Kentucky HB 904 Advances Past Final Hurdle After Turbulent Senate Session

(AsiaGameHub) –   Kentucky legislators have forwarded HB 904 to Governor Andy Beshear following a disorganized final session day at the state Capitol. The piece of legislation combines revisions to sports betting policies, fantasy sports regulations, fixed-odds horse racing provisions, and new restrictions related to prediction markets.

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Good to Know

• HB 904 received two separate Senate approvals in a single night following a procedural mistake
• The legislation increases the minimum age required to open a sports betting account from 18 to 21
• New wording related to prediction markets emerged as the most contentious point of debate

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Prediction Market Wording Sparked the Final Major Dispute

The most intense disagreement centered on prediction markets. A prior draft of the bill would have banned operators including FanDuel, DraftKings, and Fanatics from operating in Kentucky’s sports betting market if they hosted prediction market platforms anywhere else in the United States.

That proposed provision carried significant stakes. Those three operators hold valid Kentucky licenses and make up the vast majority of the state’s sports betting-linked tax base, which generates more than $40 million per year.

Pushback mounted rapidly. Over the weekend, FanDuel displayed a pop-up notification within its Kentucky-facing app warning users they might lose access to the platform. The group Protect Our Freedoms Kentucky also rolled out an online tool that allowed users to contact legislators and voice opposition to the bill.

By Wednesday morning, the contested wording had been adjusted. The revised draft no longer prohibits licensed operators from operating in Kentucky if they offer prediction market services in other states. Instead, it bars Kentucky-licensed racetracks, sportsbooks, and fantasy sports operators from partnering with any service provider that offers prediction market event contracts within Kentucky’s borders.

This more limited wording still left senators with concerns. Senate Minority Floor Leader Gerald Neal questioned whether the service provider provision could prevent Churchill Downs from broadcasting the Kentucky Derby across the country if one of its broadcast partners ran advertisements for prediction market platforms Kalshi or Polymarket. Sen. Jason Howell initially confirmed that this was a possibility, then walked back his statement and said he was not familiar with the specific details of Churchill Downs’ contracts. That response appears to have cost the bill support from several senators representing the Louisville area.

Sen. Cassie Chambers-Armstrong said, “That’s a very big issue.”

Legislation Addresses Sports Betting, Fantasy Sports and Horse Racing

HB 904 impacts a large portion of Kentucky’s gambling market. Representatives Michael Meredith and Matthew Koch sponsored the measure, which consolidates policy proposals that had been in development for more than a year.

For sports betting specifically, the bill increases the minimum age to open an account from 18 to 21. It also prohibits player prop bets for in-state college athletes. In addition, the legislation establishes a regulatory framework for fantasy sports operators and adds fixed-odds horse racing wagering as an allowed activity in Kentucky.

Meredith told Gambling Insider that the two sponsors combined separate policy efforts they had been leading. Koch had been working on charitable gaming reform, while Meredith had been developing the fantasy sports regulatory side. Both policy tracks were eventually merged into a single bill, which went through multiple rounds of revisions before legislators settled on the final version.

The evening brought one additional unexpected twist. After the first vote, senators realized they had attached an out-of-order floor amendment that would have barred licensed operators from accepting credit card deposits. Because that amendment was tied to the original House version of the bill rather than the revised committee substitute, it could not remain in place. Senators then held a second vote to remove the amendment.

The Senate first passed the bill at roughly 10 p.m. ET on Wednesday by a 24 to 13 vote. After the procedural issue came to light, senators voted again and reached the same 24 to 13 outcome. Around one hour later, the House approved the Senate’s changes by a 64 to 19 vote.

Timing was a critical factor. Wednesday was the final day before legislators recessed ahead of the veto period. Meredith noted that waiting until the last two session days on April 14 and 15 would have created significant risk. If Beshear vetoed the bill at that point, legislators would not have the opportunity to hold an override vote. By advancing HB 904 now, the Republican supermajority retains the ability to override a potential veto.