With the launch of Kentucky sports betting set for September 28, 2023, a spotlight has been placed on what sports betting revenue will look like in the Bluegrass State and the impact it will have on the local economy.
Following significant online sports betting launches in states like Maryland, Ohio, and Massachusetts, the expectation is that Kentucky will see its own small boom come late September.
Below, you can get a closer look at the expected business and market attached to KY sports betting.
Predictions for Kentucky Sports Betting Revenue Growth
Sports Betting Dime keeps track of legal sports betting growth and wagering by providing monthly financial reports for different states. Seeing as Kentucky sports betting has yet to launch, there’s nothing to report on yet. However, you can check back on this page later for updated numbers on how the state is performing after Sept. 28.
That said, we can use a nearby state to help predict what Kentucky’s first month of online sports betting might look like.
The state of Tennessee earned roughly $68 million in tax revenue from sports betting in 2022. Kentucky Majority Floor Leader cited this number (Source: Kentucky Sports Betting Tax: Rate for Online Betting Set by HB 551 | Lexington Herald Leader) when estimating Kentucky would bring in $23 million in annual sports betting tax revenue moving forward (Tennessee has a larger population and higher sports betting taxes).
Louisiana, which has a closer population to that of Kentucky, pulled in $33.9 million in tax revenue last year.
Expect the Bluegrass State to make anywhere from $25 million to $35 million in annual sports betting tax revenue. Their lower-than-average legal gambling age of 18 years could also help them beat projections, so that is important to keep in mind.
KY Sports Betting Market Share
For an even clearer picture on what the KY sports betting market might look like moving forward, we’ve compiled a few important insights about the state that are worth pointing out.
State Population (2020 Census): 4.51 million
Nearby Major League Teams: Tennessee Titans, Cincinnati Bengals, Indianapolis Colts, St. Louis Cardinals, Cincinnati Reds, Nashville Predators
Launch Date: September 28, 2023
Regulator: The Kentucky Horse Racing Commission
Platforms: Online and retail
Tax Rate: 9.75% (retail sports betting tax rate) and 14.25% (online sports betting tax rate)
Legal Gambling Age Requirement: 18+
How Does the Kentucky Sports Betting Industry Compare to Other States?
With a population just over 4.5 million, Kentucky is middle-of-the-pack when it comes to US state population sizes.
Comparing Kentucky to Louisiana regarding sports betting likely gives us the best picture of their upcoming launch as they are nearly identical in size. However, looking at Tennessee can also be helpful due to geographic proximity.
NOTE: To give a more accurate assessment, we focused on the first months of sports betting revenue in these states when many major sports betting operators joined their fray with their full mobile app and website offerings.
| State (Month) | Total Betting Handle | Revenue | Hold Percentage | State Tax Revenue |
|---|---|---|---|---|
| Louisiana (Feb. 2022) | $238,413,596 | $17,294,691 | 7.3% | $2,354,846 |
| Tennessee (Dec. 2020) | $180,900,000 | $13,900,000 | 7.68% | $3,080,000 |
As previously mentioned, the state of Kentucky is expecting an annual state tax revenue of around $23 million. When compared to Louisiana and Tennessee, one can reasonably expect Kentucky’s revenue to climb as high as $35 million.
Analyzing Sports Betting Revenue by Sport in Kentucky
Kentucky doesn’t have any professional sports teams within its state borders, so it’s not necessarily known as a large sports market. However, between the University of Kentucky and several nearby pro teams, there’s no shortage of betting options for KY residents.
Here is a brief look at the key sports teams that will likely drive Kentucky sports betting revenue moving forward:
| Sports League | Nearby Kentucky Teams to Bet |
|---|---|
| NFL | Cincinnati Bengals, Indianapolis Colts, Tennessee Titans |
| NBA | Indiana Pacers, Charlotte Hornets |
| MLB | Cincinnati Reds, St. Louis Cardinals |
| NHL | Nashville Predators, St. Louis Blues, Columbus Blue Jackets |
| MLS | Columbus Crew, FC Cincinnati, Nashville SC, Charlotte FC, St. Louis City SC |
| College | Kentucky Wildcats, Louisville Cardinals, Bellarmine Knights, Eastern Kentucky Colonels |
Outside of the handful of collegiate programs located within the Bluegrass State, Kentucky bettors will have to look elsewhere for professional teams and sports to bet on. However, the beauty of online sports betting is that you can bet on whichever sport or league you want regardless of your physical location. That means despite being in Kentucky, you can bet on your favorite teams in Ohio, Indiana, and Tennessee.
With Kentucky sports betting set to launch during the early days of NFL and college football season, the general expectation is that football betting will drive most of KY’s sports betting revenue in the latter half of 2023.
Tips to Maximize Revenue From Kentucky Sports Betting Affiliates
Once the Kentucky sports betting industry takes off, the best tip to help maximize revenue from KY sports betting affiliates is claiming launch day sign-up offers. These types of offers are extremely user friendly and designed to reward new bettors with an instant influx of bonus cash.
It’s currently unclear what each respective KY sportsbook’s launch day promotion will be. However, these offers usually range from “Bet and Get” promo codes involving $100-200 in bonus bets, to deposit matches as high as $1,250.
Below is a list of the top Kentucky sports betting apps that will be available for download come Sept. 28.
Kentucky Sports Betting Revenue Summary
The launch of mobile Kentucky sports betting is quickly approaching, and with the NFL and CFB seasons on the horizon there’s potential for a big launch for the Bluegrass State and its residents.
While it’s highly unlikely the state will rival the recent launches that took place in Ohio and Massachusetts, there’s still potential for Kentucky to establish itself as a prominent betting market in the Southeast/Midwest.
You can check this page regularly for the latest trends in Kentucky sports betting revenue, the impact of sports betting revenue on the state’s economy, KY sportsbook market shares, and more.