Kentucky’s gambling landscape is deeply rooted in its equine heritage, with horse racing historically serving as the backbone of legally permitted wagering. Over time, the state has incrementally expanded its gambling framework to include regulated sports betting, charitable gaming, the state lottery, and what are known as historical horse racing machines.
However, it remains relatively conservative compared to many states: there are no commercial, full-scale casinos, and many forms of gambling are broadly prohibited or unlicensed. This includes live table games, traditional slot machines, and poker rooms.
The recent legalization of sports betting via both retail locations and mobile apps marks a major shift in Bluegrass State’s gambling industry, creating a modern regulated market. Still, the state regulates risk actively: clear rules, tax rates, and age limits apply, and oversight is split across different agencies.
At the same time, recreational bettors continue to rely on pari-mutuel wagering at racetracks, while historical horse racing (HHR) machines offer a “casino-like” experience at racing facilities. The state also maintains a lottery, and charitable gaming remains a significant part of the local gaming ecosystem.
This hybrid model reflects Kentucky’s balancing act: respect for tradition (horse racing), cautious expansion (sports betting), and strict limits (no live casinos), all under a regulatory framework designed to protect consumers and generate revenue for public purposes.
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Overview: Kentucky’s Regulatory Framework and Betting Ecosystem
Unlike states with tribal casino systems, Kentucky does not have federally recognized gambling tribes operating casinos in the way that some states like Oklahoma do.
Instead, the legal gambling activity in the state has centered largely around pari-mutuel horse racing, the state lottery, charitable gaming, and, more recently, sports wagering tied to the racing industry.
The Kentucky Horse Racing Commission (KHRC) plays a central regulatory role. It oversees pari-mutuel betting, racing operations, and also the historical horse racing (HHR) machines located at racetracks.
Meanwhile, charitable gambling (like bingo and raffles) is regulated more locally and under different statutory provisions. The Kentucky Lottery Corporation runs lottery games, including scratch-offs, draw games, and online ticketing for certain games.
Kentucky’s gambling laws are framed within its constitution and statutory code. For decades, Section 226 of the Kentucky Constitution limited gaming severely, though it has been amended to permit the state lottery and charitable gaming.
Moreover, the state’s penal code further defines illegal gambling under KRS Chapter 528. In March 2023, Kentucky passed House Bill 551, legalizing mobile (online) sports betting and retail sports wagering at horse tracks. Under that law, existing racetracks may operate sportsbooks and partner with mobile betting operators.
While the modern expansion is underway, many traditional casino-style activities remain illegal or unregulated in Kentucky. Online casinos, poker rooms, blackjack, and typical slot machines are not licensed in the state.
This conservative framework has preserved Kentucky’s identity as a horse racing-centric state while enabling limited, controlled growth in other types of wagering.
Key Political and Industry Drivers in Kentucky’s Gambling Industry
Some of the key drivers shaping Kentucky’s gambling landscape include:
Horse Racing Tradition
Horse racing has historically been core to Kentucky’s identity. Legal pari-mutuel betting and on-track wagering remain central, and racetracks are now serving as venues for sports betting too.
Economic Incentives
The legalization of sports betting provides a potential new revenue stream for the state, and that revenue is partly directed to public pensions under current law.
Regulatory Conservatism
Despite opening up sports betting, Kentucky has maintained tight restrictions on casino-style gambling. This reflects both cultural attitudes and legal constraints (constitutional and statutory).
Problem Gambling Awareness
The state has made provisions in legislation for funding to address problem gambling.
Technological Innovation
Historical horse racing (HHR) machines which look like slot machines but are based on actual historic race data have grown in popularity at racetracks. These apparatuses offer a “slot-like” experience within Kentucky’s regulatory limits.
Current State Laws Regulating Gambling in Kentucky
KRS Chapter 528
Under this gambling statute, the state defines illegal gambling in the state, criminalizes unlicensed gambling devices, and sets out penalties.
KRS Chapter 230: Horse Racing (Pari-Mutuel Betting)
This statute governs racing operations, pari-mutuel wagering, licensing of tracks, and off-track betting.
