There’s no photo finish here. Celebrating a year since sports betting started in Kentucky, Governor Andy Beshear says the revenue is beyond expectations.
“The first year of sports betting was hugely successful and exceeded all expectations,” Beshear said, highlighting the financial benefits from the new activity.
In fiscal year 2024, sports betting brought in more than $37 million to Kentucky, mainly through taxes and licensing fees.
“In July, driven by interest in the summer Olympics, the trend continued, generating an additional $2 million in state tax revenue and bringing us close to $40 million in revenue through July. With one year of data, we can see some initial trends,” Beshear said.
With top sportsbooks like FanDuel and DraftKings leading the charge, Kentucky’s first year of sports betting not only surpassed revenue expectations but also showcased the growing influence of these industry giants in driving millions in state tax revenue.
Quite a First Year for Sports Betting in Kentucky
Sports betting became legal in Kentucky on September 7, 2023, allowing brick-and-mortar locations to start taking bets. Mobile betting followed on September 28, 2023.
In the 11 months since then, residents have wagered over $2.15 billion through digital channels, according to the Kentucky Horse Racing Commission (KHRC). In fact, people in Kentucky bet $1.36 billion on sports during the first six months of legal online wagering.
Kentucky sportsbooks have earned almost $253 million in adjusted revenue from these bets, generating more than $36 million in taxes for the state.
FanDuel is King of Online Betting in Bluegrass State
When it comes to online sports betting operators that Kentuckians love best, it’s FanDuel and DraftKings leading the way. DraftKings handled nearly $48 million in bets, earning almost $6 million in revenue in July alone.
But FanDuel is not far behind. It saw the biggest gains in the firecracker month, making a little more than $6 million from just over $41 million in bets. That adds up to about 40% of the state’s total gross operator revenue. This pushed FanDuel’s total winnings in Kentucky past $100 million since the state’s launch.
bet365 also performed well, earning more than $1 million from nearly $15 million in bets, marking the third consecutive month it surpassed a million dollars in revenue.
Retail sportsbooks in Kentucky struggled. In July, their betting handle dropped to $3.8 million, down nearly $1 million from June and $2 million from May. Kambi Sportsbook at Churchill Downs had the most wagers among retail operators in July.
Problem Gambling and Prop Bets Remain Under Microscope
Beshear talked about the state’s efforts to handle the downsides of legalized gambling, especially problem gambling. He said the problem gambling fund is showing early signs of success, but more data is needed to fully understand its impact. The governor is confident in Kentucky’s regulatory approach, which has moved from emergency rules to more permanent ones.
One ongoing issue is the debate over prop bets, especially in NCAA sports. There are concerns that bets on specific in-game actions could unfairly influence athletes. NCAA officials are discussing this as the state continues to refine its sports betting approach.
And based on the trends Governor Beshear mentioned, with or without NCAA prop bets, Kentucky sports betting is expected to remain strong.
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