KHRC to take up Kentucky sports betting regulations in special July meeting

Kentucky Horse Racing Commission chairman Jonathan Rabinowitz told the KHRC board Tuesday that initial drafts of the proposed regulations will be published at the commission's website soon and that the board will hold a special meeting to review and vote on them in early July.

Kentucky's sports betting law goes into effect July 1, but the KHRC has until the end of 2023 to put regulations into place. A July approval would allow the state to take advantage of the start of football season as an opportune time to mark Kentucky's entry into the sports wagering marketplace. 

The sports betting law passed by Kentucky legislators in March gives the KHRC oversight of sports betting in Kentucky, with licenses going to horse racing tracks, who will partner with various vendors.

That means online and app-based platforms like DraftKings, BetMGM and FanDuel will be able to operate in Kentucky only after reaching an agreement with one of the horse tracks, ensuring they will also receive a cut of the online wagering.

Keeneland and The Red Mile in Lexington announced a partnership with Caesars Sportsbook in May. Churchill Downs has been working with FanDuel and DraftKings in various capacities.

Rabinowitz told commissioners that representatives of KHRC have met with regulators from a number of states, as well as Major League Baseball, in crafting Kentucky's rules.

"Meetings with state regulators in Massachusetts, Indiana, New Jersey, Ohio and Colorado have provided valuable insight into best practices," he said. "Many of these regulators have recently rolled out sports wagering in their states in providing tips learned from real world experience. Meetings with service providers and visits to multiple sportsbook sites provided a look at the extensive technologies employed to protect the integrity of wagering. There have been discussions with stakeholders about problem gambling programs in Ohio, to form the program being developed in Kentucky at the Cabinet for Health and Family Services. Our legal counsel has met with counsel from sports associations, such as Major League Baseball, to learn about emerging legal issues."

He said the KHRC has contracted with an outside firm, Gaming Labs International, to provide consulting services and training.

Earllier, KHRC announced that it will 14 new positions in connection with sports wagering, including investigative, analytical and administrative jobs.

"Needless to say, this is an exciting time for the commonwealth," Rabinowitz said.