Kentucky Governor Vetoes Bill Banning Certain College Player Prop Bets, Raise Betting Age to 21

• Kentucky Gov. Andy Beshear (D) vetoed gambling bill HB 905
• The approved legislation would have raised the state’s sports betting age to 21, banned under bets on collegiate sports, and modified several other gambling rules in the state
• Gov. Beshear vetoed the legislation more due to his official requirements rather than anything gambling related

Gov. Andy Beshear (D) vetoed a sweeping gambling bill this week that would have modified several Kentucky gaming regulations in the Bluegrass State.

Gov. Beshear vetoed HB 904, the “Wagering Consumer Protection Act,” which would have raised the Kentucky’s sports betting age from 18 to 21, prohibit under prop bets on individual collegiate athletes, legalized fixed-odds wagering on horse racing, and prohibit partnerships between licensed sports betting operators and horse tracks in the states with companies offering sports event contracts.

The governor vetoed the bill more due to his official requirements as governor, rather than anything gambling related.

Lawmakers Can Modify the Bill

Gov. Beshear vetoed the approved bill on Monday, April 13. The governor included the following veto message for the bill:

“I am vetoing House Bill 904 because it would authorize two Executive Branch agencies, the Kentucky Lottery Corporation and Kentucky Horse Racing and Gaming Corporation, to file emergency and ordinary administrative regulations without the Governor ‘s review and signature. Under the Kentucky Constitution, the Governor is the Chief Magistrate of the Executive branch and has a duty to ensure all laws are faithfully executed, including by agencies carrying out the law through regulation. In that role, the Governor reviews proposed emergency regulations to ensure they are necessary and meet legal requirements for emergency filing. Authorizing an agency to file an emergency regulation in this manner would prevent the Governor from carrying out his constitutional duties and allow boards and agencies to impose rules on Kentuckians without executive oversight, including boards whose decisions impact public safety.”

House and Senate members now have two days to consider the governor’s veto of the bill. The House and Senate can override the governor’s veto by each casting a simple majority, requiring 51 yes votes in the House and 20 in the Senate.

Gambling Bill Details

The legislation, if eventually approved, will modify several sports betting, gambling, and daily fantasy sports regulations in Kentucky. The legislation will effectively raise the state’s minimum sports betting age from 18 to 21, as Kentucky is one of the few states in the country to allow 18-year-olds to bet on sports.

Additionally, the legislation will prohibit sports betting users from betting on individual collegiate athlete props “if the successful outcome of the wager is contingent upon the athlete failing to met a specified statistical threshold or experiencing a negative performance outcome.”

The legislation would also bar any track or association holding a license to conduct horse racing, sports betting, or daily fantasy sports from participating in or contract with platforms that offer event contracts through a prediction market in the state.

The bill would also do the following in the state:

• Legalize fixed-odds wagers on horse racing
• Established licensing requirements for daily fantasy sports operators
• Sets a 15% tax rate for both fixed-odds horse racing and daily fantasy sports
• Notify bettors withing 24-hours if they are limited and the reason for the action