It was a big day for the Bluegrass State, as the Kentucky Horse Racing Commission (KHRC) approved emergency regulations for sports betting and Gov. Andy Beshear was on hand to sign those regulations into law.
The state now has 59 days before its announced launch of retail sports betting and roughly 11 weeks before online sports betting launch, which the commission announced today is scheduled for Sept. 28.
This is about keeping our dollars at home, but you look at world-class facilities like the Red Mile and others, and I believe we’re going to be drawing a lot of dollars from other states into Kentucky,” Beshear said of the occasion.
Beshear acknowledged the state is moving very quickly but also noted the Commonwealth is neither inventing nor reinventing the wheel. Moreover, he hopes the state regulators will adapt as they go when it comes to the new industry.
“I’m confident that on Sept. 7, and then on Sept. 28, it’s going to work. It’s going to be a pretty seamless experience for those spending entertainment dollars. But I do believe there will be changes over time because we want the very best system that we can. So I think we will be ready by that time. But certainly, as we learn, I want us to be willing to adapt to make this the most desirable state to come and spend those dollars and also to protect everybody involved,” he added.
The emergency regulations are now law and will be posted on the commission’s website later this week. Concurrently, the commission has stood up permanent regulations, which are currently identical to the emergency regulations, and those will be subject to a public comment period.
In the meantime, the application period for licensees opens tomorrow. KHRC Executive Director Jamie Eads explained during Monday’s meeting that licensing will fall into one of three categories. There will be operator licensees, service provider licenses, and occupational licenses for key stakeholders and some core members of the IT team.
Each racing facility will be able to offer retail sports betting on-site as well as partner with up to three different online operators, setting up the possibility for as many as 27 operators in the state.
The state’s Public Protection Cabinet will assist the KHRC in vetting these applications while the group is staffing up with an additional 14 new hires. KHRC Chairman Jonathan Rabinowitz reiterated that the state and Beshear’s office have provided all the support the group has requested when it comes to meeting the tight deadline between the bill becoming law and launch.
Rabinowitz alluded to regulations around false and misleading advertising but did not confirm any specifics such as a ban on language like “risk-free”.
Kentucky has drawn headlines and criticism from neighboring Ohio about its choice to restrict sports betting to 18 years and older. When asked about the age limit, Beshear noted it is what is in the statute and deferred to the bill’s primary sponsor Rep. Michael Meredith for comment. Meredith reiterated what he said when he presented the bill, which is that 18 is in line with the age for most other forms of gambling in the state.
