• Year Kentucky Regulated Gambling: Horseracing (1783), Lottery (1988), Historical Racing (2010)
• Estimated Tax Revenue from Gambling: unknown
• Estimated Gambling Revenue: unknown
• Kentucky Gambling Age: 18
• Smoking ban: Kentucky does not have a smoking ban
• Kentucky Online gambling: Off-track betting

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Kentucky is considered the home of horse racing in the U.S. The Kentucky Derby, one of the best-known horse races in the world, is hosted at Churchill Downs in the state. Kentucky was home to the first known horse race in the country in 1783. The state has always accepted that its residents and tourists visit Bluegrass Country to take in the races and wager a few dollars.

While gambling on horses has always been embraced, it has not been quick to expand into Kentucky casinos. There is a state lottery in Kentucky. Instant racing, which are slot machines that display winning symbols based on past races, started appearing at racetracks earlier this decade. Kentucky racetracks may also offer off-track betting. Charities can offer games of chance with limited prizes and a number of events.

Paying Gambling Taxes in Kentucky

OnlineUnitedStatesCasinos has gathered everything you need to know about paying taxes on your gambling winnings straight from a Certified Public Accountant. Find out how you can report your gambling income to the IRS with our in-depth Gambling Taxes Guide. Learn which forms you have to fill out, how to report your winnings, as well as deduct losses.

Is There A Casino In Lexington Kentucky

Kentucky Casinos Map & Guide of Racetracks

• Ellis Park – Henderson
• Red Mile – Lexington

• Number of B&M Casinos: 0
• Number of Poker Rooms: 0
• Number of Indian Casinos: 0

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Types of Kentucky Online Gambling

The only form of legal Kentucky online gambling is off-track betting on horses. These wagers may be placed on websites and apps belonging to companies like TVG, Twinspires, and BetAmerica. TwinSpires is based in Kentucky. It is owned by Churchill Downs.

Daily fantasy sites claim legality under Kentucky’s skill gaming laws. While the state attorney general and its legislature have not addressed daily fantasy sports, some sour gamblers have filed lawsuits against the companies in an attempt to recover losses through qui tam laws. These cases are still in the court system.

Online poker, casino, and sports betting sites are not legal in Kentucky. The state has filed its own qui tam lawsuits to recover losses for the state’s residents. One judgment against PokerStars compelled the site to pay Kentucky $870 million. That case is under appeal. The state also filed a lawsuit in an attempt to seize 141 domain names from gambling sites.

Types of Live Kentucky Gambling

• Slots: No
• Blackjack: No
• Poker: No
• Craps/Roulette: No
• Horses: Yes
• Lottery: Yes

There are three types of live Kentucky gambling available to residents. A state lottery sells scratch-off and lotto tickets. This includes interstate drawings. Popular games include Lucky for Life, Pick 3, Pick 4, 5 Card Cash, Powerball, and Mega Millions.

There are six Kentucky racetracks. All offer horse tracks. Greyhound racing is not legal in Kentucky. All six tracks offer off-track betting on horses.

Kentucky Downs, Ellis Park, and Red Mile offer a controversial form of gambling that is working its way through the court system. These two tracks offer instant racing machines. These devices are programmed with thousands of past horse races. Players put cash into the machine and make a wager. The machine pulls one of these historical races and displays the reels on the device to match a payout similar to what the event would have paid. These are described as historical racing machines. Some consider them to be slot machines because that is exactly how they look and feel. The only difference is how the position of the reels is determined.

There are currently no Kentucky casinos operating at the moment. There is legislation that racetracks are trying to pass so that they can legally offer more popular electronic casino games, like electronic blackjack and roulette. We may see the racetracks and Kentucky casinos legislation combine and form “racinos” that are already popular in other states.

Kentucky Gambling Laws

Kentucky gambling laws define gambling as,

“staking or risking something of value on the outcome of a contest, game, gaming scheme, or gaming device which is based upon an element of chance, in accord with an agreement or understanding that someone will receive something of value in the event of a certain outcome.”

It only exempts the state lottery, horse racing, and arguably, instant racing machines. Charities may operate bingo games and raffles.

Promoting gambling is a Class A misdemeanor or Class D felony, depending on the charges. The minimum gambling age in Kentucky is 18 years for lottery, racing, and instant racing bettors.

Where to Gamble in Kentucky

There are more than 1,000 lottery retailers in Kentucky. There are also dozens of charitable organizations that offer bingo and similar games to raise funds for nonprofit operations.

