KRS § 230.805 Racing and gaming corporation to institute system of sports wagering -- Service providers -- Requirements -- Sports wagering account registration -- Limitation on accounts -- Administrative regulations. (Effective July 15, 2026)

230.805 Racing and gaming corporation to institute system of sports wagering -- Service providers -- Requirements -- Sports wagering account registration -- Limitation on accounts -- Administrative regulations. (Effective July 15, 2026) (1) The corporation shall institute a system of sports wagering in conformance with federal law, this chapter, and by administrative regulations promulgated under the authority of KRS 230.215. (2) Sports wagering shall not be offered in this state except as authorized by this section and KRS 230.811. A track that holds a license to operate sports wagering may contract with sports wagering service providers to conduct or manage sports wagering operations as authorized by this chapter. Sports wagering may be provided at a licensed facility for sports wagering or online through a website or mobile application. The licensed facility for sports wagering or a sports wagering service provider may provide sports wagering through a website or mobile interface as approved by the corporation. The corporation may provide temporary licenses to licensed facilities for sports wagering or sports wagering service providers, if the corporation deems that the information submitted by them is sufficient to determine the applicant's suitability. The corporation may promulgate administrative regulations to establish the suitability for temporary and ordinary license applications for licensed facilities for sports wagering, sports wagering service providers, and any related parties. (3) Sports wagering licensees and service providers that accept wagers online via websites and mobile applications shall impose the following requirements: (a) Prior to placing a wager online via websites or mobile applications operated by either a sports wagering licensee or a service provider, a patron shall register the patron's sports wagering account with the operating sports wagering licensee or service provider either in person at a licensed facility for sports wagering or remotely through the service provider's website or mobile application; (b) 1. The registration process shall include attestation that the patron meets the requirements to place a wager with a sports wagering licensee or service provider in this state. 2. Prior to verification of a patron's identity, a sports wagering licensee or service provider shall not allow the patron to engage in sports wagering, make a deposit, or process a withdrawal via the patron's sports wagering account. 3. A sports wagering licensee or service provider shall implement commercially and technologically reasonable procedures to prevent access to sports wagering by any person under the age of twenty-one (21): a. At a licensed facility; and b. Online via website or mobile application. 4. A sports wagering licensee or service provider may use information obtained from third parties to verify that a person is authorized to open an account, place wagers, and make deposits and withdrawals; (c) A sports wagering licensee or service provider shall adopt an account registration policy to ensure that all patrons are authorized to place a wager with a sports wagering licensee or service provider within the Commonwealth of Kentucky. This policy shall include, without limitation, a mechanism by which to: 1. Verify the name and age of the patron; 2. Verify that the patron is not prohibited from placing a wager; and 3. Obtain the following information: a. A physical address other than a post office box; b. A phone number; c. A unique user name; and d. An email account; (d) A sports wagering licensee or service provider shall use all commercially and technologically reasonable means to ensure that each patron is limited to one (1) account with that service provider in the Commonwealth, but nothing in this paragraph restricts a patron from holding other sports wagering accounts in other jurisdictions; (e) A sports wagering licensee or service provider, in addition to complying with state and federal law pertaining to the protection of the private, personal information of patrons, shall use all other commercially and technologically reasonable means to protect this information consistent with industry standards; (f) A sports wagering licensee or service provider shall use all commercially and technologically reasonable means to verify the identity of the patron making a deposit or withdrawal; (g) A sports wagering licensee or service provider shall utilize geolocation or geofencing technology to ensure that wagers are only accepted from patrons who are physically located in the Commonwealth. A sports wagering licensee or service provider shall maintain in this state its servers used to transmit information for purposes of accepting or paying out wagers on a sporting event placed by patrons in this state; (h) A patron may fund the patron's account using any acceptable form of payment or advance deposit method, which shall include the use of cash, cash equivalents, credit cards, debit cards, automated clearing house, other electronic methods, and any other form of payment authorized by the corporation; and (i) The corporation may enter into agreements with other jurisdictions or entities to facilitate, administer, and regulate multijurisdictional sports betting by sports betting operators to the extent that entering into the agreement is consistent with state and federal laws and the sports betting agreement is conducted only in the United States. (4) A track may contract with no more than three (3) service providers at a time to conduct and manage services and technology