Kentucky lawmakers advance sweeping gambling overhaul with HB 904

LOUISVILLE, Ky. (WDRB) — A major shakeup of Kentucky’s gambling industry is moving through the legislature with a bill that would raise the betting age to 21, restrict how people can wager and tighten oversight across multiple forms of gaming.

House Bill 904, dubbed the “Wagering Consumer Protection Act,” would significantly expand oversight of legal gambling while introducing new limits on who can participate and how bets can be placed.

At its core, the legislation aims to bring multiple forms of gaming under a more unified regulatory system overseen by the Kentucky Horse Racing and Gaming Corporation, while adding new consumer protections and enforcement tools.

Raising the age and restricting bets

One of the most notable changes would raise the legal age for sports betting from 18 to 21.

The bill also targets how people bet on sports.

It would ban prop bets on individual college athletes competing for Kentucky teams, meaning wagers could no longer be placed on a player’s specific performance "if the successful outcome of the wager is contingent upon the athlete failing to meet a specified statistical threshold or experiencing a negative performance outcome."

A sportsbook could not offer a bet like:

“Will Player X score under 10 points tonight?”
“Will Player X have fewer than 5 rebounds?”
“Will the quarterback throw an interception?”

Those bets are based on an individual athlete failing to reach a stat or having a negative outcome, which the bill would ban.

Supporters said the move is intended to protect student-athletes from harassment and potential manipulation tied to individual performance betting.

New rules for fantasy sports

For the first time, the bill would formally regulate fantasy sports platforms like DraftKings and FanDuel. The fantasy sports element of those sportsbooks (daily player lineups and predictions) is a fast-growing industry that has largely operated in a legal gray area in Kentucky.

Operators would be required to obtain licenses, use geolocation technology, implement anti-fraud safeguards and undergo independent audits.

The measure also requires platforms to provide responsible gambling resources and prohibits payouts to users who have placed themselves on exclusion lists.

Crackdown on charitable gaming

The legislation also makes significant changes to charitable gaming operations across the state.

It would increase licensing fees, require more background checks, expand inspection authority and allow regulators to shut down operations suspected of misusing funds.

However, it raises the maximum prize for charitable gaming tickets from $599 to $1,499.

Some charitable organizations have voiced support, saying the bill creates clearer rules while allowing them to continue raising money for community services.

Fixed odds for horse racing bets

While tightening some rules, HB 904 would expand gambling in at least one area.

The bill legalizes fixed-odds wagering on horse racing. This is a system in which payouts are locked in at the time a bet is placed, rather than fluctuating like traditional pari-mutuel wagering.

Revenue from those wagers would be taxed and partially directed into a new “purse stabilization fund” designed to support Kentucky’s signature horse racing industry.

This language in the bill is getting pushback from the Family Foundation of Kentucky, which released a statement arguing that HB 904 represents another "unconstitutional expansion of predatory gambling, similar to HB 551 passed in 2023 that 'legalized' sports betting and SB 120 in 2021 that 'legalized' HHR slot machines, both legally dubious laws that expanded gambling without constitutional authorization."

"Anyone that says this bill doesn't expand gambling, all you have to do is read the bill," said David Walls, Executive Director of The Family Foundation.

The Family Foundation is urging lawmakers to strip this part of the bill. The biggest concern is that bettors wager against the house, not each other.

The group says that shift could open the door to broader gambling expansion in Kentucky and may even violate the state constitution.

"The Kentucky Supreme Court, the constitution have been very clear: further expansions of gambling will require a constitutional amendment," Walls pointed out. "We will continue to oppose efforts to expand gambling and certainly to do so in an unconstitutional manner."

While the Family Foundation supports raising the betting age to 21 and limiting some prop bets, leaders are calling on the Senate to remove the fixed-odds language entirely.

The bill passed the House 79-15 Thursday and is now in the hands of the Senate.

If approved, it would reshape not only how Kentuckians gamble, but who can participate and under what rules.