Kentucky HB 904 Heads to Governor for Final Approval

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Mon Apr 06, 2026, 7:00 am ET

Read Time: 4 minutes

Kentucky HB 904 Heads to Governor for Final Approval

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Kentucky lawmakers have sent House Bill 904 (HB 904), one of the most sweeping gaming reform bills in state history to the governor's desk. It now awaits final approval, marking a pivotal moment for Kentucky gambling and the broader regulatory landscape affecting US online sportsbooks.

The legislation introduces wide-ranging changes to sports betting, fantasy sports, and horse racing wagering. It also addresses emerging concerns around prediction markets and consumer protections. If signed into law, HB 904 will significantly reshape how operators and players engage with regulated gaming in the state.

Kentucky Legislature Advances HB 904 After Chaotic Session

Lawmakers pushed HB 904 through the Kentucky Legislature following an intense and chaotic session on April 1, 2026. The Senate debate stretched nearly 14 hours, reflecting deep divisions over the bill's scope and consequences.

One major sticking point involved Churchill Downs. Several senators questioned whether the bill's strict "service provider" language could unintentionally block the Kentucky Derby from airing on national networks. 

Concerns centered on channels like CNN or CNBC that may run advertisements tied to prediction markets. Although bill sponsors downplayed the risk, uncertainty led several Louisville-area lawmakers to oppose the measure.

Procedural issues further complicated the process. The Senate initially passed the bill with an out-of-order amendment that would have banned credit card deposits for gambling. 

Lawmakers quickly identified the error and held a second vote the same night. During that vote, they removed the amendment and passed a clean version of the bill.

Timing also played a critical role. Legislators rushed to finalize HB 904 before the session's end. This strategy ensures they can override a potential veto if necessary. The urgency highlights how important the bill has become for the state's evolving gaming framework.

Key Legislative Changes Under HB 904

HB 904 introduces several major reforms that directly impact operators and consumers:

  • Age Limits: The legal age for sports betting will rise from 18 to 21. However, daily fantasy sports will remain accessible at 18.
  • College Sports Restrictions: The bill bans negative prop bets on in-state college athletes. For example, users cannot wager on a player failing to meet a statistic.
  • New Frameworks: Lawmakers established a formal licensing system for DFS operators, taxed at 12%. The bill also legalizes fixed-odds horse racing wagers. These wagers carry a 9.75% in-person tax and 14.25% online tax.
  • Child Support Enforcement: Operators must check users against a child support registry. Individuals with outstanding obligations will be denied accounts.

These measures aim to balance market growth with consumer protection and integrity safeguards.

HB 904 Takes a Narrower Approach to Prediction Markets

Initially, HB 904 included broader provisions targeting prediction markets. However, lawmakers ultimately narrowed the scope during negotiations.

The final version restricts licensed gaming operators from partnering with or offering prediction market products. This approach prevents overlap between regulated sportsbooks and emerging event-contract platforms. At the same time, it leaves room for separate regulatory discussions in the future.

Notably, the legislation still outlines a 14.25% tax rate on certain prediction market activity, creating a unique contradiction. While the bill limits operator involvement, it simultaneously establishes a taxation framework for those markets. This detail reflects ongoing uncertainty about how Kentucky will ultimately regulate the sector.

Final Step: Governor Andy Beshear's Decision

HB 904 now heads to Andy Beshear for final approval. Governor Beshear has generally taken a pragmatic and pro-gambling stance, especially regarding regulated sports betting expansion.

His administration supported the launch of legal sports wagering in Kentucky. Therefore, many observers expect him to view HB 904 as a continuation of that framework.

If he signs the bill, Kentucky will implement one of the most comprehensive gaming updates in recent years. If he vetoes it, lawmakers appear prepared to act quickly.

Importantly, Kentucky law also includes a "default" pathway. If the governor takes no action within 10 days, excluding Sundays, the bill automatically becomes law. This provision gives HB 904 a third route to enactment, even without a formal signature.

Either way, HB 904 represents a defining moment for Kentucky gambling and the future of US online sportsbooks operating in the state.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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