Kentucky General Assembly Introduces HB 904 to Expand State Gaming Oversight
Kentucky lawmakers have introduced House Bill 904, the Wagering Consumer Protection Act, proposing expanded oversight across multiple gaming verticals, including fantasy contests, fixed-odds horse racing wagering, sports betting, and charitable gaming.
The bill was referred to the House Committee on Committees on March 4, 2026.The proposed legislation would grant the Kentucky Horse Racing and Gaming Corporation expanded authority to regulate fantasy contest operators and fixed-odds wagering on horse racing, while introducing stricter compliance standards for operators.
Fantasy Contest Regulation
The bill would place fantasy contest operators under the regulatory authority of the Kentucky Horse Racing and Gaming Corporation and establish licensing and operational safeguards.
Operators would be required to implement geolocation technology to verify player location and adopt procedures designed to prevent fraud, abuse, and money laundering. They would also need to notify regulators of confirmed breaches involving sports governing body rules, illegal activity, or conduct that could compromise the integrity of sporting events.
Fantasy contest operators would be subject to independent audits, and participants would be required to be at least 21 years old. Licenses would not be issued to individuals convicted of a felony, illegal gambling offense, theft, or fraud.
Operators would also be required to provide information on obtaining help for real-money gaming problems and ensure that individuals on the state’s self-exclusion list are not eligible to receive prizes.
Fixed-Odds Wagering and Horse Racing Changes
HB 904 also proposes regulatory measures governing fixed-odds wagering on live horse racing.
The bill would impose a 15% excise tax on adjusted gross revenue from fixed-odds wagers and establish a purse stabilization fund supported by wagering taxes and associated fees. Racetracks would be permitted to conduct fixed-odds wagering under the proposed framework.
Associations and tracks would also be required to update totalizator systems by April 1, 2027, and implement annual upgrades to technologies used for pari-mutuel wagering. In addition, wagering would need to be disabled simultaneously no later than the moment the starting gate opens for a race.
Sports Wagering and Prediction Markets
The legislation would increase the legal sports wagering age from 18 to 21.
It would also prohibit sports wagering licensees and service providers from offering proposition bets on individual athletes participating in collegiate sporting events.
The bill would also prohibit racetracks and racing associations from partnering with platforms offering event-contract prediction markets.
Technology and Compliance Requirements
To modernize racing wagering systems, racetracks would be required to upgrade their totalizator technology by April 2027 and maintain annual updates to wagering systems linked to pari-mutuel betting.
Tracks would also be required to disable wagering simultaneously at the moment a race begins, ensuring wagering integrity across platforms.
Charitable Gaming and Enforcement
HB 904 introduces several changes to charitable gaming regulation in the state.
Licensing fees for manufacturers and distributors would increase from $1,000 to $5,000, while charitable organization licensing fees would rise from $300 to $1,000. The maximum prize limit for an individual charity game ticket would increase from $599 to $1,499, and administrative fines for violations would increase to $5,000.
The legislation would grant the Attorney General concurrent jurisdiction to enforce gaming laws alongside local prosecutors. The Kentucky Horse Racing and Gaming Corporation would also be authorized to investigate violations and access premises where licensed charitable gaming activities are conducted.
Source: Kentucky General Assembly
