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AN ACT relating to fantasy contests. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 230.210 is amended to read as follows: 3
As used in this chapter, unless the context requires otherwise: 4
(1) "Advance deposit account wagering" means a form of pari-mutuel wagering in 5
which an individual may establish an account with a person or entity licensed by the 6
corporation, and may place a pari-mutuel wager through that account that is 7
permitted by law; 8
(2) "Advance deposit account wagering licensee" means a person or entity licensed by 9
the corporation to conduct advance deposit account wagering and accept deposits 10
and wagers, issue a receipt or other confirmation to the account holder evidencing 11
such deposits and wagers, and transfer credits and debits to and from accounts; 12
(3) "Amateur youth sporting event" means any sporting event in which an individual: 13
(a) Shall be less than eighteen (18) years of age to participate; and 14
(b) Is prohibited, as a condition of participating in the sporting event, from 15
receiving direct or indirect compensation for the use of the individual's 16
athletic skill in any manner with respect to the sport in which the particular 17
sporting event is conducted; 18
(4) "Appaloosa race" or "Appaloosa racing" means that form of horse racing in which 19
each horse participating in the race is registered with the Appaloosa Horse Club of 20
Moscow, Idaho, and is mounted by a jockey; 21
(5) "Arabian" means a horse that is registered with the Arabian Horse Registry of 22
Denver, Colorado; 23
(6) "Association" means any person licensed by the Kentucky Horse Racing and 24
Gaming Corporation under KRS 230.300 and engaged in the conduct of a 25
recognized horse race meeting; 26
(7) "Athlete" means a professional or amateur competitor in a sporting event or an 27 UNOFFICIAL COPY 25 RS BR 1220
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organized video game competition that is: 1
(a) Regulated by a sports governing body; and 2
(b) Held between players who play individually or as teams; 3
(8) "Charitable gaming" means gaming licensed by the corporation on and after July 1, 4
2025, as authorized under this chapter and KRS Chapter 238; 5
(9)[(8)] "Corporation" means the Kentucky Horse Racing and Gaming Corporation; 6
(10) "Entry fee" means the cash or cash equivalent that is required to be paid by a 7
fantasy contest participant to a fantasy contest operator in order to participate in 8
a fantasy contest; 9
(11) (a) "Fantasy contest" means any fantasy or simulated game or contest that 10
meets the following conditions: 11
1. The values of all prizes and awards offered to winning participants are 12
made known to the participants in advance of the contest; 13
2. All winning outcomes reflect the relative knowledge and skill of the 14
participant; 15
3. The participant assembles, owns, or manages a fictional entry or 16
roster of actual athletes; 17
4. A winning outcome is: 18
a. Determined solely by clearly established scoring criteria; 19
b. Based on one (1) or more statistical results of the performance of 20
an individual athlete, including but not limited to a fantasy 21
score; and 22
c. Not based: 23
i. On the score, point spread, or any performance or 24
performances of any single actual team or combination of 25
teams; or 26
ii. Solely on any single performance of an individual athlete 27 UNOFFICIAL COPY 25 RS BR 1220
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or participant in any single actual event; and 1
5. The game or contest does not violate any provision of federal law. 2
(b) "Fantasy contest" includes both contests wherein: 3
1. Participants compete against each other; and 4
2. Only a single participant competes against a target score set by the 5
fantasy contest operator. 6
(c) "Fantasy contest" does not include any fantasy contest without an entry 7
fee; 8
(12) (a) "Fantasy contest operator" or "operator" means a person who offers or 9
administers one (1) or more fantasy contests with an entry fee to the general 10
public, and awards a prize of value. 11
(b) "Fantasy contest operator" does not include an internet service provider or 12
a provider of mobile data services merely as a result of that provider's 13
transporting of general traffic that may include a fantasy contest; 14
(13) (a) "Fantasy contest participant" or "participant" means a person who 15
participates in a fantasy contest offered by a fantasy contest operator. 16
(b) "Fantasy contest participant" does not include a person who only performs 17
the following actions: 18
1. Setting house rules for a contest; 19
2. Assigning a salary or target score to any eligible athlete or player; 20
3. Accepting an entry fee from a fantasy contest participant; or 21
4. Awarding or disbursing prizes; 22
(14)[(9)] "Geofence" means a virtual geographic boundary defined by Global 23
Positioning System (GPS) or Radio Frequency Identification (RFID) technology; 24
(15)[(10)] "Harness race" or "harness racing" means trotting and pacing races of the 25
standardbred horses; 26
(16)[(11)] "Horse race meeting" means horse racing run at an association licensed and 27 UNOFFICIAL COPY 25 RS BR 1220
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regulated by the Kentucky Horse Racing and Gaming Corporation, and may include 1
Thoroughbred, harness, Appaloosa, Arabian, paint, and quarter horse racing; 2
(17)[(12)] "Host track" means the track conducting racing and offering its racing for 3
intertrack wagering, or, in the case of interstate wagering, means the Kentucky 4
track conducting racing and offering simulcasts of races conducted in other states or 5
foreign countries; 6
(18)[(13)] "Interstate wagering" means pari-mutuel wagering on simulcast horse races 7
from a track located in another state or foreign country by patrons at a receiving 8
track or simulcast facility; 9
(19)[(14)] "Intertrack wagering" means pari-mutuel wagering on simulcast horse races 10
from a host track by patrons at a receiving track; 11
(20)[(15)] "Kentucky quarter horse, paint horse, Appaloosa, and Arabian purse fund" 12
means a purse fund established to receive funds as specified in KRS 230.3771 for 13
purse programs established in KRS 230.446 to supplement purses for quarter horse, 14
paint horse, Appaloosa, and Arabian horse races. The purse program shall be 15
administered by the Kentucky Horse Racing and Gaming Corporation; 16
(21)[(16)] "Kentucky resident" means: 17
(a) An individual domiciled within this state; 18
(b) An individual who maintains a place of abode in this state and spends, in the 19
aggregate, more than one hundred eighty-three (183) days of the calendar year 20
in this state; or 21
(c) An individual who lists a Kentucky address as his or her principal place of 22
residence when applying for an account to participate in advance deposit 23
account wagering; 24
(22)[(17)] "Licensed facility for sports wagering" means the designated areas to conduct 25
sports wagering for a track licensed to conduct sports wagering pursuant to KRS 26
230.811; 27 UNOFFICIAL COPY 25 RS BR 1220
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(23)[(18)] "Licensed premises" means a track or simulcast facility licensed by the 1
corporation under this chapter; 2
(24)[(19)] "Paint horse" means a horse registered with the American Paint Horse 3
Association of Fort Worth, Texas; 4
(25)[(20)] "Pari-mutuel wagering," "pari-mutuel system of wagering," or "mutuel 5
wagering" each means any method of wagering previously or hereafter approved by 6
the corporation in which one (1) or more patrons wager on a horse race or races, 7
whether live, simulcast, or previously run. Wagers shall be placed in one (1) or 8
more wagering pools, and wagers on different races or sets of races may be pooled 9
together. Patrons may establish odds or payouts, and winning patrons share in 10
amounts wagered including any carryover amounts, plus any amounts provided by 11
an association less any deductions required, as approved by the corporation and 12
permitted by law. Pools may be paid out incrementally over time as approved by 13
the corporation; 14
(26)[(21)] "Person" means an individual, sole proprietorship, partnership, association, 15
fiduciary, corporation, limited liability company, or any other business entity; 16
(27)[(22)] "President" means the president of the Kentucky Horse Racing and Gaming 17
Corporation, who shall serve as chief executive officer of the corporation; 18
(28)[(23)] "Principal" means any of the following individuals associated with a 19
partnership, trust, association, limited liability company, or corporation that is 20
licensed to conduct a horse race meeting or an applicant for a license to conduct a 21
horse race meeting: 22
(a) The chairman and all members of the board of directors of a corporation; 23
(b) All partners of a partnership and all participating members of a limited 24
liability company; 25
(c) All trustees and trust beneficiaries of an association; 26
(d) The president or chief executive officer and all other officers, managers, and 27 UNOFFICIAL COPY 25 RS BR 1220
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employees who have policymaking or fiduciary responsibility within the 1
organization; 2
(e) All stockholders or other individuals who own, hold, or control, either directly 3
or indirectly, five percent (5%) or more of stock or financial interest in the 4
collective organization; and 5
(f) Any other employee, agent, guardian, personal representative, or lender or 6
holder of indebtedness who has the power to exercise a significant influence 7
over the applicant's or licensee's operation; 8
(29) "Prohibited participant" means: 9
(a) A person who has self-excluded under Section 10 of this Act; or 10
(b) An athlete, coach, referee, trainer, or team staff when the fantasy contest 11
entry includes athlete selections from a sporting event overseen by the same 12
sports governing body which oversees the athlete, coach, referee, trainer, or 13
team staff in question; 14
(30)[(24)] "Quarter horse" means a horse that is registered with the American Quarter 15
Horse Association of Amarillo, Texas; 16
(31)[(25)] "Receiving track" means a track where simulcasts are displayed for wagering 17
purposes. A track that submits an application for intertrack wagering shall meet all 18