House Bill 551 (2023)
HB 551 legalized sports wagering (online and at racetracks), provided licensing structure, tax rates (9.75% for retail, 14.25% for online), and regulatory oversight by KHRC.
Regulatory Rules (809 KAR)
After the bill passed, KHRC implemented sports betting regulations under this administrative code.
Kentucky Constitution Section 226
This Section of the Kentucky Constitution historically prohibited lotteries and games of chance. This was later amended to permit the state lottery and charitable gaming.
Problem Gambling Funding Provision
Under the sports betting law, a portion of revenue is earmarked for a problem-gambling fund.
HB 594
This legislation was passed to outlaw certain unregulated “skill games” or gambling devices in bars and similar establishments, classifying them as illegal gambling devices.
Latest Gambling Legislative Updates in Kentucky
Here are some of the most recent and significant legislative developments in Kentucky’s gambling space:
House Bill 551 (2023)
This is the landmark bill that legalized retail and mobile sports betting via horse racetracks. Under HB 551, a 9.75% tax on adjusted gross revenue for in-person sportsbooks and 14.25% for online wagering was established.
Problem Gambling Fund
Under Kentucky laws, regulators allocate 2.5% of online sports betting tax revenue to a problem gambling assistance fund.
KHRC’s rules (via 809 KAR): Regulation of Advertising
This law gives strict guidelines about sports wagering advertising. For example, advertising cannot target school-age children or be false or misleading.
HB 594
Governor Beshear signed a bill to ban “gray machines” (unregulated electronic devices that mimic slot machines) in bars and other non-racetrack venues.
Land-Based Sports Betting in Kentucky
Status: Legal
Land-based (retail) sports betting is legal and regulated in Kentucky, but with a twist: the only authorized venues are licensed horse racing tracks and their associated facilities.
Through HB 551, tracks may operate sportsbooks, and they can also partner with up to three mobile platform operators under their wagering license.
The Kentucky Horse Racing Commission oversees the licensing, rulemaking, and enforcement for these retail sportsbooks. Minimum age for sports betting is 18, although many operators require users to be 21+.
Retail bettors place wagers at the physical sportsbooks located inside or adjacent to racetracks. These provide a familiar in-person betting environment, often alongside other track amenities.
List of Land-Based Sports Betting Operations
Churchill Downs (Louisville)
Operator: Churchill Downs Incorporated (CDI)
Churchill Downs is the legendary racetrack in Louisville. CDI opened a retail sportsbook at Churchill Downs when Kentucky legalized sports wagering, with 15 kiosks, a large video screen, and multiple TVs.
However, in early 2025, CDI announced that in-person sports betting at Churchill Downs would be discontinued due to low profitability, citing that nearly all bets are now placed via mobile platforms.
Derby City Gaming (Louisville)
Operator: Churchill Downs Incorporated
A facility wholly owned by Churchill Downs Incorporated, Derby City Gaming sits on the grounds of the former Louisville Downs site. The venue includes a retail sportsbook with 15 betting kiosks and large-format video displays.
Ellis Park (Henderson)
Operator: Churchill Downs Incorporated
This historic thoroughbred racetrack is owned by Churchill Downs Incorporated, which acquired it in 2022.
Its sports betting facility includes 5 kiosks and is integrated into its gaming venue, which also features historical racing machines.
Mint Gaming Hall / Cumberland Run (Corbin/Williamsburg)
Operator: ECL Corbin, LLC,
The Mint Cumberland Run is a harness-racing venue that also features a DraftKings sportsbook. Their operations combine live racing, simulcast wagering, a bar and restaurant, and over 50 electronic “gaming machines.”
Newport Racing & Gaming (Newport)
Operator: Churchill Downs Incorporated
Operated by Churchill Downs Incorporated, this facility opened in 2020 as an extension of Turfway Park. Newport features 500 historical racing machines, a pari-mutuel simulcasting area, a bar, and a 10-kiosk retail sportsbook.
Oak Grove Racing, Gaming & Hotel (Oak Grove)
Operator: Churchill Downs Incorporated
Also a CDI-owned property, Oak Grove includes simulcast wagering, historical racing machines, hotel accommodations, and a retail sportsbook.
