Kentucky Bill HB 33: Local Referendums, 21% Casino Tax, and Fantasy Sports Regulation Proposed
A proposed bill in Kentucky, HB 33, aims to introduce casinos and establish a regulatory framework for fantasy sports. Authored by Representative Thomas Huff, the legislation brings a mix of opportunities and challenges as it heads to the state legislature in the 2025 session.
Local Decisions and Casino Eligibility
One of the most unique aspects of HB 33 is its focus on local input. Counties will decide whether to allow casinos through local referendums. To qualify, a county must have at least 30,000 residents or already host a horse racing track. Smaller counties that don’t meet the population requirement can team up to meet the threshold.
If a county approves casinos, a public bidding process begins, managed by the Kentucky Horse Racing and Gaming Corporation (KHRGC). The minimum bid for a full casino license is $750,000, while riverboat casinos can start at $500,000.
Taxes and Fees
The proposed tax and fee structure includes a 21% revenue tax and a $3 admission fee. Every visitor entering a casino would pay this fee, generating additional revenue for local and state budgets.
While the tax rate could boost state income, it might also deter some operators from investing in Kentucky.
Fantasy Sports Regulation
HB 33 also lays the groundwork for regulating fantasy sports, an industry that has grown rapidly in the U.S. Operators like DraftKings and FanDuel could face new requirements, including:
- Licensing fees: Annual fees of $5,000 or 6% of gross revenue, whichever is higher.
- Regulatory oversight: KHRGC would oversee the fantasy sports industry to ensure fair play and consumer protection.
Challenges to Passing HB 33
Kentucky has traditionally been resistant to expanded gambling, which could make passing HB 33 a tough sell. Religious and social organizations, long-time opponents of gambling, have not yet publicly weighed in, but their influence could play a role.
Another potential hurdle is the bill’s lack of clear provisions for using casino revenues to fund public programs like pensions. Adding such language might help gain support from skeptical lawmakers and voters.
Kentucky’s Expanding Gambling Market
The introduction of casinos and fantasy sports could build on Kentucky’s recent gambling successes. Sports betting was legalized in 2023, and by November 2024, the market had generated $35.2 million in gross gaming revenue—a 66% increase from the previous year.
Major players like DraftKings (42% market share), FanDuel (37%), and Bet365 (8%) have already established strong footholds.
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