the regulatory criteria for granting an association license of the same breed as the 19
host track, and shall have a heated and air-conditioned facility that meets all state 20
and local life safety code requirements and seats a number of patrons at least equal 21
to the average daily attendance for intertrack wagering on the requested breed in the 22
county in which the track is located during the immediately preceding calendar 23
year; 24
(32)[(26)] "Simulcast facility" means any facility approved pursuant to KRS 230.380 to 25
simulcast live racing and conduct pari-mutuel wagering on live racing; 26
(33)[(27)] "Simulcasting" means the telecast of live audio and visual signals of horse 27 UNOFFICIAL COPY 25 RS BR 1220
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races for the purpose of pari-mutuel wagering; 1
(34)[(28)] "Sporting event" means an event at which two (2) or more persons participate 2
in athletic contests, or an event that takes place in relation to athletic contests as 3
approved by the corporation, but shall not include horse racing or amateur youth 4
sports or athletic events in which the majority of participants are under the age of 5
eighteen (18) years; 6
(35)[(29)] "Sports governing body" means the organization, league, or association that 7
oversees a sport, prescribes final rules, and enforces codes of conduct with respect 8
to such sport and participants therein; 9
(36)[(30)] "Sports wagering" means the wagering conducted under this chapter on 10
sporting events or portions of sporting events, or on the individual performance 11
statistics of athletes in a sporting event or combination of sporting events, in 12
conformance with federal law and as authorized by the corporation pursuant to this 13
chapter; 14
(37)[(31)] "Sports wagering device": 15
(a) Means a mechanical, electrical, or computerized contrivance, terminal, 16
device, apparatus, software, piece of equipment, or supply approved by the 17
corporation for conducting sports wagering under this chapter; and 18
(b) Includes a personal computer, mobile device, or other device used in 19
connection with sports wagering not conducted at a licensed facility for sports 20
wagering; 21
(38)[(32)] "Sports wagering service provider" or "service provider" means a person 22
authorized to conduct or manage sports wagering through an agreement with a track 23
and provide these services at a licensed facility for sports wagering, simulcast 24
facility, or through a website or mobile interface approved by the corporation; 25
(39)[(33)] "Telephone account wagering" means a form of pari-mutuel wagering where 26
an individual may deposit money in an account at a track and may place a wager by 27 UNOFFICIAL COPY 25 RS BR 1220
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direct telephone call or by communication through other electronic media owned by 1
the holder of the account to the track; 2
(40)[(34)] "Thoroughbred race" or "Thoroughbred racing" means a form of horse racing 3
in which each horse participating in the race is a Thoroughbred, (i.e., meeting the 4
requirements of and registered with The Jockey Club of New York) and is mounted 5
by a jockey; and 6
(41)[(35)] "Track" means any association duly licensed by the Kentucky Horse Racing 7
and Gaming Corporation to conduct horse racing and includes: 8
(a) For facilities in operation as of 2010, the location and physical plant described 9
in the "Commonwealth of Kentucky Initial/Renewal Application for License 10
to Conduct Live Horse Racing, Simulcasting, and Pari-Mutuel Wagering," 11
filed for racing to be conducted in 2010; 12
(b) Real property of an association, if the association received or receives 13
approval from the corporation after 2010 for a location at which live racing is 14
to be conducted; or 15
(c) One (1) facility or real property that is: 16
1. Owned, leased, or purchased by an association within a sixty (60) mile 17
radius of the association's racetrack but not contiguous to racetrack 18
premises, upon corporation approval; and 19
2. Not within a sixty (60) mile radius of another licensed track premise 20
where live racing is conducted and not within a forty (40) mile radius of 21
a simulcast facility, unless any affected track or simulcast facility agrees 22
in writing to permit a noncontiguous facility within the protected 23
geographic area. 24
SECTION 2. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 25
READ AS FOLLOWS: 26
(1) The corporation shall promulgate administrative regulations in accordance with 27 UNOFFICIAL COPY 25 RS BR 1220
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KRS Chapter 13A to govern the operation of fantasy contests and enforce 1
Sections 2 to 10 of this Act, but the corporation shall not promulgate 2
administrative regulations limiting or regulating the: 3
(a) Statistical makeup of a fantasy contest or contests; or 4
(b) Digital platform of an operator. 5
(2) The corporation shall: 6
(a) Regulate the conduct of fantasy contest operators; 7
(b) Promulgate administrative regulations no later than one hundred eighty 8
(180) days after the effective date of this Act; 9
(c) Enforce and collect all fees, penalties, taxes, and any other payments 10
imposed under Sections 8 and 11 of this Act; 11
(d) Require the use of geolocation technology to verify that a participant is not 12
entering fantasy contests from a restricted jurisdiction; and 13
(e) Exercise any other powers necessary to enforce the provisions of Sections 2 14
to 10 of this Act. 15
(3) The corporation and fantasy contest operators may cooperate with investigations 16
conducted by law enforcement agencies, including but not limited to providing 17
and facilitating the provision of account level entry and participation 18
information. 19
SECTION 3. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 20
READ AS FOLLOWS: 21
Fantasy contest operators shall: 22
(1) Implement procedures to prevent fraud, abuse, and money laundering; 23
(2) Establish technical and operational measures to prevent underage participation 24
in a fantasy contest; 25
(3) Deploy identity verification procedures, which may require the use of a reputable 26
independent third party that: 27 UNOFFICIAL COPY 25 RS BR 1220
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(a) Can verify a person's personally identifiable information; and 1
(b) Can detect potential prohibited participants; 2
(4) Employ mechanisms on the operator's platform that are designed to detect and 3
prevent: 4
(a) Unauthorized accounts; 5
(b) Fraud; 6
(c) Money laundering; and 7
(d) Collusion; and 8
(5) Make all reasonable efforts to promptly notify the corporation of: 9
(a) A confirmed breach of the relevant sport's governing body's internal rules 10
and codes of conduct, if provided to the fantasy contest operator, pertaining 11
to participation in real-money fantasy contests; 12
(b) Any conduct that corrupts any outcome related to a sporting event or 13
sporting events for purposes of financial gain, including match fixing; and 14
(c) Confirmed illegal activities, including use of funds derived from illegal 15
activity, entries to conceal or launder funds derived from illegal activity, 16
multi-accounting, and using false identification. 17
SECTION 4. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 18
READ AS FOLLOWS: 19
(1) Except as otherwise provided in this section, a person shall not offer fantasy 20
contests in the Commonwealth unless the person is licensed by the corporation as 21
a fantasy contest operator. 22
(2) An applicant for a fantasy contest operator license shall: 23
(a) Submit an application to the corporation in the form the corporation 24
requires in the corporation's administrative regulations; 25
(b) Submit fingerprints for a national criminal history record check by a law 26
enforcement agency, which shall be: 27 UNOFFICIAL COPY 25 RS BR 1220
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1. Furnished by the applicant's director, officer, key employee, or 1
individual owner of five percent (5%) or more of the fantasy contest 2
operator; and 3
2. Accompanied by a signed authorization for the release of information 4
by the law enforcement agency; and 5
(c) Be denied a license if previously convicted of a disqualifying offense as 6
established in subsection (8) of this section. 7
(3) The corporation may require additional background checks on fantasy contest 8
operators when an operator submits a renewal application. 9
(4) This section shall not require a fantasy contest operator applicant or person who 10
has submitted to a national criminal history record check in Kentucky or any 11
other state within the twelve (12) months prior to submitting the application to 12
resubmit to another record check if the fantasy contest operator applicant or 13
person submits the results of the previous record check and affirms there has 14
been no material change since the previous record check. 15
(5) The form required by the corporation under subsection (2) of this section shall 16
include but is not limited to the following information: 17
(a) The fantasy contest operator's name; 18
(b) The location of the operator's principal place of business; 19
(c) The operator's contact information; 20
(d) The operator's Social Security number or, if applicable, federal tax 21
identification number; 22
(e) The name and address of each person that holds a five percent (5%) or 23
more ownership interest or shares in the fantasy contest operator; 24
(f) The operator's criminal record or, if the operator is a business entity, any 25
criminal record of a person who is a director, officer, or key employee of the 26
applicant or any person who has a five percent (5%) or more ownership 27 UNOFFICIAL COPY 25 RS BR 1220
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interest in the fantasy contest operator; 1
(g) Documentation identifying the following from the operator, or any director, 2
officer, key employee, or individual owner of five percent (5%) or more of 3
the fantasy contest operator that has: 4
1. Any ownership interest in a business that is or was a fantasy contest 5
operator or similar entity in any jurisdiction; 6
2. An equity interest of five percent (5%) or more in any business of the 7
fantasy contest operator. If a business has been identified under this 8
subparagraph, documentation shall be provided showing the state in 9
which the business is incorporated or registered, if applicable; 10
