How the Kentucky Sports Betting Bill Almost Didn't Pass

It was five years in the making. In anticipation of SCOTUS removing the U.S. sports betting ban in 2018, the Kentucky legislature went to work on sports betting legislation in 2017. Due to a lot of logistical issues, such legislation just never quite got traction. Fast forward to April of 2023, and something finally got done. However, it took a lot of fortitude on the part of one former Congressman.

It was House Rep. Adam Koenig who first brought sports betting, Daily Fantasy Sports, and online poker to the House floor in 2019. Time and again, the legislation failed to pass the House only to return in the next legislative session with changes that Koenig thought would make a difference.

The big breakthrough came in 2022 when Koenig was finally able to drum up enough support in the House to get passage. Unfortunately, there wasn't anyone in the Senate who was willing to carry the ball to the finish line.

In the 2022 election, three things changed that made sports betting in Kentucky a real possibility even though Kentucky law requires a two-thirds vote on any legislation in odd-numbered years.

The first change came when Koenig was defeated in the 2022 election. It opened the door for "new blood" to step forward and keep pushing the legislation from the House side. Second, two new sports gambling supporters (Sens. Amanda Mays Bledsoe and Matthew Deneen) won Senate seats, which tipped the vote in favor of HB 551. Third, Gov. Andy Beshear won the governorship, promising his support for Koenig's sports betting legislation. All of this led to the passing of the bill in the Senate in April.

When Koenig heard the news, he was driving to pick up dinner. He wasn't even aware that the bill had been presented for a vote. His shock quickly turned to joy. In an interview with PlayUSA, Koenig stated:

“I didn’t get any heads-up or know it was coming. When I heard it called, I was feeling pretty emotional.”

When Sports Betting Might Go Live in Kentucky

With the legislation finally in the books, the fun begins. There are several steps that need to be addressed before sports betting will be available for Kentucky residents.

First, the state's Attorney General will need to formally enact the new law. The law then takes effect 90 days later. The Kentucky Horse Racing Commission puts that estimated date on or around June 28. The Commission then has up to six (6) months to get the regulatory framework in place. That puts the most likely sports betting launch date at the beginning of next year.

However, Governor Beshear has one more card he could play. In his mind, he would like to see sports betting go live by the start of the NFL regular season in September of this year. According to Koenig, who is consulting with the Red Mile Racetrack, that's a doable target. However, it would require that Gov. Beshear authorize an emergency regulation approval process, something he is very willing to do.

Stay tuned for updates.