Two apps to allow 18-year-olds to bet

Kentucky to launch mobile sports betting on Thursday amid debate over legal age of wagering

2023-09-26
Reading time 3:10 min

Kentucky is making news in the U.S. sports betting landscape as it prepares to launch mobile sports betting on Thursday. Seven digital sports betting operators are ready to go live, with Kentucky set to become the largest U.S. jurisdiction by population to permit legal wagering for individuals as young as 18 years old.

However, college-aged individuals in Kentucky will be limited to choosing between only two platforms, bet365 and DraftKingsThe other five operators in the initial launch group, including Barstool Sportsbook, BetMGM, Caesars Sportsbook, Fanatics Sportsbook, and FanDuel, have set the minimum age for users at 21. Circa Sportsbook, although licensed, won't launch until later this year and will allow betting at 18.

Kentucky's decision places it in a unique position. Currently, there are only six live U.S. jurisdictions that have set the legal age for sports betting at 18: Montana, New Hampshire, Puerto Rico, Rhode Island, Washington, D.C., and Washington state, although Montana and Washington state do not offer statewide mobile betting. Among these, Washington state has the largest population at around 7.7 million, whereas Kentucky's population stands at approximately 4.5 million.

Operators choosing to set the age for their mobile sportsbooks at 21 cite various reasons for this decision. One of the primary motivations is to ensure ease of compliance across all U.S. jurisdictions with a consistent wagering age.

This approach streamlines tech stack management, especially in the know-your-customer (KYC) section. It also simplifies geolocation services, ensuring that an 18-year-old allowed to bet in Kentucky cannot do so in any neighboring state with legal wagering. Uniform age restrictions facilitate staff training and awareness.

Transitioning to a different age requirement within the tech stack is no small task, as most platforms have been built around a 21-and-over framework. This factor, among others, led several operators to opt for a minimum age of 21.



Gov. Andy Beshear at Kentucky's launch of retail wagering earlier this month

Kentucky's decision to allow betting at 18 is rooted in the state's historical ties to horse racing and parimutuel wagering. The Kentucky Derby and the Breeders' Cup are esteemed national events with deep-seated traditions dating back over a century.

In addition to these events, legislators legalized historical horse racing (HHR) in 2021, further cementing the state's status as a gaming hub. It's also worth noting that the legal age for the state lottery, like in many other states, is 18.

While there isn't concrete research comparing the impact of gambling at 18 versus 21, responsible gambling advocates consistently argue for higher legal ages. They emphasize that individuals who start gambling at an earlier age are more likely to develop gambling-related problems. Scientific consensus suggests that brain maturity is reached at around 24 or 25 years old.

Responsible gambling has gained prominence in recent years, prompting various jurisdictions, including Kentucky's neighbor Ohio, to take stringent measures to protect minors from gambling-related harm. These measures include restricting gambling advertising to minors, enforcing regulations to prominently display "21+" on specific ads and marketing materials, and imposing fines on operators attempting to target college campuses.

Ohio Casino Control Commission Executive Director Matt Schuler expressed concerns about Kentucky's choice of 18 as the legal age for sports betting, citing scientific data indicating that males aged 18 to 35 are the most vulnerable to developing gambling problems.



Ohio Casino Control Commission Executive Director Matt Schuler

Kentucky's proximity to major cities like Cincinnati, which sits on the Kentucky border, raises additional considerations. Sports betting has led to unique situations in border areas, such as bettors parking at rest stops just across state lines and local businesses offering specials to out-of-state patrons who engage in sports wagering.

While Ohio legalized sports betting starting January 1, it's possible that teenagers from Kentucky may cross the border to bet. Despite the ongoing debate surrounding age restrictions, Kentucky's mobile sports betting market is set to officially launch with seven online sports betting sites, and is being touted as a economic driver by officials.

Kentucky Governor Andy Beshear expressed optimism about the future of sports betting in the state, noting: "With college football and the NFL season underway, plus the launch of mobile wagering, we expect that number will grow significantly."

While the legal age of wagering remains a much-discussed topic, Kentucky has a commitment to responsible gambling initiatives via funding. The new law establishes a problem gambling fund, earmarking 2.5% of annual sports betting tax revenue. If tax revenue projections hold, this could amount to approximately $575,000 per year.

In comparison, the state generated $112.16 million in taxes from historical horse racing in 2022, yet none of this revenue was allocated to responsible or problem gambling initiatives.

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