3. Ever applied for or been granted any license, registration, or 11
certificate issued by a licensing authority in Kentucky or any other 12
jurisdiction for a gaming activity; and 13
4. Filed or been served with a complaint or other notice filed by a public 14
body regarding the delinquency in payment of or dispute over filings 15
concerning the payment of any tax required under federal, state, or 16
local law, including the amount of tax, type of tax, and taxing agency 17
and the time periods involved; and 18
(h) Information sufficient to show, as determined by the corporation, that the 19
operator can meet the requirements of Sections 2 to 10 of this Act. 20
(6) The corporation may promulgate administrative regulations to establish 21
additional qualifications and requirements to preserve the integrity and security 22
of fantasy contests and to promote and maintain a competitive fantasy contest 23
market. 24
(7) On receipt of a completed application and the required fee, the corporation shall 25
conduct the necessary background investigation to determine if the applicant 26
meets the qualifications for licensure. On completion of the investigation, the 27 UNOFFICIAL COPY 25 RS BR 1220
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corporation shall issue a license or deny the application. If the application for 1
licensure is denied, a statement setting forth the grounds for denial shall be 2
forwarded to the applicant together with all other documents relied on by the 3
corporation, to the extent allowed by law. 4
(8) (a) A person shall not be issued a license if the person has been convicted of a 5
violation of state or federal law that is: 6
1. A felony; 7
2. Any crime involving illegal gaming or gambling; or 8
3. Any crime involving theft or fraud that is or would be a felony or 9
Class A misdemeanor in the Commonwealth of Kentucky. 10
(b) The prohibitions in paragraph (a) of this subsection apply to the applicant 11
or licensee, or director, officer, key employee, or individual owner of five 12
percent (5%) or more of the fantasy contest operator. 13
SECTION 5. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 14
READ AS FOLLOWS: 15
(1) As part of its submission for licensure or renewal, a fantasy contest operator 16
applicant shall: 17
(a) Contract with a certified public accountant to conduct an independent 18
audit, consistent with generally accepted accounting principles; 19
(b) Annually contract with a testing laboratory, certified public accountant, or 20
another professional service provider recognized by the corporation to verify 21
compliance with Sections 2 to 10 of this Act; and 22
(c) Submit to the corporation a copy of the audit report and of the compliance 23
report of the testing laboratory, certified public accountant, or professional 24
service provider. 25
(2) An initial fantasy contest operator is not required to submit an audit report and 26
report of the testing laboratory until twenty-four (24) months following the 27 UNOFFICIAL COPY 25 RS BR 1220
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issuance of a license. 1
SECTION 6. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 2
READ AS FOLLOWS: 3
(1) Notwithstanding any provision of law to the contrary, the operation of fantasy 4
contests is only lawful when conducted in accordance with Sections 2 to 10 of this 5
Act. 6
(2) Any participant of a fantasy contest shall be at least eighteen (18) years old. 7
(3) (a) A fantasy contest operator may only accept an entry from a person 8
physically located in the Commonwealth. 9
(b) A fantasy contest operator shall use a geolocation system to ensure that a 10
participant is physically present in the Commonwealth when submitting an 11
entry unless otherwise authorized by the corporation. 12
(4) (a) Sections 2 to 10 of this Act shall be construed liberally to promote the 13
general welfare of the public and integrity of the fantasy contest industry. 14
(b) The corporation shall not in any way limit or restrict the types of fantasy 15
contests allowed by labelling any such contests as sports wagering. 16
(5) A licensed fantasy contest operator shall not be forced to surrender or terminate a 17
license prior to the date of expiration of the license solely by virtue of a change in 18
the qualifications for licensure under Sections 2 to 10 of this Act. 19
SECTION 7. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 20
READ AS FOLLOWS: 21
(1) The corporation shall investigate all reasonable allegations of prohibited conduct 22
and refer any allegations it deems credible to the appropriate law enforcement 23
agency. 24
(2) The identity of any reporting person shall remain confidential unless that person 25
authorizes disclosure of the person's identity or until the allegation of prohibited 26
conduct is referred to law enforcement. 27 UNOFFICIAL COPY 25 RS BR 1220
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(3) If the corporation receives a complaint of prohibited conduct by an athlete, the 1
corporation shall notify the appropriate sports governing body of the athlete to 2
review the complaint as provided by the corporation. 3
(4) The corporation shall promulgate administrative regulations in accordance with 4
KRS Chapter 13A to govern investigations of prohibited conduct and referrals to 5
law enforcement agencies. 6
SECTION 8. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 7
READ AS FOLLOWS: 8
(1) As used in this section: 9
(a) "Adjusted gross fantasy contest receipts" means the total sum of entry fees 10
collected by a fantasy contest operator from all participants entering a 11
fantasy contest, less winnings paid to participants in the contest, multiplied 12
by the location percentage; and 13
(b) "Location percentage" means the percentage of the total entry fees for each 14
fantasy contest collected from participants located in the Commonwealth 15
divided by the total entry fees collected from all participants in the fantasy 16
contest, rounded to the nearest one-tenth of one percent (0.1%). 17
(2) (a) The initial license fee for a fantasy contest operator that operated in this 18
Commonwealth at least twelve (12) months prior to the effective date of this 19
Act shall be eight percent (8%) of the operator's adjusted gross fantasy 20
contest receipts from the preceding calendar year or five hundred thousand 21
($500,000) dollars, whichever is less. 22
(b) The initial license fee for a fantasy contest operator that did not operate in 23
this Commonwealth for at least twelve (12) months prior to the effective 24
date of this Act shall be five thousand ($5,000) dollars, provided that the 25
fantasy contest operator shall remit a supplemental license fee of ten 26
percent (10%) of its adjusted gross fantasy contest receipts for the twelve 27 UNOFFICIAL COPY 25 RS BR 1220
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(12) month period beginning on the date of licensure less the initial license 1
fee, or five thousand ($5,000) dollars, whichever is less. 2
(3) A fantasy contest operator that was offering contests to persons located in this 3
Commonwealth before the effective date of this Act may continue to offer contests 4
to persons located in this Commonwealth until the operator's application has 5
been approved or denied if the operator submits an application for licensure with 6
the corporation within ninety (90) days after the corporation promulgates 7
administrative regulations to effectuate Sections 2 to 10 of this Act. 8
(4) (a) Licenses issued by the corporation shall remain in effect for one (1) year. 9
The corporation shall promulgate administrative regulations to establish a 10
process for renewal with a renewal fee being one percent (1%) of the 11
adjusted gross fantasy contest receipts for the previous year, or five 12
thousand ($5,000) dollars, whichever is less. 13
(b) A fantasy contest operator may request in writing to the corporation an 14
extension to renew the operator's license. If the operator allows the license 15
to lapse, without requesting an extension time to file, the operator shall 16
resubmit an initial application. 17
(5) A fantasy contest operator applying for a license or renewal of a license may 18
operate during the application period unless the corporation: 19
(a) Has reasonable cause to believe that the fantasy contest operator is or may 20
be in violation of a provision of Sections 2 to 10 of this Act; and 21
(b) Requires the fantasy contest operator to suspend the operation of any 22
fantasy contests until the license or renewal of a license is issued. 23
SECTION 9. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 24
READ AS FOLLOWS: 25
(1) There is hereby established in the State Treasury a trust and agency account to be 26
known as the fantasy contest administration fund. The fund shall consist of 27 UNOFFICIAL COPY 25 RS BR 1220
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moneys received from the fees and monthly tax imposed by Sections 8 and 11 of 1
this Act. 2
(2) The fund shall be administered by the Kentucky Horse Racing and Gaming 3
Corporation. 4
(3) (a) Amounts deposited in the fund shall be used as follows: 5
1. For administrative expenses relating to or associated with the 6
purposes of fantasy contests; and 7
2. Two and one-half percent (2.5%) of the funds shall be deposited in the 8
Kentucky problem gambling assistance account established in KRS 9
230.826. 10
(b) The remaining funds shall be deposited in the Kentucky permanent pension 11
fund established in KRS 42.205. 12
(4) Notwithstanding KRS 45.229, fund amounts not expended at the close of a fiscal 13
year shall not lapse but shall be carried forward into the next fiscal year. 14
SECTION 10. A NEW SECTION OF KRS CHAPTER 230 IS CREATED TO 15
READ AS FOLLOWS: 16
(1) Each fantasy contest operator shall include a statement regarding obtaining 17
assistance with real-money gaming problems on the operator's portal, website, 18
computer, or mobile application and on all marketing materials and 19
advertisements of the operator. 20
(2) (a) A resident, or nonresident if allowed to participate in fantasy contests, may 21
voluntarily prohibit himself or herself from establishing a fantasy contest 22
account with a fantasy contest operator. 23
(b) The corporation shall incorporate the voluntary self-exclusion program for 24
fantasy contests into any existing self-exclusion program that it operates on 25
