Kentucky Bill Proposes Changes to Sports Betting Rules
Kentucky lawmakers have introduced legislation that would raise the legal age for sports wagering from 18 to 21 while adding new restrictions and regulatory updates to the state's betting framework.
House Bill 904, filed on March 4, would also prohibit prop bets involving college athletes at Kentucky schools. In addition, it would allow racetracks to offer fixed-odds betting alongside traditional pari-mutuel wagering.
Another thing proposed in the measure is the legalization of daily fantasy sports, which would then be regulated by the Kentucky sports betting gambling operator, the Kentucky Horse Racing and Gaming Corporation.
“We created a nationally recognized structure for sports wagering in the commonwealth a few years ago,” said Rep. Michael Meredith, sponsor of the bill. “House Bill 904 would bring us in line with much of the country in governing fantasy contests. Our goal is to make sure consumers are protected and have access to the products they are demanding in the marketplace.”
Additionally, the bill would not change the legal betting age for horse racing. Wagers on horse races, including bets placed through historical horse racing machines at racetracks, would remain available to those aged 18 and older. We explain the sport a bit more in our how to bet on horse racing guide.
Since Kentucky legalized sports betting in 2023, wagering activity has expanded quickly. In fiscal year 2025, more than $2.8 billion was wagered through online platforms and retail sportsbooks operating at racetracks, generating $41 million in excise tax revenue. Residents have plenty of Kentucky sportsbook promos to choose from.
Through part of fiscal year 2026, bettors have already placed nearly $1.9 billion in Kentucky sports betting wagers.
Churchill Downs pushes back against prediction markets
While lawmakers consider updates to Kentucky sports betting laws, leaders in the horse racing industry are raising concerns about prediction market platforms offering contracts tied to sporting events.
Despite operators' assertions that they're offering financial derivatives, many gambling industry groups view the platforms as wagering products operating outside traditional gaming regulations. Organizations such as the American Gaming Association, along with tribal casinos and state-regulated sportsbooks, have voiced concerns about the expansion of prediction markets.
Churchill Downs Incorporated CEO Bill Carstanjen addressed the issue during a Feb. 26 earnings call with investors and analysts. He said the company opposes prediction market platforms offering contracts tied to horse racing.
Carstanjen said horse racing differs from other sports because wagering revenue directly funds racetracks and purse payments. Pari-mutuel wagering pools distribute money to tracks and horse owners, making the sport financially dependent on regulated betting activity.
He also noted that interstate wagering on horse racing falls under the Interstate Horseracing Act, a federal law governing betting across state lines. Under that framework, wagering on racing content requires permission from rights holders.
Interest in horse racing contracts has already appeared on prediction market platforms. A consultant for the Hong Kong Jockey Club reported that one site handled about $1.2 million in contracts tied to the 2025 Triple Crown races.