The Red Mile (Lexington)
Operator: Churchill Downs Incorporated
While not explicitly detailed in some company press releases, Churchill Downs Incorporated was granted a license for a retail sportsbook at The Red Mile as part of the six properties that opened sportsbooks in September 2023.
The Red Mile is a harness-racing track with deep history in Lexington.
Turfway Park (Florence)
Operator: Churchill Downs Incorporated
CDI owns Turfway Park, which includes live racing, a large simulcast area, and a retail sportsbook (15 kiosks, big video screen, TVs) in its gaming venue.
Kentucky Online Sports Betting
Status: Legal
Online sports betting is legal and regulated in Kentucky under House Bill 551 (2023). The Kentucky Horse Racing Commission (KHRC) is responsible for issuing permits to mobile operators and overseeing their compliance.
To participate, bettors must register for an account (sometimes pre-registration is allowed), provide valid identification (date of birth, legal name), and fund their account in a manner consistent with operator requirements.
Because the first mobile apps went live in late September 2023, the market is relatively new but growing rapidly. The tax rate on online sports betting revenue is 14.25%, with a portion allocated to problem-gambling services.
List of Online Sports Betting Operators
DraftKings Sportsbook
Operator: ECL Corbin, LLC
One of the first major operators in the state. Their operations are active via mobile app under track licenses with ECL Entertainment, LLC, which does business as The Mint Gaming Hall at Cumberland and Cumberland Run.
FanDuel Sportsbook
Operator: FanDuel Group
FanDuel Sportsbook is licensed to operate in Kentucky under the HB 551 framework. According to the Kentucky Horse Racing Commission renewal summary, it has a mobile wagering license tied to Turfway Park.
As a major national sportsbook, FanDuel offers a full suite of markets (pre-game, live, same-game parlays, futures) and has integrated responsible gambling tools. In Kentucky, it’s part of the initial lineup of licensed mobile providers.
BetMGM Sportsbook
Operator: MGM Resorts International
BetMGM is also among the operators that secured licenses to partner with racetracks. The mobile app officially launched in Kentucky on September 28, 2023, offering a wide variety of bet types (pre-game, in-play, futures, parlays).
BetMGM also integrates its MGM Rewards program, allowing users to earn benefits redeemable at MGM Resorts properties.
Caesars Sportsbook
Operator: Caesars Entertainment, Inc
Caesars Sportsbook partnered with Keeneland and Red Mile Gaming & Racing. They also have a retail Caesars Sportsbook located at Red Mile in Lexington, with five betting windows and multiple self-service kiosks.
The Caesars app ties into the Caesars Rewards loyalty program, which allows bettors to earn Tier Credits and Reward Credits for use across Caesars properties.
bet365
Operator: Hillside (Kentucky), LLC
bet365 was granted a service-provider license by the Kentucky Horse Racing Commission to operate mobile sports wagering.
As a well-known global sportsbook, Bet365 offers a broad range of bet markets, in-play wagering, and a user-friendly mobile experience.
Online Sports Betting Options for Kentucky Residents
Betting sites based offshore and accessible to U.S. players can serve as alternative venues for Kentucky players seeking to place online wagers. Because these operators are headquartered outside the United States, they operate in a legal “grey zone.” To date, there are no known cases of Kentucky players being prosecuted for placing bets on these offshore platforms.
Land-Based Casino Gambling in Kentucky
Status: Not Licensed or Regulated
Land-based casinos, featuring traditional table games such as blackjack, roulette, craps, and standard slot machines, are not licensed or regulated in Kentucky.
The state has historically maintained a conservative approach to gambling, largely limiting legal wagering to pari-mutuel horse racing, the state lottery, charitable gaming, and, more recently, regulated sports betting. However, Kentucky has not authorized commercial casinos, meaning that no full-scale casino resorts operate legally within its borders.
Despite the absence of traditional casinos, Kentucky racetracks have been permitted to introduce historical horse racing (HHR) machines, which function similarly to slot machines but are based on previously run horse races.
