The Kentucky Horse Racing and Gaming Corporation (KHRGC) reports that bettors in the Bluegrass State have wagered an impressive $2.9 billion between the market’s launch and October 2024. Of this total, a staggering $2.8 billion came through online platforms, while $100 million was placed at retail sportsbooks.
The financial impact has been equally noteworthy. Sports betting has generated $46.1 million in state excise taxes, far surpassing initial projections. Representative Michael Meredith, who sponsored House Bill 551 to legalize sports betting, highlighted the success, stating,
“$23 million was our projection… to further take that down the pike, $41.5 million [has gone] to the permanent pension fund.”
The tax revenue is divided into three areas: covering program administration costs, contributing 2.5% to the problem gambling fund, and allocating the remainder to Kentucky’s pension fund. This balanced approach has maximized the societal and economic benefits of legalized KY sports betting.
Prime Sports Joins the Market
The KHRGC recently announced the addition of a ninth online sportsbook for 2025: Prime Sports, partnering with the iconic Churchill Downs. Already active in Ohio and New Jersey, Prime Sports promises a tailored experience for bettors, offering reduced juice for sharp bettors, recreational bonuses for casual players, and high betting limits.
Churchill Downs’ decision to pivot from operating its own TwinSpires Sportsbook to a partnership-based approach appears to be paying off.
Churchill Downs’ relationship with Prime Sports builds on its strategy to supply horse racing products to leading sportsbooks like FanDuel and DraftKings.
Alongside its new online partnership, Churchill Downs continues to operate retail sportsbooks across its Kentucky locations in collaboration with Kambi.
Prime Sports enters a competitive landscape that already includes established players like Bet365, BetMGM, Caesars, FanDuel, DraftKings, and ESPN Bet. The KHRGC has renewed licenses for these eight operators, ensuring a diverse market for Kentucky bettors.
Momentum Continues Across the State
The growth of Kentucky sports betting has exceeded industry expectations. October 2024 alone saw $274.9 million in wagers, generating $2.9 million in excise taxes. For fiscal year 2025, historical horse racing (HHR) also experienced a 10% year-over-year increase, with $3.3 billion in handle.
Additionally, KHRGC President and CEO Jamie Eads underscored the sector’s success in a recent committee meeting, stating,
“Sports betting has exceeded expectations.”
Her remarks reflect the widespread sentiment among lawmakers and industry leaders alike.
Looking ahead, Kentucky’s commitment to innovation and partnership is clear. The state is exploring agreements with the Horseracing Integrity and Safety Authority (HISA) and the Horseracing Integrity and Welfare Unit (HIWU), reflecting its dedication to integrity within both sports and wagering.
As Kentucky continues to refine its approach, its achievements in sports betting signal a bright future. With strong regulatory oversight, robust market competition, and a focus on maximizing public benefit, the Commonwealth is setting a benchmark for other states to follow.
