Kentucky Overrides Governor's Veto to Approve Fixed-Odds Wagering Expansion
Kentucky lawmakers have overridden Gov. Andy Beshear's veto of House Bill 904, advancing a wide-ranging measure that introduces fixed-odds wagering and reshapes elements of the state's horse racing framework. It took less than a day for lawmakers to reach their decision.
The bill to adjust Kentucky sports betting passed earlier this month but was rejected by Beshear over concerns about executive oversight. On Tuesday, both chambers moved to override that decision, with the House voting 67 to 7 and the Senate 26 to 5, allowing the legislation to become law.
Gov. Beshear's veto focused on provisions granting the Kentucky Lottery Organization and the Kentucky Horse Racing and Gaming Corporation authority to file emergency and standard regulations without gubernatorial approval. He argued this change would weaken his constitutional responsibilities tied to executive review.
Despite those objections, the legislature proceeded, clearing the way for fixed-odds wagering in the state. Unlike pari-mutuel betting, where odds shift based on pool activity, fixed-odds bets lock in payouts at the time wagers are placed.
The bill also establishes a purse stabilization fund, supported by a 9.75% tax on on-track fixed-odds wagering revenue and a 14.25% tax on mobile and online wagers. This revenue is intended to augment the prize money available at live horse races.
Among other requirements, racetracks and tote companies are mandated to invest in newer technology to reduce betting cycles, which currently range between 10 and 30 seconds. There are also new rules requiring a minimum win of $1,000 in fixed odds betting. There are other wagering separation rules regarding betting in prediction markets.
In addition, there is greater clarity on the breeding rules, which prevents future attempts to cap breeding mares per stallion without the full consent of all members of the International Stud Book Committee.
US racing wagering declines
The new regulations arise amid declining gambling in American horse racing. Last year, wagers totaled $11.03 billion, falling by 2.1% from 2024 and marking the sixth straight annual decline since 2019. That represents a 27.3% decrease from a high of $15.18 billion in 2003. It's been a rough few years for the best horse racing betting sites.
Data released by Equibase showed December contributed heavily to the annual drop, with wagering falling 7.3% during the month. The number of race days also declined by 5.2%, dropping from 3,787 to 3,590, while total races fell 4.7% to 29,401. Fewer events contributed to lower overall turnover, though average wagering per race day rose 3.27% to $3.07 million.
There was a slight increase in the field of racers, from 7.45 to 7.47, indicating that the races have become slightly more competitive. Conversely, the payout fell by 2.4% from $1.31 billion to $1.28 billion in 2024, the first reduction since 2020.