These machines are operated under the oversight of the Kentucky Horse Racing Commission (KHRC), providing a casino-like gaming experience while remaining compliant with the state’s restrictive gambling laws. HHR facilities, often integrated into racetrack entertainment complexes, allow patrons to enjoy electronic wagering without violating state statutes.
Attempts to expand casino gambling in Kentucky have historically faced significant political and public resistance. Various bills proposing commercial casinos have failed to pass, reflecting cultural and regulatory caution around large-scale casino operations.
As a result, Kentucky remains one of the few states in the U.S. without full-scale commercial or tribal casinos, offering a highly limited legal landscape for land-based casino gaming.
List of Land-Based Casino‑Style (HHR) Operations
Derby City Gaming (Louisville)
Operator: Churchill Downs Incorporated (CDI)
Situated near Churchill Downs, Derby City Gaming is a flagship HHR venue. It opened in September 2018 as a ~85,000 sq ft facility with hundreds of historical horse racing machines.
The gaming machines run on Ainsworth’s HHR system. Moreover, the property has since expanded, with a hotel added and a new downtown Louisville annex (“Derby City Gaming Downtown”) that opened in December 2023, featuring 500 HRMs and a Derby-themed entertainment space.
Oak Grove Racing, Gaming & Hotel (Oak Grove)
Operator: WKY Development, LLC
A harness racetrack facility combined with a modern gaming venue. Oak Grove’s HHR parlor houses up to 1,300+ historical racing machines per the development plan.
The site also includes a 128-room hotel, a concert amphitheater, RV park, and event center, making it a multi-use entertainment complex.
Newport Racing & Gaming (Newport)
Operator: Churchill Downs Incorporated
This facility acts as a non-contiguous HHR satellite of Turfway Park. It focuses on historical wagering, with simulcast and a large bank of HRMs.
Turfway Park (Florence)
Operator: Turfway Park, LLC
Turfway Park is a thoroughbred racetrack that also oversees HHR operations at its Newport annex. While live racing happens at the Florence site, the historical racing machines are placed at Newport under Turfway’s license.
The Red Mile (Lexington)
Operator: Lexington Trots Breeders Association, LLC
Red Mile is a harness track with a long history. It has hosted HHR gaming in partnership with Keeneland. However, operations have faced legal uncertainty: HHR machines at Red Mile were temporarily closed after a Kentucky Supreme Court decision raised questions about how they fit under pari-mutuel wagering laws.
Ellis Park (Henderson)
Operator: Churchill Downs Incorporated
A traditional thoroughbred racetrack that has added HHR machines. According to recent reports, Ellis Park has significantly invested in HHR gaming, bringing in hundreds of machines to its venue.
Online Casino Gambling in Kentucky
Status: Not Licensed or Regulated
Online casino gambling, which includes virtual slot machines, table games, and live-dealer experiences, is not licensed or regulated in Kentucky.
Kentucky’s restrictive approach is rooted in the state’s longstanding preference for limited gambling activities. While pari-mutuel horse racing, historical horse racing machines at racinos, and lottery games are legal and regulated, online casino gaming has not yet been authorized. This conservative stance aligns with legislative resistance to broad casino expansion, reflecting concerns over social impacts and regulatory challenges.
As a result, Kentuckians seeking digital gambling experiences are largely limited to sports betting apps, where mobile wagering is permitted via licensed operators tied to in-state racetracks.
No licensed providers offer online slots, blackjack, or roulette, and there is no official state oversight for virtual poker or other traditional casino games.
Until the legislature changes the law, online casino gaming remains illegal and unregulated, making Kentucky one of the few U.S. states without authorized digital casino entertainment.
Online Casino Options for Kentucky Residents
Online casinos based offshore that accept U.S. players serve as an alternative for Kentucky players seeking online gambling. Since these operators are located outside the United States, they exist in a legal “grey zone.” To date, there is no record of individuals being legally prosecuted solely for playing on these offshore platforms.
Land-Based Poker in Kentucky
Status: Not Licensed or Regulated
There are no legal commercial poker rooms or card rooms, since traditional casino operations are not permitted. Private poker games (e.g., home games) may occur, but commercial rake or profit-taking venues are not allowed.
