Kentucky lawmakers have introduced a new Bill that could reshape the state's legal gambling framework when it comes to sports betting.
Presented on March 4, 2026, House Bill 904 (HB 904), also known as the 'Wagering Consumer Protection Act', seeks sweeping changes across several core gambling products, with sports betting a particular target.
If passed, HB 904 would increase the minimum age limit for sports wagering from 18 to 21 – aligning the Bluegrass State with over 30 states that also carry a heightened age requirement.
The Bill currently sits in the House Committee on Committees, where it may be assigned for a hearing and later, a vote.
Legislators must act quickly to advance HB 904 before the 2026 legislative session ends on April 15. House debates, voting and a Senate review must take place ahead of that cut-off.
Sports betting age increase a key issue
When Kentucky legalized sports betting in March 2023, lawmakers decided to allow anyone aged 18 or older to place wagers at licensed sportsbooks. This minimum age requirement matched the existing limit for horse racing wagering, which has long stood at the heart of the state's gambling industry.
Further, HB 551 – the Bill that legalized sports betting – required all sportsbooks to partner with local racetracks. As handicappers were already familiar with horse racing wagers and could immediately access sports betting amenities at racetracks, legislators believed that a lower minimum age limit would benefit both players and the industry.
But, three years on from the debut of sports betting in Kentucky, the state of play has changed.
With sports betting now established in Kentucky's gambling scene, lawmakers want to decrease the impact of problem gambling on younger generations. It is believed that increasing the minimum age limit would soften youth exposure to gambling, potentially reducing gambling harm.
College prop bets banned
Recent controversies related to college prop bets have mounted pressure on states to restrict sportsbooks from offering markets based on player performance, such as yards gained or points scored.
Sporting integrity stands as a driving force behind this maneuver. Officials argue that college players – who are younger than those representing professional teams – are more likely to be targeted and manipulated by external pressure.
Kentucky lawmakers believe that by removing individual prop bets, players would be relieved of significant pressure from peers actively engaging in collegiate sports betting.
These factors also play into player safety concerns, following reports of post-game harassment via social media from individuals and groups whose bets had been negatively impacted by a player's output during a game.
If HB 904 is adopted as law, sportsbooks would still be permitted to provide standard game markets, including:
- Moneyline markets
- Point spreads
- Totals
Professional player props would also be unaffected, allowing online and retail sportsbooks to continue offering markets for player performance across the NFL, NBA, MLB, NHL and beyond.
Prediction platforms barred from racetracks
A provision to proactively weaken the growing influence of prediction platforms is also included in HB 904.
Operators like Kalshi and Polymarket have come under fire for offering sports event contracts across the US. Through HB 904, these 'trading' platforms would not be allowed to partner with state racetracks or affiliates.
The bill reads:
"A track or association that holds a license to conduct horse racing, sports wagering, or a licensee offering fantasy sports contests under this chapter or its affiliate shall not participate in or contract with platforms that offer events contracts through a prediction market or have a beneficial interest in the proceeds of prediction markets."
This is a clear effort to undermine the legitimacy of prediction platforms; by barring these 'trading' sites from entering contracts with local tracks, the Bill may somewhat curb the expansion of CFTC-regulated sports contract markets.
Kentucky DFS regulation on the horizon?
Until now, daily fantasy sports (DFS) contests in Kentucky have operated in a largely unregulated capacity.
Per the terms set out in HB 904, the Kentucky Horse Racing and Gaming Corporation would be charged with complete oversight for DFS operations.
Consequently, DFS operators would need to obtain a license, uphold state regulations and adhere to player safety commitments – lifting the market out of what had been something of a grey area.
The Bill also tasks DFS operators with implementing geolocation technology and anti-fraud protocols, as well as setting a minimum age limit of 21.
Horse racing to see fixed-odds markets
Given Kentucky's longstanding relationship with horse racing, it is only natural that HB 904 touches on certain wagering options.
Specifically, the motion builds on the types of racing markets available to handicappers by offering fixed-odds wagers. This would bring horse racing closer to traditional sports betting, where the odds taken by a player are locked regardless of future events.
By contrast, Kentucky currently exclusively utilizes a pari-mutuel wagering system, where all wagers contribute to a shared pool. Returns are determined based on the pool value, possibly resulting in reduced individual payouts.
These proposed changes are especially timely, with the 2026 Kentucky Derby set to begin on May 2.
Responsible gambling measures reinforced
This omnibus bill was devised by Rep. Michael Meredith and Matthew Koch. In a press release, both outlined plans to strengthen player safety for those betting in Kentucky.
"Our goal is to make sure consumers are protected and have access to the products they are demanding in the marketplace", explained Meredith.
Meanwhile, Koch pinpointed consumer protection and wagering integrity as the Bill's main pillars: "It is important that we ensure safeguards are in place to protect consumers and maintain the integrity of lawful wagering and charitable gaming.
"The Wagering Consumer Protection Act would build on the General Assembly's previous work to strengthen industry oversight and establish a regulatory framework that supports the long-term success of these industries."
HB 904 expands on existing responsible gambling measures by enforcing a mandatory list of all individuals who have opted-in to the state's self-exclusion program. Moreover, clear resources and gambling harm messaging must be made available to all who wager with regulated operators in Kentucky.
Lawmakers now have until mid-April to pass these wide-ranging amendments.