the effective date of this Act. 26
(3) If a self-excluded person participates in a fantasy contest, the fantasy contest 27 UNOFFICIAL COPY 25 RS BR 1220
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operator shall report to the corporation, at a minimum, the name of the self-1
excluded person, the date of participation, the amount or value of any money, 2
prizes, or awards forfeited, if any, and any other action taken. 3
(4) A fantasy contest operator shall not pay any prize or award to a person who is on 4
the corporation's self-exclusion list. Any prize or award won by a person on the 5
self-exclusion list is forfeited and shall be donated by the fantasy contest operator 6
to the problem gaming charities or programs as identified and directed by the 7
corporation on a quarterly basis by the twenty-fifth day of the following month. 8
(5) A fantasy contest operator shall develop and maintain a program to mitigate 9
compulsive play and curtail compulsive play, which may be in conjunction with 10
the corporation. 11
SECTION 11. A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 12
READ AS FOLLOWS: 13
(1) As used in this section: 14
(a) "Adjusted gross fantasy contest receipts" has the same meaning as in 15
Section 8 of this Act; 16
(b) "Corporation" has the same meaning as in Section 1 of this Act; 17
(c) "Fantasy contest operator" has the same meaning as in Section 1 of this 18
Act; and 19
(d) "Location percentage" has the same meaning as in Section 8 of this Act. 20
(2) Beginning on July 1, 2025, the Commonwealth shall impose and collect a tax at a 21
rate of ten percent (10%) of the fantasy contest operator's adjusted gross fantasy 22
contest receipts. The accrual method of accounting shall be used for purposes of 23
calculating the amount of tax owed by the licensee. 24
(3) The tax imposed by this section is due and payable to the corporation monthly 25
and shall be remitted on or before the last day of each calendar month. 26
(4) The fantasy contest operator's payment shall be accompanied by a return 27 UNOFFICIAL COPY 25 RS BR 1220
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prescribed by the corporation indicating the amount of tax due for the previous 1
calendar month as well as any other information the corporation shall 2
promulgate by administrative regulation. 3
Section 12. KRS 230.215 (Effective July 1, 2025) is amended to read as 4
follows: 5
(1) (a) It is the policy of the Commonwealth of Kentucky, in furtherance of its 6
responsibility to foster and to encourage legitimate occupations and industries 7
in the Commonwealth and to promote and to conserve the public health, 8
safety, and welfare, and it is hereby declared the intent of the Commonwealth 9
to foster and to encourage the horse breeding industry within the 10
Commonwealth and to encourage the improvement of the breeds of horses. 11
(b) Further, it is the policy and intent of the Commonwealth to foster and to 12
encourage the business of legitimate horse racing with pari-mutuel wagering 13
thereon in the Commonwealth on the highest possible plane. Further, it hereby 14
is declared the policy and intent of the Commonwealth that all racing not 15
licensed under this chapter is a public nuisance and may be enjoined as such. 16
(c) Further, it is hereby declared the policy and intent of the Commonwealth that 17
the conduct of horse racing, or the participation in any way in horse racing, or 18
the entrance to or presence where horse racing is conducted, is a privilege and 19
not a personal right; and that this privilege may be granted or denied by the 20
corporation or its duly approved representatives acting in its behalf. 21
(d) Further, it is hereby declared the policy and intent of the Commonwealth that 22
citizens shall be allowed to enjoy wagering on sporting events in a controlled 23
environment that protects the citizens from cheating and fraud, and that such 24
wagering shall be best controlled and overseen by the Kentucky Horse Racing 25
and Gaming Corporation, which has demonstrated a long and successful 26
history of regulating wagering. 27 UNOFFICIAL COPY 25 RS BR 1220
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(e) Further, it is hereby declared the policy and intent of the Commonwealth that 1
charitable gaming conducted by charitable organizations is an important 2
method of raising funds for legitimate charitable purposes and is in the public 3
interest. The intent of this chapter and KRS Chapter 238 is to prevent the 4
commercialization of charitable gaming, to prevent participation in charitable 5
gaming by criminal and other undesirable elements, and to prevent the 6
diversion of funds from legitimate charitable purposes, and that charitable 7
gaming shall be best controlled and overseen by the Kentucky Horse Racing 8
and Gaming Corporation. 9
(2) (a) It is hereby declared the purpose and intent of this chapter in the interest of 10
the public health, safety, and welfare, to vest in the corporation forceful 11
control of horse racing in the Commonwealth with plenary power to 12
promulgate administrative regulations prescribing conditions under which all 13
legitimate horse racing and wagering thereon is conducted in the 14
Commonwealth so as to encourage the improvement of the breeds of horses in 15
the Commonwealth, to regulate and maintain horse racing at horse race 16
meetings in the Commonwealth of the highest quality and free of any corrupt, 17
incompetent, dishonest, or unprincipled horse racing practices, and to regulate 18
and maintain horse racing at race meetings in the Commonwealth so as to 19
dissipate any cloud of association with the undesirable and maintain the 20
appearance as well as the fact of complete honesty and integrity of horse 21
racing in the Commonwealth. 22
(b) In addition, it is hereby declared the purpose and intent of this chapter to vest 23
in the corporation exclusive jurisdiction over sports wagering and fantasy 24
contests in the Commonwealth, with plenary power to promulgate 25
administrative regulations prescribing conditions under which all sports 26
wagering and fantasy contests are[ is] to be conducted. 27 UNOFFICIAL COPY 25 RS BR 1220
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(c) In addition to the general powers and duties vested in the corporation by this 1
chapter, it is the intent hereby to vest in the corporation the power to eject or 2
exclude from association grounds or any part thereof any person, licensed or 3
unlicensed, whose conduct or reputation is such that his or her presence on 4
association grounds may, in the opinion of the corporation, reflect on the 5
honesty and integrity of horse racing or interfere with either the orderly 6
conduct of horse racing or the orderly conduct of sports wagering. 7
(d) In addition, it is hereby declared the purpose and intent of this chapter to vest 8
in the corporation exclusive jurisdiction over charitable gaming in the 9
Commonwealth, with plenary power to promulgate administrative regulations 10
prescribing conditions under which all charitable gaming is to be conducted. 11
(e) In addition to the general powers and duties vested in the corporation by this 12
chapter, it is the intent hereby to vest in the corporation the power to eject or 13
exclude from charitable gaming facilities or any part thereof any person, 14
licensed or unlicensed, whose conduct or reputation is such that his or her 15
presence at a charitable gaming facility may, in the opinion of the corporation, 16
reflect on the honesty and integrity of charitable gaming or interfere with the 17
orderly conduct of charitable gaming. 18
Section 13. KRS 230.225 is amended to read as follows: 19
(1) There is hereby created and established the Kentucky Horse Racing and Gaming 20
Corporation to regulate all forms of live horse racing, pari-mutuel wagering, sports 21
wagering, fantasy contests, breed integrity and development, and on and after July 22
1, 2025, charitable gaming, in the Commonwealth, exclusive of the state lottery 23
established under KRS Chapter 154A. It shall be an independent, de jure municipal 24
corporation and political subdivision of the Commonwealth of Kentucky which 25
shall be a public body corporate and politic. The corporation shall be deemed a 26
public agency within the meaning of KRS 61.805 and 61.870. The corporation shall 27 UNOFFICIAL COPY 25 RS BR 1220
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be managed in such a manner that enables the people of the Commonwealth to 1
benefit from its actions and to enjoy the best possible racing and gaming 2
experiences. The General Assembly hereby recognizes that the operations of racing 3
and gaming are unique activities for state government and that a corporate structure 4
will best enable racing and gaming to be managed in a businesslike manner. It is the 5
intent of the General Assembly that the Kentucky Horse Racing and Gaming 6
Corporation shall be accountable to the Governor, the General Assembly, and the 7
people of the Commonwealth. 8
(2) (a) The Auditor of Public Accounts shall perform an annual audit of the 9
corporation, a copy of which shall be sent to the Governor and the Legislative 10
Research Commission. 11
(b) The corporation shall submit a written annual report to the Governor and the 12
Legislative Research Commission on or before July 1 of each year. The first 13
report shall be due July 1, 2025. The corporation shall file any additional 14
reports requested by the Governor or the Legislative Research Commission. 15
The annual report shall include the following information: 16
1. The receipts and disbursements of the corporation; and 17
2. Actions taken by the corporation. 18
(c) The corporation may submit any additional information and recommendations 19
that the corporation considers useful or that the Governor or the Legislative 20
Research Commission requests. 21
(3) The Kentucky Horse Racing and Gaming Corporation shall be administered by a 22
board of directors to regulate the conduct of: 23
(a) Live horse racing; 24
(b) Pari-mutuel wagering; 25
(c) Sports wagering; 26
(d) Fantasy contests; 27 UNOFFICIAL COPY 25 RS BR 1220
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(e) Charitable gaming on and after July 1, 2025; 1
(f)[(e)] Breed integrity and development; and 2
(g)[(f)] Related activities within the Commonwealth of Kentucky. 3
(4) (a) The corporation shall establish and maintain a general office for the 4
