Gambling Laws in Kentucky

Gambling laws in Kentucky are fairly restrictive, with most types deemed illegal in the state. However, recent changes in the law mean both online and offline sports betting is now legal in Kentucky.

What Types of Gambling Are Legally Permitted in Kentucky?

Laws are covered by the Kentucky Revised Statutes Section 528, but gambling games are generally only regarded as those predominantly involving chance and not skill.

Playing Online and Offline Casino Games

Casino gambling is illegal in Kentucky. Unlike many other US states, there are no officially recognised tribes either, so there are no tribal casinos. The state does not permit land-based commercial casinos either. Those wishing to play casino games must travel out of state.

Online gambling is unregulated and generally classed as illegal. Existing laws include online casino operators, as demonstrated by a 2015 court ruling against PokerStars for monies lost by Kentuckian gamblers at the site. No prosecutions to date have been bought against any individual residents though for playing at any out-of-state US online casino.

Gambling on Poker

State residents can play real money poker games within private residences without commercial profiting. Online poker gambling is illegal, with operators facing stiff prosecution.

Real Money Bingo

Land-based bingo gambling is legal in Kentucky, but games can only be offered by charitable organisations. Online bingo gambling is generally classed as illegal. However, residents tend to have little trouble accessing games at bingo casinos online, with authorities showing little interest in prosecuting them.

Purchasing Lottery Tickets

Lottery gambling is legal with the Kentucky Lottery the official licensed vendor of tickets and games in the state.

Online lottery gambling is also legal but only via the Kentucky Lottery, whose website operates somewhat like an online casino. Players can even scoop free tickets and casino cashback bonuses for new and existing players.

Gambling Socially and Online Crypto Casinos

Real-money games in private residences are permitted by law in Kentucky as long as there is no commercial profiting. Modern forms of what could be classified as gambling, such as loot boxes and skins gambling, haven't yet been regulated. However, there is ongoing debate on the subject.

Kentucky recognises Bitcoin and other virtual coins as a form of currency, with the state even encouraging cryptocurrency mining operations through tax breaks. None of the existing gambling venues in the state currently accept cryptocurrencies as payment though.

Those wishing to play casino games with their Bitcoin and altcoins can do so at online crypto casinos. While this is generally regarded as illegal gambling, there appears to be no appetite to prosecute players.

What Are the Kentucky Sports Betting Laws?

Known best for its world-famous Kentucky Derby, the state is home to a vibrant horse racing industry via nine racetracks, including Churchill Downs and Keeneland. Many of these venues also offer historical horse racing (HHR) betting machines, much to the criticism of those who claim these are identical to slots, which are illegal in the state.

Thanks to laws passed in early 2023 all types of online sports betting are now legal in Kentucky.

Due to existing gambling laws specifically mentioning games of chance, not skill, DFS contests have been operating on the assumption that they'd be legal. That means Kentuckians can access leading sites such as DraftKings and FanDuel.

Kentucky Age Restrictions for Gambling

This is generally 18 years old for most forms of gambling in the state, including lottery, bingo and sports betting.

Tax Regulations for Gamblers

Kentucky has proposed tax rates of 9.75% for land-based sportsbooks and 14.25% for online sports betting operators. Residents must pay a 6% tax on their winnings from any gambling activities. This is in addition to the 24% tax that is withheld on a federal level. 

History of Gambling Laws in Kentucky

Gambling in Kentucky dates back to the late 1800s when activities such as lotteries could be held to generate funds for public developments.

In 1881 parimutuel betting was legally defined and permitted in Kentucky. Whilst in 1891 all forms of gambling including lotteries, were deemed illegal except parimutuel betting by the Kentucky Constitution.

Almost 100 years later, in 1980, the law was amended to permit parimutuel betting only on licensed premises within certain hours. 2 years later, the law was changed to allow horse and greyhound race betting on a wider scale.

In 1988 a vote resulted in overwhelming support for a state lottery, with the Kentucky Lottery launching the following year. Games for charitable purposes were then legalised in 1992.

From 2010 to 2021, various cases were brought to debate the legality of historical horse racing (HHR) machines, with the ultimate ruling deeming them legal.

Online and offline sports betting were legalised in early 2023, allowing the state's racetracks to offer online betting.

Key Facts

• Casino gambling is illegal in Kentucky, with no casinos currently in operation.

• Online casino gambling is unregulated but classed as illegal.

• Poker gambling is illegal in both offline and online forms.

• Bingo gambling is legal, but only games offered by charitable organisations are permitted.

• Online bingo gambling is classed as illegal.

• Online and offline lottery gambling is legal, but only via the Kentucky Lottery.

• Online and offline sports betting is legal.