Kentucky Sports Betting Bill Passes Despite Governor’s Veto
A wide-ranging Kentucky sports betting bill has passed, despite an attempt this week by Gov. Andy Beshear to veto it.
In comes a rise in the legal age for sports betting in Kentucky from 18 up to 21, and a change to the rule on college sports wagering.
Key, however, is the legalization of fixed-odds betting on horse racing. That spells the end of the monopoly of pari-mutuel betting in the racing-mad state, which saw a decline in Kentucky Derby betting handle in 2026.
At a Glance:
- HB 904 was pushed through by Kentucky lawmakers
- Sports betting bill overrides earlier veto from Gov. Andy Beshear
- Legal age for betting in Kentucky raised from 18 to 21
- Fixed-odds betting on horse racing is now legal in the Bluegrass State
- Some college sports props are prohibited under the new law
Kentucky’s dramatic journey on the road to legalized sports betting
HB 904 is the biggest change to Kentucky’s betting legislation since sports betting was legalized back in 2023.
Andy Beshear was the governor when he signed HB 551 into law, making the home of the Kentucky Derby the 38th state in the union to regulate sports betting.
Retail sports betting and mobile sportsbooks were made legal simultaneously, with the market regulated by the Kentucky Horse Racing Commission (KHRC). Retail sportsbooks are located at each of the state’s nine racetracks.
Gov. Beshear’s veto fails as Republicans push through
Though HB 904 had been approved on April 1, Gov. Beshear objected to language granting regulatory bodies emergency powers that effectively supersede the Governor.
In a veto note on the new bill, Gov. Beshear said:
“Authorizing an agency to file an emergency regulation in this manner would prevent the Governor from carrying out his constitutional duties and allow boards and agencies to impose rules on Kentuckians without executive oversight, including boards whose decisions impact public safety.”
Ultimately, the Republican-majority House and Senate proved too strong, and the veto was overturned.
DFS and prediction markets targeted in new law
Interestingly, HB 904 contains frameworks to both regulate daily fantasy sports (DFS) and restrict prediction markets. The bill prohibits licensed betting operators from offering prediction markets.
DFS sites like DraftKings and FanDuel already run online sportsbooks, but must now apply for licenses to run fantasy sports markets. Those sites also offer prediction markets, but these will be omitted from their platforms in Kentucky.
Like most U.S. states with regulated betting, Kentucky sportsbooks offer college sports markets. However, under the new law, some player props will be banned for Kentucky customers. These include the number of touchdowns/first touchdown, as well as player point totals, to deter match-fixing.
