FLORENCE, Ky. — When sports betting became legal in Kentucky last September, the state projected it to generate more than $20 million in tax revenue. In the first four months of legal sports betting in the commonwealth, revenue is already far outpacing projections.

What You Need To Know

  • The Kentucky Horse Racing Commission released sports betting handle and revenue data from November and December

  • Tax revenue generated for the state was $15,545,112

  • Some of the betting options on apps, like same-game parlays, could be why betting numbers are exceeding expectations

  • The president of the Kentucky Council on Problem Gambling said the number of calls to Kentucky's problem gambling hotline have continued to go up and up

The Kentucky Horse Racing Commission released sports betting handle and revenue data from November and December. The data gives a picture of Kentucky’s first four months of legalized sports betting.

The total amount wagered by bettors was $892,370,162. Revenue for operators was $110,199,075, and tax revenue generated for the state was $15,545,112.

The state initially projected $23 million in tax revenue for a full year.

“I think it’s going to be a net positive for Kentucky. I think there’s going to be more money now for the public pension system to help pay that down, which in turn will help the state free up money for other services that it needs elsewhere,” said Steve Bittenbender, a writer and analyst for BetKentucky.com.

A vast majority of bets are being placed online. Some of the betting options on apps, like same-game parlays, could be why betting numbers are exceeding expectations.

“You’ve got to go three out of three, or four out of four, in order to win that bet. So that’s why we’re seeing operator revenues higher, and as a result, we’re seeing state tax revenues higher as well,” Bittenbender said.

There are also potential issues that arise. Dr. RonSonlyn Clark, President of the Kentucky Council on Problem Gambling, said the number of calls to Kentucky’s problem gambling hotline have continued to go up and up. And the state only has a handful of certified counselors like her.

“If you’re betting some of these crazy bets, they’re going to start — AI’s going to know that — and start sending you even more crazy bets,” Clark said. “Bets can be placed in real time in the game while it’s going on. And you get immediate results. What more kinds of things does someone who has an addictive personality like but instant gratification?”

On the positive side, legalized betting has allowed the state to fund a problem gaming education program, which is something it never had before.

Kentuckians previously were traveling to neighboring states to place bets.

“So this was picking up a missed opportunity here,” Bittenbender said.

He said even after the initial hype dies down, he thinks betting will continue to grow in Kentucky.

Kentucky currently has seven sports betting operators. Bittenbender said he can see that growing to 12 or 13 in the future.

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