which support the operation of sports betting both on the track and online via websites and mobile applications. The website or mobile application used to offer sports betting shall be offered only under the same brand as the track or that of the service provider contracted with the track, or both. (5) (a) A track or service provider through an agreement with a licensed track shall not offer sports wagering until the corporation has issued a sports wagering license to the track, except for temporary licenses authorized under KRS 230.814. (b) A track or association, or service provider through an agreement with a licensed track, shall not offer fixed-odds wagering until the corporation has issued a supplemental fixed-odds wagering license to the track. (6) (a) A track licensed under KRS 230.811 may offer sports wagering at a facility that meets the definition of "track" in KRS 230.210. (b) A simulcast facility may offer sports wagering through an agreement with a track by using any of that track's already established service providers. (7) (a) As used in this subsection, "minimum bet limit": 1. Means the amount a bettor can win, not how much can be staked or collected; and 2. Includes that the minimum bet limit must be accepted by bookmakers on all fixed-odds wagers. (b) A track or association licensed under this chapter may conduct fixed-odds wagering on horse racing with or without a service provider. (c) A track or association or service provider licensed under this chapter shall have a mandatory minimum bet limit of at least one thousand dollars ($1,000) per race. (d) The betting menu shall be determined by the host track. (8) (a) As used in this subsection, "proposition bet" means a wager on the performance statistics of an individual athlete. (b) A sports wagering licensee or service provider shall not offer or accept any proposition bets on an individual performance statistic on athletes participating in collegiate sporting events for a collegiate team located in Kentucky if the successful outcome of the wager is contingent upon the athlete failing to meet a specified statistical threshold or experiencing a negative performance outcome. (9) (a) As used in this subsection: 1. "Affiliate" means an entity that is owned or controlled in whole or in part by the licensee; and 2. "Beneficial interest" means participation in the proceeds of prediction markets or events contracts either as a licensee or operator of the proceeds or an entity that receives prediction market or events contracts proceeds in any capacity. (b) A track or association that holds a license to conduct horse racing, sports wagering, or a licensee offering fantasy contests under this chapter or its affiliate shall not participate in or contract with platforms that offer events contracts through a prediction market in the Commonwealth of Kentucky or have a beneficial interest in the proceeds of prediction markets in the Commonwealth of Kentucky. (c) A track or association licensed to conduct horse racing, sports wagering, or a licensee offering fantasy contests under this chapter or its affiliate or an entity in which it has a beneficial interest shall not contract with a licensed sports wagering service provider that: 1. Offers sports events contracts through a prediction market in the Commonwealth of Kentucky; or 2. Owns, rents, licenses, advertises, operates, is partnered or affiliated with, or has a beneficial interest in, an entity that makes available to its users in any form a sports prediction market in the Commonwealth of Kentucky. (d) A track or association licensed to conduct horse racing, sports wagering, or a licensee offering fantasy contests under this chapter, its affiliate, or an entity in which it has a beneficial interest shall not contract with an entity offering sports event contracts or a sports prediction market in Kentucky. (e) Notwithstanding paragraphs (b) to (d) of this subsection, a track or association licensed to conduct horse racing, sports wagering, or a licensee offering fantasy contests under this chapter found to have violated this section shall have twelve (12) months to cure the violation without any additional penalty imposed by the corporation. If the violation is not cured within twelve (12) months of the violation, the corporation may take administrative action. (10) Notwithstanding subsection (9) of this section, this chapter shall not prohibit the corporation or the Department of Revenue from promulgating administrative regulations in accordance with KRS Chapter 13A to regulate the conduct or activity of prediction markets in the Commonwealth in accordance with applicable federal law. (11) If a track or association holds two (2) or more licenses, only the specific license or licensee for which the track or association has violated the terms shall be subject to suspension or revocation or the applicable penalties. (12) Nothing in this section shall be construed to prevent a licensed sports wagering service provider or a track or association licensed to conduct horse racing or sports wagering or a licensee offering fantasy contests under this chapter from offering advance deposit account wagering as defined in KRS 230.210. Effective: July 15, 2026 History: Amended 2026 Ky. Acts ch. 184, sec. 22, effective July 15, 2026; and ch. 198, sec. 55, effective July 15, 2026. -- Amended 2025 Ky. Acts ch. 124, sec. 45, effective July 1, 2025. -- Amended 2024 Ky. Acts ch. 171, sec. 96, effective July 1, 2024. -- Created 2023 Ky. Acts ch. 147, sec. 4, effective June 29, 2023. Legislative Research Commission Note (7/15/2026). This statute was amended by 2026 RS HB 904 (2026 Ky. Acts ch. 184, sec. 22), which was subsequently amended by 2026 RS HB 869 (2026 Ky. Acts ch. 198, sec. 55), and the amendments have been codified together.