transaction of its business and may, in its discretion, establish a branch office 5
or offices. 6
(b) The corporation may hold meetings at any of its offices or at any other place 7
at its convenience. 8
(c) A majority of the voting members of the corporation shall constitute a quorum 9
for the transaction of its business or exercise of any of its powers. 10
(5) Except as otherwise provided, the corporation shall be responsible for the 11
following: 12
(a) Developing and implementing programs designed to ensure the safety and 13
well-being of horses, jockeys, and drivers; 14
(b) Developing programs and procedures that will aggressively fulfill its 15
oversight and regulatory role on such matters as medical practices and 16
integrity issues; 17
(c) Recommending tax incentives and implementing incentive programs to ensure 18
the strength and growth of the equine industry; 19
(d) Designing and implementing programs that strengthen the ties between 20
Kentucky's horse industry and the state's universities, with the goal of 21
significantly increasing the economic impact of the horse industry on 22
Kentucky's economy, improving research for the purpose of promoting the 23
enhanced health and welfare of the horse, and other related industry issues; 24
(e) Developing and supporting programs which ensure that Kentucky remains in 25
the forefront of equine research; 26
(f) Designing and implementing programs that support and ensure breed integrity 27 UNOFFICIAL COPY 25 RS BR 1220
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and development; 1
(g) Developing monitoring programs to ensure the highest integrity of sporting 2
events and sports wagering; 3
(h) Developing a program to share wagering information with sports governing 4
bodies upon which sports wagering may be conducted. The program shall be 5
designed to assist the corporation in determining potential problems or 6
questionable activity and provide reports to sports governing bodies 7
effectively; 8
(i) Developing programs and procedures that will aggressively fulfill its 9
oversight and regulatory role to ensure the highest integrity in charitable 10
gaming; 11
(j) Developing programs and procedures that will aggressively provide oversight 12
and regulation for all current forms of gaming and wagering; and 13
(k) Ensuring that the correct responsibilities are assigned to each of its offices as 14
established in KRS 230.232. 15
(6) (a) The corporation shall: 16
1. Conduct all procurements in accordance with procedures which are not 17
inconsistent with the provisions of KRS Chapter 45A and this chapter; 18
provided, however, that this chapter shall control if and to the extent that 19
any provision in this chapter is expressly inconsistent with any provision 20
of KRS Chapter 45A; or 21
2. Promulgate administrative regulations establishing its procurement 22
procedures. If the corporation elects to promulgate administrative 23
regulations establishing its procurement procedures rather than conduct 24
procurements in accordance with KRS Chapter 45A, the corporation 25
may include sections of KRS Chapter 45A as part of its administrative 26
regulations. 27 UNOFFICIAL COPY 25 RS BR 1220
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(b) Major procurements for personal service contracts shall not be subject to the 1
requirements of KRS 45A.695(2)(b) due to the unique operational activities 2
conducted for state government by the corporation. The corporation's 3
procurement procedures or administrative regulations shall be designed to 4
provide for the purchase of supplies, equipment, services, and construction 5
items that provide the greatest long-term benefit to the state and the greatest 6
integrity for the corporation and the public. 7
(c) In its bidding and negotiation processes, the corporation may do its own 8
bidding and procurement, or may utilize the services of the Finance and 9
Administration Cabinet, or a combination thereof. The president of the 10
corporation may, in lieu of the secretary of the Finance and Administration 11
Cabinet, declare an emergency for purchasing purposes. 12
(7) Corporation records shall be open and subject to public inspection in accordance 13
with KRS 61.870 to 61.884 unless: 14
(a) A record is exempted from inspection under KRS 61.878; 15
(b) A record involves a trade secret or other legally protected intellectual property 16
or confidential proprietary information of the corporation or of an applicant, 17
licensee, individual, or entity having submitted information of such character 18
to the corporation, in which case, the portion of the record relating to these 19
subjects may be closed; or 20
(c) The disclosure of the record could impair or adversely affect the operational 21
security of the corporation in the regulation of matters within its jurisdiction 22
or could impair or adversely impact the operational security of applicants or 23
licensees. 24
(8) Meetings of the corporation through its board of directors shall be open to the 25
public in accordance with KRS 61.800 to 61.850 unless the exceptions set forth in 26
KRS 61.810 apply or the meeting addresses trade secrets, confidential or 27 UNOFFICIAL COPY 25 RS BR 1220
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proprietary information, or operational security issues as described in subsection 1
(7)(c) of this section. If this is the case, the corporation may meet in closed session 2
and shall follow the procedures set forth in KRS 61.815. 3
(9) (a) The corporation is hereby authorized to accept and expend such moneys as 4
may be appropriated by the General Assembly or such moneys as may be 5
received from any source for effectuating its purposes, including without 6
limitation the payment of the initial expenses of administration and operation 7
of the corporation. 8
(b) After the transfer to the corporation of any funds appropriated in fiscal year 9
2024-2025 and fiscal year 2025-2026 for the administration of this chapter 10
and KRS Chapter 238, the corporation shall be self-sustaining and self-funded 11
and moneys in the state general fund shall not be used or obligated to pay the 12
expenses of the corporation. 13
(10) On July 1, 2024: 14
(a) The Kentucky Horse Racing and Gaming Corporation shall assume all 15
responsibilities of the Kentucky Horse Racing Commission; 16
(b) The Kentucky Horse Racing Commission shall be abolished and all 17
employees of the Kentucky Horse Racing Commission are transferred to the 18
corporation; and 19
(c) All personnel, equipment, and funding shall be transferred from the Kentucky 20
Horse Racing Commission to the Kentucky Horse Racing and Gaming 21
Corporation. 22
(11) On July 1, 2025: 23
(a) The office regulating charitable gaming in the Kentucky Horse Racing and 24
Gaming Corporation shall assume all responsibilities of the Department of 25
Charitable Gaming; 26
(b) The Department of Charitable Gaming shall be abolished and all employees 27 UNOFFICIAL COPY 25 RS BR 1220
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of the Department of Charitable Gaming are transferred to the corporation; 1
and 2
(c) All personnel, equipment, and funding shall be transferred from the 3
Department of Charitable Gaming to the Kentucky Horse Racing and Gaming 4
Corporation. 5
(12) Notwithstanding any other law to the contrary, nothing in this chapter shall 6
authorize the corporation to: 7
(a) Regulate or control horse sales; 8
(b) Require the licensure of horse breeders in their capacity as breeders; or 9
(c) Exercise jurisdiction over matters within the exclusive national authority of 10
entities designated by the laws of the United States of America. 11
Section 14. KRS 230.232 is amended to read as follows: 12
(1) The president of the Kentucky Horse Racing and Gaming Corporation shall 13
establish offices within the corporation. Each office shall have specific duties 14
assigned by the president. Topics addressed by the offices shall include but not be 15
limited to the following: 16
(a) Pari-mutuel wagering; 17
(b) Live horse racing; 18
(c) Breed development and integrity; 19
(d) Sports wagering; 20
(e) Fantasy contests; 21
(f) Licensing, compliance, and investigations; and 22
(g)[(f)] Charitable gaming. 23
(2) Each office shall be led by an office manager, and the president shall appoint the 24
manager of each office. 25
(3) Each office may propose the promulgation of administrative regulations related to 26
its area of jurisdiction, but the corporation shall have final authority to promulgate 27 UNOFFICIAL COPY 25 RS BR 1220
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administrative regulations under this chapter and on and after July 1, 2025, final 1
authority to promulgate administrative regulations under KRS Chapter 238. 2
Section 15. KRS 230.260 is amended to read as follows: 3
The corporation shall have all powers necessary and proper to carry out and effectuate the 4
purposes and provisions of this chapter on and after July 1, 2024, and the purposes and 5
provisions of KRS Chapter 238 on and after July 1, 2025, including but not limited to the 6
following: 7
(1) The corporation is vested with jurisdiction and supervision over all live horse 8
racing, pari-mutuel wagering, sports wagering, fantasy contests, breed integrity and 9
development, and on and after July 1, 2025, charitable gaming, except for lottery 10
games authorized under KRS Chapter 154A, in this Commonwealth and over all 11
associations and all persons on association grounds and may eject or exclude 12
therefrom or any part thereof, any person, licensed or unlicensed, whose conduct or 13
reputation is such that the person's presence on association grounds may, in the 14
opinion of the corporation, negatively reflect on the honesty and integrity of horse 15
racing, or on sporting events upon which sports wagers may be placed, or interfere 16
with the orderly conduct of horse racing or racing at horse race meetings, but no 17
persons shall be excluded or ejected from association grounds solely on the ground 18
of race, color, creed, national origin, ancestry, or sex; 19
(2) The corporation is vested with jurisdiction over any person or entity that offers 20
advance deposit account wagering to Kentucky residents. Any such person or entity 21
under the jurisdiction of the corporation shall be licensed by the corporation, and 22
the corporation may impose a license fee not to exceed ten thousand dollars 23