Online Poker in Kentucky
Status: Not Licensed or Regulated
Similar to land-based poker, online poker is not licensed or regulated in Kentucky. Poker rooms operating via the internet are not authorized under state statutes, so any poker played through real-money online platforms would involve unlicensed or offshore operations.
Online Poker Options for Kentucky Residents
Online poker sites based offshore and accessible to U.S. players can serve as alternative venues for Kentucky players seeking to place online wagers. Because these operators are headquartered outside the United States, they operate in a legal “grey zone.” To date, there are no known cases of Kentucky players being prosecuted for placing bets on these offshore platforms.
Kentucky Land‑Based Horse Betting
Status: Legal
Horse racing is a core part of Kentucky’s gambling industry. Legal pari-mutuel wagering is permitted at licensed racetracks, where bettors can place wagers on live racing.
Kentucky has a number of prominent tracks (such as Churchill Downs, Turfway Park, and The Red Mile) that host both racing events and betting operations.
The Kentucky Horse Racing Commission (KHRC) regulates these tracks, ensures integrity in racing, and oversees the pari-mutuel wagering system.
Because of its deep racing tradition, these betting operations remain popular and culturally significant in the state.
List of Horse Racing Operations
Churchill Downs (Louisville)
Operator: Churchill Downs Incorporated
The most iconic racetrack in the U.S., home of the Kentucky Derby. Offers live thoroughbred racing, simulcast wagering, and full pari-mutuel betting on a broad range of races.
Derby City Gaming (Louisville, Downtown)
Operator: Churchill Downs Incorporated
A satellite gaming and racing venue under CDI’s umbrella. It provides simulcast betting on horse races and pari-mutuel wagering, leveraging its Derby City location to offer a hub for betting on live and off-track races.
Ellis Park (Henderson)
Operator: Churchill Downs Incorporated
A historic thoroughbred track just across the river in Henderson, with live race meets and pari-mutuel wagering. It also handles simulcast betting, allowing bettors to wager on racing from elsewhere.
Keeneland (Lexington)
Operator: Keeneland Association, Inc.
World-renowned for its spring and fall racing meets, Keeneland offers thoroughbred racing, pari-mutuel wagering, and simulcasting. Although part of a joint-venture with The Red Mile for HHR, its core racing operation remains strictly pari-mutuel.
Kentucky Downs (Franklin)
Operator: Kentucky Downs, LLC
This venue offers a unique turf course (“European-style”), with a brief but high-stakes yearly live meet. Known for very large purses, it also supports pari-mutuel wagering and simulcasting.
Oak Grove Racing (Oak Grove)
Operator: WKY Development, LLC
A harness-racing track that conducts pari-mutuel wagering on live harness races. It also offers simulcast betting, letting patrons bet on races from other tracks via its facility.
The Red Mile (Lexington)
Operator: Lexington Trots Breeders Association, LLC
A historic harness racing track. It runs live harness races and supports pari-mutuel wagering. Through its joint-venture with Keeneland, it also has ties to broader wagering operations in the state.
Online Horse Betting in Kentucky
Status: Legal
Online horse betting is legal and regulated in Kentucky, making it one of the primary forms of lawful digital gambling in the state.
The Kentucky Horse Racing Commission (KHRC) oversees all online pari-mutuel wagering, ensuring that operators comply with state regulations and maintain fair and secure betting environments.
Residents can place bets on thoroughbred and harness races via licensed mobile applications and desktop platforms that are tied to in-state racetracks or historical horse racing facilities.
Operators such as Churchill Downs, Keeneland, Kentucky Downs, Turfway Park, Ellis Park, and The Red Mile provide approved online wagering platforms.
These services allow bettors to access a wide range of betting options, including win, place, show, exacta, trifecta, superfecta, and multi-race wagers, all from the convenience of their homes or mobile devices. The KHRC ensures that all transactions are secure, bets are properly recorded, and taxes are collected on winnings.
Online horse wagering represents the state’s primary legal avenue for digital gambling, offering a convenient, safe, and fully licensed option for residents interested in participating in pari-mutuel betting without visiting a physical racetrack.
