Kentucky lawmakers are moving forward with a wide-ranging gaming bill that would reshape how betting works across the state, from fantasy sports to emerging prediction markets. The proposal bundles multiple changes into one framework while giving regulators broader authority to oversee the industry.
House Bill 904 cleared the House in March and is now under review in the Senate. If it passes, the Kentucky Horse Racing and Gaming Corporation would take on expanded control over several forms of wagering. The bill also formally defines a “prediction market” as a platform where users can “buy, sell, or exchange event contracts” tied to future outcomes, bringing those platforms under state oversight for the first time.
The legislation adjusts age requirements as well. Fantasy contests would remain open to participants 18 and older, but the minimum age for charitable gaming would increase to 21.
Kentucky bill expands oversight of prediction markets and raises betting age
Lawmakers are also setting clearer rules for fantasy sports operators. Companies would need state licenses and would be required to verify users’ identities and locations. The bill mandates geolocation tools to confirm that players are physically in approved jurisdictions before they can enter contests.
Operators must also “implement procedures to prevent fraud, abuse, and money laundering” while monitoring for suspicious activity like collusion or unauthorized accounts. Any confirmed violations tied to match-fixing or other illegal conduct would have to be reported to regulators.
Certain groups would be barred from participating. Athletes, coaches, referees, and others with inside knowledge would not be allowed to enter contests connected to their sports. The bill also explicitly bans attempts to manipulate outcomes.
The measure introduces a tiered licensing system, with fees ranging from $7,500 to $15,000 upfront and annual renewals between $5,000 and $10,000. Those funds would support regulation, problem gambling services, and the state pension system. Additional revenue would flow into a new “purse stabilization fund” backed by taxes on fixed-odds horse racing bets.
The push comes as Kentucky’s gambling market continues to grow. Reporting from 2025 shows wagering activity in the state jumped 54% in February compared to the same month last year.
At the same time, other states are taking a far more cautious approach to newer betting models. Lawmakers in Minnesota are weighing a bill that would criminalize certain prediction market activity, while Hawaii has introduced legislation that would ban those platforms outright.
Kentucky’s proposal instead targets regulation rather than prohibition, while also tightening enforcement. One provision would block individuals who owe at least $1,000 in unpaid child support from opening or maintaining betting accounts.
Tax rates would also be standardized, with fixed-odds horse racing wagers taxed at 9.75% in person and 14.25% online, matching existing sports betting rates. The bill remains under Senate consideration.
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