraftKings (partnered with Cumberland Run) led the market with $126.2 million in wagers accepted.
- FanDuel (partnered with Turfway Park) followed closely with $108.1 million in handle.
- Other notable performers included bet365 ($26.3 million handle) and BetMGM ($22 million handle), solidifying the competitive hierarchy in the state.
Tax Revenue Windfall
The state’s coffers saw a substantial boost from the high hold rate. Sports betting tax revenue jumped 69.2% month-over-month, rising from $3.8 million in October to $6.5 million in November.
- Tax Structure: Kentucky taxes online revenue at 14.25% and retail revenue at 9.75%.
- Allocation: The majority of these funds are directed toward the state’s permanent pension fund, with 2.5% set aside for the problem gambling assistance fund.
As Kentucky moves through its second full year of regulated sports betting, the data suggests a stable and highly profitable market, heavily reliant on mobile engagement and capable of generating significant tax windfalls even in months with slightly lower wagering volume.
