FRANKFORT, Ky. — The Kentucky General Assembly gave final passage Wednesday to a wide-ranging gaming bill that raises the legal age for sports betting, bans certain wagers on college athletes, creates a first-ever licensing framework for fantasy sports and expands consumer protections across nearl y every sector of legal wagering in the commonwealth. House Bill 904, dubbed the “Wagering Consumer Protection Act,” cleared the Senate 24-13 and passed the House 64-19, sending the measure to Gov. Andy Beshear’s desk. The bill is sponsored by Rep. Michael Meredith, R-Oakland — the same lawmaker who shepherded Kentucky’s original sports wagering legalization bill through the legislature in 2023 — along with Rep. Matthew Koch, R-Paris. A Sweeping Overhaul, Three Years in the Making The passage of HB 904 marks a significant evolution in Kentucky’s relatively young legal gambling landscape. Gov. Beshear signed House Bill 551 into law on March 31, 2023, making Kentucky the 38th state to legalize sports betting, with retail sportsbooks launching that September and online wagering following on Sept. 28, 2023. The regulatory framework was overseen by the Kentucky Horse Racing Commission and tied directly to the state’s nine licensed racetracks. A notable aspect of Kentucky’s original sports betting law was a minimum wagering age of 18 — lower than the 21-year-old requirement in many other states — which reflected the state’s long-standing tradition of allowing 18-year-olds to participate in pari-mutuel wagering on horse races. That provision became a flashpoint in the years that followed, and changing it became one of the driving forces behind HB 904. Meredith acknowledged the evolution: “Sports wagering was a bill that was something that I worked on about three years ago and was very, very important. We’ve had a great program, but there are some things that needed to be adjusted there.” Raising the Betting Age to 21 The most prominent change in HB 904 is a provision raising the minimum age for sports wagering from 18 to 21. The increase was added at the request of the House Republican caucus. Meredith framed the change as a consumer protection measure, noting that the 18-year-old threshold had created concerns almost immediately after sports betting launched. Sen. Donald Douglas, R-Nicholasville, said on the Senate floor that the age provision alone was a compelling reason to support the bill. “I don’t want to see our younger public get into gambling early as they can now, and we are supposed to be the adults in the room,” he said. Raising the sports betting age was not a new idea — during the original 2023 House floor debate on HB 551, Rep. Josh Calloway filed an amendment to raise the minimum age to 21, but it failed. Three years later, that position has become law. Banning Prop Bets on In-State College Athletes HB 904 also prohibits “negative outcome” or “under” bets on individual college athletes who play for Kentucky teams. These proposition bets — wagers placed mid-game on a specific player’s performance statistics — have drawn growing scrutiny nationally. Meredith said on the House floor that banning prop bets on Kentucky college athletes “would take away any incentive for bribery or harassing a player for not meeting a goal.” With a number of states having legalized sports wagering in recent years, there has been growing pressure from state legislatures to restrict prop bets, with critics arguing such wagers can exacerbate problem gambling and create an environment of harassment for college players. Bringing Fantasy Sports Under State Regulation One of the most significant structural changes in HB 904 is the creation of a comprehensive licensing, regulatory and tax framework for fantasy sports contests. Fantasy sports have been offered in Kentucky for years, but there has never been a direct licensing statute or tax structure governing them. Under the bill, fantasy sports operators would be required to obtain licenses, use geolocation technology, implement anti-fraud safeguards and undergo independent audits. Platforms would also be required to provide responsible gambling resources and prohibit payouts to users who have placed themselves on exclusion lists. Blocking Prediction Markets HB 904 takes direct aim at the fast-growing prediction market industry by prohibiting any licensed racetrack, sports wagering company or fantasy sports operator in Kentucky from contracting with or benefiting from a prediction market platform. Companies like Kalshi and Polymarket have grown in popularity across the country to the point that some sportsbooks have started offering prediction market trading alongside traditional wagering. Meredith said Kentucky is limited in its ability to directly regulate prediction markets due to federal law, but the bill targets them indirectly by preventing any state-licensed entity from affiliating with such platforms. The threat posed by prediction markets had already been addressed publicly by Churchill Downs Inc. CEO Bill Carstanjen during a February investor conference call, underscoring the degree to which the issue has captured industry attention in the commonwealth. Fixed-Odds Wagering for Horse Racing In a move that could reshape the horse racing betting experience in Kentucky, HB 904 gives racetracks the option to offer fixed-odds wagering alongside traditional pari-mutuel betting. Fixed-odds wagering sets the payout at the time a bet is placed, meaning those odds do not change — unlike pari-mutuel wagering, where odds fluctuate based on how much money flows into the pool. The pari-mutuel system