($10,000) annually. The corporation shall, by administrative regulation 24
promulgated in accordance with KRS Chapter 13A, establish conditions and 25
procedures for the licensing of advance deposit account wagering providers to 26
include but not be limited to: 27 UNOFFICIAL COPY 25 RS BR 1220
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(a) A fee schedule for applications for licensure; and 1
(b) Reporting requirements to include quarterly reporting on: 2
1. The amount wagered on Kentucky races; and 3
2. The total amount wagered by Kentuckians; 4
(3) The corporation is vested with jurisdiction over any totalisator company that 5
provides totalisator services to a racing association located in the Commonwealth. 6
A totalisator company under the jurisdiction of the corporation shall be licensed by 7
the corporation, regardless of whether a totalisator company is located in the 8
Commonwealth or operates from a location or locations outside of the 9
Commonwealth, and the corporation may impose a license fee on a totalisator 10
company. The corporation shall, by administrative regulation promulgated in 11
accordance with KRS Chapter 13A, establish conditions and procedures for the 12
licensing of totalisator companies, and a fee schedule for applications for licensure; 13
(4) The corporation is vested with jurisdiction over any manufacturer, wholesaler, 14
distributor, or vendor of any equine drug, medication, therapeutic substance, or 15
metabolic derivative which is purchased by or delivered to a licensee or other 16
person participating in Kentucky horse racing by means of the internet, mail 17
delivery, in-person delivery, or other means; 18
(5) The corporation is vested with jurisdiction over any horse training center or facility 19
in the Commonwealth that records official timed workouts for publication; 20
(6) The corporation may require an applicant for a license under subsection (2) or (3) of 21
this section to submit to a background check of the applicant, or of any individual 22
or organization associated with the applicant. An applicant shall be required to 23
reimburse the corporation for the cost of any background check conducted; 24
(7) The corporation, its representatives and employees, may visit, investigate, and have 25
free access to the office, track, facilities, or other places of business of any licensee, 26
or any person owning a horse or performing services regulated by this chapter on a 27 UNOFFICIAL COPY 25 RS BR 1220
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horse registered to participate in a breeders incentive fund under the jurisdiction of 1
the corporation; 2
(8) The corporation shall have full authority to prescribe necessary and reasonable 3
administrative regulations and conditions under which horse racing at a horse race 4
meeting shall be conducted in this state and to fix and regulate the minimum 5
amount of purses, stakes, or awards to be offered for the conduct of any horse race 6
meeting; 7
(9) Applications for licenses shall be made in the form and manner and contain 8
information as required by the corporation through the promulgation of 9
administrative regulations. Fees for all licenses issued under KRS 230.310 shall be 10
prescribed by and paid to the corporation; 11
(10) The corporation shall establish by administrative regulation minimum fees for 12
jockeys to be effective in the absence of a contract between an employing owner or 13
trainer and a jockey. The minimum fees shall be no less than those of July 1, 1985; 14
(11) The corporation may refuse to issue or renew a license, revoke or suspend a license, 15
impose probationary conditions on a license, issue a written reprimand or 16
admonishment, impose fines or penalties, deny purse money, require the forfeiture 17
of purse money, or any combination thereof with regard to a licensee or other 18
person participating in Kentucky horse racing for violation of any federal or state 19
statute, regulation, or steward's or corporation's directive, ruling, or order to 20
preserve the integrity of Kentucky horse racing or to protect the racing public. The 21
corporation shall, by administrative regulation, establish the criteria for taking the 22
actions described in this subsection; 23
(12) The corporation may issue subpoenas for the attendance of witnesses before it and 24
for the production of documents, records, papers, books, supplies, devices, 25
equipment, and all other instrumentalities related to live horse racing, pari-mutuel 26
wagering, sports wagering, fantasy contests, breed integrity and development, and 27 UNOFFICIAL COPY 25 RS BR 1220
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on and after July 1, 2025, charitable gaming, within the Commonwealth. The 1
corporation may administer oaths to witnesses and require witnesses to testify under 2
oath whenever, in the judgment of the corporation, it is necessary to do so for the 3
effectual discharge of its duties; 4
(13) The corporation shall have authority to compel any racing association licensed 5
under this chapter to file with the corporation at the end of its fiscal year, a balance 6
sheet, showing assets and liabilities, and an earnings statement, together with a list 7
of its stockholders or other persons holding a beneficial interest in the association; 8
(14) The corporation shall promulgate administrative regulations establishing safety 9
standards for jockeys, which shall include the use of rib protection equipment. Rib 10
protection equipment shall not be included in a jockey's weight; 11
(15) (a) The corporation shall promulgate administrative regulations establishing a 12
self-exclusion list for individuals who self-identify as being problem or 13
compulsive gamblers. 14
(b) Self-exclusion information collected by each racing association shall be 15
forwarded to the corporation, and the information from the racing associations 16
shall be compiled into a comprehensive list that shall be provided to all racing 17
associations. 18
(c) Pursuant to KRS 61.878(1)(a), information collected under this subsection 19
shall be excluded from the application of KRS 61.870 to 61.884; 20
(16) (a) The corporation shall promulgate administrative regulations to establish 21
standards for the conduct of sports wagering, including standards for 22
receiving and paying out wagers, offering sports wagering through a website 23
or mobile application, maintaining and auditing books and financial records, 24
securely maintaining records of bets and wagers, integrity requirements for 25
sports wagering and related data, suitability requirements for providers of 26
associated equipment, geofence standards for wager placement, designated 27 UNOFFICIAL COPY 25 RS BR 1220
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areas for sports wagering, surveillance and monitoring systems, and other 1
reasonable technical criteria related to conducting sports wagering. 2
(b) The corporation shall promulgate administrative regulations related to age 3
requirements for placing sports wagers, availability of information related to 4
sports wagers, and licensing requirements, including temporary 5
authorizations, for service providers, vendors, and suppliers; and 6
(17) (a) On and after July 1, 2025, the corporation is vested with jurisdiction and 7
supervision over all charitable gaming and shall promulgate administrative 8
regulations to establish standards for the conduct of charitable gaming 9
consistent with the guidelines established in this chapter and KRS Chapter 10
238. The corporation may eject or exclude therefrom or any part thereof, any 11
person, licensed or unlicensed, whose conduct or reputation is such that the 12
person's presence at a charitable gaming facility may, in the opinion of the 13
corporation, negatively reflect on the honesty and integrity of charitable 14
gaming, or interfere with the orderly conduct of charitable gaming at a 15
charitable gaming facility, but no persons shall be excluded or ejected from a 16
charitable gaming facility solely on the ground of race, color, creed, national 17
origin, ancestry, or sex. 18
(b) The administrative regulations of the Kentucky Horse Racing Commission 19
that are in effect on July 1, 2024, shall remain in effect as the initial 20
administrative regulations of the corporation until the corporation amends or 21
repeals the administrative regulations pursuant to KRS Chapter 13A, except 22
as provided by KRS 13A.3102, 13A.3104, and 13A.330. 23
(c) The administrative regulations of the Department of Charitable Gaming that 24
are in effect on July 1, 2025, shall remain in effect as the initial administrative 25
regulations of the corporation until the corporation amends or repeals the 26
administrative regulations pursuant to KRS Chapter 13A, except as provided 27 UNOFFICIAL COPY 25 RS BR 1220
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by KRS 13A.3102, 13A.3104, and 13A.330. 1
Section 16. KRS 243.500 (Effective July 1, 2025) is amended to read as 2
follows: 3
Any license may be revoked or suspended for the following causes: 4
(1) Conviction of the licensee or the licensee's agent, servant, or employee for selling 5
any illegal alcoholic beverages on the licensed premises. 6
(2) Making any false, material statements in an application or renewal application for a 7
license or supplemental license. 8
(3) Conviction of the licensee or any of the licensee's agents, servants, or employees of: 9
(a) Two (2) violations of the terms and provisions of KRS Chapters 241 to 244, 10
or any act regulating the manufacture, sale, and transportation of alcoholic 11
beverages within two (2) consecutive years; 12
(b) Two (2) misdemeanors directly or indirectly attributable to the use of 13
alcoholic beverages within two (2) consecutive years; or 14
(c) Any felony. 15
(4) Failure or default of a licensee to pay an excise tax or any part of the tax or any 16
penalties imposed by or under the provisions of any statutes, ordinances, or Acts of 17
Congress relative to taxation, or for a violation of any related administrative 18
regulations promulgated by the Department of Revenue. 19
(5) Revocation of any license or permit provided in KRS 243.060, 243.070, 243.600, 20
and 243.610, or granted under any Act of Congress relative to the regulation of the 21
manufacture, sale, and transportation of alcoholic beverages. 22
