Kentucky Sports Betting Revenue Growth and Insights

7 min read
Dec 11, 2024, 6:10 PM

Kentucky Sports Betting Overview

Kentucky launched legal sports betting on September 7, 2023 (Kentucky Gov, 2023). At first, only retail sportsbooks were licensed. Online sports betting platforms went live on September 28, 2023 (Lexington Herald-Leader, 2023). This was a milestone for the Bluegrass State, integrating sports wagering into its horse racing tradition. The Kentucky Horse Racing Commission oversees the sector. This approach has created a smooth rollout of legal sports betting, providing residents access to retail and online options.

In its first year, the Kentucky Horse Racing Commission reported the sports betting handle totaled $892,370,163. This performance yielded a Gross Gaming Revenue (GGR) of $112,118,421 and a hold rate of 10.94%. This exceeded initial projections and showcased the market's efficiency. The state collected $15,545,112 in tax revenue. These funds are directed toward public funding initiatives, including the pension fund and problem gambling programs (AP, 2023).

The state has taxed sports betting revenue at 14.25% for retail and 9.75% for online platforms. Kentucky's ability to capture nearly 11% of wagers as revenue is a testament to the market's competitive structure.

State officials, including Governor Andy Beshear, have praised the adoption of sports betting. He has attributed its success to the state's regulatory framework and the seamless incorporation of online operators (Fox56 News, 2024). As more bettors engage with platforms and new features are rolled out, Kentucky is well-positioned to sustain long-term growth in this thriving industry.

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Annual Sports Betting Growth in Kentucky

Monthly Sports Betting Growth in Kentucky

2023

Kentucky Sports Betting Revenue

Since the inception of legal sports betting in September 2023, Kentucky has demonstrated a robust and rapidly growing market. In its first year, the state reported an impressive Gross Gaming Revenue (GGR) of $112 million, with a handle totaling $892 million. This performance reflects a hold rate of 10.94%, indicating a strong market engagement from bettors.

January–October 2024

Kentucky’s sports betting market has continued to thrive in 2024, demonstrating consistent month-over-month growth:

  • Total Handle: $2.64 billion
  • Gross Gaming Revenue (GGR): $439.86 million
  • Average Hold Percentage: 16.64%
  • Tax Revenue: $43.16 million
Monthly Highlights
  • January 2024: The year began with a handle of $257.11 million and revenue of $39.25 million, driven by NFL playoff betting and college basketball interest.
  • August 2024: The lowest handle of the year, $129.27 million, was recorded during the quieter summer sports season.
  • October 2024: The market rebounded strongly, with a handle of $255.86 million and the highest monthly revenue of $48.33 million, fueled by the NFL season and college football games.

Latest Updates in Kentucky Sports Wagering

Since the legalization of sports betting in Kentucky, the industry has seen several significant developments:

  • September 7, 2023: Governor Andy Beshear placed the state's first legal sports bet at Churchill Downs, marking the official launch of retail sports betting in Kentucky (AP, 2023).
  • September 28, 2023: Online sports betting platforms became operational, expanding access for residents statewide.
  • May 14, 2024: Circa Sports launched its mobile sports betting app in Kentucky, partnering with Cumberland Run harness track to enhance the state's sports wagering offerings.
  • October 10, 2024 — Kentucky sports betting revenue in Q3 2024 was $65.4 million (American Gaming Association, 2024).
  • August 8, 2024 — Circa Sports revealed plans to launch a temporary retail sportsbook at Mint Gaming Hall Kentucky Downs on August 12, with a permanent facility set to debut next summer.

Kentucky Sports Betting Market Performance

Kentucky’s sports betting market has demonstrated strong performance and rapid growth since its launch in September 2023. With substantial increases in handle, revenue, and tax contributions, the state is quickly establishing itself as a competitive player in the U.S. sports betting sector. Here’s a detailed breakdown of the market’s performance:

2023 (Partial Year)

In its launch year, Kentucky’s sports betting handle reached an impressive $892.4 million, generating $112.1 million in Gross Gaming Revenue (GGR). The market recorded a strong 10.94% hold rate, showcasing its robust initial performance. Despite operating for only a few months, tax revenue totaled $15.5 million, exceeding state projections and highlighting the market's potential for sustained growth.

2024 (Year-to-July-30)

Kentucky’s market has continued to grow significantly in its first full year. Through October 2024:

Kentucky Snapshot

Key AspectDetails
PopulationApproximately 4.5 million residents as of 2024. (World Population Review, 2024)
Political AffiliationPredominantly Republican, with a Democratic governor and a Republican-controlled legislature. (270towin.com, 2024)
Year Sports Betting LegalizedLegalized in 2023, with retail sports betting starting on September 7, 2023, and online operations on September 28, 2023.
Number of Sportsbooks OperatingEight major online sportsbooks, including DraftKings, FanDuel, BetMGM, Caesars, Circa Sports, Bet365, ESPN Bet, and Fanatics Sportsbook.
Gross Gaming Revenue (GGR) 2023$112,118,421.00
Sports Betting Handle 2023$892,370,163.00
Professional Sports TeamsKentucky does not have professional teams, but the state is home to popular NCAA programs like the University of Kentucky Wildcats and the University of Louisville Cardinals.

FAQs on Kentucky Sports Betting Revenue

General Questions About Kentucky Sports Betting

When did Kentucky legalize sports betting?

Kentucky legalized sports betting for retail sportsbooks on September 7, 2023, and online wagering platforms launched on September 28, 2023.

Who regulates sports betting in Kentucky?

The Kentucky Horse Racing Commission oversees the state's regulation and operation of sports betting.

What types of bets are allowed in Kentucky?

Kentucky allows various bets, including moneyline, parlays, over/under, and proposition bets.

Revenue and Taxation

How much revenue has Kentucky generated from sports betting?

In 2023, Kentucky reported adjusted gross revenue of $112.1 million and a handle totaling $892.4 million.

What is the tax rate on sports betting in Kentucky?

The state taxes sports betting revenue at 14.25% for retail bets and 9.75% for online bets, generating tax receipts of $15.5 million in 2023.

Where do the tax funds go?

A significant portion of the taxes supports the state’s pension fund, while 2.5% is allocated to problem gambling programs.

Sportsbooks and Market

How many sportsbooks operate in Kentucky?

Kentucky currently has eight major sportsbooks, including Caesars Sportsbook, DraftKings, FanDuel, BetMGM, ESPN Bet, Circa Sports, Fanatics, and Bet365.

What role do horse racing venues play in sports betting?

Venues like Turfway Park and Red Mile have integrated sports betting into their operations, providing bettors with a seamless experience.

Who places the most bets in Kentucky?

Sports bettors in Kentucky are highly active during major events like college basketball’s March Madness, which sees the most action in the state.

Betting Performance and Growth

What was the betting handle for Kentucky in 2023?

The Kentucky sports betting handle totaled $892.4 million in 2023, reflecting strong engagement from residents.

How has Kentucky's market grown in 2024?

By October 2024, the handle surpassed $2 billion, with adjusted gross revenue maintaining a consistent 11% hold rate, showcasing steady growth.

What future developments are planned?

A temporary Circa Sports retail sportsbook opened at Mint Gaming Hall Kentucky Downs in August 2024, with a permanent facility scheduled for summer 2025.