Outside of these options, there are only six Kentucky racetracks to gamble at. You might consider these racetracks to be Kentucky casinos, as they already have permission to offer racing machines, which are very similar to slot machines. This may be the start of new Kentucky gambling legislation.

You can look for the specific racetrack you want to wager at on our Kentucky casinos map and guide located above.

History of Kentucky Gambling

Horse racing dates back to 1783 in Kentucky. That is nine years before it became a state. The first organized racing venue was created in Louisville. It was called Elm Tree Gardens. Racing spread to Lexington in 1787 where horses competed in The Commons. Churchill Downs, home of the Kentucky Derby, opened in 1883.

Kentucky did not regulate horse racing like it does today in its early years. It was simply impossible to control pari-mutuel pools and organize the tracks and horses centuries ago. It took until the early 1900’s for the Kentucky Horse Racing Commission to be created. Tracks have come and gone over the years. There are five in operation today. This makes Kentucky one of the most thriving states when it comes to horseracing.

The first legal lottery in Kentucky was held in 1792. It occurred in an attempt to fundraise for a church in Lexington. The Kentucky Lottery that exists today was created through a November 1988 constitutional referendum. The first ticket was sold in April 1989. The Kentucky Lottery sells scratch-off and lotto tickets.

The Kentucky Horse Racing Commission modified its regulations to permit instant racing machines in 2010. These games mimic slot machines. The devices display slot symbols in a pattern to show the payout of a horse race based in the past. The exact race is never known. The Kentucky Supreme Court ruled that the racing commission had the authority to legalize these games. Anti-gambling groups are still fighting instant racing in the courts. Kentucky Downs, Ellis Park, and Red Mile offer instant racing, and can be considered to be the only Kentucky casinos operating today.

Kentucky has been the home of two disputes with offshore online gambling sites. In 2008, Kentucky Gov. Steve Beshear’s office initiated a lawsuit in an attempt to seize 141 domain names related to gambling. Major sites were included in the list. Big names like PokerStars, Full Tilt Poker, Absolute Poker, DoylesRoom and Cake Poker were among them. The case dragged out until 2014 when a state appeals court essentially quashed it. This case was the beginning of offshore gaming sites moving to domains that do not use the .com extension. Kentucky received a small settlement related to Black Friday due to this case before it ultimately failed.

Kentucky is also the venue where PokerStars was sued for $290 million for accepting players in the state. Government officials alleged that PokerStars operated illegally and should be compelled to pay the state for its residents’ gambling losses under qui tam laws. The alleged events occurred from 2006 to 2011.

These loss recovery laws permit anybody to recover illegal gambling losses if the loser does not act within six months. A lower court awarded the $290 million as well as treble damages, making the total judgment $870 million. The case is currently under appeal

PokerStars was owned by Rational Group at the time the lawsuit is based. It has since been acquired by Amaya Gaming. The new owners of PokerStars have vowed to fight the case or pursue the former owners if it ultimately loses the legal battle.

Kentucky Casinos & Gambling FAQ

Yes. Kentucky is considered the home of the horse racing industry in the country.

Yes. There are six race books in Kentucky.

The only form of online betting legal in Kentucky is off-track horse racing.

No, only horse racing.

No, the closest thing to casinos in the state is instant racing machines. There are casinos in West Virginia, Ohio, Indiana and Illinois.

The minimum Kentucky gambling age is 18 years for all legal forms of gambling, including lottery and racing bets.

Yes, the Kentucky Lottery sells scratch-off and lotto tickets.

Lottery sales are not permitted over the Internet.

None of these types of websites are licensed to operate in Kentucky.

There is currently a court battle over alleged illegal online gambling where a lower court ruled PokerStars owes Kentucky $870 million. It is currently under appeal.

Introduction to Kentucky Slot Machine Casino Gambling in 2020

Kentucky slot machine casino gambling does not include games of chance, which are strictly illegal. Instead, Kentucky has competition-based electronic gaming machines at four out of its five pari-mutuel wagering racetracks.

Theoretical payout limits are not available but monthly return statistics are available for electronic gaming machines.

This post continues my weekly State-By-State Slot Machine Casino Gambling Series, an online resource dedicated to guiding slot machine casino gambler to success. Now in its third year, each weekly post reviews slots gambling in a single U.S. state, territory, or federal district.

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Relevant Legal Statutes on Gambling in Kentucky*

The minimum legal gambling age in Kentucky depends upon the gambling activity:

• Land-Based Casinos: Not available
• Poker Rooms: Not available
• Bingo: 18
• Lottery: 18
• Pari-Mutuel Wagering: 18

Kentucky’s interpretation of legal gambling requires the competitor’s level of skill “must sufficiently govern the results.”