(6) Setting up, conducting, operating, or keeping, on the licensed premises, any 23
gambling game, device, machine, contrivance, lottery, gift enterprise, handbook, or 24
facility for betting or transmitting bets on horse races; or permitting to be set up, 25
conducted, operated, kept, or engaged in, on the licensed premises, any gambling 26
game, device, machine, contrivance, lottery, gift enterprise, handbook, or facility. 27 UNOFFICIAL COPY 25 RS BR 1220
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This subsection shall not apply to: 1
(a) The sale of lottery tickets sold under the provisions of KRS Chapter 154A; 2
(b) The operation of a pari-mutuel system for betting, or the operation of sports 3
wagering, where authorized by law; 4
(c) The conduct of charitable gaming by a charitable organization licensed or 5
permitted under KRS Chapters 230 and 238;[ or] 6
(d) Special temporary raffles of alcoholic beverages under KRS 243.036; or 7
(e) The conduct of fantasy contests under KRS Chapter 230. 8
(7) Conviction of the licensee, the licensee's agents, servants, or employees for: 9
(a) The trafficking or possession upon the licensed premises of controlled or 10
illegal substances described in KRS Chapter 218A, including synthetic drugs; 11
(b) Knowingly permitting the trafficking or possession by patrons upon the 12
licensed premises of controlled or illegal substances described in KRS 13
Chapter 218A, including synthetic drugs; or 14
(c) Knowingly receiving stolen property upon the licensed premises. 15
(8) Failure to comply with the terms of a final order of the board. 16
Section 17. KRS 525.090 is amended to read as follows: 17
(1) A person is guilty of loitering when the person: 18
(a) Loiters or remains in a public place for the purpose of gambling with cards, 19
dice, or other gambling paraphernalia, except that the provisions of this 20
section shall not apply if the person is participating in charitable gaming 21
defined by KRS 238.505, or is engaged in sports wagering or fantasy contests 22
licensed under KRS Chapter 230; 23
(b) Loiters or remains in a public place for the purpose of unlawfully using a 24
controlled substance; 25
(c) Loiters or remains in or about a school, college, or university building or 26
grounds, not having any reason or relationship involving custody of or 27 UNOFFICIAL COPY 25 RS BR 1220
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responsibility for a pupil or student or any other specific legitimate reason for 1
being there and not having written permission from anyone authorized to 2
grant the same; or 3
(d) Loiters or remains in any transportation facility, unless specifically authorized 4
to do so, for the purpose of soliciting or engaging in any business, trade, or 5
commercial transactions involving the sale of merchandise or services. 6
(2) Loitering is a violation. 7
Section 18. KRS 528.010 (Effective July 1, 2025) is amended to read as 8
follows: 9
The following definitions apply in this chapter unless the context otherwise requires: 10
(1) (a) "Advancing gambling activity" means[-- A person "advances gambling 11
activity" when, acting other than as a player, he or she engages in] conduct a 12
person engages in other than as a player that materially aids any form of 13
gambling activity not authorized under KRS Chapter 230. 14
(b) "Advancing gambling activity" includes[ The conduct shall include,] but is 15
not limited to[,] conduct directed toward the: 16
1. Establishment of the particular game, contest, scheme, device, or 17
activity involved;[ toward the ] 18
2. Acquisition or maintenance of premises, paraphernalia, equipment, or 19
apparatus therefor;[ toward the ] 20
3. Solicitation or inducement of persons to participate therein;[ toward the] 21
4. Actual conduct of the playing phases thereof; and[toward the ] 22
5. Arrangement of any of its financial or recording phases or toward any 23
other phase of its operation. 24
(c) A person who gambles at a social game of chance on equal terms with other 25
participants does not otherwise advance gambling activity by performing acts, 26
without remuneration or fee, directed toward the arrangement or facilitation of 27 UNOFFICIAL COPY 25 RS BR 1220
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the game, such as inviting persons to play, permitting the use of premises 1
therefor and supplying equipment used therein; 2
(2) "Bookmaking" means advancing gambling activity by unlawfully accepting bets 3
upon the outcome of future contingent events from members of the public as a 4
business not authorized under KRS Chapter 230; 5
(3) "Charitable gaming" means games of chance conducted by charitable organizations 6
licensed and regulated under the provisions of KRS Chapters 230 and 238; 7
(4) (a) "Coin-operated amusement machine" means a lawful machine or device that 8
requires the direct or indirect payment of consideration, including but not 9
limited to the insertion of a coin, currency, ticket, token, or similar object, or 10
the depositing of funds with the operator or owner of the device, and that 11
contains no material element of chance and automatically, by or through some 12
mechanical operation, affords music or amusement of some character with or 13
without vending any merchandise, but in addition to any merchandise. 14
(b) A coin-operated amusement machine shall not deliver or entitle the person 15
playing or operating the game to receive cash, cash equivalents, gift cards, or 16
vouchers, billets, tickets, tokens, electronic credits or any item that can be 17
exchanged for cash, cash equivalents, gift cards, merchandise, or something of 18
value, unless otherwise provided under this section. 19
(c) A coin-operated amusement machine may entitle the person playing to a 20
noncash, merchandise prize or a voucher, billet, ticket, token, or electronic 21
credit redeemable only for a noncash, merchandise prize under the following 22
rules: 23
1. The wholesale value of a merchandise prize awarded as a result of the 24
single play of a machine, either directly or as a result of redemption of a 25
redeemable voucher, does not exceed twenty-five dollars ($25); 26
2. Redeemable vouchers are not redeemable for any merchandise prize that 27 UNOFFICIAL COPY 25 RS BR 1220
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has a wholesale value of more than twenty-five dollars ($25) times the 1
fewest number of single plays necessary to accrue the redeemable 2
vouchers required to obtain that prize; and 3
3. Any redeemable vouchers or merchandise prizes are distributed at the 4
site of the coin-operated amusement machine at the time of play. 5
(d) The noncash merchandise prize shall not be: 6
1. An alcoholic beverage; 7
2. Eligible for purchase or repurchase; or 8
3. Exchangeable for any cash, cash equivalents, or something of value 9
whatsoever; 10
(5) (a) "E-sports competition" means a league, competitive circuit, tournament, or 11
similar competition in which: 12
1. Two (2) or more participants or teams of participants compete directly 13
against each other for entertainment and prizes in the same video game 14
at the same time, typically for spectators; 15
2. Results are determined solely on the basis of the skill of the players; 16
3. The number of participants is fixed before the beginning of the 17
competition; 18
4. Any fee collected to participate in the competition shall be collected 19
from all participants before the competition begins; 20
5. At least one (1) participant shall receive something of value based on the 21
results of the competition; and 22
6. The value of any prize shall be predetermined before the competition 23
begins. 24
(b) E-sports shall not include traditional casino games which include but are not 25
limited to poker, roulette, craps, or blackjack; 26
(6) (a) "Gambling" means staking or risking something of value upon the outcome of 27 UNOFFICIAL COPY 25 RS BR 1220
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a contest, game, gaming scheme, or gaming device which is based upon an 1
element of chance, in accord with an agreement or understanding that 2
someone will receive something of value in the event of a certain outcome. 3
"Gambling" includes playing or offering for play any game, contest, or 4
competition utilizing a gambling device. 5
(b) "Gambling" does not include: 6
1. A contest or game in which eligibility to participate is determined by 7
chance and the ultimate winner is determined by skill; 8
2. Charitable gaming which is licensed and regulated under the provisions 9
of KRS Chapter 238; 10
3. E-sports competitions; 11
4. Skill-based contests;[ or] 12
5. The use or operation of any devices or machines that are described in 13
subsection (7)(b) of this section; or 14
6. Fantasy contests regulated under KRS Chapter 230; 15
(7) (a) "Gambling device" means: 16
1. Any so-called slot machine or any other machine or mechanical device 17
which when operated may deliver, as a result of the application of any 18
element of chance, any money or property, or by the operation of which 19
a person may become entitled to receive, as the result of the application 20
of any element of chance, any money or property; 21
2. Any mechanical or electronic device permanently located in a business 22
establishment, including a private club, that is offered or made available 23
to a person to play or participate in a simulated gambling program in 24
return for direct or indirect consideration, including but not limited to 25
consideration paid for internet access or computer time, or a 26
sweepstakes entry, which when operated may deliver as a result of the 27 UNOFFICIAL COPY 25 RS BR 1220
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application of any element of chance, regardless of whether the result is 1
also partially or predominantly based on skill, any money or property, or 2
by the operation of which a person may become entitled to receive, as 3
the result of the application of any element of chance, regardless of 4
whether the result is also partially or predominantly based on skill, any 5
money or property; 6
3. Any other machine or any mechanical, electronic, or other device, 7
including but not limited to roulette wheels, gambling tables and similar 8
devices, designed and manufactured primarily for use in connection with 9
gambling and which when operated may deliver, as the result of the 10
application of any element of chance, any money or property, or by the 11
