The 27 licenses will be issued by the Kentucky Horse Racing Commission for a state that already allows horse racing, online lottery, skill games and daily fantasy sports. Online betting will be taxed at 14.25% of gross revenue, with retail taxed slightly lower at 9.75%.
Governor Beshear said: “After years of urging lawmakers to legalize sports betting, we finally did it. Today’s result shows that hard work pays off. Kentuckians will soon be able to place their bets here, and for the first time, we are going to keep those dollars to support our roads and bridges, schools and communities.”
“We talk about having a competitive business climate, but we did not have an important business that nearly every state surrounding us has. Our dollars were supporting Indiana, West Virginia, Ohio and other states. This industry will bring new jobs, tourism and growth,” he added.
Kentucky’s nine horse racing tracks woill have to pay a US$500,000 upfront fee and an annual renewal cost of US$50,000. Online betting partners will have to pay US$50,000 for an initial license and a US$10,000 renewal each year.
Senate Majority Floor Leader Damon Thayer believes the sports betting sector would generate US$23m in annual tax revenue and licensing fees.
Senator Thayer said: “We are a sports-crazy state. And people want to be able to make a choice of their own free will to make a wager on a sports event, like almost all our surrounding states. I look forward to Kentuckians being able to place their wagers right here in the commonwealth instead of traveling across state lines to spend their money in other states.”
John Wholihan, Director of Marketing for Mint Gaming Hall at Kentucky Downs, said: “People are used to coming [to horseracing], so we expect sports will have that, obviously the mobile part of sports is big. The number one step will be to get a partner, someone who’s professional in sports betting, and take advantage of their brand name. Our main goal is following the law, be ready in the summer, which really ties into football season.”
Source: G3 Newswire
