Kentucky’s HB 904, recently enacted after the legislature overrode Governor Beshear’s veto, introduces significant changes to the state’s gambling laws. Key provisions include raising the legal sports betting age from 18 to 21, banning under prop bets on individual college athletes from in-state teams, establishing a licensing framework for daily fantasy sports operators, and legalizing fixed-odds wagering on horse racing with new tax rates. The bill also imposes strict restrictions on prediction markets, prohibiting licensed tracks, sportsbooks, and fantasy operators from engaging with platforms offering event contracts through these markets.

The prediction market restrictions have sparked controversy, with major operators like FanDuel, DraftKings, and Fanatics warning of potential threats to their licenses and raising concerns about legal challenges related to federal versus state regulatory authority. For Kentucky bettors, the immediate impact will be seen in stricter age verification and changes to college prop betting options, while fixed-odds horse racing and fantasy sports licensing will roll out more gradually. Operators with national reach will need to carefully navigate the new prediction market rules, potentially restructuring partnerships or pursuing legal challenges depending on enforcement.