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Kentucky lawmakers scored a victory this past week when a bill to increase the state’s minimum gambling age, regulate fantasy sports and implement several other reforms cleared the House Licensing, Occupations and Administrative Regulations Committee.
House Bill 904 is sponsored by Republican Reps. Michael Meredith and Matthew Koch.
HB 904: Key changes for Kentucky bettors
The two most significant aspects of the bill are the proposal to raise Kentucky’s minimum gambling age from 18 to 21 and the formal regulation of fantasy sports.
Raising Kentucky’s minimum gambling age
Proponents argue that raising the age is a protective measure. According to corporate digital responsibility firm Digital Responsible Growth (dRG), bettors under 25 are at the highest risk for problem gambling.
“Responsible gambling studies have highlighted that those most at risk of gambling-related harm are those up to age 25,” dRG wrote in a post regarding the importance of minimum age requirements.
“Studies worldwide have concluded this, arguing that this is because of cognitive immaturities, less understanding of statistical probabilities, and [the fact that] young people and minors still do not have a fully developed executive function.”
Regulating fantasy sports
The bill also seeks to bring fantasy sports platforms under state oversight. Over the past several years, these platforms have seen massive growth through daily fantasy sports (DFS) contests that, in many ways, mirror traditional sports betting.
While DFS competes with sports betting, Kentucky lawmakers are particularly concerned that a lack of regulation means the state is missing out on significant tax revenue.
“Fantasy sports have been offered in Kentucky for a long time, but there’s never been a direct licensing statute or tax statute related to them,” Meredith said in a statement to The Lexington Times.
Banning prop bets on Kentucky college athletes
Proposition bets, or “prop bets,” have become a point of contention for the NCAA and sports betting operators. They are frequently linked to player harassment and collegiate betting scandals.
A federal investigation revealed earlier this year that more than 39 players at 17 Division I schools—including Southern Miss and Tulane—were involved in points-shaving schemes. These indictments led NCAA President Charlie Baker to call for a nationwide end to prop betting on individual college athletes.
“The Association has and will continue to aggressively pursue sports betting violations in college athletics … but we still need the remaining states, regulators and gaming companies to eliminate threats to integrity – such as collegiate prop bets – to better protect athletes and leagues from integrity risks and predatory bettors,” Baker wrote.
HB 904 would ban prop bets on Kentucky athletes, a move intended to reduce outside pressure on players to alter their performance to satisfy bettors.