Therefore, competition-based games are legal as well as pari-mutuel wagering. Traditional slots are illegal, including those referred to as Class III, Vegas-style, and games-of-chance slot machines.

Kentucky has competition-based electronic games available in a few of their pari-mutuel facilities. These skill-based games are anonymously-based historical race results.

Historically, Kentucky has had a fascinating relationship with gambling. While casino gambling was never legal, gambling dens were prevalent before the Great Depression of 1929. To this day, the open display of illegal gambling from that time in American history continues to negatively affect the perception of gaming in Kentucky.

If you’re ever in Newport, directly across the Ohio River from Cincinnati, consider walking the Newport Gangster Tour.

*The purpose of this section is to inform the public of state gambling laws and how the laws might apply to various forms of gaming. It is not legal advice.

Slot Machine Private Ownership in Kentucky

In Kentucky, it is legal to own a slot machine privately.

Gaming Control Board in Kentucky

The Kentucky Horse Racing Commission (KHRC) regulates skill-based games at pari-mutual racetracks in the Commonwealth of Kentucky.

These devices are Historic Horse Racing (HHR) electronic gaming machines. The KHRC reports Kentucky offers 2,981 HHR machines.

Casinos in Kentucky

There are five pari-mutuel racetracks in the Commonwealth of Kentucky. Of these, only four sites offer skill-based HHR electronic gaming machines.

The largest casino in Kentucky is Derby City Gaming with 1,000 HHR gaming machines.

The second-largest casino is Red Mile Gaming & Racing, an HHR parlor in partnership with Keeneland Race Course, with 938 gaming machines.

Commercial Casinos in Kentucky

The four out of five of Kentucky’s pari-mutuel racetracks with skill-based HHR electronic gaming machines are:

1. Derby City Gaming in Louisville located 74 miles west of Lexington on the Indiana border.
2. Ellis Park Racing and Gaming in Henderson located 105 miles northwest of Bowling Green.
3. Kentucky Downs Gaming in Franklin located 29 miles south of Bowling Green.
4. Red Mile Gaming & Racing in Lexington.

Tribal Casinos in Kentucky

The Commonwealth of Kentucky has no federally-recognized American Indian tribes and, therefore, no tribal casinos.

Other Gambling Establishments

As an alternative to enjoying Kentucky slot machine casino gambling, consider exploring casino options in a nearby state. Bordering Kentucky is:

1. North: Indiana and Ohio Slots
2. East: West Virginia Slots
3. Southeast: Virginia Slots
4. South: Tennessee Slots
5. West: Missouri Slots

Each link above will take you to my blog for that neighboring U.S. state to Kentucky.

Our Kentucky Slots Facebook Group

Are you interested in sharing and learning with other slots enthusiasts in Kentucky? If so, join our new Kentucky slots community on Facebook. All you’ll need is a Facebook profile to join this closed Facebook Group freely.

There, you’ll be able to privately share your slots experiences as well as chat with players about slots gambling in Kentucky. Join us!

Payout Returns in Kentucky

The Commonwealth of Kentucky does not offer any theoretical payout limits for their competition-based HHR gaming machines.

The Kentucky Horse Racing Commission offers statistics for HHR gaming under Quick Links entitled Wagering on Historical Horse Races. Its December 2019 report indirectly offers actual return statistics including comparisons to past actuals.

To calculate a player’s win percentage from the report, divide Less: Return to Public by Total Handle. For December 2019, the monthly Player’s Win% for HHR machines were:

• State-wide: 91.5%
• Derby City: 90.9%
• Ellis Park: 93.9%
• Keeneland/Red Mile: 91.3%
• Kentucky Downs: 92.0%

From this December 2019 report, Ellis Park had the highest player win% at nearly 94% while Derby City had the lowest at nearly 91%.

Summary of Kentucky Slot Machine Casino Gambling in 2020

Kentucky slot machine casino gambling exists as competition-based, games-of-skill Historical Horse Racing (HHR) electronic gaming machines instead of games-of-chance slot machines.

No minimum or maximum theoretical payout limits have been set. Monthly return statistics are publicly available for each pari-mutuel racetrack with HHR games.

Annual Progress in Kentucky Slot Machine Casino Gambling

In the last year, Kentucky increased its HHR machines by 9% to 2,981 devices. However, the average daily handle for HHRs increased by 46%. For 2020 so far, it’s an amazing 59% increase compared to 2019.

Other State-By-State Articles from Professor Slots

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Is There A Casino Near Lexington Kentucky Airport

Have fun, be safe, and make good choices!
By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC