Kentucky Sports Betting Tax Revenue Continues To Outperform Projections

The Bluegrass State is putting its mark on the country’s sports betting map.

The Kentucky Horse Racing Commission (KHRC) has reported its handle has now surpassed $2.3 billion, leading to over $37 million in tax revenue after one year of legal sports betting. Those numbers are 60% higher than initial projections, showing just how much Kentucky residents have embraced the industry. 

The most impressive part of the state’s success is that it lacks a pro sports franchise. Many sports betting markets get a boost from local teams, but Kentucky hasn’t needed it. One reason for that is the popularity of college sports, especially basketball. The University of Louisville and the University of Kentucky have massive fanbases, many of whom are now betting on games. 

DraftKings has led the market with a $895 million handle since the industry went live. FanDuel was close behind at $817 million, while bet365 finished a distant third at $157 million. While the top two aren’t surprising, bet365 beating out BetMGM and Caesars is an excellent sign for the UK-based sportsbook.

What’s Next for Kentucky Sports Betting?

With the success of the Kentucky sports betting market, the state could soon look to increase its tax revenue even further. Many states have either enacted or considered hiking operator tax rates after seeing the money being made. Sportsbooks have pushed back against this practice, but options for doing so are limited.

The state could also decide to join the growing list of states cracking down on offshore books. US states have sent Bovada Sportsbooks a flurry of cease-and-desist letters demanding it shutter its platform in the market. If Kentucky wants to increase revenue without raising the tax rate, pushing out offshore books like Bovada would be the best option.