operation of which a person may become entitled to receive, as the 12
result of the application of any element of chance, any money or 13
property; or 14
4. Any electronic, computerized, or mechanical contrivance, terminal, 15
machine, or other device that: 16
a. Requires the direct or indirect payment of consideration which 17
may include and shall not be limited to the insertion of a coin, 18
currency, ticket, token, or similar object, or by depositing funds 19
with the operator or owner of the device, to operate, play, or 20
activate a game; and 21
b. Offers games the outcomes of which are determined by any 22
element of skill of the player and may deliver or entitle the person 23
playing or operating the device to receive cash, cash equivalents, 24
or gift cards or vouchers, billets, tickets, tokens, or electronic 25
credits to be exchanged for cash or to receive merchandise or 26
something of value, whether the payoff is made automatically 27 UNOFFICIAL COPY 25 RS BR 1220
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from the device or manually. 1
(b) The following shall not be considered gambling devices within this definition: 2
1. Devices dispensing or selling combination or French pools on licensed, 3
regular racetracks during races on said tracks; 4
2. Devices dispensing or selling combination or French pools on historical 5
races at licensed, regular racetracks as lawfully authorized by the 6
Kentucky Horse Racing and Gaming Corporation; 7
3. Electro-mechanical pinball machines specially designed, constructed, set 8
up, and kept to be played for amusement only. Any pinball machine 9
shall be made to receive and react only to the deposit of coins during the 10
course of a game. The ultimate and only award given directly or 11
indirectly to any player for the attainment of a winning score or 12
combination on any pinball machine shall be the right to play one (1) or 13
more additional games immediately on the same device at no further 14
cost. The maximum number of free games that can be won, registered, 15
or accumulated at one (1) time in operation of any pinball machine shall 16
not exceed thirty (30) free games. Any pinball machine shall be made to 17
discharge accumulated free games only by reactivating the playing 18
mechanism once for each game released. Any pinball machine shall be 19
made and kept with no meter or system to preserve a record of free 20
games played, awarded, or discharged. Nonetheless, a pinball machine 21
shall be a gambling device if a person gives or promises to give money, 22
tokens, merchandise, premiums, or property of any kind for scores, 23
combinations, or free games obtained in playing the pinball machine in 24
which the person has an interest as owner, operator, keeper, or 25
otherwise; 26
4. Devices used in the conduct of charitable gaming; 27 UNOFFICIAL COPY 25 RS BR 1220
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5. Coin-operated amusement machines; 1
6. Devices used for wagering exempted from the application of this chapter 2
pursuant to KRS 436.480; 3
7. Devices used in e-sports competitions; or 4
8. Devices used in skill-based contests, provided such devices do not meet 5
the definition of gambling devices in paragraph (a) of this subsection; 6
(8) "Lottery and gift enterprise" means: 7
(a) A gambling scheme in which: 8
1. The players pay or agree to pay something of value for chances, 9
represented and differentiated by numbers or by combinations of 10
numbers or by some other media, one (1) or more of which are to be 11
designated the winning ones; 12
2. The ultimate winner is to be determined by a drawing or by some other 13
method based upon the element of chance; and 14
3. The holders of the winning chances are to receive something of value; 15
and 16
(b) A gift enterprise or referral sales plan which meets the elements of a lottery 17
listed in paragraph (a) of this subsection is to be considered a lottery under 18
this chapter; 19
(9) "Mutuel" or "the numbers games" means a form of lottery in which the winning 20
chances or plays are not determined upon the basis of a drawing or other act on the 21
part of persons conducting or connected with the scheme, but upon the basis of the 22
outcome or outcomes of a future contingent event or events otherwise unrelated to 23
the particular scheme; 24
(10) "Player" means a person who engages in any form of gambling solely as a 25
contestant or bettor, without receiving or becoming entitled to receive any profit 26
therefrom other than personal gambling winnings, and without otherwise rendering 27 UNOFFICIAL COPY 25 RS BR 1220
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any material assistance to the establishment, conduct, or operation of the particular 1
gambling activity. A person who engages in "bookmaking" as defined in subsection 2
(2) of this section is not a "player." The status of a "player" shall be a defense to any 3
prosecution under this chapter; 4
(11) "Profiting from gambling activity" means[-- A person "profits from gambling 5
activity"] when, other than as a player, a person[he or she] accepts or receives or 6
agrees to accept or receive money or other property pursuant to an agreement or 7
understanding with any other person whereby the person[he or she] participates or 8
is to participate in the proceeds of gambling activity not authorized under KRS 9
Chapter 230; 10
(12) "Simulated gambling program" means any method intended to be used by a person 11
playing, participating, or interacting with an electronic device that may, through the 12
application of any element of chance, either deliver money or property or an 13
entitlement to receive money or property; 14
(13) "Skill" means the knowledge, dexterity, or any other ability or expertise of a natural 15
person; 16
(14) "Skill-based contest" means a live, in-person competitive event among two (2) or 17
more individuals or teams of individuals in which the ultimate winner is determined 18
by skill and the competitive event does not utilize a gambling device; and 19
(15) (a) "Something of value" means any money or property, any token, object, or 20
article exchangeable for money or property, or any form of credit or promise 21
directly or indirectly contemplating transfer of money or property or of any 22
interest therein, or involving extension of a service, entertainment, or a 23
privilege of playing at a game or scheme without charge. 24
(b) "Something of value" does not include the award of a free, extended, or 25
continuous play which is awarded as a prize for playing a game or scheme for 26
a charge. 27 UNOFFICIAL COPY 25 RS BR 1220
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Section 19. KRS 528.070 is amended to read as follows: 1
(1) A person is guilty of permitting gambling when, having possession or control of 2
premises which he or she knows are being used to advance gambling activity that is 3
not licensed under KRS Chapter 230, he or she fails to halt or abate or attempt to 4
halt or abate such use within a reasonable period of time. 5
(2) Permitting gambling is a Class B misdemeanor. 6
Section 20. KRS 68.182 is amended to read as follows: 7
(1) Occupational license fees levied under KRS 67.083, 68.180, and 68.197 by the 8
fiscal court of a county, consolidated local government, urban-county government, 9
charter county government, or unified local government may apply to racetrack 10
extensions. 11
(2) As used in this section: 12
(a) "Historical horse race" has the same meaning as in KRS 138.511; and 13
(b) 1. "Racetrack extension" means any facility: 14
a. Owned, leased, or purchased by an association licensed by the 15
Kentucky Horse Racing and Gaming Corporation under KRS 16
230.300; 17
b. That meets the definition of "track" under KRS 18
230.210(41)[(35)](c); and 19
c. Where pari-mutuel wagering on historical horse races is conducted 20
on terminals approved by the Kentucky Horse Racing and Gaming 21
Corporation. 22
2. "Racetrack extension" does not include a facility or real property used 23
for training horses or at which live horse races are run for stakes, purses, 24
or prizes under the jurisdiction of the Kentucky Horse Racing and 25
Gaming Corporation. 26
Section 21. KRS 91.202 is amended to read as follows: 27 UNOFFICIAL COPY 25 RS BR 1220
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(1) Occupational license fees levied under KRS 91.200 by the legislative body of a city 1
of the first class may apply to racetrack extensions. 2
(2) As used in this section: 3
(a) "Historical horse race" has the same meaning as in KRS 138.511; and 4
(b) 1. "Racetrack extension" means any facility: 5
a. Owned, leased, or purchased by an association licensed by the 6
Kentucky Horse Racing and Gaming Corporation under KRS 7
230.300; 8
b. That meets the definition of "track" under KRS 9
230.210(41)[(35)](c); and 10
c. Where pari-mutuel wagering on historical horse races is conducted 11
on terminals approved by the Kentucky Horse Racing and Gaming 12
Corporation. 13
2. "Racetrack extension" does not include a facility or real property used 14
for training horses or at which live horse races are run for stakes, purses, 15
or prizes under the jurisdiction of the Kentucky Horse Racing and 16
Gaming Corporation. 17
Section 22. KRS 92.282 is amended to read as follows: 18
(1) Occupational license fees levied under KRS 92.281 by the legislative body of a city 19
may apply to racetrack extensions. 20
(2) As used in this section: 21
(a) "Historical horse race" has the same meaning as in KRS 138.511; and 22
(b) 1. "Racetrack extension" means any facility: 23
a. Owned, leased, or purchased by an association licensed by the 24
Kentucky Horse Racing and Gaming Corporation under KRS 25
230.300; 26
b. That meets the definition of "track" under KRS 27 UNOFFICIAL COPY 25 RS BR 1220
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230.210(41)[(35)](c); and 1
c. Where pari-mutuel wagering on historical horse races is conducted 2
on terminals approved by the Kentucky Horse Racing and Gaming 3
Corporation. 4
2. "Racetrack extension" does not include a facility or real property used 5
for training horses or at which live horse races are run for stakes, purses, 6
or prizes under the jurisdiction of the Kentucky Horse Racing and 7
Gaming Corporation. 8
Section 23. This Act takes effect July 1, 2025. 9
Section 24. This Act may be cited as the Fantasy Sports Consumer Protection 10
Act. 11