The state of Kentucky, which legalized sports betting in 2023, is now facing a deep review of its regulation. House Bill 904, introduced on March 4, introduces changes on several fronts simultaneously: the legal gambling age, betting on college players, technical requirements for operators, and the tax treatment of horse racing facilities.
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The initiative reflects a trend observed in several states across the country, where the experience accumulated since legalization has generated legislative pressure to adjust and tighten existing regulations.
The ban on prop bets in Kentucky college sports
The most debated point of HB904 is the restriction on so-called special bets, known in the sector as prop or proposition bets. Under this proposal, sportsbooks and service providers would not be able to accept or offer bets on the individual performance of players in games involving college teams from the state of Kentucky itself.
The ban does not extend to bets on the final outcome of games, but only to those involving individual statistics: the number of points scored by a player, passing yards completed, rebounds achieved, or other personal performance metrics.
This type of restriction is not exclusive to Kentucky. Louisiana, for example, has moved forward with an even broader proposal that seeks to completely ban sports betting linked to the state’s college teams.
The minimum gambling age rises from 18 to 21
Another central change of HB904 is the modification of the age requirement to participate in sports betting, fantasy contests, and charitable gaming activities. The bill raises that threshold from 18 to 21, aligning Kentucky with the majority of states where sports betting is legal.
Currently, Kentucky is one of only six jurisdictions in the United States that allow betting starting at age 18. The other five are Montana, New Hampshire, Rhode Island, Washington D.C., and Wyoming. If HB904 is approved, Kentucky would leave that small group and adopt the more widespread national standard.
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Technical and operational requirements for licensed operators
The legislation also introduces specific obligations for sportsbooks operating in the state. Operators must verify the identity of customers making deposits or withdrawals and implement commercially reasonable technology to protect users’ personal information.
The use of geolocation systems will be mandatory to ensure that bets are accepted only from individuals physically located within Kentucky’s borders. Additionally, servers used to process bets must be located within the state, a requirement that adds a layer of jurisdictional control over the sector’s technological infrastructure.
Licensed racetracks may contract up to three service providers to manage their sports betting operations, including online platforms and mobile apps. In all cases, these platforms must operate under the brand of the racetrack, the service provider, or both.
Sanctions for illegal gambling: Class B misdemeanor
HB904 also specifies the legal consequences for those who facilitate unlicensed gambling activities. Anyone who knowingly allows such activities to take place on their property and does not take steps to stop them within a reasonable timeframe could face criminal charges. The legislation classifies this conduct as a Class B misdemeanor under Kentucky law.
Kentucky on the U.S. betting regulatory map
The introduction of HB904 places Kentucky in a legislative conversation that is being replicated in multiple states. The rapid expansion of sports betting in recent years has raised questions about its effects on vulnerable populations, the integrity of college sports, and the adequacy of initial legal frameworks.
The proposal to raise the minimum age to 21 and limit bets on local college players represents a sign of regulatory maturation: states that legalized first are now beginning to review and adjust the conditions under which that market operates.
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