Kentucky's sports betting market sees strong debut raking in $37.2M in revenue during first year of operation

As Kentucky marked the first anniversary of legalized sports betting on September 7, Governor Andy Beshear reflected on the significant economic impact the move has had on the state. Speaking at his Team Kentucky update, Beshear described the first year of sports wagering as a major success, generating millions in revenue and exceeding initial projections.

"The first year of sports betting was hugely successful and it exceeded all expectations," Beshear said, highlighting the financial windfall from the newly legalized activity.

In fiscal year 2024, sports wagering brought in $37.2 million to Kentucky's coffers, primarily through taxes and licensing fees. The governor noted that the revenue stream continued to grow into the summer, with an additional $2 million in state tax revenue generated in July alone, driven by interest in the summer Olympics. Total revenue from sports betting through July is nearing $40 million.

While these figures do not yet include the anticipated spike in betting activity from the upcoming college and professional football seasons, Beshear expressed optimism about the future. He pointed to the impact of other major sporting events such as March Madness and the NHL and NBA playoffs, which significantly boosted wagering earlier in the year.

Beshear also addressed the state's efforts to manage the potential downsides of legalized gambling, particularly problem gambling. He stated that while the problem gambling fund has shown early signs of effectiveness, more data is needed over time to fully evaluate its impact. The governor expressed confidence in Kentucky's regulatory approach, which evolved from initial emergency regulations to more permanent structures.

"Generally, we had a lot of good models to look at. We had some flexibility from initial E-regs to win, and we had the permanent regulations come through. I think it’s in a good place," Beshear said.

One ongoing issue is the debate over prop bets, particularly in NCAA sports, with concerns that wagers on specific in-game actions could unduly influence athletes. The matter is under discussion, especially among NCAA officials, as the state continues to refine its approach to sports wagering.