Kentucky’s House Bill 904, recently passed despite Governor Andy Beshear’s veto, permits racetracks in the state to offer fixed-odds betting on horse races. This betting format guarantees bettors a specific payout at the time of wager placement, differing from the traditional pari-mutuel system where odds fluctuate until race time. Senators Michael Meredith and Matthew Koch championed the bill, citing its appeal to younger bettors and those frustrated with pari-mutuel wagering, especially due to the influence of common wagering pools (CAWs). The Kentucky Horse Racing and Gaming Corporation will oversee the implementation, though no timeline has been announced.

While the new law opens opportunities for tracks like The Red Mile and Kentucky Downs, Churchill Downs, home of the Kentucky Derby, opposes fixed-odds betting, likely due to financial concerns. Unlike pari-mutuel wagering, which guarantees tracks a percentage of the betting pool to cover expenses and purses, fixed-odds betting carries slimmer margins and less predictable profitability. Churchill Downs is not required to adopt the new system and is instead focusing on expanding its horse racing presence by acquiring intellectual property related to major races like the Preakness Stakes.