Republican, Adam Koenig, has sought to legalise a Bill focusing on online sports betting, fantasy sports and online poker
This Bill will allow mobile and online sports betting within the state and will offer the opportunity for punters to bet on professional and collegiate competitions.
The date for the Bill to be introduced is set for 2023. The main objective behind this new bill is to legalise sports betting online and to further regulate online poker and fantasy sports.
The bill is already backed by 17 representatives and would see a new form of online sports betting including professional and university competitions.
Should the Bill pass, the Kentucky Horse Racing Commission would act as an independent agency tasked with regulating horse racing, pari-mutuel betting on horse racing and sports betting in the state.
Furthermore, the state will also benefit through tax revenues and application fees to obtain licences. It is said that a sports betting licence could cost in the region of $500,000 with a renewal rate of $50,000.
Operators that are granted a licence would also face a 9.75% tax on adjusted gross revenue derived from bets on professional sports tracks or facilities. Additionally, a 0.5% tax on sport betting generated revenue would also be owed as a contribution towards the new Thoroughbred and Standardbred development funds.
Licencees which operate online, on their mobiles or through other external technology would incur a 14.25% tax on adjusted gross revenue from bets placed through such platforms.
On the other hand, operators with a focus on Fantasy League would be expected to pay a $5,000 registration fee along with a 6% renewal fee in accordance to the their adjusted gross revenue.
As it is still early days, additional tax contributions are not yet fully known, however, it is thought that operators that manage to attain a licence will be allowed to start activities in Kentucky come January 2022.
When online poker is concerned, such operators will be obliged to pay a primary fee of $250,000 and such a licence would remain in force for 12 months whilst its renewal would cost $10,000.
Furthermore, licenced operators within the state would be required to pay taxes rates adding up to 6.75% of net poker revenue monthly.
Kentucky look to join a number of states in the US who have legalised online and mobile sports betting as they all look at other streams of revenue to see their economies bounce back.
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