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Gambling laws in Kentucky are fairly restrictive, with all forms of casino gambling deemed illegal in the state. However, recent changes in the law mean both online and offline sports betting is now legal in Kentucky. Learn more about Kentucky's gambling laws in our article below.

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Gambling laws in Kentucky are covered by Kentucky Revised Statutes Section 528, but gambling games are generally only regarded as those predominantly involving chance, not skill. That said, casino gambling is illegal in Kentucky, while other offline and online gambling forms are legal. Here's a look at how each gambling activity is classed according to the gambling laws of Kentucky.

Casino Games

Casino gambling is illegal in Kentucky. Unlike many other US states, there are no officially recognized tribes in Kentucky, 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 casino gambling is unregulated but generally classed as illegal in Kentucky. Existing laws were deemed to include online casino operators, as demonstrated by a 2015 court ruling against PokerStars for monies lost by Kentuckian gamblers at the site. While the laws are strict regarding online casino operators, those playing such games are much less likely to be prosecuted, with no record of any punishments against players for enjoying online casino slots or other such games at online casino sites.

Poker

Poker gambling is illegal in Kentucky despite claims that the game is predominantly one of skill. State residents can play real money poker games within private residences without commercial profiting. Online poker gambling is illegal in Kentucky, with operators facing stiff prosecution. Still, players can enjoy poker games at various online sites without fear of prosecution, as no action has ever been taken.

Bingo

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

Lotteries

Lottery gambling is legal in Kentucky, with the Kentucky Lottery the official licensed vendor of lottery tickets and games in the state. Residents can buy tickets for popular draw-based games such as the Powerball and Mega Millions draws, instant win games, scratch cards and keno.

Online lottery gambling is also legal in Kentucky, but again, only via the Kentucky Lottery, whose website operates somewhat like an online casino, even offering bonuses to new players. Kentuckians can play other online lottery games for real money via the numerous sites that accept state residents, although this is technically deemed illegal.

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Real-money social 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 specifically regulated in Kentucky. However, there is ongoing debate on the subject.

Kentucky recognizes Bitcoin and other virtual coins as a form of currency, with the state even encouraging cryptocurrency mining operations through tax breaks. However, none of the existing gambling venues in the state currently accept cryptocurrencies as payment. Those wishing to play casino games with their Bitcoin and altcoins can do so at crypto casinos. While this is generally regarded as illegal gambling, there appears to be no appetite to prosecute players.

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Known best for its world-famous Kentucky Derby, Kentucky 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 machines are almost identical to slots, which are illegal in the state.

Thanks to laws passed in early 2023, online betting on horse racing, plus an array of other offline and online sports, is now legal in Kentucky, with bets expected to be accepted from September 2023.

Due to existing gambling laws specifically mentioning games of chance, not skill, daily fantasy sports contests have been operating in Kentucky on the assumption that they'd be legal in the state, with no court cases yet being brought to challenge them. That means Kentuckians can access leading DFS sites such as DraftKings and FanDuel.

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

Tax Regulation

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

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Gambling in Kentucky dates back to the late 1800s when such activities as lotteries could be held to generate funds for public developments such as roads and schools. In 1881, parimutuel betting was legally defined and permitted in Kentucky. 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 racing and greyhound racing 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 legalized 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 legalized in early 2023, allowing the state's racetracks to offer online betting.

Key Facts

Kentucky gambling laws are quite restrictive regarding casino gambling but less regarding parimutuel and sports betting. Here's a look at the key points surrounding gambling in Kentucky:

• Casino gambling is illegal in Kentucky, with no casinos currently operating.
• 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 charitable organizations offer 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 in Kentucky.