List of Online Horse Betting Operations in Kentucky
TwinSpires
Operator: Churchill Downs Technology Initiatives Company
One of the most prominent ADW platforms, TwinSpires offers a full suite of pari-mutuel wagering options (win/place/show, exotics, multi-race bets), live streaming of races, race replays, and handicapping tools.
As Churchill Downs’ owned platform, it has very strong ties to Kentucky racing and is fully licensed by the Kentucky Horse Racing Commission.
Keeneland Select
Operator: Keeneland Association, Inc.
This platform is designed for bettors who want a direct connection to Keeneland’s racing and mission. Users can wager on races worldwide, stream live racing, and earn rewards.
It supports both desktop and mobile wagering, and a portion of its net revenues helps fund Keeneland’s purses and racing programs.
Xpressbet
Operator: Xpressbet, LLC
A very established ADW provider, Xpressbet offers wagering on hundreds of tracks, including those in Kentucky. It features live streaming, detailed performance data, and a user-friendly interface across desktop and mobile devices.
1/ST BET
Operator: Xpressbet, LLC (the same company behind Xpressbet runs the 1/ST BET app)
A mobile-first racebook app focused on simplicity and speed. Bettors can watch live races, get quick handicapping tools, and place standard pari-mutuel bets (win/place/show) from their phone. The app is tailored for bettors on the go.
FanDuel Racing
Operator: FanDuel Group / Flutter Entertainment
FanDuel’s dedicated racing app integrates racing with its broader wagering ecosystem, offering shared wallet functionality with its sportsbook.
It provides live race streaming, replays, bet placement, and basic handicapping insights. These are ideal for casual and intermediate horse bettors.
Kentucky Lotteries
Status: Legal
The Kentucky Lottery is fully legal and operational. It offers a variety of games, including scratch-off tickets, daily draw games, and multi-state draws (e.g., Powerball, Mega Millions).
The Kentucky Lottery Corporation oversees these operations, ensuring that games are run fairly, and that proceeds are distributed according to state law (often funding public programs). Online sales are available for certain lottery games, depending on regulation.
List of Kentucky Lottery Platforms
Kentucky Lottery (Retail Sales)
Operator: Kentucky Lottery Corporation
The Kentucky Lottery is readily available at convenience stores, gas stations, and other authorized retailers across the state.
Kentucky Lottery Instant Play
Operator: Kentucky Lottery Corporation
Licensed online portals offer scratch and instant games through Lottery Instant Play.
Kentucky Sweepstakes
Status: Gray Area
Sweepstakes operations, which typically allow players to participate in games or receive prizes without a required purchase, occupy a legally grey area in Kentucky.
Unlike traditional casinos or pari-mutuel wagering, sweepstakes are not explicitly regulated under the state’s gambling statutes. This means that while some operators market sweepstakes-style games, contests, or “social casinos” to Kentucky residents, they do so without a clear license or formal oversight from the state.
Kentucky law broadly prohibits unauthorized gambling, and the definition of gambling typically involves three elements: consideration, prize, and chance.
Sweepstakes operators attempt to comply by removing the consideration element, offering free entries, or structuring promotions in ways that argue legal compliance.
However, enforcement can vary by county, and operators may be subject to legal challenges if authorities deem the games to be unlawful gambling.
Because there is no dedicated licensing regime for sweepstakes in Kentucky, residents who participate in sweepstakes-style gaming do so at their own risk.
Operators often provide disclaimers noting that their offerings are “not real money gambling” and are designed for entertainment purposes only.
While sweepstakes are popular for casual gaming, they remain legally unregulated, and players cannot rely on state protections or oversight.
Kentucky Sweepstakes Casinos
Status: Not Legal
In Kentucky, sweepstakes casinos are not licensed or regulated. The state has not enacted any legislation specifically authorizing this type of gaming, which means these operations function in a legal gray area.
Kentucky has had significant debate over “skill-game” devices (sometimes called gray machines) in bars and small establishments. These machines mimic slot machines but claim to be based on skill rather than pure chance.
n 2023, lawmakers passed legislation banning many unregulated “skill games,” classifying them as illegal gambling devices.
Kentucky Gambling FAQ
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