has become a source of frustration for many bettors because computer-assisted wagering (CAW) — a form of betting that uses algorithms to push bets through pools at up to six per second in the final minute before pools close — can cause dramatic, last-second swings in odds. The bill also includes a provision requiring licensed tote companies and tracks to accelerate adoption of improved wagering technologies and provide commercially reasonable access to real-time betting odds for retail bettors by April 1, 2027. To ensure fixed-odds wagering doesn’t siphon funds away from the horse industry, HB 904 creates a purse stabilization fund so that revenue from those wagers continues to support horse racing purses. Child Support Enforcement Tied to Sports Betting In an unusual but notable consumer protection provision, HB 904 would prevent anyone in arrears on child support payments of more than $1,000 from placing sports wagers. The Kentucky Attorney General’s office would generate a list of those individuals and share it with the Kentucky Horse Racing and Gaming Corporation, which would in turn distribute it to all licensed sportsbooks and betting apps. Charitable Gaming Reforms The bill makes sweeping changes to Kentucky’s charitable gaming statutes. HB 904 would increase licensing fees, require more background checks, expand inspection authority and allow regulators to shut down operations suspected of misusing charitable gaming funds. It also raises the maximum prize for charitable gaming tickets from $599 to $1,499. Koch said the bill would also eliminate the “middleman” — an agent structure between charities and retail gaming locations that has produced bad actors in the charitable gaming space. “We’ve had quite a bit of examples of bad players within that space, so that’s one of the things we’re going to take on immediately,” he said. Northern Kentucky nonprofits have become vocal supporters of the charitable gaming portions of the bill. The Be Concerned pantry in Covington, which started using electronic pull-tab gaming fewer than two years ago, said charitable gaming revenue allowed the organization to grow its emergency voucher program from roughly 400 per year to 400 per quarter. Executive director Andy Brunsman backed HB 904, saying it “gives clear rules” and “gives clear restrictions.” Opposition: Churchill Downs, Constitutional Questions The bill did not pass without dissent. In the Senate, Senate Minority Whip Cassie Chambers Armstrong, D-Louisville, voted against the measure after raising concerns about language critics warned could prevent racetracks from contracting with certain advertising service providers — a provision she said could inadvertently threaten Churchill Downs’ ability to broadcast the Kentucky Derby on national television. “That’s a very big issue, and I cannot in good conscience vote for this bill at this moment in time,” she said. Those concerns arise against a broader backdrop of tension surrounding Churchill Downs. In February 2026, the Horseracing Integrity and Safety Authority filed a complaint against Churchill Downs Inc. alleging the company owes $2.4 million — a dispute that has threatened to impact simulcast operations across all of the company’s properties and could limit Kentucky Derby betting to those physically present at a Kentucky racetrack. Opposition also came from the Family Foundation of Kentucky, which argued that HB 904 represents another “unconstitutional expansion of predatory gambling,” similar to the 2023 sports betting law and a 2021 measure legalizing historical horse racing machines. Executive director David Walls said, “Anyone that says this bill doesn’t expand gambling, all you have to do is read the bill.” The group contends that further gambling expansion in Kentucky requires a constitutional amendment approved by voters. Despite those objections, Sen. Jason Howell, R-Murray, who carried the bill on the Senate floor, argued the status quo carries its own risks. “We have two choices,” Howell said. “We can do nothing and let the proliferation of some of the problems we have go unchecked, or we could step up and do the best we can to protect people of Kentucky. I believe that’s what this bill does.” Sen. Douglas, while acknowledging the bill contains provisions he finds less desirable, voted yes. “I really can’t find the avenue where this expands gambling that other people have found. I’m not defending the bill, but I am defending some of the protections that it will be bringing to our younger public,” he said. What Comes Next HB 904 now heads to Beshear’s desk. If signed, many of its provisions would take effect through the Kentucky Horse Racing and Gaming Corporation’s administrative regulatory process. The age increase from 18 to 21 would immediately affect a cohort of bettors who have been legally wagering since the market launched in September 2023. The bill also creates a task force to study charitable gaming rules in depth and report recommendations back for the 2027 legislative session, signaling that lawmakers view HB 904 as a significant but not final step in reforming Kentucky’s gaming landscape. The legislation arrives just weeks before the 152nd Kentucky Derby is scheduled for May 2 at Churchill Downs — a timely reminder that in Kentucky, the worlds of law, wagering, horses and high stakes have always been deeply intertwined. Correction or tip? Contact the newsroom at [email protected]. The post House Bill 904 heads to the governor’s desk after winning final votes in both chambers Wednesday appeared first on The Lexington Times. ...read more read less